Detailed Agenda Note - 31st GSTCM - Volume

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31st GST Council Meeting (22nd December 2018)
Table Agenda
Agenda Item 12: Any other agenda with the permission of the Chairperson
Agenda Item 12(v): Proposal for removal of differential rate of GST on lottery run by State
Government and lottery authorized by the State Government
Proposal Comments
Request to remove
differential rate of GST on
lottery i.e. between lottery
run by State government
and lottery authorized by
the State government

Reference: All India
Federation of Lottery
Trade & Allied Industries

1. At present two different rates of GST are being levied on lottery as follows: -
(1) GST@28% on Lottery authorized by State Governments
(2) GST@12% on Lottery run by State governments.

2. Representations on this rate structure have been received from few States and trade
for removing differential levy of GST on two categories of lotteries. At present
litigations are also pending before various courts on this issue. The request for
removing this differential treatment has been represented by trade on account of the
following: -

(i) There is only one type of State lottery i.e. the one which conforms to the provisions
of the section 4 of the Lotteries Regulations Act, 1998. Discrimination in GST rates
is leading to reduction of sales especially in major states of Maharashtra and
Punjab.
(ii) It is beyond comprehension as to how two different rates of GST can be fixed on
same product when sold in the state itself and when sold in the other states, which
is against the provisions of the Competitions Act, 2012. Discrimination does not
exist in any other category of products.
(iii) The huge variation of 16% between two rates help the larger states to exploit
customers fully as smaller states cannot compete with them. High differential rates
encourage non-compliance by small business.
3. Calcutta High Court in judgement dated 10.10.2018 in the case of Teesta
Distributor vs others has upheld the present rate structure. Even then, the product being
a sin / de-merit good, needs to be taxed at rates higher than 12%. The high differential
in tax also leads to malpractice of attempting to avail tax rate of 12% by mis-
representation.
4. Recommendation:
Differential levy of GST of 28% on lottery authorized by State Government and 12%
on lottery run by State Government may be rationalised by increasing GST of 12%
on lottery run by State Government.

Agenda-Item 12(v) Table Agenda GST on lottery Agenda for 31st GSTCM

31st GST Council Meeting (22nd December 2018)
Table Agenda
Agenda Item 12: Any other agenda item with the permission of the Chairperson
Agenda Item 12(iv): Proposal to increase the threshold exemption limit for supplier of Goods
(manufacturers and traders) under GST from existing turnover of Rs. 20 lakh to Rs. 75 lakh and
from Rs. 10 lakh to Rs. 20 lakh for Special Category States in a year
It is submitted that the manufacturers under MSME sector having turnover less than Rs. 1.5
crore per annum were not required to take registration in Central Excise. This was an optional scheme.
In GST, the threshold limit is Rs 20 lakh. For Special Category States (except Jammu & Kashmir), it is
Rs 10 lakh. However, as per the proposed CGST Law Amendment which are yet to be notified, the
threshold limit would be increased from Rs. 10 lakh to Rs. 20 lakh for 6 more Special Category States,
namely Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand. This
leaves 4 Special Category States, namely Manipur, Mizoram, Nagaland and Tripura with registration
threshold of Rs. 10 lakh. Any person above this threshold is required to take registration in the GST
regime. A composition scheme is available to supplier of goods (manufacturers and traders) having
turnover of Rs 1 Cr in a year. This limit may be increased to Rs 1.5 Cr on implementation of legislative
changes that have been incorporated in the respective GST Acts.
2. Various representations have been received from the MSME sector that in GST, their
compliance burden and tax incidence has increased significantly. Compliance by way of monthly/
quarterly return followed by Annual return is causing hardship to them. It has been argued that
compliance cost is not commensurate with the tax that they pay, and hence they may be given relief.
3. It appears that there is a case for increasing the registration threshold from the existing annual
turnover of Rs. 20 lakh for supplier of goods (manufacturers and traders). This is for the simple reason
that such small manufacturers were subject to simple compliance in VAT, while in Central Excise, they
had option not to register. As regards traders, their effective value addition may be around 5%-10%.
Thus, tax liability of a trader having annual turnover of Rs 75 lakh would be quite low while compliance
cost on account of return filing, maintaining requisite records and payments to tax consultants for the
purposes of GST appears to be high. As the threshold exemption would be availed only by such
taxpayers who are largely indulging in B2C intra-State sale, the tax implication of such concessions may
not be high. While the exact data about supplies made by small supplier of goods is not available, as per
a broad estimate, the total GST involved in B2C intra-State sale by taxpayers having annual turnover
upto Rs 75 lakh may be to the tune of about Rs 5000 crore in a year. Thus, increasing annual turnover
threshold for registration from Rs 20 lakh to Rs 75 lakh for supplier of goods may not have much
significant revenue implication while this concession would provide relief to a large number of
taxpayers. This will also free the resources of tax administration for optimal utilisation for compliance
verification of large taxpayers.
4. However, considering the taxpayer base of Special Category States, which consists largely of
small taxpayers, the annual turnover threshold of registration for the remaining four Special Category
States, namely Manipur, Mizoram, Nagaland and Tripura can also be increased to Rs. 20 lakh.
5. It may be mentioned that the suggestion to give rebate of 25% or 50% of CGST that has been
paid by manufacturers/traders up to annual turnover of Rs.1.5 Crore has also been received. However,
in this case, it will not be possible to limit such rebate only to manufacturers in the GST system. The
benefit will have to be given to all manufacturers as well as traders and in such cases, implementing
such scheme and building a rebate system into the GSTN system will require several months, and at the
Agenda-Item-12(iv) TableAgenda Proposal for Increase in Threshold Agenda for 31st GSTCM
same time, it will have a much higher outgo of revenue. Therefore, the suggestion of increasing the
annual turnover threshold limit of registration from Rs. 20 lakh to Rs. 75 lakh may be more beneficial
because it will have a much lesser revenue loss. More importantly, it will free a large number of supplier
of goods who are primarily doing supply to ultimate customer from the compliance burden which
involves filing of several returns in a year.
6. There is an apprehension that many of such suppliers will go out of the formal system. But this
issue will get addressed as the whole-seller is required to collect PAN details of every retailer with whom
he does a transaction of Rs. 50,000/- or more in cash or else the payments from such retailers will have
to be collected through banking channels.
7. The proposal to increase the threshold exemption limit for supplier of goods (manufacturers and
traders) from the existing turnover of Rs 20 lakh to Rs 75 lakh in a year and from Rs. 10 lakh to Rs. 20
lakh for the remaining 4 Special Category States (Manipur, Mizoram, Nagaland and Tripura), is placed
before the GST Council for consideration.
Agenda-Item-12(iv) TableAgenda Proposal for Increase in Threshold Agenda for 31st GSTCM

Confidential

Agenda for
31st GST Council Meeting

22nd December 2018

Volume – 3

Detailed Agenda Note Volume 3 Agenda for 31st GSTCM
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Detailed Agenda Note Volume 3 Agenda for 31st GSTCM
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File No: 800/31st GSTCM/GSTC/2018
GST Council Secretariat

Room No.275, North Block, New Delhi
Dated: 06th December, 2018

Notice for the 31st Meeting of the GST Council scheduled on 22nd December 2018
The undersigned is directed to refer to the subject cited above and to say that the 31st Meeting
of the GST Council will be held on 22nd December 2018 at Hall No 2-3, Vigyan Bhawan, New
Delhi. The schedule of the meeting is as follows:
• Saturday, 22nd December 2018 : 10:30 AM to 1:30 PM
2. In addition, an Officer’s Meeting will be held on 21st December 2018 at Hall No 2-3, Vigyan
Bhawan, New Delhi as follows:
• Friday, 21st December 2018 : 10:30 AM to 4:30 PM
3. The agenda items for the 31st Meeting of the GST Council will be communicated in due
course of time.
4. Please convey the invitation to the Hon’ble Members of the GST Council to attend the
Meeting.

-sd-
(Dr. Ajay Bhushan Pandey)
Secretary to the Govt. of India and ex-officio Secretary to the GST Council
Tel: 011 23092653

Copy to:
1. PS to the Hon’ble Minister of Finance, Government of India, North Block, New Delhi with the request
to brief Hon’ble Minister about the above said meeting.
2. PS to Hon’ble Minister of State (Finance), Government of India, North Block, New Delhi with the
request to brief Hon’ble Minister about the above said meeting.
3. The Chief Secretaries of all the State Governments, Delhi and Puducherry with the request to intimate
the Minister in charge of Finance/Taxation or any other Minister nominated by the State Government
as a Member of the GST Council about the above said meeting.
4. Chairperson, CBIC, North Block, New Delhi, as a permanent invitee to the proceedings of the
Council.
5. Chairman, GST Network

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Agenda Items for the 31st Meeting of the GST Council on 22nd December 2018
1. Confirmation of the Minutes of 30th GST Council Meeting held on 28 September, 2018
2. Deemed ratification by the GST Council of Notifications, Circulars and Orders issued by the
Central Government
3. Decisions of the GST Implementation Committee (GIC) for information of the Council
4. Decisions/recommendations of the IT Grievance Redressal Committee (ITGRC) for
information of the Council
5. Review of Revenue position
6. Issues recommended by the Fitment Committee for the consideration of the GST Council
7. Issues recommended by the Law Committee for the consideration of the GST Council
i. Extension of the due date for furnishing the statement in FORM GSTR-8 by electronic
commerce operator for the months of October, November and December, 2018
ii. Extension of last date for allowing migration of taxpayers who received Provisional
Identification Number (PID) till 31st December, 2017
iii. FAQ on Banking, Insurance and Stock Brokers Sector
iv. Amending SOP issued on TDS - Issues on furnishing of return in FORM GSTR-7 by
registered persons required to deduct tax at source under section 51 of the CGST Act for
period during which the deductor was not registered
v. Update on the implementation status of the issues referred to the Law Committee by the
GST Council
vi. Request for exemption from provisions relating to Tax Deduction at Source (TDS) in case
of taxable supplies between Government Authority to another Government Authority or to
PSU and vice versa
vii. Amendments to the CGST Rules, 2017
viii. IGST Rules for determination of Place of Supply
ix. Circular to clarify certain issues under GST
x. Circular to clarify denial of composition option by tax authorities and effective date thereof
xi. Clarification on refund related issues
xii. Clarification on export of services under GST
xiii. Requirement of submission of invoices for processing of refund claims of unutilised Input
Tax Credit (ITC) in FORM GST RFD-01A
xiv. Proposal for centralized Authority for Advance Ruling and centralized Appellate Authority
for Advance Ruling under GST
xv. Suggestions made for allowing quarterly payment by small taxpayers
xvi. Issuance of a Circular to clarify taxability of medicines and consumables supplied to in-
patients in hospitals during the course of treatment
xvii. Amendments to the CGST Rules, 2017, consequential to notifying the provisions of the
CGST (Amendment) Act, 2018, SGST (Amendment) Act, 2018 and IGST (Amendment)
Act, 2018
xviii. Proposal to extend the due date for availing ITC on the invoices or debit notes relating to
such invoices issued during the FY 2017-18 under section 16(4) of CGST Act, 2017 till the
due date for furnishing of return for the month upto March, 2019
xix. Extension of the due date for furnishing of annual returns in FORM GSTR-9, FORM
GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 –
2018
xx. Proposal for amendment of Section 50 of CGST Act, 2017 to allow payment of interest on
net cash liability
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xxi. Reduction in amount of late fees leviable on account of delayed furnishing of FORM
GSTR-1, FORM GSTR-3B and FORM GSTR-4 for the months/quarters from July, 2017
to September, 2018
xxii. Proposal to extend benefit of composition levy for small service providers
xxiii. Proposal to introduce the new return system on trial basis from 01.04.2019 and on
mandatory basis from 01.07.2019
xxiv. Single interface for disbursal of refund amounts
xxv. Rationalisation of cash ledgers in GST
8. Approval of modifications in Articles of Association (AOA) and Memorandum of Association
(MOA) of Goods and Services Tax Network (GSTN) based on decision of the GST Council to
convert it into a 100% Government-owned entity
9. Status report of work of GoM on Revenue Mobilisation
10. Status report of passage of SGST (Amendment) Bill, 2018 in various States and Union
Territories with Legislatures
11. Reconstitution of membership of the Law Committee, Fitment Committee and IT Committee
for information of the Council
12. Any other agenda item with the permission of the Chairperson
13. Date of the next meeting of the GST Council

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TABLE OF CONTENTS
Sl. No Agenda Item Page No.
1
Agenda Item 12: Any other agenda item with the permission of the
Chairperson
(iii) Proposals for boosting real estate sector under GST
regime by providing a composition scheme for
residential construction units

2
Corrigendum to the Agenda Items of the 31st GST Council Meeting
scheduled on 22nd December 2018
11
3
Comments/views of the States regarding Agenda Item 7(xxiv):
Single interface for disbursal of refund amounts
14

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Discussion on Agenda Items
Agenda Item 12: Any other agenda item with the permission of the Chairperson
Agenda Item 12(iii): Proposals for boosting real estate sector under GST regime by providing a
composition scheme for residential construction units
CREDAI has requested that GST on construction of residential complex, building, civil
structure may be fixed at the composite rate of 5% without input tax credit. Similarly, GST on affordable
housing projects may be completely exempted. The advantages it would offer consist of continuity with
service tax regime which followed a composition system with the service tax being levied at 4.5%.
Secondly, the composite rate of 5% would reduce the adverse impact on the land abatement of 33%
being offered under the present system. Thirdly, such a composite rate would be transparent, objective
and non-discretionary and enhance ease of doing business. Fourthly, the industry would be freed from
the requirement of monthly returns for availing input tax credit which are unduly cumbersome. Fifthly,
the composite rate of 5% would correct the imbalance under the present GST regime which subjects
under construction projects but leaves completed units out of its scope. Lastly, the overall impact of the
reduction is likely to be revenue positive with enhanced output.
2. Similarly, Maharashtra Real Estate Regulatory Authority has stated that there is a perception
among owners of property that the transition from service tax to GST regime has resulted in much higher
outgoings for consumers and the Government is the beneficiary of that. This perception can be corrected
if the Government. brings in a flat rate of GST of say 12% for all types of real estate projects, with land
abatement of 50% (2/3rd for affordable housing projects) and no ITC. This would mean an effective
rate of 6% (4 % for affordable housing projects) which will be comparable to that of the service tax+
VAT rate of 5.5%. Such a move would not only give the necessary fillip to affordable housing projects
but also help in bringing down the high level of unsold inventory of under construction projects, generate
necessary liquidity in such under-construction projects and help expedite completion.
3. From the above representations is appears that representatives of industry have suggested that
following measures may be taken by the Ministry to boost the real estate sector. The suggestions are as
under:
(i) to levy 5% or similar lower rate of GST on sales of both under construction and ready to move
in flats with no input tax credit.
(ii) to exempt transfer of development rights (TDR) and development rights in a Joint
Development Agreement from GST.
(iii) to rationalize the deemed deduction of 1/3rd of the consideration towards value of land.
4. Suggestions made by industry has been examined as under.
Proposal: To levy 5% or similar lower rate of GST without ITC on sale of both under construction
and ready to move in flats (completion certificate is not obtained) with no input tax credit
4.1 In pre-GST regime, two options were available with service providers for assessment and
payment of Service Tax on construction of a complex, building, civil structure and parts thereof and
after considering the availability of input tax credit, the effective incidence of tax was around 4 to 4.5%.
These options were:

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Option for
assessment
and payment
of Tax
Value for payment of Tax Effective rate of tax Conditions
Composition
Scheme for
works contract
service [WCS]
40% of value – in case of
original work relating to
construction-Rule 2A of the
Service Tax (Determination of
value) Rules, 2006
6% [0.4*ST@15%=0.06] 1. Value of
land included
2. ITC of
capital goods and
input services was
available. Credit of
duties or cess paid
on any inputs, used
in or in relation to
the said works
contract was not
available.
Construction
Service
30% [Sr. No. 10 of notification
No. 26/2012-ST]
4.5%
[0.3*ST@15%=0.045]
1. Value of land
included
2. ITC of
inputs not available.
4.2 Apart from Service Tax of 4 – 4.5%, State VAT, in the range of 1% to 5% under
composition scheme, was payable. Different States had different methodologies and options for payment
of VAT. For example, in Maharashtra and Uttar Pradesh following options were available for payment
of VAT:
State Options for VAT
payment
Rate Conditions
Maharashtra Composition Scheme 8% Set off of upto 64% of the eligible credit on
purchase of inputs was allowed.
Composition scheme
for notified contracts
5% Set off of upto 4% of eligible credit on
purchase of inputs was allowed
Composition scheme
for Builder and
Developers
1% No set-off of taxes on inputs was allowed.
Uttar Pradesh Composition Scheme 1% Where inputs in the works contract have
been procured from within the State.
3% Where import inputs in the works contract
have been used besides goods procured
from within the State.
4.3 Considering pre-GST incidence of Service Tax and VAT, the effective combined tax in pre-
GST regime was in the range of 5.5% to 9.5% of value of flat which also included embedded taxes. Post
GST, since there is seamless flow of input tax credit, the effective incidence of tax is lower. Request to
levy GST of 5% without ITC will lead to collection of same amounts of taxes as earlier but will ease
compliance burden on this sector. For affordable housing projects also, rate of 5% without ITC may be
prescribed. This will lead to uniformity of tax rate within the sector. Further, it may be clarified that the
value for the purpose of tax will be the gross amount charged from the buyer of the flat and present 1/3rd
abatement towards deemed cost of land or undivided share of land will not be provided. The tax thus
would be payable on the gross value without any abatement towards the land cost. To save the proposed
scheme from the challenge of encroaching on the jurisdiction of State to levy stamp duty on conveyance
of immovable property, appropriate explanation would need to be incorporated to show that while
determining/ fixing the GST rate on gross value, value of land was duly abated.
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4.4 The proposal is however also fraught with challenges and therefore appropriate safeguards may
be considered as follows:
(i) Proposal to charge 5% without ITC may lead to blockage of ITC and will be against the spirit
of GST. Since GST on inputs is a cost for the supply, later request to lower GST on inputs
may be received from trade. Therefore, in communication it shall be made clear that input tax
reduction would not be considered as the rate of 5% has been arrived at after taking standard
GST of 18% on inputs.
(ii) All credits relating to inputs, input services and capital goods shall lapse on pro rata basis to
the extent used in construction of flats. Transition would also be based on this principle and
such inputs which are meant to be used for construction of flats shall also undergo reversal of
ITC.
(iii) Construction is an evasion prone sector. Reducing tax to 5% without ITC may also lead to
revenue loss on supply of inputs such as steel, cement, sanitary items, paint, varnish etc. used
by the construction industry as it may start procuring such inputs without bills and without
properly accounting for the same in their books of account. Therefore, condition need to be
made that inputs, capital goods and input services other than TDR/JDR upto 80% shall be
purchased from GST registered supplier only. It will help to maintain the integrity of the
supply chain.
(iv) No request for refund shall be entertained in relation to any input tax credit which is
accumulated and proposed to be lapsed. This shall be made clear to the industry from the
beginning only.

4.5 The scheme would be mandatory and teething problems would be addressed by seeking
representation from the trade proactively. Transition of input tax credit is expected to be the major area
where there would be transition problem which would need to be addressed. The proposal is not likely
to lead any revenue loss.
5. Proposal:
5.1 In view of the discussions above it is proposed that: -
(i) GST of 5% without ITC may be prescribed for construction of a complex, building, civil
structure for houses other than affordable housing projects.
(ii) For houses in an affordable housing project also GST of 5% may be prescribed without
ITC.
Note: The proposal does not apply for housing projects where completion certificate has been obtained.
5.2 Further following safeguards may be prescribed to address the concerns of revenue: -
a) Inputs, Capital goods and Input services upto 80% other than TDR (or similar rights)
shall be purchased from a GST registered supplier only, to maintain the integrity of the
supply chain.
b) ITC treatment shall be such that supply of goods/services used for construction of
residential accommodation shall be treated as supplied for exempted supplies and
therefore reversed.
c) Accounting of purchases and whether the purchases constitute 80% from registered
persons shall be carried out financial year wise.
d) On such purchases which are below 80% benchmark and are procured from
unregistered persons, GST at the rate of 12% on RCM basis shall be paid in cash by the
trade without any input tax credit. This would require that the amended law be brought
into force before this scheme can be operationalised, as section 9(4) stands suspended as
of now and amended Section 9(3) would need to be used to impose tax under RCM.
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e) Credits in the ledger which is relatable to material or services in store or work in progress
or consumed in construction of residential flats shall be required to be reversed (lapsed)
within 60 days of the launch of the scheme. This may be done on self-assessment basis
with certification by Chartered Accountant where the amount is greater than the
threshold.
6. Proposal: To exempt transfer of development of rights (TDR) and development rights in a Joint
Development Agreement from GST
6.1 Representatives have stated that TDR is equivalent to land sale, so no GST should be applicable.
GST should not be leviable on a right to use of a development right in the context of a Joint Development
Agreement also. It is like sale of land particularly when cost is included in the tax on sale
6.2 In so far as this contention is concerned, it is stated that Joint Development rights or transfer of
development rights in joint development agreement cannot be equated to outright sale of land as the
same does not amount to transfer of land as contemplated under Section 53A of the Transfer of Property
Act. This position is as per various Court pronouncements.
6.3 Further, transfer of development right is a service by the land owner to the developer/ builder
of the property who in turn is engaged in the taxable supply of construction service. The GST paid on
such transfer of development rights is available as ITC to off-set the final GST liability on the
construction service. However, in the alternate scheme of composition of 5% GST proposed, tax on
these rights will stick as cost for the project. In order to provide boost to the construction sector, it is
proposed to exempt GST on TDR on construction of residential property only. It will also address the
cash flow issue. This exemption may not be granted for sale of residential property which has been
booked for sale after completion certificate has been issued. In this regard, builder would be required
to pay the GST leviable on such development rights thus effectively reversing the exemption availed on
TDR/ JDR used for such property at the time of issue of completion certificate. To some extent, this
would lead to addressing the problem of the perception of differential GST on under construction and
completed flats. This will be explicitly communicated through media if needed.
6.4 Recommendation:
i. TDR/ development rights in JDA to the extent used for construction of residential
property except where entire consideration is received after issuance of completion
certificate may be exempted as GST of 5% without ITC is proposed to be levied on such
property.
ii. Properties which were not booked for sale and for which completion certificate has been
issued, exemption from GST on TDR/ development rights in JDA shall be withdrawn.
Hence, builder would be required to pay the GST on TDR to the extent of TDR used
for the property at the time of issue of completion certificate. This would address the
problem of cash flow in relation to taxes on TDR/JDR.
iii. GST on TDR/ development rights in JDA for properties other than residential purpose
may continue to be taxed as usual.
iv. Time of supply of TDR/JDR for residential property may be shifted to point of issue of
completion certificate. This would lead to extinguishing of interest liability on TDR/
development rights in JDA.
7. To boost the real estate sector as suggested by industry, it is therefore proposed to seek in-
principle approval of the GST Council for rate change proposals at para 5.1, 5.2 and 6.4 (all in bold pre-
pages) above. With the approval of the council, the draft (notification) scheme may be placed in public
domain and comments invited from stake holders. Final notification shall be issued with the approval of
the GIC. The new scheme is proposed to become operational from 1st February, 2019.
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Corrigendum to the Agenda Items of the 31st GST Council Meeting scheduled on 22nd December
2018
A. Agenda Item 5 (Review of Revenue position)
It was noticed that the last two columns of the Table 4 of the aforesaid agenda item regarding the
trend in returns in FORM GSTR-3B (columns relating to filed till date 13th Dec., 2018 and percentage
till date 13th Dec., 2018) got jumbled up inadvertently. The corrected Table 4 is substituted as follows:
Table 4
Tax
Period
Taxpayers
eligible to file
Filed till due
date
% till due
date of filing
Filed till date
13th Dec., 2018
% till date
13th Dec.,
2018
Jul-17 74,61,214 38,34,877 51.40% 65,22,950 87.42%
Aug-17 75,32,807 27,25,183 36.18% 70,76,360 93.94%
Sep-17 79,25,831 39,34,256 49.64% 74,00,449 93.37%
Oct-17 81,54,303 43,68,711 53.58% 71,35,996 87.51%
Nov-17 79,92,517 49,13,065 61.47% 71,70,724 89.72%
Dec-17 81,82,277 54,26,278 66.32% 72,27,719 88.33%
Jan-18 83,63,437 53,94,018 64.50% 73,10,247 87.41%
Feb-18 85,45,661 54,51,004 63.79% 73,98,778 86.58%
Mar-18 87,08,493 52,83,962 60.68% 74,60,566 85.67%
Apr-18 88,17,798 56,38,813 63.95% 74,29,626 84.26%
May-18 91,22,309 56,18,925 61.60% 75,17,863 82.41%
Jun-18 93,16,710 58,39,034 62.67% 75,55,632 81.10%
Jul-18 94,70,282 64,39,259 67.99% 75,59,211 79.82%
Aug-18 96,15,273 57,02,349 59.31% 75,45,416 78.47%
Sep-18 96,57,239 64,19,403 66.47% 74,52,775 77.17%
Oct-18 97,57,664 53,98,369 55.32% 72,04,912 73.84%

B. Agenda Item 8 (Approval of modifications in Articles of Association (AOA) and
Memorandum of Association (MOA) of Goods and Services Tax Network (GSTN) based
on decision of the GST Council to convert it into a 100% Government-owned entity)
In the above agenda item 8, in place of the existing paragraph no 5 and 6 of the Detailed Agenda
Note, the following may be substituted:
5. “As proposed and approved by the Union Cabinet, these 10 shares may be allocated to the State
of Maharashtra in view of Maharashtra being on top amongst States in GST collection.

6. Accordingly, it is proposed to:
a. Approve the share allotment as per Annexure 3.
b. The modified AOA and MOA of GSTN are placed before the Council for in-principle approval
and GIC may be authorised to go through them in detail and finalise the same.”
Note: Revised Annexure 3 of the Agenda item 8 is as below:

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Annexure 3
Share holding pattern of GSTN
Pre-conversion
shareholding
Post conversion
shareholding
S.No. Name of Shareholders Number of
Shares
held
%age Post-
acquisition
shares
Paid up
Capital
1 Central Government 24,50,000 24.50 50,00,000 5,00,00,000
2 Government of Punjab 79,000 0.79 1,61,290 16,12,900
3 Government of Gujrat 79,000 0.79 1,61,290 16,12,900
4 Government of Odisha 79,000 0.79 1,61,290 16,12,900
5 Government of Tamil Nadu 79,000 0.79 1,61,290 16,12,900
6 Government of Jammu & Kashmir 79,000 0.79 1,61,290 16,12,900
7 Government of Maharashtra 79,000 0.79 1,61,300* 16,13,000
8 Government of Rajasthan 79,000 0.79 1,61,290 16,12,900
9 Government of Sikkim 79,000 0.79 1,61,290 16,12,900
10 Government of Karnataka 79,000 0.79 1,61,290 16,12,900
11 Government of Andhra Pradesh 79,000 0.79 1,61,290 16,12,900
12 Government of Meghalaya 79,000 0.79 1,61,290 16,12,900
13 Government of Bihar 79,000 0.79 1,61,290 16,12,900
14 Government of Nagaland 79,000 0.79 1,61,290 16,12,900
15 Government of Himachal Pradesh 79,000 0.79 1,61,290 16,12,900
16 Union Territory of Puducherry 79,000 0.79 1,61,290 16,12,900
17 Government of Mizoram 79,000 0.79 1,61,290 16,12,900
18 Government of Uttarakhand 79,000 0.79 1,61,290 16,12,900
19 Government of Haryana 79,000 0.79 1,61,290 16,12,900
20 Government of Assam 79,000 0.79 1,61,290 16,12,900
21 Government of Goa 79,000 0.79 1,61,290 16,12,900
22 Government of Kerala 79,000 0.79 1,61,290 16,12,900
23 Government of Manipur 79,000 0.79 1,61,290 16,12,900
24 Government of Tripura 79,000 0.79 1,61,290 16,12,900
25 Government of West Bengal 79,000 0.79 1,61,290 16,12,900
26 Government of Delhi 79,000 0.79 1,61,290 16,12,900
27 Government of Jharkhand 79,000 0.79 1,61,290 16,12,900
28 Government of Uttar Pradesh 79,000 0.79 1,61,290 16,12,900
29 Government of Chhattisgarh 79,000 0.79 1,61,290 16,12,900
30 Government of Madhya Pradesh 79,000 0.79 1,61,290 16,12,900
31 Government of Arunachal Pradesh 79,000 0.79 1,61,290 16,12,900
32 Government of Telangana 0.00 0.00 1,61,290 16,12,900
50,00,000 5,00,00,000
33
Empowered committee of State
Finance Ministers 80,000 0.80 0 0
34 LIC Housing Finance Limited 11,00,000 11.00 0 0
35
Housing Development Finance
Corporation Ltd. 10,00,000 10.00 0 0
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36 HDFC Bank Limited 10,00,000 10.00 0 0
37 ICICI Bank Limited 10,00,000 10.00 0 0
38
NSE Strategic Investment
Corporation Limited 10,00,000 10.00 0 0
Total 1,00,00,000 100 1,00,00,000 10,00,00,000
* The State of Maharashtra has been given additional 10 shares, being on top amongst States
in GST collection.

C. Agenda Item 6 (Issues recommended by the Fitment Committee for the consideration of
the GST Council)
In part A to the Annexure I relating to reduction in GST rates on goods, following corrections at
page no 9 of Volume 2 of the Detailed Agenda Note is made (to correct typographical error).
1. Against S.No.4 in place of HSN code “6601”, the HSN code “6602” should be substituted
(in column 3 and 6).
2. Against S. No. 5 in the comments column, in paragraph 7, in place of, “the rate of 5%/12%”,
the “rate of 5%/18%” should be substituted.

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Comments/views of the States regarding Agenda Item 7(xxiv): Single interface for disbursal of
refund amounts
For agenda item 7(xxiv), the comments/views of the States were called for by an email sent by
the GST Council Secretariat on 15th December 2018. The States were requested to furnish the comments
by 20th December 2018. The comments/views from the States received at the GST Council Secretariat
is tabulated in Table 1 below.
Table 1
Sl.
No.
State Comments/Views
1 Nagaland 1. The State of Nagaland agrees in principle to the new proposal on “Single
interface for disbursal of refund amounts” as it is expected to smoothen
the Refund process to a large extent.
2. However, the State prefers to go by the consensus views as may be
arrived in the GST Council Meeting.
2 Mizoram 1. The proposed system for refunds approved by the Council is found to be
acceptable by the State.
3 Sikkim 1. State if Sikkim has very few cases of refund. Presently, they are pushing
data on refunds to the Portal.
2. We, agree to the proposal of creating single interface for disbursal of
refund amount so as to smoothen the process.
4 Manipur 1. As provided at Sl. No. 4 of the Agenda item 7(xxiv), adjustment of SGST
refund can be deducted directly from the IGST apportionment of State.
Whereas we shall go along with consensus decision of the Council.
2. As of now State Treasury is not fully online mode and PFMS system is
not operational.
5 Odisha 1. The suggestion appears simple. No question of claim from Government
of India, no settlement from State side. Government of India pays the
refund and recovers from the State account. We have to just account for
both as IGST received and SGST refunded. No suspense operation in
State account.
2. Since the appropriate authority in PFMS will be responsible for making
refund for the entire country on account of CGST, IGST & SGST, the
processing / authorization delays may happen even after the integration
between PFMS & GSTN. Hence, timelines for refund authorization and
payment may be clearly defined.
3. As there will be lack of physical proximity between the refund
sanctioning authorities and the refund paying authorities, mechanism for
resolution of grievance should be in place
4. Proposed process may also indicate the mechanism to be followed in
resolving the instances of failed payment.
6 Maharashtra 1. The Proposal is found to be acceptable.
2. While accepting the proposal, it would be required to ensure that the
outstanding dues, if any, of the existing laws of the State as well as the
GST dues, are made available to the disbursing authority of the centre in
the system itself till the IT system is fully integrated.
3. It would be also necessary for the Central Government to appoint a single
principal accounting officer per State so as to expedite the refunds.
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7 Tripura 1. The State of Tripura agrees with the proposal for ‘Single interface for
disbursal of refund amounts.
8 Telangana 1.
a. The proposed refund procedure is accepted in principle as it removes
interface and bottlenecks.
b. The SGST amount refunded from suspense account of IGST account
may be adjusted against provisional settlements of IGST instead of
monthly settlement of IGST.
2. A system may be kept in place to communicate the details of refunds
adjusted against IGST settlement.
9 Jammu &
Kashmir
1. The State Government is of the view that such a mechanism can be put
in place in order to simplify the procedure of refund and promotion of
Ease of Doing Business.

10 Tamil Nadu 1. The proposal of the Law Committee for single interface of disbursal of
refund amounts to avoiding delay in getting the entire refund is
agreeable. GSTN must device a glitch-free module for refund.
11 Puducherry 1. The proposal is acceptable
2. In the first instance, the new procedure may be adopted for refund of
excess amount available in the Electronic Cash Ledger. After trial run,
the same may be extended to other refund categories.
3. An MIS on details of the refund shall be made available to the States.
There should be mechanism to reconcile the refund sanctioned and
amount refunded by GSTN and lodge claim on wrong refund.

Detailed Agenda Note Volume 3 Agenda for 31st GSTCM

Confidential

Agenda for
31st GST Council Meeting

22nd December 2018

Volume – 1

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File No: 800/31st GSTCM/GSTC/2018
GST Council Secretariat

Room No.275, North Block, New Delhi
Dated: 06th December, 2018

-sd-
(Dr. Ajay Bhushan Pandey)
Secretary to the Govt. of India and ex-officio Secretary to the GST Council
Tel: 011 23092653

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Agenda Items for the 31st Meeting of the GST Council on 22nd December 2018
1. Confirmation of the Minutes of 30th GST Council Meeting held on 28 September, 2018
2. Deemed ratification by the GST Council of Notifications, Circulars and Orders issued by the
Central Government
3. Decisions of the GST Implementation Committee (GIC) for information of the Council
4. Decisions/recommendations of the IT Grievance Redressal Committee (ITGRC) for
information of the Council
5. Review of Revenue position
6. Issues recommended by the Fitment Committee for the consideration of the GST Council
7. Issues recommended by the Law Committee for the consideration of the GST Council
i. Extension of the due date for furnishing the statement in FORM GSTR-8 by electronic
commerce operator for the months of October, November and December, 2018
ii. Extension of last date for allowing migration of taxpayers who received Provisional
Identification Number (PID) till 31st December, 2017
iii. FAQ on Banking, Insurance and Stock Brokers Sector
iv. Amending SOP issued on TDS - Issues on furnishing of return in FORM GSTR-7 by
registered persons required to deduct tax at source under section 51 of the CGST Act for
period during which the deductor was not registered
v. Update on the implementation status of the issues referred to the Law Committee by the
GST Council
vi. Request for exemption from provisions relating to Tax Deduction at Source (TDS) in case
of taxable supplies between Government Authority to another Government Authority or to
PSU and vice versa
vii. Amendments to the CGST Rules, 2017
viii. IGST Rules for determination of Place of Supply
ix. Circular to clarify certain issues under GST
x. Circular to clarify denial of composition option by tax authorities and effective date thereof
xi. Clarification on refund related issues
xii. Clarification on export of services under GST
xiii. Requirement of submission of invoices for processing of refund claims of unutilised Input
Tax Credit (ITC) in FORM GST RFD-01A
xiv. Proposal for centralized Authority for Advance Ruling and centralized Appellate Authority
for Advance Ruling under GST
xv. Suggestions made for allowing quarterly payment by small taxpayers
xvi. Issuance of a Circular to clarify taxability of medicines and consumables supplied to in-
patients in hospitals during the course of treatment
xvii. Amendments to the CGST Rules, 2017, consequential to notifying the provisions of the
CGST (Amendment) Act, 2018, SGST (Amendment) Act, 2018 and IGST (Amendment)
Act, 2018
xviii. Proposal to extend the due date for availing ITC on the invoices or debit notes relating to
such invoices issued during the FY 2017-18 under section 16(4) of CGST Act, 2017 till the
due date for furnishing of return for the month upto March, 2019
xix. Extension of the due date for furnishing of annual returns in FORM GSTR-9, FORM
GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 –
2018
xx. Proposal for amendment of Section 50 of CGST Act, 2017 to allow payment of interest on
net cash liability
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xxi. Reduction in amount of late fees leviable on account of delayed furnishing of FORM
GSTR-1, FORM GSTR-3B and FORM GSTR-4 for the months/quarters from July, 2017
to September, 2018
xxii. Proposal to extend benefit of composition levy for small service providers
xxiii. Proposal to introduce the new return system on trial basis from 01.04.2019 and on
mandatory basis from 01.07.2019
xxiv. Single interface for disbursal of refund amounts
xxv. Rationalisation of cash ledgers in GST
8. Approval of modifications in Articles of Association (AOA) and Memorandum of Association
(MOA) of Goods and Services Tax Network (GSTN) based on decision of the GST Council to
convert it into a 100% Government-owned entity
9. Status report of work of GoM on Revenue Mobilisation
10. Status report of passage of SGST (Amendment) Bill, 2018 in various States and Union
Territories with Legislatures
11. Reconstitution of membership of the Law Committee, Fitment Committee and IT Committee
for information of the Council
12. Any other agenda item with the permission of the Chairperson
13. Date of the next meeting of the GST Council

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TABLE OF CONTENTS
Agenda
No.
Agenda Item Page
No.
1
Confirmation of the Minutes of 30th GST Council Meeting held on 28 September,
2018
8
2
Deemed ratification by the GST Council of Notifications, Circulars and Orders issued
by the Central Government
41
3
Decisions of the GST Implementation Committee (GIC) for information of the
Council
42
4
Decisions/recommendations of the IT Grievance Redressal Committee (ITGRC) for
information of the Council
63
5 Review of Revenue position
105
6
Issues recommended by the Fitment Committee for the consideration of the GST
Council (The Agenda Note will be circulated separately)
-
7
Issues recommended by the Law Committee for the consideration of the GST Council
i. Extension of the due date for furnishing the statement in FORM GSTR-8 by
electronic commerce operator for the months of October, November and
December, 2018
ii. Extension of last date for allowing migration of taxpayers who received
Provisional Identification Number (PID) till 31st December, 2017
iii. FAQ on Banking, Insurance and Stock Brokers Sector
iv. Amending SOP issued on TDS - Issues on furnishing of return in FORM
GSTR-7 by registered persons required to deduct tax at source under section
51 of the CGST Act for period during which the deductor was not registered
v. Update on the implementation status of the issues referred to the Law
Committee by the GST Council
vi. Request for exemption from provisions relating to Tax Deduction at Source
(TDS) in case of taxable supplies between Government Authority to another
Government Authority or to PSU and vice versa
vii. Amendments to the CGST Rules, 2017
viii. IGST Rules for determination of Place of Supply
ix. Circular to clarify certain issues under GST
x. Circular to clarify denial of composition option by tax authorities and
effective date thereof
xi. Clarification on refund related issues
xii. Clarification on export of services under GST
xiii. Requirement of submission of invoices for processing of refund claims of
unutilised Input Tax Credit (ITC) in FORM GST RFD-01A
xiv. Proposal for centralized Authority for Advance Ruling and centralized
Appellate Authority for Advance Ruling under GST
xv. Suggestions made for allowing quarterly payment by small taxpayers
xvi. Issuance of a Circular to clarify taxability of medicines and consumables
supplied to in-patients in hospitals during the course of treatment
xvii. Amendments to the CGST Rules, 2017, consequential to notifying the
provisions of the CGST (Amendment) Act, 2018, SGST (Amendment) Act,
2018 and IGST (Amendment) Act, 2018
xviii. Proposal to extend the due date for availing ITC on the invoices or debit notes
relating to such invoices issued during the FY 2017-18 under section 16(4)
of CGST Act, 2017 till the due date for furnishing of return for the month
upto March, 2019

111

113
115
116

117
121

122
179
184
188

191
199
203

205

207
208

212

224

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xix. Extension of the due date for furnishing of annual returns in FORM GSTR-
9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the
Financial Year 2017 – 2018
xx. Proposal for amendment of Section 50 of CGST Act, 2017 to allow payment
of interest on net cash liability
xxi. Reduction in amount of late fees leviable on account of delayed furnishing of
FORM GSTR-1, FORM GSTR-3B and FORM GSTR-4 for the
months/quarters from July, 2017 to September, 2018
xxii. Proposal to extend benefit of composition levy for small service providers
xxiii. Proposal to introduce the new return system on trial basis from 01.04.2019
and on mandatory basis from 01.07.2019
xxiv. Single interface for disbursal of refund amounts
xxv. Rationalisation of cash ledgers in GST
226

227
229

234
236

237
238
8
Approval of the modified Articles of Association (AoA) and Memorandum of
Association of the GSTN
240
9 Status report of work of GoM on Revenue Mobilisation 300
10
Status report of passage of SGST (Amendment) Bill, 2018 in various States and
Union Territories with Legislatures
303
11
Reconstitution of membership of the Law Committee, Fitment Committee and IT
Committee for information of the Council
306
12 Any other agenda item with the permission of the Chairperson -
13 Date of the next meeting of the GST Council -
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Discussion on Agenda Items
Agenda Item 1: Confirmation of the Minutes of 30th GST Council Meeting held on 28th September
2018
Draft Minutes of the 30th GST Council Meeting held on 28th September, 2018
The thirtieth Meeting of the GST Council (hereinafter referred to as ‘the Council’) was held on
28th September 2018 through video conferencing under the Chairpersonship of the Hon’ble Union
Finance Minister, Shri Arun Jaitley (hereinafter referred to as the Chairperson). A list of the Hon’ble
Members of the Council who attended the meeting is at Annexure 1. A list of officers of the Centre, the
States, the GST Council and the Goods and Services Tax Network (GSTN) who attended the meeting
is at Annexure 2.
2. The following agenda items were listed for discussion in the 30th Meeting of the Council:
1. Confirmation of the Minutes of 29th GST Council Meeting held on 04th August 2018
2. Deemed ratification by the GST Council of Notifications, Circulars and Orders issued by
the Central Government
3. Decisions of the GST Implementation Committee (GIC) for information of the GST
Council
4. Decisions/recommendations of the IT Grievance Redressal Committee for information of
the Council
5. Review of Revenue position
6. Analysis of Revenue Gap of select States and Union Territory of Puducherry for
information of the Council
7. Status report on Anti-profiteering measures under GST for information of the Council
8. Proposal of State of Kerala for imposition of Cess on SGST for rehabilitation and flood
affected works
9. Proposal of State of Punjab to address difficulties arising out of recent amendment to rule
96 of the CGST/SGST Rules relating to exports
10. IGST exemption to imported goods supplied for relief and rehabilitation of people affected
by floods in the State of Kerala for information of the Council
11. Any other agenda item with the permission of the Chairperson
i. Addendum to Agenda Item 6 (Analysis of Revenue Gap of select States and Union
Territory of Puducherry for information of the Council) – Report on Bihar
ii. Minutes of 10th Meeting of Group of Ministers (GoM) on IT Challenges in GST
Implementation for information of the Council and discussion on GSTN issues
12. Date of the next meeting of the GST Council
3. The Hon’ble Chairperson welcomed all the Hon’ble Ministers and the officers to the Council
Meeting. He remarked that although he had missed the last two meetings of the Council, he had gone
through the proceedings and noted that significant decisions were taken during these two Council
Meetings. With these preliminary remarks, he invited Dr. Hasmukh Adhia, Union Finance Secretary
and Secretary to the Council (hereinafter referred to as the Secretary) to take up discussion on the
Agenda items.

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Discussion on Agenda items
Agenda Item 1: Confirmation of the Minutes of 29th GST Council Meeting held on 04th August
2018
4. The Secretary stated that the Minutes of the 29th Council Meeting had been circulated well in
advance of this Council Meeting which gave adequate time to the Hon’ble Members and the officers to
examine it. No written comments on the Minutes had been received so far. He invited comments, if
any, from the Hon’ble Members. No Hon'ble Member gave any comments.
5. For Agenda item 1, the Council decided to adopt the Minutes of the 29th GST Council Meeting
without any change.
Agenda Item 2: Deemed ratification by the GST Council of Notifications, Circulars and Orders
issued by the Central Government
6. Introducing the Agenda item, the Secretary proposed that the notifications, circulars and orders
issued by the Central Government after 21st July, 2018 and till 20th September, 2018 under the GST law,
as mentioned in the agenda notes and the two additional notifications namely Notification Nos. 24/2018
- Integrated Tax (Rate) and 23/2018 – Union Territory Tax (Rate) as mentioned in the presentation
circulated to all States (attached as Annexure 3 to the Minutes), may be ratified. The Council approved
the same.
7. For Agenda item 2, the Council approved the deemed ratification of the following notifications,
circulars and orders, which are available on the website, www.cbic.gov.in:
Act/Rules Type Notification Nos.
CGST Act/CGST Rules Central Tax 30 to 52 of 2018
Central Tax (Rate) 13 to 23 of 2018
IGST Act Integrated Tax 2 of 2018
Integrated Tax (Rate) 14 to 24 of 2018
UTGST Act Union territory Tax (Rate) 13 to 23 of 2018
GST (Compensation to
States) Act
Compensation Cess (Rate) 2 of 2018
Circulars Under the CGST Act 50 to 65 of 2018
Orders Under the CGST Act 4 of 2018
7.1. The notifications, circulars and orders issued by the Member States, which are pari materia with
the above notifications, circulars and orders were also deemed to have been ratified.
Agenda Item 3: Decisions of the GST Implementation Committee (GIC) for information of the
GST Council
8. The Secretary stated that the GST Implementation Committee (GIC) took certain decisions
between 21st July, 2018 (when the 28th Council Meeting was held) and 17th September, 2018 (before the
30th Council Meeting scheduled on 28th September, 2018). He stated that due to urgency, certain
decisions were also taken by obtaining approval of the GIC by circulation amongst the GIC Members.
He stated that this Agenda item was also discussed during the Officers meeting held on 27th September,
2018 and there were no comments from the officers on the subject (presentation covering the issues is
attached as Annexure 3 to the Minutes). He invited comments, if any, from the Hon'ble Members of the
Council.
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8.1. Shri Manpreet Singh Badal, Hon'ble Minister from Punjab stated that the role of GIC was to
mostly issue clarifications on procedural issues and it should avoid approving amendment to Rules with
retrospective effect. He stated that the notification regarding Rule 96 (10) and such other decisions
involving retrospective amendments should have been brought before the Council and it was only about
10 days before the Council Meeting that the notifications were issued. He cautioned that GIC should not
subsume the role of the Council.
8.2. The Secretary explained that amendment to Rule 96(10) of the CGST Rules was brought before
the GIC, as double benefit was being taken by the exporters in the form of import of goods on advance
license in addition to claiming IGST refund. Hence, it was an urgent matter on which decision had to be
taken quickly by the GIC in order to plug the revenue leakage. He also pointed out that once the Hon'ble
Minister from Punjab highlighted certain concerns regarding amendment to Rule 96 of the CGST Rules,
an Agenda note was now placed before the Council to rectify the inadvertent mistake and to permit
refund of IGST paid on export goods made from capital goods imported under the EPCG scheme. He
added that the GIC decisions were circulated to all the States before it is implemented and the mistakes
could be pointed out by any of the States. The Hon'ble Minister from Punjab stated that they would send
a written communication on this matter.
9. For Agenda item 3, the Council took note of the decisions taken by the GIC during the period
from 21st July, 2018 to 17th September, 2018.
Agenda item 4: Decisions/recommendations of the IT Grievance Redressal Committee for
information of the Council
10. The Secretary informed that this Agenda item related to decisions of the IT Grievance Redressal
Committee for information of the Council. He stated that this item had also been discussed during the
Officers meeting held on 27th September, 2018 and was being placed before the Council for information
(Presentation covering the issues is attached as Annexure 3 to the Minutes). The Council took note of
the decisions/recommendations of the I.T. Grievance Redressal Committee.
11. For Agenda item 4, the Council took note of the decisions taken during the second meeting of
the IT Grievance Redressal Committee held on 21st August, 2018.
Agenda Item 5: Review of Revenue position
12. Introducing this Agenda item, the Secretary informed that during the Officers meeting held on
27th September, 2018, a detailed State-wise review of revenue situation was undertaken. It was noted
that all-India total revenue collection under CGST, SGST, IGST and Compensation Cess for the month
of July, 2018 was Rs.96,483 crore and for August, 2018, it had come down to Rs.93,960 crore. He stated
that approximately Rs.49,000 crore was being collected in terms of IGST Revenue out of which,
normally, every month Rs.35,000 crore went into settlement and about Rs.5,000 crore went as refund
leaving a balance of approximately Rs. 10, 000 crore. He stated that in accordance with the decision of
the Council, the practice of provisional settlement of the IGST amount lying in balance would continue
in the current year, which would help to bring down the revenue shortfall. As could be seen from the
Agenda notes, the average revenue shortfall for the country as a whole during the period August, 2017
and March, 2018 was 16% and it had reduced to 13% during the period April, 2018 to August, 2018.
He noted that except one State, no State’s shortfall had increased during this period. He added that 6
States, namely, Mizoram, Arunachal Pradesh, Manipur, Nagaland, Sikkim and Andhra Pradesh had
gained more in terms of revenue than the amount to be protected. He noted that the State of Mizoram
had gained50% more than the protected revenue amount. He stated that even a big State like Andhra
Pradesh had also gained more revenue than the amount of revenue to be protected. After these States,
there was a category of middling States, namely, Telangana, Maharashtra, Uttar Pradesh, Tamil Nadu,
Assam, West Bengal and Rajasthan, whose revenue collection shortfall was less than the national
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average (between 3% to 12%) and were thus doing relatively well in terms of low revenue gap.
Thereafter, there was a category of States, namely, Gujarat, Rajasthan, Haryana, Meghalaya, Madhya
Pradesh, Jharkhand, Kerala, Tripura and Delhi, which had suffered a marginally higher revenue shortfall
as compared to the national average (14% to 19%). Further, there was a category of States, which had
suffered high revenue shortfall of 20% or more than the national shortfall average and these States were
Bihar, Karnataka, Odisha, Goa, Chhattisgarh, Jammu & Kashmir, Uttarakhand, Himachal Pradesh,
Punjab and UT of Puducherry. He stated that he would discuss the reasons for revenue shortfall of the
highest deficit States during discussion on the next Agenda item.
13. For Agenda item 5, the Council took note of the revenue position of the States.
Agenda Item 6: Analysis of Revenue Gap of select States and Union Territory of Puducherry for
information of the Council
14. Introducing this Agenda item, the Secretary informed that it was decided during the 28th Council
Meeting held on 21st July, 2018, that a study would be conducted regarding the large revenue gap as
compared to the national average of the States of Punjab, Himachal Pradesh, Uttarakhand, Jammu &
Kashmir, Puducherry and Bihar. He informed that he had visited five of the top six revenue losing States
and his report was presented before the Council. He stated that reports on the revenue gap analysis of
the States of Jammu & Kashmir, Punjab, Himachal Pradesh and UT of Puducherry was in the main
Agenda notes whereas the report on Bihar was part of Additional Agenda notes [Agenda Item 11(i) of
the Additional Agenda Notes]. He broadly summarised the main reasons for the shortfall.
14.1. The Secretary stated that for Punjab and Puducherry, the pre-GST rate of growth of VAT
collection was only about 6%, and therefore, the assured growth rate of 14% during GST would cause
a persistent shortfall of 8% unless this gap was bridged through extra effort of revenue collection. For
Jammu & Kashmir and Himachal Pradesh, the average growth rate of VAT revenue was about 11%,
which would lead to a gap of about 3%. Bihar had a higher than the assured 14% growth rate (about
18%). This was due to certain specific reasons, namely increase in VAT rate by one per cent preparatory
to introduction of Prohibition in the State during 2016-17. He further stated that there were certain State
specific reasons for revenue shortfall. For instance, Punjab got about Rs.3,000 crore revenue from tax
on food grains by way of Purchase Tax and Infrastructure Development Fee, and this constituted 27%
of their subsumed revenue in 2015-16. He stated that he had given certain suggestions to augment
revenue, such as to increase tax collection in services sector and to promote certain industries. He stated
that the industry base of Punjab was low, as indicated by the fact that as against average 8% share of
CST in the total subsumed revenue of all States in 2015-16, Punjab’s share of CST in its total subsumed
revenue for 2015-16 was 3.9%. He suggested that Punjab should try to set up more industries and devise
policies to give boost to services sector, such as tourism, Information Technology etc.
14.2. The Secretary further informed that Bihar’s share of CST in its total subsumed revenue was
only 0.5% as against the national average of 8%. This indicated that it had a low industrial base. The
State of Jammu & Kashmir had power to levy Service Tax and it levied tax on works contract services
at the rate of 12.6% on which no input tax credit was available for goods or services. Now, the tax rate
on works contract had come down to 12% of which the State’s share was 6% and input tax credit was
also available on it. This accounted for a big share of revenue loss to Jammu & Kashmir amounting to
Rs.800 crore, which was 17% of the taxable base. Tax compliance in the works contract sector was also
very low but this was expected to improve with the introduction of TDS with effect from 1st October,
2018.
14.3. On Himachal Pradesh, he stated that about 14% of the subsumed revenue came from CST,
which was more than the national average of 8%. There was also withholding tax on stock transfer at
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the rate of 4%, which was gone in the GST regime. These two were the main causes of revenue shortfall.
He added that focus on services sector would help to improve revenue collection of the State.
14.4. As regards the UT of Puducherry, the Secretary stated that it had a low VAT rate on many items
as compared to neighbouring States, which encouraged a lot of purchases by buyers from neighbouring
States. For example, on items like cement and other construction materials, the VAT rate in Puducherry
was 8% while in the neighbouring State of Tamil Nadu, it was 14.5%. As against the national share of
8% of CST in the subsumed taxes, Puducherry had 27% share of CST in the subsumed taxes. Products
used in IT hardware industries for manufacture of Computers was manufactured in the UT which were
mostly getting exported to other States which added to their CST income. Now, the CST income was
gone. The revenue base of the UT was also low. He had given specific suggestions for improving the
revenue position.
14.5. He stated that Bihar had certain advantage because of a peculiar reason that during 2015-16,
preparatory to imposition of Prohibition in 2016-17, there was increase in the rate of VAT by one per
cent on all items. This gave them a revenue growth rate of about 28% in 2015-16 but otherwise, the
average growth rate of Bihar was about 18%. Due to this higher revenue base, the shortfall of GST
collection for Bihar was initially very high (38%) as compared to the national average (16%), but in the
current year, it had narrowed to 20%, as against the national average of 13%. He further stated that once
the IGST settlement went up, revenue accruing to consuming States would increase, which would
benefit not only Bihar but also States like Odisha and Chhattisgarh. He added that during VAT, one of
the big sources of revenue for Bihar was Entry Tax to the tune of Rs.1100 crore, for which no input tax
credit had been availed. He observed that Bihar’s revenue would improve over a period of time.
14.6. The Secretary also highlighted some common reasons for low revenue growth in these States.
He observed that in the States that he visited except Punjab and Himachal Pradesh, the percentage of
return filing was lower as compared to the national average and e-Way bill compliance was also not up
to the mark vis-à-vis the national average. He added that some States like Bihar and Punjab had given
concessions for intra-State e-Way bills and withdrawal of such concessions given during the initial roll
out of e-Way Bill would help in boosting revenue. Further, it appeared that Service Tax income was not
being accounted for correctly in the States. For instance, it appeared that in Bihar, the tax relating to
railway ticketing was being charged as IGST even when passengers boarded the train from railway
stations in Bihar. He informed that he had instructed the DG Audit in CBIC to carry out audit of
accounting systems of railways, telecoms and Banks to ensure that there was correct accounting of SGST
in their system and software. He added that in order to improve the return filing percentage, he had
suggested to insert a provision in the GST Rules that the taxpayers who did not file GSTR-3B return for
two consecutive tax periods, should be barred from generating e-Way bills. He informed that this issue
was discussed during the Officers meeting and there was unanimity to introduce such a provision in the
GST Rules. He suggested that the Council could approve this proposal and the Law Committee could
work on a suitable draft. The Council approved this proposal.
14.7. The Hon'ble Chairperson invited comments from the Members on the revenue gap analyses of
the States visited by the Secretary.
14.8. The Hon'ble Minister from Punjab thanked the Secretary for his visit to Punjab. He stated that
a key determinant of the revenue performance of a State was its share of the all-India GDP vis-à-vis its
share of all-India GST collected. He stated that as per Government of India’s statistics, Punjab’s share
in country’s GDP was 2.9% while its share in GST collection was much lower. He stated that a State
with high per capita income like Punjab (which was amongst the top 10 States in terms of per capita
income) should collect more tax than its share in GDP as Punjab is largely a consuming State and this
was an area of concern. He requested for a deeper study on this aspect. He stated that he was not entirely
satisfied with the Study Report and one needed to dive deeper into the subject to understand the reasons
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for the high revenue shortfall for Punjab. He further pointed out that in paragraph 3 at page 134 of the
Detailed Agenda Notes, it was indicated that “some other reasons for revenue shortfall are natural and
structural factors such as geographical location, size of economy, endowments of natural resources….”
He raised a question whether these observations in the agenda note could be passed on to the 15th Finance
Commission, which has been mandated to look at, inter alia, these factors for finalising the devolution
of resources. He requested the Hon’ble Chairperson to bring this to the notice of the 15th Finance
Commission. The Hon'ble Chairperson stated that sometime back he read a study of different States and
how they were rated in terms of their performance on various social and other indicators. He added that
the five States namely Kerala, Punjab, Sikkim, Delhi and Himachal Pradesh were right on top based on
these indicators. As Punjab ranked high on various indicators, the question was why there was high non-
compliance of tax.
14.9. Shri Shashi Bhusan Behera, Hon'ble Minister from Odisha, stated that as a consuming State,
they had a revenue shortfall of 24% as against the national average of 13%. He stated that improvement
in return filing had narrowed the gap in revenue shortfall. He added that there was also revenue loss to
the tune of Rs. 500-600 crore due to loss of tax revenue from consumer goods like food grains, atta,
maida, etc. which was taxed at the rate of 5% during the VAT regime. Minerals were taxed at the rate
of 5% during VAT in addition to 5% as entry tax but the SGST revenue accruing to the State at the rate
of 2.5%. The VAT rate of 14.5% on goods had also been reduced to SGST rate of 9% and the revenue
from CST was also lost. He added that Entry Tax constituted about 15% of their total revenue, which
was now subsumed in GST and it was a loss to the State. He informed that his State was trying to
improve revenue collection through other means and the revenue shortfall had narrowed down from
31% to 24%. Shri Tuhin Kanta Pandey, Additional Chief Secretary (ACS), (Finance), Odisha, stated
that revenue loss was on account of some structural factors which were likely to persist. He stated that
on minerals they were getting substantial amount of revenue during VAT regime in the form of Entry
Tax but now revenue from minerals were accruing to the extent of amount left after utilisation of input
tax credit in the value chain for the finished goods. He added that they would need to analyse as to how
to tackle the structural factors.
14.10. Shri Sushil Kumar Modi, Hon'ble Deputy Chief Minister of Bihar, thanked the Secretary for
going into details and giving a correct assessment of the reasons for revenue shortfall of Bihar. He fully
supported the proposal to block the facility of issuing e-Way bills for those taxpayers who had not filed
their GSTR-3B returns for two consecutive tax periods. He further stated that the proposal made in the
Secretary’s report that the DG Audit under CBIC, should audit the centralised accounting software of
service providers, like Railways, Airlines, Banks, Telecom and Insurance sectors should be
implemented early and audit should be completed within a period of three months. If it was found during
audit that the revenue had gone to other States during the last 18 months, it should be restored to Bihar.
He suggested that RFID (Radio Frequency Identification) tag should be made mandatory, as it was
implemented successfully in the State of Uttar Pradesh. He also suggested that there should be
provisional IGST settlement every two months, which would help to boost the revenue of consuming
States and narrow the gap between the revenue collected and the revenue to be protected. He added that
they had done a detailed analysis of the report of the Secretary and would take steps as suggested by
him.
14.11. Shri Suresh Bhardwaj, Hon'ble Minister from Himachal Pradesh, thanked the Secretary for his
analysis of the revenue situation in his State. He stated that for the period April, 2018 to August, 2018,
they had a revenue gap of 36% despite performing higher than the national average in return filing. He
stated that they were taking steps, as suggested in the Report of the Secretary. He added that since
Himachal Pradesh was not a consuming State, the goods manufactured in Himachal Pradesh were
largely going out and so was the revenue. He further stated that some of the measures suggested in the
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Report, like boosting tourism, building retail outlets and convention centres were long term measures.
He added that increasing tourism was also their priority and they were trying to find new tourist
destinations and would try to also increase retail sales in these destinations. However, as these were long
term measures, he suggested that a team from the office of the Chief Economic Advisor should be sent
to Himachal Pradesh to suggest how to get the revenue due in the short term. He added that during VAT
regime, they gained in terms of revenue by encouraging setting up of industries but now major revenue
from those industries flowed out because Himachal Pradesh was a small State with small consumption
base. There should be a detailed study of his State as otherwise after 2022, the revenue situation would
be a matter of worry for them.
14.12. The Secretary stated that four years were still left before the provision of compensation to the
States expired and this gave them adequate time to take long term measures to improve services sector,
tourism etc. He suggested to take up some mega project to build convention centres and retail centres.
The Hon'ble Minister from Himachal Pradesh responded that measures like building convention centres
and malls could not be done within four years. He stated that they had submitted memorandum to the
15th Finance Commission and requested that the Central Government could also make a reference the
15th Finance Commission to address the structural factors for bridging the revenue shortfall, which
would help their State. With regard to tourism sector, he added that they had experienced unusual heavy
rains during the last two to three days in Himachal Pradesh including the regions of Lahaul-Spiti district
where almost 5-feet snowfall was witnessed which had affected tourism and whitewashed the roads
connecting to major tourism centres such as Kullu and Manali. Therefore, it was doubtful to consider
tourism as a constant source of revenue especially in hilly States such as Himachal Pradesh. In this
background he requested for a study by a committee on issues particularly associated with hilly States
to suggest ways and means of augmenting revenue for the State in long term as well.
14.13. Shri D. Jayakumar, Hon'ble Minister from Tamil Nadu, stated that he did not agree with the
views of the Hon'ble Ministers from Punjab and Himachal Pradesh to convey views to the 15th Finance
Commission through the GST Council. He observed that the GST Council and the Finance Commission
were separate bodies and specific suggestions to the Finance Commission should be sent to it by the
individual States and not through the GST Council.
14.14. Shri Prakash Pant, Hon'ble Minister from Uttarakhand, stated that, as could be seen from the
Agenda notes, they suffered a revenue shortfall of 35% as compared to the national average of 13%
during April to August, 2018. He stated that Uttarakhand is largely an exporting State and for the period
August, 2017 – August, 2018, the total revenue accrued to the State was Rs. 4,028 crore, of which the
SGST component was Rs 3,888 crore and IGST settlement was Rs. 140 crore. The IGST settlement was
approximately 3% of the State’s total revenue which was low as compared to other major revenue
shortfall States. He observed that Puducherry accounted for 42%, Jammu & Kashmir 53% and Himachal
Pradesh 49% of their revenue by way of IGST settlement. He stated that a comparative analysis for pre-
GST regime and GST regime collections indicated that the revenue collected during April to July, 2017
was Rs.9,290 crore whereas after GST implementation, for the period April to July 2018, they had
collected revenue of Rs.16,543 crore, which showed that they had collected adequate amount but not
getting the proportionate gains in terms of IGST settlement and their revenue shortfall was still high. He
added that their return filing percentage was 69.5% in July, 2018 and they accounted for 11% of the
country’s e-Way bill verification. Hence, they were doing well on the parameters of return filing and e-
Way bill but they were still not able to arrest the revenue shortfall. He stated that their revenue shortfall
situation was even more difficult as compared to that of Himachal Pradesh. He added that as mentioned
by the Secretary to boost investment in services sector, they had recently organised investors summit.
They were concentrating on improving services sector but they felt that they might not gain substantially
from the same because of load on the government to incentivise the services sector and requested to
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support the State through alternate means. The Secretary informed that he would be visiting Uttarakhand
shortly to discuss in detail the reasons for revenue shortfall.
14.15. Dr. T.M. Thomas Isaac, Hon'ble Minister from Kerala, congratulated the Secretary for his
insightful studies and welcomed Secretary to conduct a revenue analysis study of his State too as they
were equally worried. He stated that Kerala had the highest rate of consumption and 18% of consumer
products were imported from other States. He stated that, taking this into view, their IGST settlement
should be double the SGST collection but it was only 20% higher than the SGST revenue. He observed
that the revenue position of consuming States would improve in due course by continuous allocations
from IGST settlement. He added that it was important to ensure that cross border movement of goods
was accompanied by e-Way bills and these did not under-declare the quantity and value of the goods
under movement. He added that it was important to prepare for the annual return, which was due in
December, 2018 as this would give access to lot of data and information which was presently not
available. He stated that a framework should be developed as to what parameters were to be examined
and cross validated in the annual returns. He suggested that GSTN could generate State-wise report and
associated annexures of the data available in the annual returns. He added that in the services sector,
historically they had been concentrating on big service providers only but there was a scope for
expansion of the base. He added that the services sector needed to be analysed more systematically and
closely to see how their revenue was getting apportioned and allocated across the States.
14.16. Shri Alok Sinha, ACS (Commercial Tax), Uttar Pradesh, stated that in addition to the blocking
of e-Way Bill generation in case of non-filing of returns, there should also be option with the tax
administration to block the facility of issuing e-Way bills when misuse of the e-Way bill was seen. He
added that the revenue shortfall of his State was only 5% but they were not getting equivalent
compensation. Shri Ritvik Pandey, Joint Secretary, Department of Revenue (DoR), explained that the
State of Uttar Pradesh had been demanding that the arrears of VAT that they had collected should be
kept aside for calculation of compensation whereas it was earlier decided that compensation would be
calculated after taking into account all collections of State taxes including arrears of VAT.
14.17. Capt. Abhimanyu, Hon'ble Minister from Haryana, stated that, as could be seen from page 133
of the Agenda notes, Tamil Nadu and Andhra Pradesh were not performing very well in return filing but
they were doing well in revenue collection. Therefore, return filing performance might not be directly
linked to revenue generation. He stated that, as suggested by Punjab, deeper analysis of the reasons for
revenue shortfall was needed. He appreciated the report of the Secretary in analysing the revenue
position of high shortfall States and suggested that the Secretary should also analyse the five best
performing States in terms of collection of revenue so as to find what better they were doing such as
steps taken by them to improve compliance, data analytics and other good practices, which the rest of
the States could emulate. He also expressed concern regarding shortfall in revenue faced by Centre and
suggested that the Council should also review shortfall in revenue collections of the Central
Government.
14.18. Shri Mauvin Godinho, Hon'ble Minister from Goa, stated that he was looking forward to
welcoming the Council in Goa and would wait for an opportunity for the same. He stated that as per the
data shown in the agenda notes they suffered a revenue shortfall of 25%. He informed that a major
reason for revenue shortfall in his State was stoppage of mining activity which was the mainstay of the
State’s economy. He observed that mining work should start as soon as possible to improve revenue
collection. He added that they also lost 15% of the revenue which earlier came in the form of Entry Tax.
Added to this was reduction of tax in restaurant sector to 5%. He stated that taking all this into account,
revenue shortfall of his State could have been around 35% but due to their efforts, shortfall was only
25%. He stated that they were trying to improve the revenue situation through various means which
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should improve from November, 2018 onwards. He observed that the Secretary had done a good analysis
of revenue gap of the States. He suggested clubbing of smaller, tourism-based States such as Himachal
Pradesh and Goa which were experiencing the same kind of problems for a study by the Secretary and
this would help in taking steps to generate more revenue. He again requested to consider holding a
meeting of the Council in Goa.
14.19. Shri Somesh Kumar, Principal Secretary (Revenue), Telangana, stated that presently,
provisional IGST settlement was being given based on the proportion of the State in revenue to be
protected but now the time had come to change the same. He suggested two approaches for the same.
The first could be based on where the material was going based on which a proportionate revenue could
be distributed between the States and the second could be based on the percentage of IGST settlement
going to the various States in the previous year rather than the guaranteed growth rate of 14%. He stated
that either of the two would be a better approach rather than giving the provisional IGST amount on the
basis of guaranteed 14% growth rate, which was related to VAT period.
15. For Agenda item 6, the Council:
(i) took note of the report of the Secretary on the revenue gap analysis of the States of
Jammu & Kashmir, Punjab, Himachal Pradesh, Bihar and the UT of Puducherry; and
(ii) approved that the Law Committee shall frame a proposal to deny the facility of
generation of e-Way bills to taxpayers who had not filed returns for two consecutive tax periods.
Agenda Item 7: Status report on Anti-profiteering measures under GST for information of the
Council
16. The Secretary invited Shri B.N. Sharma, Chairman of the National Anti-Profiteering
Authority (NAA) to give an overview of the action taken so far by the NAA. The Chairman, NAA,
stated that from 1st December, 2017, they had issued 9 orders, out of which profiteering was proved
in 3 cases and not proved in 6 cases. He informed that investigations of cases were pending with
other layers of the hierarchy of the NAA, namely 140 cases were pending with the Standing
Committee and 290 cases with the Directorate General of Anti-Profiteering (DG-AP), CBIC. 19
cases had been referred by DG-AP to the NAA, which were in different stages of hearing. He
informed that the sectors from which the maximum complaints had been received related to FMCG
(Fast-Moving Consumer Goods), construction and restaurant services. He also informed that some
State Screening Committees were not as functional as was desirable, which was highlighted in
paragraph 7 of the Agenda note. It was indicated in this paragraph that the State Screening
Committees of 14 States had not sent a single anti-profiteering complaint which was a cause of worry
if there was profiteering happening in those States but not being reported.
16.1. Chairman, NAA referred to Rule 128 of the CGST/SGST Rules under which an interested
party or the Commissioner or any other person could also file application against profiteering. He
informed that based on review of Finance Secretary on anti-profiteering, he had written to the
Commissioners of CGST/SGST to be more watchful to see that profiteering was checked at the first
stage of B2B supplies by carefully examining the invoices to ascertain whether the benefit of rate
reduction had been passed on. If this was done, then profiteering could easily be plugged in the
subsequent stages of supply. He added that a SOP could be considered by the Law Committee
regarding action to be taken whenever rate rationalisation took place so that the field officers were
little clearer regarding the profiteering. He also stated that he had personally visited Chennai,
Mumbai, Lucknow and Chandigarh for detailed regional meeting with the trade and industries and
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for sensitisation of tax officers in issues relating to anti-profiteering work. He also informed that the
website of NAA was functional and 293 cases of profiteering came directly from the website.
Another 40-50 cases came through the helpline, which was also functional. He informed that
Rs.176.90 crore had been deposited in the Consumer Welfare Fund mainly from the two cases of
alleged profiteering.
16.2. The Hon'ble Deputy Chief Minister of Bihar observed that the application form for filing anti-
profiteering complaint was complicated, which required filling of HSN code, maximum retail price
and tax rate, pre and post rate reduction, etc. He suggested to have a more simplified form for filing
application against profiteering. The Secretary stated that even if an anti-profiteering complaint was
received in a plain paper, the instruction was that the officer concerned would sit with the
complainant and help him to fill up the prescribed form. However, the Law Committee could also
examine if any further simplification could be done in the application relating to complaint against
profiteering.
17. For Agenda item 7, the Council:
(i) took note of the work done till date by the National Anti-Profiteering Authority; and
(ii) approved that the Law Committee shall examine further simplification of the application
form for filing anti-profiteering complaints.
Agenda Item 8: Proposal of State of Kerala for imposition of Cess on SGST for rehabilitation and
flood affected works
18. The Hon’ble Chairperson invited the Hon’ble Minister from Kerala to speak on this Agenda
item. The Hon’ble Minister from Kerala stated that the recent floods in his State was a calamity that
could also happen in any other State. The FRBM (Fiscal Responsibility and Budget Management) Act
placed a limit on the expenditure of the State vis-à-vis its revenue receipts, and therefore, flexibility was
needed in the GST for the States to collect additional resources for short period. He observed that the
States had surrendered most of their elastic sources of revenue to be subsumed in GST and, therefore, it
was important to consider how to provide for additional resource mobilisation in times of natural
calamities. He stated that his initial proposal was to allow Kerala to collect cess on SGST for all
commodities consumed in Kerala. This could have implication on GST software but not on inter-State
trade. He stated that in paragraph 7 of the Agenda notes, other issues were raised like availability of
credit of cess paid on inward supplies and refund of cess paid in respect of supplies destined outside
Kerala and these would need to be decided. He added that such a cess should be kept outside the ambit
of compensation as it would not be covered under Section 7(4) of the Compensation Act.
18.1. He suggested that the States should be given flexibility for raising additional resources as such
a calamity could happen in other States too. He recalled that earlier there was a thinking to levy cess on
sugar at the national level. He suggested that a national cess could be imposed to generate additional
resources for natural calamities for a limited period and on limited number of commodities with certain
norms as to how much resources could be generated in this account. He stated that this might require
change in law. He observed that levy of additional 1% tax was permitted by the Law and this could be
levied on certain commodities to raise additional revenue. He stated that these were the possibilities that
could be discussed. He also thanked all the States for their kindness and solidarity in extending support,
both monetary and in kind, to meet the needs of his State. He stated that now his State was in the stage
of reconstruction where money was required to pay compensation and for repair and maintenance of
various infrastructure. This could not be done from borrowed funds. He stated that the present funds
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could be used for payment of compensation and the revenue coming later could be used for
reconstruction. He requested the Council to decide on this issue.
18.2. The Hon’ble Deputy Chief Minister of Bihar stated that the proposal of the State of Kerala to
levy additional cess was examined during the 10th meeting of the GoM on IT Challenges in GST held
on 22nd September 2018 in Bengaluru. It had then transpired that about six months’ time would be
required to change the GST software. Invoice module and challan module, GSTR-1 and GSTR-3B etc.
would need to be changed in order to distinguish the current Compensation Cess and the proposed levy.
He stated that it might be difficult for GSTN to make such a drastic change in the software. He pointed
out that Article 279A (4) (f) of the Constitution permitted levy of any rate or special rate for a specified
period to raise additional resources during any natural calamity or disaster. He raised a question as to
why the people of Kerala should pay additional tax who were already in distress. This burden should be
shared by the whole country. He suggested two options: First to raise the rate of cess by amending
Section 8 of the Compensation Act i.e. raising the rate of cess on existing commodities and secondly by
bringing other luxury items under its ambit. He suggested that the incremental amount so collected could
be deposited in a separate Fund. He stated that earlier, the issue of relief to cane growers of Uttar
Pradesh was discussed in the context of levy of a sugar cess. He stated that there should be a permanent
fund for calamities based on severity and Council could lay criteria and guidelines regarding its disbursal
to the States. He recalled that there was severe flood in Bihar in 2017 in which 649 people had died and
the State had spent Rs.1,754 crore from its own kitty in addition to the help received from the Centre.
This permanent Fund could be used to disburse money to those States which suffered a natural calamity.
He also suggested that once the Fund was created, the States which had faced calamities since the GST
rollout, should be compensated through this Fund. He also placed on record the solidarity of the State
of Bihar with the suffering of the people of Kerala and informed that Bihar was among the first State to
donate Rs.10 crore for flood relief to Kerala.
18.3. The Hon’ble Chairperson observed that changes were possible in an ordinary legislation.
However, it would be difficult to amend the Constitution and the suggestion of the Hon’ble Deputy
Chief Minister of Bihar regarding creation of a permanent Fund might not be permissible within the
existing provision of Article 279A (4) (f) of the Constitution which provided for levying any special rate
or rates for a specified period, to raise additional resources during any natural calamity or disaster. He
stated that under this provision, there has to be a special rate, imposed only for a specified period and
for a specified calamity or disaster. Amending the Constitution would not be easy to implement the
proposal of the Hon’ble Deputy Chief Minister of Bihar.
18.4. Dr. Himanta Biswa Sarma, Hon’ble Minister from Assam, stated that he was a Member of the
GoM working on Cess on Sugar. A reference had been sent to the Attorney General (AG) of India for
clarification whether it was legally permissible under GST to impose additional Cess or any Cess. The
comment from the AG had not yet been received as the issue was also under challenge before the
Hon’ble Supreme Court. He stated that the proposal of the State of Kerala would have a bearing on a
matter which was presently sub judice. He stated that even lower Assam was in the grip of flood as of
today also. He stated that it was not clear whether law allowed to levy additional Cess or not but if Cess
has to be levied for helping in case of calamity or disaster, then it should be levied only on the
commodities which attracted Cess and not for all the commodities. He wondered whether one could also
increase some percentage of Cess already being levied on certain commodities to create a separate Fund
for calamities or disasters. He stated that they supported the proposal in principle and expressed his
solidarity with the State of Kerala in its hour of crisis and stated that it should be helped in every possible
way. However, he wondered whether, in the absence of opinion of AG, any cess could be imposed.
18.5. The Hon’ble Minister from Tamil Nadu stated that the Hon’ble Chairperson had mentioned
regarding the Constitutional provision for levy of additional tax by the Centre and the State on the
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recommendation of the Council during natural calamity or disaster and that too temporarily. He
supported the proposal of the Kerala Government to impose cess in the State of Kerala. However, he
did not support the proposal of the Hon’ble Deputy Chief Minister of Bihar to create a separate disaster
Fund at national level by imposing a levy of Cess on all States. He further added that there was already
a separate Disaster Fund at national level and any State in times of such calamity or disaster could
approach for additional fund.
18.6. Shri Yanamala Ramakrishnudu, Hon’ble Minister from Andhra Pradesh, stated that he
supported the proposal of the Government of Kerala to levy cess in the State of Kerala. He observed
that the issue of imposing cess on sugar at national level was a separate matter but the present question
related to natural disaster and distress in Kerala. The issue raised by Bihar was also a separate matter.
He stated that in situations of crop failure, no cess could be imposed throughout the Country. He stated
that the proposal of Kerala could be supported on humanitarian ground.
18.7. Shri Sudhir Mungantiwar, Hon’ble Minister from Maharashtra stated that the issue of sugar cess
was not finalised because the legality of cess was sub judice in the Hon’ble Supreme Court in the case
of M/s Mohit Minerals. He added that there was a need to help the State of Kerala and this could be
done by increasing cess by 1% or 2% on the products on which cess was already applied. He stated that
due to roll-out of GST, number of people filing Income Tax Returns had increased substantially and
suggested that a surcharge could be imposed on income-tax return filers to help the State of Kerala. He
observed that help for Kerala was needed now but any change in the software by GSTN would take
time.
18.8. The Hon’ble Minister from Punjab raised the question whether it was legally feasible to impose
cess and, if so, under what law it could be imposed. He observed that Hon’ble Deputy Chief Minister
of Bihar had stated that it would take about six months to change the GST software. He also observed
that if higher tax was imposed in Kerala, then trade could shift from that State. He stated that while new
provision could be enacted later to make compensation available in case of natural calamities and
disaster, as an immediate act, for Kerala, tax waiver should be granted on damaged goods which the
insurance companies were not compensating. He added that Kerala should be compensated and
rehabilitated quickly through National Disaster Response Fund (NDRF) or any other way by the Centre.
18.9. Dr. P.D. Vaghela, CCT, Gujarat, stated that Kerala should be helped. He added that though
Compensation Act was under legal challenge, the Council had power under Article 279A for levy of
any special rate or rates for a specified period during any natural calamity or disaster. This provision
was preferable compared to the option of cess. He suggested to have a separate IT system for Kerala by
allowing increase of 1% tax on SGST component in the State of Kerala. He observed that for supply
made from Kerala, the cost would be passed on to the consumers of other States which would make the
supply from Kerala less attractive, but this was the case even in the earlier regime. The ACS, Uttar
Pradesh, stated that the issue of sugar cess had been referred to a GoM and this issue should also be
referred to the same GoM.
18.10. The Hon’ble Minister from Uttarakhand stated that his State suffered a calamity in the year
2013-14 which was also declared as a national calamity and more than 12,000 lives were lost and
additional funds were received from the Central Government. He observed that Article 279A (4) (f)
permitted to impose tax for a brief period in the case of natural calamity. He stated that his State often
suffered such calamities. He further stated that during the period January-September, 2018, due to
climatic factors, 1805 roads were destroyed, 1577 water-based projects were affected, 5064 electricity
related projects were affected, 2715 houses were destroyed and 100 lives were lost. He stated that this
had not been declared as a calamity. He stated that his State suffered very heavy rainfall and frequent
landslides and there should be a mechanism within States to raise additional resources even if it were
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not declared as national disaster and this should be done even if Constitutional amendment was required
for it.
18.11. Shri V. Narayanasamy, Hon’ble Chief Minister of Puducherry stated that all the States and
Central Government stood by Kerala during this unprecedented natural calamity and disaster. Two
things emerged from discussion in the Council. First was an explanation by the Hon’ble Chairperson
that changes to be done in GST software would take about 5 to 6 months and second that creation of a
Disaster Fund under Article 279A (4) of the Constitution would require Constitutional amendment. He
observed that Article 279 A (4) (f) could be used to help the State of Kerala. He stated that proposal for
imposing sugar cess had seen lots of opposition from various quarters in view of legal issues and that
levy of various cesses was totally removed in GST regime. He also observed that some Members had
pointed out that NDRF was the right forum for such support. However, Kerala needed support for re-
building and the support of the Government of India was not enough as reported by the State of Kerala.
Hence, the issue was whether they could raise resources through levy of cess and this needed to be
examined legally. He expressed that instead of going into technicality, the Council should find a
mechanism to help Kerala by the Central Government and the State Governments.
18.12. Shri Manish Sisodia, Hon’ble Deputy Chief Minister of Delhi, stated that there were two
options emerging from the ensuing discussion. One was that all States should contribute to Kerala by an
increase in the rate of tax and consequent changes in the rules should be carried out. The second option
was to increase the rate of SGST in Kerala only. He supported the proposal as proposed by Hon’ble
Minister from Kerala to increase the rate of tax in Kerala only.
18.13. Summarising the discussion, the Hon’ble Chairperson stated that five issues arose out of the
discussion in the Council on this issue. First issue, which was supported by the Hon’ble Minister from
Tamil Nadu and the Hon’ble Deputy Chief Minister of Delhi, was that the State of Kerala may be
allowed to levy a special cess. The second issue, which was supported by the Hon’ble Deputy Chief
Minister of Bihar and some other States, was that the State of Kerala had already suffered and whether
a further special tax should be imposed on the people of Kerala. The third issue was raised by the
Hon’ble Minister from Punjab that trade might shift from Kerala due to increase in taxation if the special
tax was levied only in Kerala and this could have a spiral effect on increasing the suffering of the people
of Kerala. The fourth issue was raised by the Hon’ble Minister of Tamil Nadu that the funding to States
in times of natural calamity was already available under SDRF (State Disaster Response Fund) and
NDRF. The Central team assesses and then grants the NDRF fund. The fifth issue was that under Article
279A, the States and the Centre had surrendered their sovereignty and the question was whether States
fully lost their right to impose additional tax or did they possess this right to be exercised with the
approval of the Council.
18.14. The Hon'ble Chairperson further observed that the State of Kerala would get funding from
NDRF but if it also started getting funding from GST, then the issue was what proportion should be paid
from NDRF and what should go from GST. The other issue was how to distinguish between a major
calamity and a lesser calamity and whether one has to levy special tax on each count or only in the case
of major calamity. In the past, there were cyclones in Odisha, Tsunami in Tamil Nadu and Andaman &
Nicobar Islands, tragedy in Kedarnath, flooding in Srinagar and similar calamity could happen in future.
The question was how to reconcile the disbursement from NDRF and GST. He stated that as per the
existing Constitutional provision, GST could be levied for each natural calamity but then the question
was it should be for what period and what quantum. The other issue was whether this increase in rate of
tax should apply to all States or only to the State in which natural calamity occurred. Earlier, the practice
was that money was given from NDRF and additional resources were generated through VAT to meet
the contingency. Another issue to be considered would be as to on what items tax could be increased for
this purpose. He observed that two obvious items were tobacco and luxury vehicles. He suggested that
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keeping in view the fact that there were regular natural calamities occurring in the coastal States, in the
Hill States and North-eastern States, a small Group of Ministers (GoM) could deliberate on this issue in
more detail and then come to the Council with their recommendations within a reasonable period of
time. He stated that all the States could give their views to this GoM. He sought the view of the Hon’ble
Minister from Kerala whether the issue should be decided now or after consideration by the proposed
GoM.
18.15. The Hon’ble Minister from Kerala stated that discussion in the Council showed bonding of the
States. Everyone was very considerate during the discussion. He stated that raising additional 1% cess
at all-India level could raise issues as highlighted by the Hon'ble Chairperson and therefore in his view
levying special tax in Kerala would have been the easier approach. But, looking at the Constitutional
provision and the spirit of discussion in the Council, one could consider levy of all-India tax for a limited
period after considering all the views expressed by the Council Members. He supported the proposal to
have a small Group of Ministers to take a considered view on this issue and bring it to the next Council
meeting. The Hon’ble Chairperson stated that rescue and relief in Kerala was almost over and it was in
a state of rehabilitation which could take several months and the funding would keep coming from
various sources. So, the funding through GST route would be an addition and a little delay would not
make much of a difference. He observed that the coastal States, Hill States and North-eastern States
often faced calamity. He added that keeping this in view, he suggested to constitute a Seven-Member
GoM instead of traditional five-member GoM, where representation could be from the coastal States,
Hill States and North-eastern States plus some other States having senior Ministers. The Hon’ble
Minister from Kerala agreed to this suggestion. The Hon’ble Minister from Andhra Pradesh observed
that if cess was imposed on sin products including tobacco, then farmers growing tobacco would be in
distress and the GoM should also look into this issue. After deliberation, the Council agreed to constitute
a Seven-Member GoM for which names would be approved by the Hon’ble Chairperson.
19. For Agenda Item 8, the Council agreed to constitute a seven-member GoM to examine the
issue of imposition of cess on SGST or increase in rate of SGST for rehabilitation and flood affected
works of Kerala and to submit its report in the next meeting of the Council.
Agenda Item 9: Proposal of State of Punjab to address difficulties arising out of recent amendment
to Rule 96 of the CGST/SGST Rules relating to exports
20. Introducing the Agenda item, the Secretary stated that this issue was discussed during the
Officers meeting held on 27th September 2018 and some further amendment was proposed in this
Agenda item. He invited Shri Upender Gupta, Commissioner (GST Policy Wing), CBIC, to explain the
Agenda item. Giving a background of this issue, Commissioner (GST Policy Wing), CBIC, explained
that Rule 96(9) of CGST/SGST Rules was inserted in October 2017 to enable claim of refund of IGST
on export of permitted goods and no conditions were attached in the Rule. However, some exporters
started misusing the provision and started claiming refund of input tax credit in respect of inputs which
were not used for exports. In view of this, provision under Rule 96(9) and 96(10) of CGST/SGST Rules
was reintroduced/introduced with retrospective effect from October 2017 on 23rd January 2018. This
amendment was meant to block the refund of IGST when inputs were received at nil or lower rate of
tax. In view of representation from trade bodies and with a view to bring more clarity, it was further
amended with retrospective effect on 4th September 2018. The Hon’ble Minister from Punjab sent a
letter raising the issue particularly regarding entitlement of refund of IGST paid on goods exported
which are manufactured from capital goods imported under EPCG Scheme. This Agenda was discussed
in the Law Committee and it was decided to delete the reference to Notification No.79/2017-Customs
with retrospective effect i.e. from 23rd October 2017.
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20.1. The Commissioner (GST Policy), CBIC, further stated that after the circulation of the Agenda
notes, the issue had been re-examined in consultation with the Law Committee. It is seen that
Notification No.79/2017-Customs which was proposed to be deleted in the Agenda note placed before
the Council covers not only import of capital goods under EPCG licence but also import of inputs under
Advance Authorization (Annual requirement), Special Advance Authorization and Advance
Authorization (Export of prohibited goods). If reference to Notification No.79/2017-Customs was
removed completely, as proposed in the original Agenda notes, it would make all those exporters eligible
to pay IGST and claim refund on goods exported where inputs were imported without payment of IGST
under any of the above-mentioned schemes. In view of this, he stated that the Agenda note was proposed
to be modified to make only those exporters eligible to claim refund of IGST paid on exported goods
who are importing capital goods under the EPCG Scheme. He informed that this issue was discussed in
the Officers meeting held on 27th September 2018 and the proposed amendment was approved, keeping
in view the fact that excluding the entire Notification No.79/2017-Customs would also exclude capital
goods imported under EPCG Scheme and used in manufacture of goods exported, whereas the intention
was to only block IGST refund for exporters who had imported inputs under Advance Authorization
Scheme. He further explained that such exporters could make exports under the LUT route and claim
refund of unutilised ITC.
20.2. He stated that in view of this, the Agenda placed before the Council was proposed to be modified
and in the new formulation, it was proposed not to delete reference to Notification No.79/2017-Customs
but to only provide that restriction in the Rule will not apply to exported goods manufactured out of the
capital goods imported under EPCG Scheme. Rule 96(10) of CGST/SGST Rules was proposed to be re-
worded to give effect to the desired intention to the extent it relates to amendment of Rule 96(10) of the
CGST Rules, 2017.
20.3. He further stated that it was also possible for an EPCG licence holder, under an Authorization,
to procure capital goods/machinery from a domestic supplier. Such supplies obtained from a domestic
supplier by the EPCG licence holder had been given the status of deemed exports vide entry at S.No.2
of Notification No.48/2017-Central Tax dated 18.10.2017. Since Rule 96(10) of CGST/SGST Rules
also restricted refund of IGST on exported goods if they had received supplies on which benefit of
Notification No.48/2017-Central Tax had been availed, the proposed amendment to the CGST Rules
would lead to an artificial distinction between those EPCG licence holders who were importing capital
goods and those EPCG licence holders who were procuring capital goods domestically, with only the
former being eligible to claim refund of IGST paid on exported goods. Hence, to negate this differential
treatment, the Rule was proposed to be further amended.
20.4. He further stated that as the field formations had followed differing practices during the past
period and export refunds had been granted in many cases, it would be better not to re-open the earlier
sanctioned refunds and the proposed amendment could be done only with prospective effect. It was,
therefore, proposed that Notification No.39/2018-Central Tax dated 04.09.2018 be rescinded to then
extent it is related to the amendment of Rule 96 (10) of the CGST Rules, 2017.
20.5. Keeping in view the above proposals, the revised formulation of Rule 96(10) of CGST Rules
and Rule 89(4B) of the CGST Rules is reproduced as below: -
Suggested formulation for Rule 96(10) of the CGST Rules (proposed deletion in strike through
mode and proposed addition in italics and underlined)
“(10) The persons claiming refund of integrated tax paid on exports of goods or services should
not have -
(a) received supplies on which the benefit of the Government of India, Ministry of Finance
notification No. 48/2017-Central Tax, dated the 18th October, 2017 published in the Gazette of
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India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R 1305 (E), dated the
18th October, 2017 except so far it relates to receipt of capital goods by such person against
Export Promotion Capital Goods Authorisation or notification No. 40/2017-Central Tax (Rate),
dated the 23rd October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i),vide number G.S.R 1320 (E), dated the 23rd October, 2017 or notification No.
41/2017-Integrated Tax (Rate), dated the 23rd October, 2017 published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321 (E), dated the 23rd
October, 2017 has been availed; or
(b) availed the benefit under notification No. 78/2017-Customs, dated the 13th October, 2017
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number
G.S.R 1272(E), dated the 13th October, 2017 or notification No. 79/2017-Customs, dated the 13th
October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section
(i),vide number G.S.R 1299 (E), dated the 13th October, 2017 except so far it relates to receipt of
capital goods by such person against Export Promotion Capital Goods Authorisation.”
Suggested formulation for Rule 89(4B) of the CGST Rules
(4A) In the case of supplies received on which the supplier has availed the benefit of the
Government of India, Ministry of Finance, notification No. 48/2017-Central Tax dated the 18th
October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i),
vide number G.S.R 1305 (E) dated the 18th October, 2017, refund of input tax credit, availed in
respect of other inputs or input services used in making zero-rated supply of goods or services or
both, shall be granted.
(4B) In the case of supplies received on which the Where the person claiming refund of unutilized
input tax credit on account of zero-rated supplies without payment of tax has –
(a) received supplies on which the supplier has availed the benefit of the Government of India,
Ministry of Finance, notification No. 40/2017-Central Tax (Rate) dated the 23rd October,
2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide
number G.S.R 1320 (E) dated the 23rd October, 2017 or notification No. 41/2017-Integrated
Tax (Rate) dated the 23rd October, 2017 published in the Gazette of India, Extraordinary, Part
II, Section 3, Sub-section (i), vide number G.S.R 1321(E) dated the 23rd October, 2017; or
(b) availed the benefit of notification No. 78/2017-Customs dated the 13th October, 2017
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide
number G.S.R 1272(E) dated the 13th October, 2017 or notification No. 79/2017-Customs
dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section
3, Sub-section (i), vide number G.S.R 1299(E) dated the 13th October, 2017, or all of them,
the refund of input tax credit, availed in respect of inputs received under the said notifications for
export of goods and the input tax credit availed in respect of other inputs or input services to the
extent used in making such export of goods, shall be granted.
20.6. The Secretary stated that the issue was discussed in detail during the Officers meeting held on
27th September, 2018 and all had agreed to this amendment. The Hon’ble Minister from Punjab thanked
the Secretary for a very quick response to his letter. The Council agreed to the changes as proposed
above.
21. For Agenda item 9, the Council agreed to amend Rule 96(10) of CGST Rules and Rule 89(4B)
of CGST Rules, as indicated in para 20.5. above. The exact wording of the amendment shall be finalised
in consultation with the Legislative Department, Union Law Ministry. Pari materia changes would also
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be carried out in the SGST Rules. Further, the Council also agreed to rescind that part of Notification No
39/2018 – Central Tax dated 04.09.2018 which relates to amendment of Rule 96(10) of the CGST Rules,
2017 and the State notifications corresponding to this Central notification.
Agenda Item 10: IGST exemption to imported goods supplied for relief and rehabilitation of
people affected by floods in the State of Kerala for information of the Council
22. Introducing this Agenda item, the Secretary stated that it was a formal item, placing before the
Council, Notification No. 59/2018 – Customs dated 21st August 2018 issued to exempt basic Customs
duty and IGST for the consignments imported for the supply of aid and relief materials to the affected
people in Kerala to be effective till 31st December, 2018. He explained that notification exempted IGST
for imported goods supplied for relief and rehabilitation of people affected by floods in the State of
Kerala. He stated that this was only for the information of the Council. The Council took note of the
Notification.
23. For Agenda item 10, the Council took note of the general exemption Notification No.59/2018-
Customs dated 21st August, 2018.
Agenda Item 11: Any other agenda item with the permission of the Chairperson
Agenda Item 11(i): Addendum to Agenda Item 6 (Analysis of Revenue Gap of select States and
Union Territory of Puducherry for information of the Council) – Report on Bihar
24. This issue was discussed along with Agenda Item 6 relating to analysis of revenue gap of select
States and the discussion therein covered the revenue gap analysis of the State of Bihar. The Council
took note of this report along with the reports of the other States and Union Territory of Puducherry.
25. For Agenda Item 11(i), the Council took note of the Report on Bihar along with the reports of
the States of Jammu & Kashmir, Punjab, Himachal Pradesh and Union Territory of Puducherry.
Agenda Item 11(ii): Minutes of 10th Meeting of Group of Ministers (GoM) on IT Challenges in
GST Implementation for information of the Council and discussion on GSTN issues
26. The Secretary invited the Hon’ble Deputy Chief Minister of Bihar to brief the Council on this
Agenda item. The Hon’ble Deputy Chief Minister of Bihar stated that the details of the 10th meeting of
the GoM held on 22nd September, 2018 at Bengaluru was contained in the minutes and placed as an
Agenda note. However, he wanted to highlight one issue concerning the date of making available the
software for Annual Returns. He stated that during the 10th meeting of GoM, Infosys informed that they
would be able to make the software ready for Annual Return for regular taxpayer (GSTR-9) by 18th
December, 2018, the Annual Return for composition taxpayers (GSTR-9A) by 18th February, 2019 and
the Reconciliation Statement (GSTR-9C) for normal taxpayers with turnover exceeding Rs. 2 crore
would be made available after the finalisation of the SRS (Software Requirements Specification). He
stated that the time-line for filing these returns was 31st December 2018 but it appeared that Infosys
would not be able to develop this software by 15th November, 2018. He stated that the Council would
need to consider whether the date for filing the annual return for normal taxpayers and composition
taxpayers should be extended. He further informed that during the meeting of the GoM, it was also
explored whether the Form GSTR-9C could be uploaded in .pdf form but it transpired that it would then
have to be processed manually and system-based validation would not be possible. He observed that the
Council would need to decide whether the date should be extended now or it should be discussed in the
Council at a later date.
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26.1. The Secretary stated that the GSTN should ensure that the preparation of software was
expedited. He observed that the annual return contained several data elements which would facilitate
final settlement of IGST. He suggested that the GSTN should engage with the Law Committee to
expedite the issue.
26.2. The Hon’ble Minister from Kerala stated that he had been emphasising on furnishing of annual
return during the last four meetings of the Council as scrutiny and enforcement actions were dependant
on them. He observed that introducing these returns could not be put off indefinitely and there must be
a deadline by which these returns should come into force. He suggested that at least annual return for
taxpayers with turnover above Rs.1.5 crore should be made available by the stipulated date. The
Secretary suggested that GSTN and the Law Committee could look at all the issues involved. Shri
Prakash Kumar, CEO, GSTN stated that the Forms GSTR-9 and GSTR-9A (Annual Returns for regular
taxpayers and compounding taxpayers respectively) were notified on 4th September, 2018 and the
Reconciliation Statement (GSTR-9C) was notified on 13th September, 2018. He stated that the delay in
development of software was on account of forms being made available to them very late but they would
try to develop the software as early as possible.
27. For Agenda item 11(ii), the Council:
(i) took note of the Minutes of the 10th Meeting of GoM on IT Challenges in GST
Implementation; and
(ii) agreed that the GSTN would engage with the Law Committee to explore ways of
expediting completion of software development for Forms GSTR-9 (Annual Return for
regular taxpayers), GSTR-9A (Annual Return for compounding taxpayers) and GSTR-
9C (Reconciliation Statement).
Other Issues:
28. The Secretary stated that the provisions of Tax Collection at Source (TCS) for e-commerce
suppliers and Tax Deduction at Source (TDS) for Government supplies were ready for implementation
and FAQs on TCS and Standard Operating Procedure (SOP) for TDS were finalised during the Officers
meeting on 27th September, 2018. He requested the Council to approve the same so that these could be
forwarded to all the States. The Council approved the FAQs on TCS and SOP for TDS, for circulation
to the States.
28.1. The Hon’ble Minister from Uttarakhand stated that under Section 13 of the CGST/SGST Act,
2017, the time of supply of works contract services was when the contractor raised the bill and hence
they were liable to pay the tax after issuing the bill. However, it took quite a long time for them to get
the payment for the same. He stated that this was causing difficulties to the contractors. He observed that
small contractors with annual turnover of less than Rs.1.5 crore should be given benefit of composition
scheme for the works contract services so that they could get benefited as well. The Secretary stated that
this problem had been raised from many quarters. He suggested that one solution could be for the
Government to take a policy decision to expedite payments to Government contractors. Second option
could be to examine the possibility of raising quarterly bill or raising the invoice only when Government
was ready to make payment. He observed that the same provision of law relating to works contract was
in force during the Service Tax regime. He added that the Law Committee could also look into all the
possibilities to see whether small contractors could be given some relief. The Council agreed to this
suggestion.

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29. For Other Issues, the Council approved the following: -
i) To circulate FAQs on TCS and SOP for TDS to all States; and
ii) Law Committee to examine the problem of small contractors executing works contract for
the Government due to time of supply provisions under GST.
Agenda Item 12: Date of the next meeting of the GST Council
30. The Hon’ble Chairperson stated that 5 States were going to polls and the Council could possibly
meet after the polling was over. The Hon’ble Deputy Chief Minister of Delhi stated that the Council
would need to meet earlier to discuss the issue relating to Kerala. The Hon’ble Chairperson stated that
Kerala issue as well as any other issue of urgent nature could be discussed earlier in a short meeting of
the Council. He stated that the date of the meeting would be fixed in due course and communicated to
the Members.
31. The meeting ended with a vote of thanks to the Chair.

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Annexure 1
List of Ministers who attended the 30th GST Council Meeting on 28th September 2018
Sl
No
State/Centre Name of Hon'ble Minister Charge
1 Govt. of India Shri Arun Jaitley Union Finance Minister
2 Govt. of India Shri S.P. Shukla Minister of State (Finance)
3 Andhra Pradesh Shri Yanamala
Ramakrishnudu
Minister of Finance, Planning,
Commercial Taxes and Legislative
Affairs
4 Assam Dr Himanta Biswa Sarma Finance Minister
5 Bihar Shri Sushil Kumar Modi Deputy Chief Minister
6 Delhi Shri Manish Sisodia Deputy Chief Minister
7 Goa Shri Mauvin Godinho Minister for Panchayats
8 Haryana Capt. Abhimanyu Minister for Excise & Taxation
9 Himachal Pradesh Shri Suresh Bhardwaj Minister for Education
10 Jharkhand Shri C.P. Singh Minister for Urban Development,
Housing and Transport
11 Karnataka Shri Krishna Byre Gowda Minister of Rural Development,
Law & Parliamentary affairs
12 Kerala Dr. T.M. Thomas Issaac Finance Minister
13 Maharashtra Shri Sudhir Mungantiwar Finance Minister
14 Mizoram Shri Lalsawta Finance Minister
15 Odisha Shri Shashi Bhusan Behera Minister for Finance & Excise
16 Puducherry Shri V. Narayanasamy Chief Minister
17 Punjab Shri Manpreet Singh Badal Finance Minister
18 Tamil Nadu Shri D. Jayakumar Minister for Fisheries and Personnel
& Administrative Reforms
19 Tripura Shri Jishnu Dev Varma Deputy Chief Minister
20 Uttarakhand Shri Prakash Pant Finance Minister

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Annexure 2
List of Officers who attended the 30th GST Council Meeting on 28th September 2018
Sl No State/Centre Name of the Officer Charge
1 Govt. of India Dr. Hasmukh Adhia Finance Secretary
2 Govt. of India Shri S Ramesh Chairman, CBIC
3 Govt. of India Dr. John Joseph Member (Budget), CBIC
4 Govt of India Dr. A B Pandey Chairman, GSTN
5 Govt. of India Shri B. N. Sharma
Chairman, National Anti-profiteering
Authority
6 Govt. of India Shri J.P.S. Chawla Pr. CCA, CBIC
7 Govt. of India Shri P.K. Mohanty Adviser (GST), CBIC
8 Govt. of India Shri P.K. Jain Pr. DG, DG-Audit, CBIC
9 Govt. of India Shri G.D. Lohani Joint Secretary, TRU I, DoR
10 Govt. of India Shri Ritvik Pandey Joint Secretary, DoR
11 Govt. of India Shri Upender Gupta Commissioner (GST), CBIC
12 Govt. of India Shri S.K. Rehman ADG, GST, CBIC
13 Govt. of India Shri Manish Saxena ADG, DG-Systems, CBIC
14 Govt. of India Shri Samanjasa Das ADG, DG (Anti-profiteering)
15 Govt. of India Shri Rajesh Malhotra ADG, (Media), MoF
16 Govt. of India Shri Manoj Sethi CCA, CBIC
17 Govt. of India Shri Sanjeev Sanyal Pr. Economic Adviser
18 Govt. of India Shri N. K. Vidhyarthi Director, TRU-II, DoR
19 Govt. of India Shri Pramod Kumar Deputy Secretary, TRU-II, DoR
20 Govt. of India Shri Ravneet Singh Khurana Joint Comm., GST Policy Wing
21 Govt. of India Ms Himani Bhayana Joint Comm., GST Policy Wing
22 Govt. of India Shri Darpan Amrawanshi
Deputy Commissioner, GST Policy
Wing
23 Govt. of India Shri Paras Sankhla OSD to Union Finance Minister
24 Govt. of India Shri Mahesh Tiwari PS to MoS (Finance)
25 Govt. of India Shri Debashis Chakraborty OSD to Finance Secretary
26 Govt. of India Shri Anurag Sehgal OSD to Chairman, CBIC
27 Govt. of India Shri Nagendra Goel Advisor, CBIC
28 GST Council Shri Shashank Priya Joint Secretary
29 GST Council Shri Dheeraj Rastogi Joint Secretary
30 GST Council Shri Rajesh Kumar Agarwal Addl. Commissioner
31 GST Council Shri Jagmohan Joint Commissioner
32 GST Council Shri Arjun Kumar Meena Dy. Commissioner
33 GST Council Shri Rakesh Agarwal Dy. Commissioner
34 GST Council Shri Rahul Raja Under Secretary
35 GST Council Shri Mukesh Gaur Superintendent
36 GST Council Shri Sandeep Bhutani Superintendent
37 GST Council Shri Vipul Sharma Superintendent
38 GST Council Shri Sarib Sahran Superintendent
39 GST Council Shri Amit Soni Superintendent
40 GST Council Shri Anis Alam Superintendent
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41 GSTN Shri Prakash Kumar CEO
42 GSTN Ms Kajal Singh EVP (Services)
43 GSTN Shri Vashistha Chaudhary SVP (Services)
44 GSTN Shri Jagmal Singh VP (Services)
45 GSTN Shri Sarthak Saxena OSD to CEO
46 Govt. of India Shri C K Jain Commissioner, Jaipur Zone, CBIC
47 Govt. of India Shri B Hareram
Pr. Commissioner, Vishakhapatnam
Zone, CBIC
48 Govt. of India Shri Sanjay Mahendru Commissioner, Mumbai Zone, CBIC
49 Govt. of India Shri Kishori Lal
Commissioner, Chandigarh Zone,
CBIC
50 Govt. of India Shri Neerav Kumar Mallick Commissioner, Bhopal Zone, CBIC
51 Govt. of India Shri Pradeep Kumar Goel Commissioner, Meerut Zone, CBIC
52 Govt. of India Shri G V Krishna Rao
Pr. Commissioner, Bengaluru Zone,
CBIC
53 Govt. of India Shri Nitin Anand Commissioner, Ranchi Zone, CBIC
54 Govt. of India Shri M. Srinivas
Commissioner, Hyderabad Zone,
CBIC
55 Andhra Pradesh Dr D.Sambasiva Rao Special Chief Secretary, Revenue
56 Andhra Pradesh Shri J. Syamala Rao Chief Commr, CT
57 Andhra Pradesh Shri T. Ramesh Babu CCT
58 Andhra Pradesh Shri D. Venkateswara Rao OSD to Spcl Chief Secretary, Revenue
59
Arunachal
Pradesh
Shri Anirudh S Singh Commissioner (Tax & Excise)
60
Arunachal
Pradesh
Shri Tapas Dutta SNO
61 Assam Shri Anurag Goel Commissioner, CT
62 Assam Shri Kailash Kartik N Jt. Secretary, Finance
63 Assam Shri Shakeel Saadullah Jt. Commissioner, CT
64 Assam Shri Gautam Dasgupta Jt. Commissioner, CT
65 Bihar Ms Sujata Chaturvedi Principal Secretary, Finance and CTD
66 Bihar Dr Pratima Commissioner cum Secretary, CTD
67 Bihar Shri Arun Kumar Mishra Additional Secretary, CTD
68 Bihar Shri Ajitabh Mishra Dy. Commissioner, CTD
69 Chhattisgarh Smt Sangeetha P Commissioner, CT
70 Chhattisgarh Shri S L Agrawal Special Commissioner, CT
71 Chhattisgarh Smt. Nimisha Jha Joint Commissioner, CT
72 Delhi Ms Renu Sharma Pr. Secretary, Finance
73 Delhi Shri H. Rajesh Prasad Commissioner, State Tax
74 Delhi Smt. Sonika Singh Special Commissioner, CT
75 Delhi Shri Rajesh Goyal Addl. Commissioner (Policy), CT
76 Delhi Shri Sadanand Sah Asst. Commissioner (Policy), CT
77 Delhi Shri L S Yadav Asst. Commissioner (Policy), CT
78 Goa Shri Dipak Bandekar Commissioner, CT
79 Goa Shri Ashok Rane Addl. Commissioner, CT
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80 Gujarat Dr. P.D. Vaghela ACS/CCT
81 Gujarat Shri. Sanjeev Kumar
Secretary (Economic Affairs) Finance
Department
82 Gujarat Shri Ajay Kumar Special Commissioner, CT
83 Haryana Shri Sanjeev Kaushal Addl Chief Secretary, E & T Dept
84 Haryana Ms Ashima Brar E&T Commissioner
85
Himachal
Pradesh
Shri J C Sharma Principal Secretary (Finance)
86
Himachal
Pradesh
Shri Rajeev Sharma
Commissioner of State Tax and
Excise
87
Himachal
Pradesh
Shri Sanjay Bhardwaj Addl Comm., State Tax & Excise
88
Jammu &
Kashmir
Shri Navin K. Choudhary Pr. Secretary, Finance Dept.
89
Jammu &
Kashmir
Shri M Raju Commissioner, CT
90
Jammu &
Kashmir
Shri P K Bhatt Addl Comm., CT Tax Planning
91 Jharkhand Shri K K Khandelwal ACS, CTD
92 Jharkhand Shri Rahul Sharma Commissioner, CT
93 Jharkhand Shri Ajay Kumar Sinha Addl. Commissioner of State Taxes
94 Jharkhand Shri Brajesh Kumar State Tax officer
95 Karnataka Shri Srikar M.S. Commissioner, CT
96 Kerala Dr. Rajan Khobragade
Pr. Secretary & Commissioner, State
GST Dept.
97 Madhya Pradesh Shri Pawan Kumar Sharma Commissioner, CT
98 Madhya Pradesh Shri Sudip Gupta Jt. Commissioner, CT
99 Madhya Pradesh Shri Manoj Kumar Choube Dy. Comm, CT
100 Maharashtra Shri Rajiv Jalota Commissioner, State Tax
101 Maharashtra Shri Dhananjay Akhade Jt. Commissioner, State Tax
102 Manipur Smt Mercina R. Panmei Commissioner, CT
103 Manipur Shri R K Khurkishor Singh Jt. Commissioner, CT
104 Manipur Shri Y. Indrakumar Singh Asst. Commissioner, CT
105 Meghalaya Shri H Marwein ACS, Taxation Department
106 Meghalaya Shri L Khongsit Jt. Commissioner, State Tax
107 Meghalaya Shri G G Marbaniang Asst. Commissioner, State Tax
108 Meghalaya Shri K War Asst. Commissioner, State Tax
109 Meghalaya Shri B Wallang Asst. Commissioner, State Tax
110 Mizoram Shri Vanlalchhuanga
Commissioner & Secretary, Taxation
Department
111 Mizoram Shri L H Rosanga Commissioner, State Tax
112 Mizoram Shri Kailiana Ralte Addl. Commissioner, State Tax
113 Mizoram Shri K H Lalhawngliana Jt. Commissioner, State Tax
114 Nagaland Shri Mhathung Murry Addl. Commr, State Tax
115 Odisha Shri Tuhin Kanta Pandey ACS, Finance
116 Odisha Shri Saswat Mishra Commissioner, CT
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117 Odisha Shri N K Rautray Additional Secretary, Finance
118 Odisha Shri Sahadev Sahoo Addl. Commissioner, CT
119 Puducherry Shri G. Srinivas Commissioner, CT
120 Punjab Shri M. P Singh
Addl. Chief Secretary-cum-Financial
Commissioner (Taxation)
121 Punjab Shri V. K. Garg Advisor (Financial Resources) to CM
122 Punjab Shri Vivek Pratap Singh Excise & Taxation Commissioner
123 Punjab Shri Pawan Garg Dy. Excise & Taxation Commissioner
124 Rajasthan Shri Praveen Gupta Secretary Finance (Revenue)
125 Rajasthan Shri Alok Gupta Commissioner, State Tax
126 Rajasthan Ms Meenal Bhosle OSD, Finance
127 Rajasthan Shri Ketan Sharma
Addl. Commissioner, GST, State Tax
Dept
128 Sikkim Smt. Dipa Basnet Secretary-cum-Commissioner, CT
129 Sikkim Shri Manoj Rai Addl. Commissioner, CT
130 Tamil Nadu Dr. T.V Somanathan ACS/CCT
131 Tamil Nadu Shri K Gnanasekaran Additional Commissioner, CT
132 Tamil Nadu Shri C. Palani Jt. Commissioner (Taxation)
133 Telangana Shri Somesh Kumar Principal Secretary (Finance)
134 Telangana Shri Anil Kumar Commissioner of State Tax
135 Telangana Shri Laxminarayan Jannu Addl. Commissioner, State Tax
136 Tripura Shri Nagesh Kumar B Chief Commr, CT
137 Tripura Shri Ashin Barman Superintendent of State Tax
138 Uttar Pradesh Shri Alok Sinha ACS, CT
139 Uttar Pradesh
Smt. Kamini Chauhan
Ratan
Commissioner, CT
140 Uttar Pradesh Shri Ajit Kumar Shukla Addl. Commr. (vidhi, CT
141 Uttar Pradesh Shri Vivek Kumar Addl. Commissioner, CT
142 Uttar Pradesh Shri K P Verma Addl. Commissioner, CT
143 Uttar Pradesh Shri C P Mishra Joint Commissioner, CT
144 Uttar Pradesh Shri D K Sachan Joint Commissioner, CT
145 Uttar Pradesh Shri Sanjay Kumar Pathak Joint Commissioner, CT
146 Uttarakhand Ms. Sowjanya Commissioner, State Tax
147 Uttarakhand Shri Piyush Kumar Addl. Commissioner State Tax
148 Uttarakhand Shri Vipin Chand Addl. Commr., State Tax
149 Uttarakhand Shri Rakesh Verma Jt Comm., State Tax
150 West Bengal Shri Khalid A Anwar Senior Joint Commissioner, CT

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Annexure 3

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Agenda Item 2: Deemed ratification by the GST Council of Notifications, Circulars and Orders
issued by the Central Government
In the 22nd meeting of the GST Council held at New Delhi on 06th October, 2017, it was decided
that the Notifications, Circulars and Orders which are being issued by the Central Government with the
approval of the competent authority shall be forwarded to the GST Council Secretariat, through email,
for information and deemed ratification by the GST Council. Accordingly, in the 30th Meeting held on
28th September, 2018, the GST Council had ratified all the notifications, Circulars and orders issued
before the said date.
2. In this respect, the following Notifications, Circulars and Orders issued after 28th September,
2018 (date of the 30th GST Council Meeting), till 13th December, 2018, under the GST laws by the
Central Government, as available on www.cbic.gov.in, are placed before the Council for information
and deemed ratification: -
Act/Rules Type Notification Nos.
CGST Act/CGST Rules Central Tax 53 to 66 of 2018
IGST Act Integrated Tax 3 of 2018
UTGST Act Union territory Tax 12 to 15 of 2018
Circulars Under the CGST Act 66 to 74 of 2018
Removal of Difficulty
Orders
Under the CGST Act 1 of 2018
3. The GST Council may grant deemed ratification to the Notifications, Circulars and Orders listed
above.

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Agenda Item 3: Decisions of the GST Implementation Committee (GIC) for information of the
GST Council
GST Implementation Committee (GIC) took certain decisions between 28th September 2018
(when the 30th GST Council Meeting was held) and 13th December 2018 (before the 31st GST Council
Meeting scheduled on 22nd December 2018). Post the Council Meeting, whenever there were issues
which required immediate resolution, the approval of the GIC was sought and consequential
notifications/circulars/orders were issued. Due to the urgency involved, certain decisions were taken
after obtaining approval by circulation amongst the GIC Members. The details of the decisions taken
are given below:
22nd GIC Meeting – 10th October 2018
2. The 22 n d Meeting of the GIC was held on 10 th October 2018. The following agenda items
were discussed and decided:
Agenda Item 1: Extension of due date for filing of FORM ITC-04
3. Shri Upender Gupta (Commissioner, GST Policy Wing, CBIC) introduced the agenda and stated
that as per rule 45 (3) of the Central Goods and Services Tax Rules, 2017 (CGST Rules for short), the
details of challans in respect of goods dispatched to a job worker or received from a job worker or sent
from one job worker to another during a quarter shall be furnished in FORM GST ITC-04 on or before
the twenty-fifth day of the month succeeding the said quarter, or within such further period as may be
extended by the Commissioner by a notification in this behalf.
3.1. The revised format of the FORM GST ITC-04 was notified by notification No. 39/2018- Central
Tax dated 04.09.2018. Further, the last date of submission of the said FORM was extended to 30.09.2018
vide notification No. 40/2018-Central Tax dated 04.09.2018. The development of the new amended
format incorporating all the changes as made vide notification No. 39/2018- Central Tax dated
04.09.2018 by GSTN was expected to take time. He further stated that the trade had represented that there
were technical issues being faced by the taxpayers while filing the said FORM. He informed that the Law
Committee in its meeting held on 19th and 20th September, 2018 had recommended that the last date for
filing of the FORM may be extended for the period from July, 2017 to the quarter ending June, 2018 till
31.12.2018, in exercise of the power under section 168 of CGST Act, 2017 and rule 45(3) of the CGST
Rules, 2017. He further mentioned that as per the said rule, the last date for the quarter July-September,
2018 was 25th October, 2018 and therefore the same also needed to be extended till 31.12.2018.
3.2. The GIC approved the proposal for the extension of due date, by way of notification, for
furnishing of FORM GST ITC-04 for the period from July, 2017 to September, 2018 till 31.12.2018.
Accordingly, the implementing notification No. 59/2018 – Central Tax dated 26th October 2018 was
issued.
Agenda Item 2: Extension of last date of filing of final return in FORM GSTR-10 up to 31st
December, 2018
4. Commissioner, GST Policy Wing, CBIC stated that Section 45 of the Central Goods and
Services Tax Act, 2017 (hereinafter referred to as the CGST Act) mandated that every taxpayer whose
registration had been cancelled was required to furnish a final return within three months of the date of
cancellation or date of order of cancellation. Further, rule 81 of the CGST Rules provides that the final
return has to be filed in FORM GSTR-10.
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4.1. He stated that FORM GSTR-10 was notified by the Government vide notification No. 21/2018
– Central Tax dated 18.04.2018 and the documentation and development work started thereafter. The
said form had been made available to taxpayers by GSTN with effect from 16th September, 2018. Those
taxpayers who got their registration cancelled but could not file final return within three months due to
unavailability of the form were required to pay late fees and interest without any fault of their own. He
informed that the Law Committee had recommended that those taxpayers whose registrations got
cancelled up to 30th September, 2018 may be provided a period of three months for filing FORM GSTR-
10 so that late fee and interest may not be levied on such filing. Since there was no power to extend the
date of such return in the CGST Act, the provisions of Section 148 of the CGST Act were proposed to
be used.
4.2. The GIC approved the proposal for the extension of due date for furnishing of FORM GSTR-
10 till 31.12.2018 for those taxpayers who got their registration cancelled on or before 30.09.2018. It
also decided that the implementing notification could be issued after legal vetting by the Union Law
Ministry and the pari materia notification would also be issued under the respective State Goods and
Services Tax Act, 2017. Accordingly, the implementing notification No. 58/2018 – Central Tax dated
26th October 2018 was issued.
Agenda Item 3: Standard Operating Procedure (SOP) for Processing of Applications for
Cancellation of Registration submitted in FORM GST REG-16
5. Commissioner, GST Policy Wing, CBIC introduced the agenda and stated that as per the data
made available by GSTN, approximately 1,62,000 applications were pending for cancellation with the
Central Tax and the State Tax administrators. He stated that generally such people were migrated
taxpayers not requiring to have GST registrations for reasons such as annual turnover being below Rs.
20 lakh. He added that many in this category had not filed their returns. He further added that the issue
was also being monitored by Prime Minister’s Office. He mentioned that the GST Council Secretariat
had issued a letter in this regard to quickly reduce the pendency in processing of applications for
cancellation of registration.
5.1. He further stated that various representations seeking clarification on various issues were
received in relation to processing of the applications for cancellation of registration filed by taxpayers
in FORM GST REG-16. He stated that the Law Committee proposed to issue a SOP in the form of a
Circular in order to ensure a uniform procedure for processing of such applications.
5.2. Commissioner, GST Policy Wing, CBIC stated that the State of Gujarat had suggested to qualify
the requirement of issuance of notice in circumstances where a registered person had made no supply
during the period from the date of registration to the date of application for cancellation. In case the
applicant furnished an undertaking to this effect, then registration could be cancelled without issuing a
show cause notice and where such an undertaking was not furnished, a show cause notice would need
to be issued. GIC agreed to suitably incorporate this clarification in paragraph 10 of the circular.
5.3. Dr. Rajeev Ranjan, Special Secretary, GST Council suggested that the generic observation in
the second sentence in paragraph 3 (“There is no gainsaying the fact that it might be difficult to exactly
identify or pinpoint the day on which such an event occurs”) should be made more specific by amending
the above sentence as follows: There is no gainsaying the fact that It might be difficult in some cases to
exactly identify or pinpoint the day on which such an event occurs. GIC agreed to the suggestion.
5.4. Shri Khalid Anwar, Senior Joint Commissioner, Commercial Taxes, West Bengal suggested
that the SOP under this circular should also apply to those who had taken voluntary registration under
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section 29(1)(c) of the CGST/SGST Act. Commissioner, GST Policy Wing stated that since the clause
of not permitting cancellation for one year for the voluntary registrants had been deleted earlier, this
SOP would apply to those who had taken registration voluntarily but now wanted to cancel the same
and the same could be clearly stated in paragraph 2(d) of the Circular. GIC agreed to the suggestion.
5.5. Senior Joint Commissioner, Commercial Taxes, West Bengal further stated that the reference
to paragraph 3 in paragraph 5 (a) should be read as paragraph 4. He also stated that in regard to paragraph
5 (b), for a new entity, it would be desirable to make Table-7 of FORM GST REG-16 mandatory.
Commissioner, GST Policy Wing, CBIC stated that the suggestion could be accepted. GIC agreed to the
suggestion.
5.6. Senior Joint Commissioner, Commercial Taxes, West Bengal further suggested that the condition
stated in of the draft SOP that in case of death of sole proprietor, cancellation application will have to
be submitted manually before the proper officer by the legal heir/successor should not be insisted upon
and he should also be allowed to file application online. GIC agreed to this suggestion.
5.7. Dr. P.D. Vaghela, CCT, Gujarat suggested that in regard to paragraph 4 (e), in case of transfer,
merger of business etc., the GSTIN registration of the new entity may not be immediately available and
therefore, the details of the Order of the Hon’ble High Court or the Transfer Deed (in cases where the
unit is not a company) should be accepted for the cancellation application. Commissioner, GST Policy
Wing, stated that the requirement suggested by CCT, Gujarat may be incorporated in the Circular which
would also accommodate the suggestion from West Bengal regarding making Table-7 of FORM REG-
16 mandatory. GIC agreed to the suggestion.
5.8. The GIC approved the proposal to issue the Circular detailing SOP for processing of
applications for cancellation of registration submitted in FORM GST REG-16 with the changes
suggested above. It was also decided that the States may issue similar Circular. Accordingly, the
implementing Circular No. 69/43/2018-GST dated 26th October 2018 was issued.
Agenda Item 4: Clarification on certain issues related to Refund
6. Commissioner, GST Policy Wing, CBIC introduced the agenda and stated that the Law
Committee proposed to clarify two issues related to refund, namely: (i) Status of refund claim after
issuance of deficiency memo and re-credit of electronic credit ledger; and (ii) Allowing exporters who
have received capital goods under EPCG to claim refund of IGST paid on exports.
6.1. He stated that post issuance of Circular No. 59/33/2018-GST dated 4th September, 2018, it had
been represented that in cases where deficiency memo had been issued for a refund application, the
taxpayers were not able to file a fresh application of refund for the same period on the common portal.
As per the extant rule, in case of deficiency memo, the taxpayer had to file a fresh application for refund
with new Acknowledgement Reference Numbers (ARNs). It was expected that after issuance of
deficiency memo there should be re-credit of the claimed amount in the electronic credit ledger through
FORM GST RFD-01 B. However, currently, the facility to file a fresh application for refund for the
same tax period did not exist on the common portal. He informed that keeping in view the limitation of
the software, the Law Committee had proposed that re-credit of the claimed amount in the electronic
credit ledger using FORM GST RFD-01B shall not be carried out where deficiency memo had been
issued in FORM GST RFD-03. For the cases where re-credit of input tax credit had already been carried
out in the ITC ledger, GSTN would take steps to resolve these cases after getting the details of the same.
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6.2. He added that representations were also received requesting that exporters who had procured
capital goods under the EPCG scheme should be allowed to claim refund of the IGST paid on exports.
Such exporters were currently restricted from claiming refund of IGST paid on exports by rule 96(10)
of the CGST Rules. Accordingly, the GST Council, in its 30th Meeting held at New Delhi on 28.09.2018,
accorded approval to the proposal to suitably amend rule 96(10) and 89(4B) of the CGST Rules, with
prospective effect and rescinding the relevant provisions of notification No. 39/2018- Central Tax dated
04.09.2018. The Council’s decision has already been implemented vide notification Nos. 53/2018-
Central Tax and 54/2018- Central Tax both dated 09th October 2018. It was proposed that this matter
could also be further clarified by way of a Circular.
6.3. CCT, Gujarat asked GSTN about the tentative date by when the facility of re-crediting of the
claimed amount of input tax credit in the electronic credit ledger using FORM GST RFD-01B once the
deficiency memo was issued would be made available enabling the taxpayer to file a fresh refund
application. He added that the Law Committee was earlier informed that such facility was available and
it was then that the notification was issued. Ms. Kajal Singh, EVP (Services), GSTN stated that as of
now, there was no facility for this purpose since the system was not able to capture the details of
deficiency memo which was currently being issued manually. She added that they had requested Gujarat
to send the list of such cases to GSTN so that the same could be looked into and some solution could be
worked in the backend on case to case basis. EVP (Services), GSTN stated that APIs specifications had
already been given and once FORM GST RFD-01 was integrated by all Model-1 States, then the
facility could be brought in. Commissioner, GST Policy Wing, CBIC stated that it was not the question
of integration but as of today, the procedure followed for refund module under FORM GST RFD-01 A
was a semi-automatic process and it appeared that GSTN could bring in this facility for new refund
applications once there was a switchover from FORM GST RFD-01 A to FORM GST RFD-01
process. Senior Joint Commissioner, CT, West Bengal informed that in view of the refund Circulars
issued earlier, they too had similar cases where deficiency memo was issued and the amount were
recredited. EVP (Services), GSTN stated that the details of such cases may be sent to GSTN so that they
could be re-worked at the back end. Commissioner, GST Policy Wing, CBIC summarised that, as
informed by GSTN, the facility of re-credit of amount rejected through deficiency memo through
FORM GST RFD-03 and re-credit thereof would be made available only when one moved from
FORM GST RFD-01 A system to FORM GST RFD-01 system. The GIC agreed to the proposal.
6.4. The GIC approved the draft Circular on refund clarifying the two issues relating to: (i) Status of
refund claim after issuance of deficiency memo and re-credit of electronic credit ledger, and (ii)
Allowing exporters who have received capital goods under EPCG to claim refund of IGST paid on
exports. It was also decided that the States may issue similar Circular. The implementing Circular No.
70/44/2018-GST dated 26th October 2018 was issued.
Agenda Item 5: Clarification on issues pertaining to registration as a casual taxable person and
recovery of excess Input Tax Credit distributed by an Input Service Distributor
7. Commissioner, GST Policy Wing, CBIC introduced the agenda and stated that various
representations were received from trade for clarification on the range of issues concerning Casual
Taxable Person (CTP) like amount of advance tax liability to be deposited and for extension of period
of registration as a casual taxable person beyond the period mandated as per law. Further, concerns had
been expressed by field formations regarding the manner of recovery of excess Input Tax Credit (ITC)
distributed by an Input Service Distributor (ISD) in contravention of the provisions contained in section
20 of CGST Act, 2017. He informed that issue regarding the payment of advance tax by CTPs was also
raised by Punjab during the discussions related to GST Law amendment.
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7.1. He further informed that the Law Committee had noted that the CTP while obtaining registration
was required to deposit the advance tax. It suggested that this may be clarified by way of a Circular that
the said amount may be calculated after considering the due eligible ITC which might be available to
such taxable person. It was pointed out that the application for registration as a CTP i.e. the FORM
GST REG-1 sought information regarding the “estimated net tax liability” only and not the gross tax
liability. Further with regard to extension of registration period of the CTP beyond the mandated period
as per law, it was proposed to be clarified that in case of long running exhibitions (more than 6 months),
the taxable person cannot be treated as a CTP and thus such persons would be required to obtain
registration as a normal taxable person. He can surrender such registration once the exhibition was over.
In such cases he would not be required to pay advance tax while obtaining registration. While applying
for normal registration, the said person should upload a copy of the allotment letter granting him
permission to use the premises for the exhibition and the said allotment letter/consent letter shall be
treated as the proper document as a proof of his place of business. With regard to the issue of recovery
of excess ITC distributed by an ISD, it was proposed by the Law Committee that the said excess credit
shall be paid back by the recipient units and if they fail to pay, necessary proceedings may be initiated
under Section 73 and Section 74 through FORM DRC-03 in case of voluntary payment and through
FORM DRC-07 in case of demand raised by tax officials.
7.2. CCT, Gujarat stated that in as per Section 122 (ix) of the CGST ACT, 2017, the person who
takes or distributes the ITC in contravention of Section 20 of the CGST ACT, 2017 or the rules made
thereunder shall be liable to pay the penalty of ten thousand rupees or ITC availed of or passed on or
distributed irregularly, or the refund claimed fraudulently, whichever is higher. Commissioner, GST
Policy Wing, CBIC stated that it could be suitably clarified that the ISD would be liable to penalty under
Section 122 (ix) of the CGST, Act, 2017. GIC agreed to this suggestion.
7.3. Special Secretary, GST Council suggested that the header of the Circular should be re-phrased
clearly as “Clarifications on issues relating to Casual Taxable Persons and Input Service Distributors
under GST.”. Senior Joint Commissioner, CT, West Bengal informed that in the Column 3 of the Sl. No
2 of the Table in the draft Circular the words “for a period more than six months” should be reworded
as “for a period more than 180 days” as this expression had been used in other parts of the draft Circular.
GIC agreed to these suggestions.
7.3. The GIC approved the draft Circular clarifying the issues pertaining to registration as a casual
taxable person and recovery of excess Input Tax Credit distributed by an Input Service Distributor with
the suggestions above. It was also decided that the States may issue similar Circular. Accordingly, the
implementing Circular No. 71/45/2018-GST dated 26th October 2018 was issued.
Agenda Item 6: Circular to clarify the procedure in respect of return of time expired drugs or
medicines
8. Commissioner, GST Policy Wing, CBIC introduced the agenda and stated that various
representations had been received seeking clarification on the procedure to be followed in respect of
return of time expired drugs or medicines under the GST laws. He added that the agenda was brought
before the GIC earlier but the same was referred back to the Law Committee to re-examine. He informed
that under VAT regime, the facility to adjust the tax liability was available if such goods were returned
within six months while no such facility was available under Central Excise laws. He informed that GST
Laws were comparatively more liberal. Section 34 of the CGST/SGST Act, 2017 specifically provides
that Credit Note could be issued upto September of the next Financial Year or date of furnishing of the
relevant annual return whichever is earlier and thus tax liability could be adjusted till this time. He
informed that there was confusion in trade that one cannot issue Credit Note after 30th September.
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Therefore, it was being proposed to clarify by way of Circular that there would be an option to the
retailer or the wholesaler to return the goods, either by way of reverse supply i.e. by issuing an invoice
or a bill of supply or a delivery challan, depending upon whether it is a normal registered taxable person
or a composition taxpayer or an unregistered person and the value in such cases could be equal to the
value of original supply. The recipient unit (till manufacturer) could then take the re-credit of the eligible
ITC of such amount. He informed that, as per the Pharmacy Act, 1948, it is the responsibility of the
manufacturer to destroy the expired drugs and he had to bear the loss. He also added that, it was also
proposed to clarify alternately that the manufacturer to wholesaler to retailer can issue a Credit Note and
that if it pertained to supply of the last Financial Year, then the tax liability could be adjusted till the
month of September of the next Financial Year, but not thereafter.
8.1. Commissioner, GST Policy Wing, CBIC stated that CCT, Gujarat had raised a point in this
regard that after September, the Credit Note could be issued by the manufacturer but without adjustment
of the tax amount as the manufacturer would not be able to adjust the liability whereas the wholesaler
or the retailer would have received the goods on payment of full tax. Therefore, as the liability of the
supplier was not getting reduced, there would be instances where the wholesaler or the retailer would
be paying less amount to the manufacturer or to the whole seller, as the case may be, but yet it would
take full credit on the basis of invoice issued earlier. So, in this case, because of the limitation in the
Pharmacy Act, 1948 and the limitation in CGST Act, 2017, the draft Circular clarifying certain aspects
was proposed and the issue raised by Gujarat could be handled separately in the Law Committee to find
a solution to those cases where people are issuing invoices for a higher amount and are in the habit of
issuing a Credit Note and thus passing higher credit to the recipient. CCT, Gujarat agreed to this
suggestion.
8.2. Dr. T. V. Somanathan, CCT, Tamil Nadu enquired whether the Pharma Industry had been
consulted in this regard. Member (GST), CBIC stated that a detailed discussion was held with the Trade
representatives and they were agreeable to the proposed procedure.
8.3. The GIC approved the draft Circular clarifying the procedure in respect of return of time expired
drugs or medicines. It was also decided that the States may issue similar Circular. Accordingly, the
implementing Circular No 72/46/2018-GST dated 26th October 2018 was issued.
Agenda Item 7: Circular to clarify the taxability of medicines, consumables and implants supplied
to in-patients during the course of medical treatment in hospitals
9. Commissioner, GST Policy Wing, CBIC introduced the agenda and stated that currently health
care services were exempted under GST. As a matter of practice, the corporate hospitals bundle
medicines along with the health services provided by them but charge the patients separately for
medicines at the Maximum Retail Price (MRP) which includes GST. Therefore, it was proposed to
clarify that, if the health services providers were billing the medicines separately and at MRP (which
includes the tax component), they are exempted under GST for providing health services but are liable
to pay GST on the value of medicines, consumables and implants supplied to in-patients and billed
separately and ITC would be available to them.
9.1. CCT, Tamil Nadu stated that there were certain corporate hospitals which offered a package
deal for certain treatment and health services which included medicines and other consumables as well
without any separate breakup of the cost. He enquired whether they would remain exempted under GST
and if so, would it not encourage more and more hospitals to offer package deal and thus create a tax
arbitrage. Shri P. K Jain, Pr. DG, DG-Audit, CBIC stated that the Tax Department has to consider the
prevalent trade practices and if need be, it could examine and classify the nature of supply if a party
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followed certain practise to avoid payment of tax. He stated that the Law in United Kingdom permitted
Officers to allow practices which were normal for the trade but not those which was done to avoid
payment of tax. CCT, Tamil Nadu observed that such a provision would leave window for exercise of
excessive discretionary power in the hands of the tax officers and could also lead to differing opinions
in different tax jurisdictions. CCT, Gujarat observed that if there was no clarity on this point, then the
hospitals could shift more towards the package deal treatment. He suggested that one should insist that
when the invoice is prepared for the patient, breakup cost of all components of the services being
provided to the patient for the treatment should be furnished. CCT, Tamil Nadu stated that the suggestion
of CCT, Gujarat could be a solution if the law permits it. Pr. DG, DG-Audit observed that one had to
keep in mind that one cannot discard the concept of composite supply altogether in this case as well.
Shri Shashank Priya, Joint Secretary, GST Council, cautioned that it was a very sensitive issue and it
would be prudent for the GST Council to take decision in this regard. ACS, Haryana observed that the
issue needed to be examined more elaborately as it could affect the health services and the related
institutions. He added that one would also need to keep in mind as to how much of the price components
of the medicines and implants would normally be in such a composite supply. He suggested that the
health services industry should be consulted and the issue should be further examined in the Law
Committee while covering all the aspects. He also agreed with the suggestion that the matter should be
placed before the GST Council for decision.
9.2. The GIC decided to refer the issue back to the Law Committee for a more detailed examination
of the issue in line with the suggestions and views expressed by the Members of the GIC. It also decided
that thereafter, the issue should be taken to the GST Council for decision.
Agenda Item 8: Proposal for exempting authorities incurring expenditure subject to post audit
under Ministry of Defence from TDS compliance
10. Commissioner, GST Policy Wing, CBIC introduced the agenda and stated that vide letter DO.
No. 30(10)/GS-II/1297-F/RM/18 dated 27th April, 2018, received from the Hon’ble Union Minister of
Defence, a request was made to exempt authorities incurring expenditure subject to post audit under the
Ministry of Defence from the requirement of TDS under Section 51 of CGST Act, 2017. It was further
stated in the letter that once Section 51 is enforced, all IN (Indian Navy) ships/units or formations of the
Defence Ministry undertaking payment of more than Rs. 2.5 lakh would be required to deduct tax at
source, thereby making them liable to comply with all the procedural requirements under GST like
registration, returns, payment etc. It had been stated that the Army unit, Aircrafts, IN ships/units are
operational assets, which do not have the wherewithal to comply with such cumbersome procedures.
Furthermore, by taking unit-wise registration, the name, strength and locations of the units of army,
navy, air force, Coast Guard, DRDO labs as well as details of the entire supply in terms of weapons,
equipment, stores etc. would be disclosed. Mapping of such security details on the open network would
be extremely prejudicial to national security.
10.1. He informed that under the Ministry of Defence, matters relating to allocation, booking,
payment against the expenditure for revenue and capital budget on pre-audit basis was looked after by
a unique organisation headed by the CGDA (Controller General Defence Accounts). Replenishment
spares, maintenance spares and services, recurring expenses like the salaries and the entire capital budget
were paid through the CDA (Controllers of Defence Accounts) offices, that function under the CGDA.
The Ships/ Units and the Command/ Area headquarters were authorised to incur certain expenditure to
meet urgent/ operational/ emergency requirements which was subject to post-audit controls. Such
flexibility was provided in view of the operational nature of requirements and to meet contingencies.
The total cumulative volume of such post-audit funds was less than 2% of the total expenditure. Thus,
approximately 98% of the expenditure incurred by the Ministry of Defence was paid through the CDA
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and is subject to pre-audit verifications. Defence Authorities had no issues in PCDA/CDA Authority
registering for TDS for pre-audit funds of capital expenditure or revenue expenditure.
10.2. He stated that the matter was discussed in the Law committee and it was noted that the intention
of deducting TDS was to have audit trail. Secondly, it was a mechanism of part collection of tax. The
due tax liability otherwise was of supplier. Hence absolving certain class of registered persons from the
liability of deduction of TDS did not, per se, impact the revenue. Therefore, the Law Committee
requested CCT, Maharashtra to examine the issue and submit report on the matter. After examination
of the issue, the CCT, Maharashtra observed that after having understood the business process, the
amount of revenue involved and the unique nature of working of Defence in the country, it was felt that
the TDS provisions may be looked into differently for the Defence. Secrecy was a matter of concern for
the country as a whole. The Army unit, Aircrafts, IN ships/units were more vulnerable to the security
issues and hence the post audit authorities may be exempted from the TDS mandate.
10.3. He informed that the said recommendation was discussed by the Law Committee and it
recommended that under Ministry of Defence, all the expenditures done by PCDA/CDA which were
subject to pre-audit controls may be kept under TDS and the expenditure which was subject to post-
audit verifications may be kept out of the purview of Section 51 of the CGST Act.
10.4. He further mentioned that notification No. 50/2018-Central Tax dated 13th September, 2018 had
already been issued to enforce Section 51 of CGST Act, 2017 from 01st October, 2018. Under the said
Notification, there was no exemption available to post audit authorities under Ministry of Defence
(MoD). Therefore, to carve out an exemption from Section 51 of CGST Act, 2017 for post audit
authorities under MoD, a notification to amend the above notification was required to be issued.
10.5. ACS, Haryana stated that given the importance and urgency of the proposal, he was willing to
go along with it. However, this waiver from TDS requirement should not be cited as a precedent for
other paramilitary forces.
10.6. The GIC approved the proposal for exempting authorities incurring expenditure subject to post
audit under Ministry of Defence from TDS compliance and noted that this decision should not be cited
as a precedent for other paramilitary forces to seek a similar waiver. It was also decided that the
implementing notification could be issued after legal vetting by the Union Law Ministry and the pari
materia notification would also be issued by the States under the respective SGST Act, 2017.
Accordingly, the notification No. 57/2018 – Central Tax dated 23rd October 2018 was issued.
Agenda Item 9: Changes in the CGST Rules, 2017
11. Commissioner, GST Policy Wing, CBIC introduced the agenda and stated that the Law
Committee had proposed amendments to CGST Rules, 2017 as follows:
Amendment in FORM GST REG-16
11.1. He stated that in view of the proposed issuance of Circular in relation to procedure for
processing of applications for cancellation of registration submitted in FORM GST REG-16, certain
changes in rules and relevant forms were required to simplify the cancellation procedure. The
instructions contained in FORM GST REG-16 mandated that in case of death of sole proprietor,
application shall be made by the legal heir / successor manually before the concerned tax authorities. It
was further mandated that the tax return due for the tax period in which the effective date of surrender
of registration falls was required to be filed before applying for cancellation. Further, as per the FORM
GST REG-16, the GSTIN of newly constituted entity was not mandatory in case of change in
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constitution leading to a change in PAN No. In order to address these issues and to further simplify the
process, the Law Committee had proposed the following:
i. Removal of requirement of filing return for the period in which the effective date of
cancellation lies.
ii. Removal of requirement of manual filing of cancellation application in case of death of
sole proprietor.
iii. Introduction of requirement of mentioning GSTIN of newly constituted entity in case of
change in constitution leading to change in PAN and a field of the relevant section number
be made available in the said form.
11.2. Commissioner, GST Policy Wing, CBIC further added that since the agenda item 3 and 9 were
interlinked, as per the suggestion made during discussion on the agenda item 3, an undertaking has to
be given for those who made no supplies from the date of registration to the date of application for
cancellation and the same would be brought in the FORM. Those who did not furnish such an
undertaking would need to file the returns.
11.3. He informed that the above recommendations were proposed to be carried out by making
following changes in FORM GST REG-16:
i. In sl. no. 7 of FORM GST REG-16, the entry may be amended as follows:
“In case of transfer, merger of business, and change in constitution leading to change in PAN
particulars of registration of entity in which merged, amalgamated, transferred, etc.”.
ii. In the instructions for filing of Application for Cancellation, the entry may be amended as
follows:
“In case of death of sole proprietor, application shall be made by the legal heir / successor manually
before the concerned tax authorities. The new entity in which the applicant proposes to amalgamate
itself shall register with the tax authority before submission of the application for cancellation. This
application shall be made only after that the new entity is registered.
Before applying for cancellation, please file your tax return due for the tax period in which the effective
date of surrender of registration falls or furnish an application to the effect that no taxable supplies
have been made during the intervening period (i.e. from the date of registration to the date of application
for cancellation of registration).”
11.4. The GIC approved the proposal to carry out the above amendment in FORM GST REG-16 in
the CGST Rules, 2017. It also decided the implementing notification could be issued after legal vetting
by the Union Law Ministry and the pari materia changes would be required to be carried out by the
States in the respective SGST Rules. Accordingly, the implementing notification No. 60/2018 – Central
Tax dated 30th October 2018 was issued.
Decisions by Circulation – 21st October 2018
12. A proposal for approval of the GIC was received from GST Policy Wing, CBIC regarding
extension of due date for filing FORM GSTR-3B for the month of September, 2018 upto 25.10.2018.
The last date for filing of FORM GSTR-3B for the month of September, 2018 was 20.10.2018 through
which ITC could have been availed.
12.1. The GIC approved the proposal to extend the due date for filing of FORM GSTR-3B for the
month of September, 2018 upto 25.10.2018. Accordingly, the implementing notification No. 55/2018 –
Central Tax dated 21st October 2018 was issued.

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23rd GIC Meeting – 26th October 2018
13. The 23 r d Meeting of the GIC was held on 26 th October 2018. The following agenda items
were discussed and decided:
Agenda item 1: Clarification on scope and ambit of principal and agent relationship under
Schedule I of CGST Act in the context of del-credere agent (DCA)
14. Commissioner, GST Policy Wing, CBIC informed that keeping in view references received
from the Trade and field formations, a Circular was proposed to be issued to clarify the relationship
between a principal and a del-credere agent. Sh. Shashank Priya, Joint Secretary, GST Council
Secretariat stated that since the proposed Circular was to be issued by the States as well, a decision to
that effect may be recorded in the Minutes. Ms. Smaraki Mahapatra, CCT, West Bengal suggested that
an index for Circulars may be maintained such that the States can issue the corresponding Circulars on
time. Sh. Shashank Priya, Joint Secretary, GST Council informed that a letter had already been sent to
the GST Policy Wing, CBIC with the approval of the Union Finance Secretary, requesting for a master
list of circulars issued so far, along with remarks as to which circulars were not required to be issued by
the States. Upon receipt of this Master list, it would be sent to all the States as a check list for issuing
the corresponding Circulars. States shall also send a copy of all the circulars issued to the GST Council
Secretariat for hosting it on its website.
14.1. Sh. Sanjeev Kaushal, ACS, Haryana stated that to avoid a situation where different States issue
the Circulars on different dates, there should be a prescribed due date on which the Centre and all the
States may issue the Circular simultaneously. Sh. Shashank Priya, Joint Secretary, GST Council
Secretariat stated that issuing Circulars simultaneously would be a challenge as there could be default
by some States, delaying the whole process. He suggested that instead, an understanding could be arrived
at that till the time a particular State has not issued a Circular, the Central Government’s circular, mutatis
mutandi would be valid for the State administration. Commissioner, GST Policy Wing, CBIC suggested
that the GIC may take a decision to the effect that the Centre’s Circulars may be applicable to the State
authorities as well. Ms. Smaraki Mahapatra, CCT, West Bengal stated that the Law Departments of the
States might not be agreeable to such an arrangement.
14.2. The GIC approved the draft Circular clarifying the scope and ambit of principal and agent
relationship under Schedule I of CGST Act in the context of del-credere agent. It also approved that all
Circulars approved by the GIC will be issued by both the Central Government as well as the State
Governments (except those which are expressly indicated as not required to be issued by the States).
Till such time, a particular State had not issued a Circular, the Central Government’s circular, mutatis
mutandi, shall be valid for the State administration. Further, an index of all Circulars issued till date
shall be circulated to all States by the GST Council Secretariat, to enable the States to update and issue
any missing Circulars (except those which are explicitly indicated as not required to be issued by the
States). States shall also send a copy of all the circulars issued to the GST Council Secretariat for hosting
it on its website. Accordingly, the implementing Circular No. 73/47/2018-GST dated 05th November
2018 was issued.
Agenda item 2: Corrigendum to Circular No. 57/31/2018-GST dated 4th September, 2018 issued
vide F. No. CBEC/20/16/4/2018-GST
15. Commissioner, GST Policy Wing, CBIC stated that a Corrigendum to Circular No. 57/31/2018
dated 04th September, 2018 was proposed to be issued to clarify that in cases where a commission agent
makes supplies on behalf of an agriculturist who is not a taxable person, he need not be registered under
GST. Shri Khalid Anwar, Sr. Joint Commissioner, Commercial Taxes, West Bengal stated that a proviso
may be added to cover the cases of agricultural products like cashew nut which attract GST on reverse
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charge. In such cases, the commission agent must take registration even when he was making supply on
behalf of an agriculturist.
15.1. Commissioner, GST Policy Wing, CBIC suggested that the GIC may approve the draft circular
and the addition as proposed above. The formulation regarding the proposed addition could be discussed
and approved by the Law Committee on the basis of a draft to be prepared by CCT, West Bengal.
15.2. The GIC approved the draft Circular including the proviso to be added regarding commission
agent to compulsorily take registration when he was making supply on behalf of an agriculturist of an
agricultural product that attracted GST on reverse charge. It also agreed that a similar Circular will be
issued by the States. Accordingly, the implementing corrigendum to Circular No. 57/31/2018-GST dated
05th November 2018 was issued.

Agenda Item 3: Collection of tax at source by Tea Board of India (under Ministry of Commerce
and Industry, Government of India)

16. Commissioner, GST Policy Wing, CBIC stated that a representation was received from the Tea
Board, seeking clarification whether they should collect TCS under Section 52 of the CGST Act from
tea producers or from the auctioneers of tea or from both. He stated that a Circular was proposed to be
issued to clarify that the Tea Board should collect TCS from tea producers on the net value of supply of
goods and from auctioneers on the net value of supply of brokerage services. CCT, West Bengal
observed that similar clarification may be needed for other commodity Boards like the Coffee Board in
case they followed a similar system of auction. Commissioner, GST Policy Wing, CBIC stated that it
would be examined if any such representations were received.

16.1. The GIC agreed to issue the Circular. It also agreed that a similar Circular will be issued by the
States. Accordingly, the implementing Circular No. 74/48/2018-GST dated 05th November 2018 was
issued.

Agenda Item 4: Exempting supply from PSU to PSU from applicability of provisions relating to
TDS

17. Commissioner, GST Policy Wing, CBIC stated that various representations were received from
PSUs stating that the requirements of TDS under Section 51 of CGST Act placed them at a disadvantage
compared to the private companies in the same line of business who were not required to deduct TDS.
He further stated that after discussion, Law Committee had suggested only a limited exemption for
PSUs, namely, supplies by one PSU to another may be exempted from TDS provisions.

17.1. ACS, Haryana stated that the proposal appeared to be a departure from the basic principles of
GST. He also wondered regarding the value of such a limited exemption from the TDS requirement. He
added that such relaxation might attract other requests from banks, airlines, etc. Commissioner, GST
Policy Wing, CBIC stated that TDS provisions were originally in VAT laws only and that they were
generally limited to works contracts. ACS, Haryana stated that a decision may be taken to include other
sectors also instead of considering a limited proposal regarding supply only by one PSU to another PSU.
Dr. P.D. Vaghela, CCT, Gujarat suggested that the private sector may also be brought under the TDS
provisions at a later date.

17.1. The GIC approved the Notification. It also agreed that a similar Notification will be issued by
the States. Accordingly, the implementing notification No. 61/2018 -Central Tax dated 05th November
2018 was issued.
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Agenda Item 5: Amendments in the CGST Rules, 2017

18. Commissioner, GST Policy Wing, CBIC stated that the Law Committee had agreed to certain
changes in CGST Rules and these were placed before the GIC for approval. He informed that after
circulation of the agenda, CCT Gujarat had sent some proposals for amendments to the draft Rules,
mostly in Rule 83A, namely, to replace the expression National Academy of Customs, Excise and
Narcotics used at different places in the Rule with its abbreviated version, NACIN. He added that
similarly the expression Goods and Services Tax Network (GSTN) was proposed to be replaced with
the expression Common Portal. This would also require deletion of Explanation (A) defining ‘Goods
and Services Tax Network’. In sub-rule 9 (ii) (d) of Rule 83A, CCT Gujarat had proposed to add the
expression ‘or practices’ after the word ‘unfair means’. He further stated that since the first examination
for GST Practitioners was proposed to be conducted on 31.10.2018, the amendments may be approved.

18.1. In respect of draft Rule 83A, Sh. T. V. Somanathan, CCT, Tamil Nadu stated that the draft rules
appeared to be suggesting that Chartered Accountants and Lawyers were also required to undertake the
examination to be conducted by NACIN, a proposal that would not be acceptable to Tamil Nadu. He
stated that the drafting should be clear to indicate that the examination was only for sales tax practitioners
and tax return preparers enrolled under the existing law and not for chartered accountants, cost
accountants, lawyers, commerce graduates etc. CCT, West Bengal suggested that to address this
concern, in the proposed Rule 83A (1), a reference may be made to Rule 83(1)(b) instead of Rule 83(2).

18.2. Sh. Shashank Priya, Joint Secretary, GST Council stated that proposed Rule 83A(6)(iv) should
clearly specify that it would apply to persons who having registered for the examination, could not
appear in it due to unforeseen circumstances, like critical illness, etc. Sh. Sandeep M. Bhatnagar,
Director General, DG-Systems, CBIC in relation to the same rule suggested that the time limit available
for the practitioners to request for granting of additional attempt may be kept as 30 days instead of the
proposed 15 days. CCT, Gujarat suggested that inclusion of jurisdictional Commissioner in Rule 83 A
(12) as one of the authorities to handle representations relating to the result of the examination should
be reconsidered as he would not be having any details regarding conduct of examination. Sh. Dheeraj
Rastogi, Joint Secretary, GST Council stated that a reference to the website of the GST Council may be
included in the proposed Rule 83A (3) and 83A (11). In Rule 83(A)(7), the pattern and syllabus of the
examination is specified as per Appendix A.

18.3. In respect of draft Rule 142A of the CGST Rules, CCT, Gujarat stated that a reference to
recovery made under existing laws should be added in proposed Rule 142A (2). He further stated that
the reference to amnesty scheme at serial no. 23 of FORM GST DRC-08A must be deleted as the Union
Law Ministry had given an opinion that such amnesty schemes could not be introduced now because
the State VAT Acts stood repealed. Shri Jagmal Singh, VP (Services), GSTN stated that the title of the
FORM GST DRC-07A should be changed to ‘summary of the order creating demand under existing
laws’. As regards changes in FORM GSTR-4, CCT, Gujarat stated that the MIS from GSTN should
capture these details and also the supplies received by a composition dealer. CCT, West Bengal
suggested that at serial no. 16 of FORM GST DRC-07A and serial no. 18 of FORM GST DRC-08A,
the existing entry should be changed to “Whether demand is stayed: Yes/No”. She further suggested
that at serial nos. 19, 20, 21 of FORM GST DRC-07A and serial nos. 22 and 24 of FORM GST DRC-
08A, a new row specifying CST Act should be added to distinguish it from the other two specified
categories, namely Central Act and State Act in view of the fact that it was a Central Act administered
by the State authorities.
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18.4. The GIC agreed to insert new Rules 83A and 142A and new FORM DRC-7A and DRC-8A in
the CGST Rules and to amend, as proposed, Rule 109A and FORM GSTR-4 and GST APL-04, after
incorporating the suggestions as recorded above. It also agreed that pari materia change shall be carried
out in the SGST Rules of the States except the proposed change in Rule 109A which shall be carried out
only in the CGST Rules. Accordingly, the implementing notification No. 60/2018 – Central Tax dated
30th October 2018 was issued.
Decisions by Circulation – 30th October 2018
19. A proposal for approval of the GIC was received from Commissioner, GST Policy Wing, CBIC
regarding settlement of an additional IGST amount of Rs. 30, 000 crore on ad hoc basis.
19.1. It was mentioned that the agenda note had been received from Department of Revenue for
approval of the GIC. It had been stated that depending on the amount of IGST remaining unapportioned,
provisional settlement was being done from time to time on an ad hoc basis. Accordingly, Rs. 35,000
crore was apportioned in February, 2018, Rs. 50,000 crore was apportioned in June, 2018 and Rs. 12,000
crore in August, 2018. These amounts were settled in a ratio of 50:50 to Centre and States and the
amount apportioned to States was divided in the ratio of subsumed/ protected revenue.
19.2. Further, based on the collection of IGST during the year, net of refunds and the settlement of
IGST during the period, both regular and provisional, it has been proposed to do provisional settlement
of another Rs. 30,000 crore, 50% to Centre and 50% to States. This will reduce the revenue gap of States
and therefore, the compensation required.
19.3. The GIC agreed to the proposal to settle an additional IGST amount of Rs. 30, 000 crore, 50%
to Centre and 50% to States, on ad hoc basis. Accordingly, the implementing Order. No. F.No. S-
34011/21/2018-ST-I DoR dated 31st October 2018 was issued.
Decisions by Circulation – 22nd November 2018
20. Following proposals was received from GST Policy Wing for the approval of the GIC:
Agenda Item 1: Extending the due date for filing of returns by taxpayers registered in the district
of Srikakulam in Andhra Pradesh and 11 districts of Tamil Nadu
21. It was stated that due to the impact of natural calamities in the district of Srikakulam in Andhra
Pradesh (Cyclone Titli) and eleven districts of Tamil Nadu namely, Cuddalore, Thiruvarur, Puddukottai,
Dindigul, Nagapatinam, Theni, Thanjavur, Sivagangai, Tiruchirappalli, Karur and Ramanathapuram
(Cyclone Gaza), extension of due dates for filing the returns and details of outward supplies in FORM
GSTR-3B/ FORM GSTR-1/FORM GSTR-4 were proposed as detailed below.
21.1 Based on the request made by the Hon'ble Finance Minister of Andhra Pradesh, it was proposed
to extend the due dates for filing the returns/details of outward supplies in FORM GSTR-3B, FORM
GSTR-1 and FORM GSTR-4 for the month of September 2018/quarter of July-September 2018 for
the registered persons whose principal place of business is in the district of Srikakulam of Andhra
Pradesh. It had been mentioned that due to the disruption of power and internet connection as a result
of cyclone Titli, the details and returns could not be filed within the stipulated time in the Srikakulam
district of Andhra Pradesh.
21.2. The Law Committee had proposed the extension of the dates. The details of the proposed
extension of the due dates are as follows:

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Sl.No. FORM Period Due date Proposed due date
1 GSTR-3B Sep, 2018 25th Oct, 2018 30th Nov, 2018
2
GSTR-1 (for registered persons
having aggregate turnover of
more than 1.5 crore rupees)
Sep, 2018 31st Oct, 2018
30th Nov, 2018
3
GSTR-1 (for registered persons
having aggregate turnover of
upto 1.5 crore rupees)
July - Sep, 2018 31st Oct, 2018
30th Nov, 2018
4 GSTR-4 July - Sep, 2018 18th Oct, 2018 30th Nov, 2018

21.3. Further, it was mentioned that the last date for filing the return in FORM GSTR-3B and the
details of outward supplies by taxpayers having aggregate turnover of more than Rs. 1.5 crore in FORM
GSTR-1 for the month of October, 2018 is 20th November, 2018 and 11th November, 2018 respectively.
Since it was proposed to extend the last dates for filing the said FORMS for the month of September,
2018 till 30th November, 2018, it was prudent to extend the last date for the month of October, 2018 for
filing the return in FORM GSTR-3B and the details of outward supplies by taxpayers having aggregate
turnover of more than Rs. 1.5 crore in FORM GSTR-1 for the registered persons whose principal place
of business is in the district of Srikakulam of Andhra Pradesh also to 30th November, 2018.
21.4. Commissioner of State Taxes, Tamil Nadu vide email received on 20th November, 2018 had
stated that Cyclone Gaza has severely affected eleven districts namely, Cuddalore, Thiruvarur,
Puddukottai, Dindigul, Nagapatinam, Theni, Thanjavur, Sivagangai, Tiruchirappalli, Karur and
Ramanathapuram which had resulted in infrastructure being badly damaged causing disruption in
providing electricity and internet connectivity. It had been requested to extend the due date for filing the
return in FORM GSTR-3B for the month of October, 2018 from 20th November, 2018 to 20th December,
2018 for the registered persons whose principal place of business is in the said eleven districts of Tamil
Nadu. Further, it was prudent to also extend the due date for filing the details of outward supplies in
FORM GSTR-1 by such taxpayers for the month of October, 2018. Hence, it was proposed to extend
the due date for filing the details in FORM GSTR-1 by taxpayers having aggregate turnover of more
than Rs. 1.5 crore and whose principal place of business is in the said eleven districts of Tamil Nadu for
the month of October, 2018 till 20th December, 2018. Since the request had been received on 20th
November, 2018, this proposal was not discussed in the Law Committee.
21.5. The GIC approved the proposals for extending the due dates for filing the returns and details of
outward supplies by the taxpayers registered in the district of Srikakulam of Andhra Pradesh as
contained in the Table at paragraphs 21.2 and 21.3 above and for the taxpayers registered in the eleven
districts of Tamil Nadu as detailed in paragraph 21.4 above. Accordingly, the implementing notification
Nos. 62/2018 – Central Tax dated 29th November 2018, 63/2018 – Central Tax dated 29th November
2018, 64/2018 – Central Tax dated 29th November 2018, 65/2018 – Central Tax dated 29th November
2018 were issued.
Agenda Item 2: Clarifying issues related to challenges faced by e-Commerce operators after
implementation of the provisions of Tax Collection at Source
22. It had been stated that as per Law, the e-Commerce operators were required to get registered in
each State or Union Territory where their buyers and suppliers exist. But e-Commerce operators did not
have physical presence in each State/UT. Therefore, several representations had been received to exempt
the requirement of physical presence in each State or Union Territory. In this regard, clarification was
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issued after approval of the GST Council on 28th Sept 2018 (FAQ no.7) based on the recommendations
of the Law Committee:
22.1. The relevant FAQ is reproduced below for easy reference:
“As per the extant law, registration for TCS would be required in each State / UT as the obligation
for collecting TCS would be there for every intra-State or inter-State supply. In order to facilitate the
obtaining of registration in each State / UT, the e-commerce operator may declare the Head Office
as its place of business for obtaining registration in that State / UT where it does not have physical
presence.”
22.2. This required system changes in registration module wherein e-Commerce operator taking
registration in FORM GST REG-07 could declare its Head office address for the States where it did
not have physical presence. Various representations had been received from e-Commerce operators
wherein they stated their inability to put their head office address as their principal place of business in
the States or Union Territories where they did not have physical presence. Further it had also come to
notice that in many cases, notices had been issued or applications had been rejected.
22.3. GSTN had informed the Law Committee that change request to make necessary changes in the
software was issued to the MSP in the last week of September 2018. This was a fundamental change in
the way registration form is designed as data contained therein is used by various applications. Simple
removal would not suffice because of the tight linkage between State of registration, address and other
applications and thus would lead to data inconsistencies. Also, one had to handle amendment of the
application filed and that also had to be changed. Change Request (Application) had now been
developed and it was under UAT. It is likely to be deployed by 15th November 2018.
22.4. GSTN further informed to either wait for deployment of changes or to advise the taxpayers to
choose a District of the State and a Jurisdiction of the chosen district. (Many TCS applicants have chosen
some random district and jurisdiction). The table below shows the registrations already approved as on
7th November, 2018:
State Name Tax Collector at Source
Jammu and Kashmir 24
Himachal Pradesh 31
Punjab 67
Chandigarh 22
Uttarakhand 62
Haryana 190
Delhi 368
Rajasthan 97
Uttar Pradesh 255
Bihar 66
Sikkim 11
Arunachal Pradesh 11
Nagaland 13
Manipur 20
Mizoram 9
Tripura 18
Meghalaya 13
Assam 43
West Bengal 162
Jharkhand 53
Odisha 51
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Chhattisgarh 37
Madhya Pradesh 94
Gujarat 155
Daman and Diu 13
Dadra and Nagar Haveli 10
Maharashtra 401
Karnataka 249
Goa 15
Lakshadweep 4
Kerala 123
Tamil Nadu 176
Puducherry 20
Andaman and Nicobar Islands 10
Telangana 143
Andhra Pradesh 65
Other Territory 0
Centre 0
Total 3,101

22.5. It was also informed that for many applications for registration where TCS operator did not have
any place of business, SCNs have been issued and in few cases, application has been rejected. Even
when the required changes were deployed, the problem of selection of jurisdiction would continue as
the application will have to be processed by the officer of chosen jurisdiction.
22.6. Following the above issue at hand, GSTN made certain suggestions before the law Committee.
They are listed as follows:
a) States may choose one ward/range where all such applications (TCS applications) would
land. This way issue of notice on account of disconnect between address (principal address)
and State where application has been made, would be resolved. Only a set of officers would
handle TCS applications, who would be duly trained and informed.
b) In case of applications assigned to Centre, there should not be a problem as all applications
go to CPC and then get assigned to officers. In that case also, one Range may be identified
in each Commissionerate for TCS Applications.
22.7. After discussion in the Law Committee, the Committee had given following recommendations:
a) Each State/UT to indicate one jurisdiction where all e-Commerce operators having business
(but not having physical presence) in the State/UT shall register. Further, the said
jurisdictional officer to be directed by the State/UT not to reject the application only on the
ground of a different States’ address. The State/UT to also notify such officer as the proper
officer for purposes of registration of ECOs.
b) GSTN to indicate to every such applicant to select the above jurisdiction while applying for
registration in the State/UT.
c) GSTN to issue advisory to all ECOs whose application was rejected on grounds of a different
address to apply afresh.
22.8. Further, an issue was discussed in relation to certain e-Commerce operators who have been
unable to obtain registration in the month of October, 2018 but have already collected TCS for the said
month. They had expressed challenges in relation to the filing of such details in FORM GTSR-8 and
required confirmation as to the manner in which such details were to be furnished on the common portal.
It was decided in the Law Committee that such details would be furnished by such e-commerce operators
in the first return in FORM GTSR-8 to be filed after obtaining registration.
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22.9. Another issue that was discussed in the Law Committee was in relation to the requirement of
collection of TCS by e-Commerce operators on supply of services by unregistered suppliers through
their portal. It was decided in the Law Committee that vide notification No. 65/2017-Central Tax dated
15th November, 2017, a person supplying services, other than supplier of services under Section 9 (5) of
the CGST Act, 2017, through an e-Commerce platform were exempted from obtaining compulsory
registration provided their aggregate turnover does not exceed INR 20 lakhs (or INR 10 lakhs in case of
specified special category States) in a financial year. Since such suppliers are not liable for registration,
e-Commerce operators are not required to collect TCS on supply of services being made by such
suppliers through their portal.
22.10. Shri T.V. Somanathan, CCT, Tamil Nadu while approving the proposal observed that the FAQ
on TCS issued by Law Committee provides for registration of Tax Collector at source in every State
based on the address of head office / registered office, notwithstanding the provisions of the GST Act
that taxpayer should register in every State with reference to place of business in each States. It may be
noted that viewed in strictly legal terms, the recent Council decision may not be in conformity with the
law, a point not perhaps discussed by the Council. This would need to be set right in due course to avoid
any legal complications. The proposal by GSTN to register without fixed place of business, for the time
being, specifically for tax collectors are agreeable. However, Tamil Nadu is opposed to any extension
of such relaxation to any other taxpayers. It should be confined to TCS only.
22.11. The GIC approved the proposal to clarify issues related to challenges faced by e-Commerce
operators after implementation of the provisions of Tax Collection at Source as proposed. The revised
FAQs were issued on 30th November, 2018.
Agenda Item 3: Extending the due date for filing of return for Tax Deduction at Source in FORM
GSTR-7 for the months of October to December, 2018
23. The Law Committee proposed to extend the due dates for filing FORM GSTR-7 as detailed
below.
23.1. It had been brought to notice that in case the return in FORM GSTR-7 was being filed after the
due date and without payment of late fee, the system was calculating the amount of late fee payable and
the said return could not be filed on the common portal till the payment of the late fee. In this regard, it
had already been proposed by the Law Committee that no late fee would be payable for late filing of
FORM GSTR-7 by the deductors in the initial period.
23.2. In order to obviate this issue, the Law Committee had proposed the extension of the due date
for filing of the return for tax deduction at source in FORM GSTR-7. This shall facilitate the deductors
to adjust to the new TDS provisions which have been enforced with effect from 1st October, 2018.
23.3. The details of the proposed extension of the due dates were as below:
Sl.No. FORM Period Due date
Proposed
extension of due
date
1 GSTR-7
October, 2018 10th November, 2018 31st January, 2019
November, 2018 10th December, 2018
December, 2018 10th January, 2018
November, 2018 10th December, 2018
December, 2018 10th January, 2018
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23.4. The notification was proposed to be issued after vetting by the Legislative Department of the
Union Law Ministry.
23.5. The GIC approved the proposal for extending the due date for filing FORM GSTR-7 as detailed
in paragraph 23.3. and 23.4. above. Accordingly, the implementing notification No. 66/2018 -Central
Tax dated 29th November 2018 was issued.
Decisions by Circulation – 27th November 2018
24. A proposal for approval of the GIC was received from Tax Research Unit – II for clarifying the
nature of supply of Priority Sector Lending Certificates (PSLC) traded between banks on the e-Kuber
portal of RBI.
24.1. It was mentioned in the proposal that the request was made by RBI to levy GST on PSLC trading
under reverse charge on the ground that the trading of PSLC is done anonymously on e-Kuber portal of
the RBI. The details of the buying and selling banks are not known and the invoice cannot be issued
containing the GST number of the selling banks without compromising the anonymous nature of the
PSLC trading. The buying banks cannot avail the ITC without invoice. RBI was also of the view that
compromising on the anonymous nature of PSLC trading may result in diluting the end objective of the
instrument.
24.2. Subsequently, notification No. 11/2018-Central Tax (Rate) dated 28th May, 2018 had been
issued levying GST on PSLC under reverse charge basis. After the approval of GIC, Circular No.
62/36/2018-GST dated 12.09.2018 was issued clarifying that GST on PSLCs for the period 1.7.2017 to
27.05.2018 would be paid by the seller bank on forward charge basis and GST rate of 12% will be
applicable on the supply.
24.3. Other issues raised on PSLC trading were taken to Fitment Committee Meeting held on
11.07.2018. The Committee decided on the matter as follows: -
“The following requests of the IBA relating to supply of PSLC may be referred to Law Committee with
recommendation on the issue at Sl. No. (iv) that the supply may be declared as inter-State supply based
on residual clause in IGST Law. The other issues at (i) to (iii) may be considered favourably by the Law
Committee.
(i) Issue of invoice by the buyer of PSLC.
(ii) Changes in relevant CGST Rules for permitting issue of single invoice per month covering
all transaction done during the month by the buyer.
(iii) Waiver of penalty for late filing of return due to rate and procedure related issues faced in
the payment of GST.
(iv) Clarification on nature of supply whether inter or intra state and whether CGST/SGST or
IGST payable on the supply.
RBI may be requested to examine if the information of the buyer and seller may be disclosed post PSLC
transaction.”
24.4. Following issues were referred to Law Committee by TRU vide OM F. No. 354/124/2018-TRU
dated 13.07.2018.

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Issue No. 1- Removal of difficulty in enabling PSLC purchaser bank to issue invoice for payment of
tax and availing of ITC: To facilitate the ITC claim and report transactions, Buyer bank may be
permitted to issue a single invoice for the aggregate sum traded in a month, which may be facilitated by
suitably amending relevant provisions of the CGST Rules, 2017.
Issue No. 2 - One-time waiver of penalty for late/incorrect filing of return: The delay in payment of
tax is due to lack of clarity in levy of GST on trading of PSLC, its classification, rate applicable and
place and nature of supply i.e. whether inter or intra state and accordingly whether CGST/SGST or
IGST is payable. Accordingly, a one-time dispensation/waiver of penalty may be granted to seller banks
for depositing the GST for the period 1st July, 2017 to 31st March, 2018 by 20th April 2018.
Issue No. 3 - To clarify the place of supply and whether IGST or CGST/ SGST is payable in respect
of PSLC trading: Since seller of PSLC is not known, the transaction may be treated as inter-State supply
of goods to resolve any potential dispute between the States as the buyer banker is known in these
transactions. This would also be tenable under the residuary clause to identify whether the supply is
inter-State.
24.5 Law Committee decided on the issues as follows: -
Issue no. 1: Allowed only when tax is paid on RCM
Issue no. 2: Rejected as interest for late payment of tax cannot be waived and Banks are expected to
have already filed their return.
Issue no. 3: IGST to be paid
24.6 The above clarification of Law Committee on the nature of supply of PSLC trading was
proposed to be issued through a circular.
Proposal
24.7. Nature of supply of PSLC between banks may be treated as a supply of goods in the course of
inter-State trade or commerce. Accordingly, IGST shall be payable on the supply of PSLC traded over
e-Kuber portal of RBI.
24.8. The GIC approved the proposal to clarify the nature of supply of PSLC traded between banks
on the e-Kuber portal of RBI as above at paragraph 24.7. The implementing Circular is yet to be issued.
Decisions by Circulation – 03rd December 2018
25. A proposal for approval of the GIC was received from GST Policy Wing, CBIC for extension
of the due date for filing of returns in FORM GSTR-9, 9A and 9C for the part of the Financial Year
from July, 2017 to March, 2018 from the 31st December, 2018 to the 31st March, 2019.
25.1. It was mentioned that Section 44(1) of the CGST Act read with rule 80(1) of the CGST Rules,
provide for furnishing an annual return electronically in FORM GSTR-9/FORM GSTR-9A for every
financial year on or before the thirty-first day of December following the end of such financial year.
Section 44(2) of the CGST Act read with rule 80(3) of the CGST Rules provides for furnishing
electronically an annual return in FORM GSTR-9 along with a copy of the audited annual accounts and
a reconciliation statement in FORM GSTR-9C by those registered persons whose turnover during a
financial year exceeds two crore rupees.
25.2. FORM GSTR-9 and FORM GSTR-9A had been notified vide notification No. 39/2018-
Central Tax, dated 04.09.2018 while FORM GSTR-9C had been notified vide notification No.
49/2018-Central Tax, dated 13.09.2018 as part of the CGST Rules.
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25.3. Various suggestions for minor modifications in the notified FORMs had been received from
trade and industry. Further, GSTN had also suggested certain changes to be made in the said FORMS.
The Law Committee finalized all such proposed changes and informed GSTN to carry out the said
changes.
25.4. GSTN had informed that the development of the said forms was at an advanced stage and they
would be made operational (both off-line and on-line utilities) only by 31st January, 2019.
25.5. It was added that, in light of the above, it was imperative to extend the last date of furnishing
FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C. The Law Committee proposed to extend
the due date for filing of FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C till 31st March,
2019.
25.6. The GIC approved the proposal to extend the due date for filing FORM GSTR-9, FORM
GSTR-9A and FORM GSTR-9C till 31st March, 2019, and that a notification may be issued in exercise
of the powers under sections 148 or 172 or under any other provision of the law in consultation with the
Law Ministry. Accordingly, the implementing Removal of Difficulty Order No. 1/2018 - Central Tax
dated 11th December 2018 was issued.
Decisions of GIC by Circulation – 05th December 2018
26. A proposal for approval of the GIC was received from the Directorate General of Export
Promotion regarding decisions taken by the Committee on Exports in its meeting held on 02.11.2018
pertaining to removal of pre-import condition on imports made under Advance Authorization (AA) and
extension of the exemption from IGST and Compensation cess to goods imported under AA for making
specified deemed export supplies.
26.1. It was mentioned that the Committee on Exports noted that post-GST, imports under the DGFT's
Advance Authorization (AA) scheme were subjected to payment of IGST and Compensation Cess which
led to cash blockage of exporters. This was remedied by the Council exempting these levies as per
decision taken in its 22nd meeting held on 06.10.2017. This decision was implemented by DGFT vide
Notification No. 33/2018 dated 13.10.2017 and by DoR vide Notification No. 79/2018-Customs dated
13.10.2017. However, these two notifications imposed two conditions for availing the exemption. First
condition was that the goods must be pre-imported i.e. imported prior to exports and the second
condition was that the export obligation shall be discharged only through physical exports and not
deemed exports. These conditions were not in place prior to GST. It was mentioned that the Hon'ble
Finance Minister of Punjab and DGFT had recommended that these two conditions should be done away
as import and export was a continuous cycle without distinction between inputs imported prior to export
and inputs imported as replenishment after export. Also, there was justification to treat deemed exports
recognized under GST as per Notification No. 48/2017-Central Tax dated 18.10.2017 at par with
physical exports for granting the exemption.
26.2. As regards removing the condition of physical exports and allowing deemed exports, the
Committee observed that the present dispensation discriminates against domestic suppliers and
recognizing "deemed exports" would be in tune with the Government’s “Make in India” policy.
Moreover, this condition was not present before GST and the earlier position merited restoration
26.3. It was added that the Committee on Exports further decided that the decision of the Committee
along with the agenda point would be circulated to all States with a request to provide their views to
enable GIC to quickly take a final decision in the matter. Accordingly, the concerned agenda points
along with minutes of the meeting relating to the said agenda point were circulated by GST Council
Secretariat to all State Governments/UTs on 16.11.2018 requesting for inputs by 20.11.2018 with
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reminder on 20.11.2018. Till 27.11.2018, inputs from 4 States viz. Bihar, Rajasthan, Himachal Pradesh
and NCT of Delhi had been received which are detailed below:

States
Comments on
Issue 1: removal of
the pre-import
condition.
Issue 2: extension of exemption
from IGST and Compensation
Cess to goods imported under AA
for making specified deemed
export supplies.
Rajasthan We agree with the
proposal if it does not
negatively impact the
State tax revenue
We agree with the proposal if it does
not negatively impact the State tax
revenue.
Bihar Agreed Agreed
Himachal
Pradesh
The safeguard
proposed to be
inserted in the
exemption
notification is
adequate. Therefore,
the pre-import
condition may be
removed.
There should be no differentiation
between physical and deemed
exports. Therefore, the deemed
exports may be recognized under
GST, for the grant of the exemption
on the goods imported under the AA
Delhi Nil Nil

26.4. The approval of GIC was sought for the decisions of the Committee on Exports regarding the
removal of the following two conditions through suitable changes in the FTP and respective notifications
as follows-
(i) The pre-import condition on imports under AA may be removed subject to condition that
the replenishment material imported under AA shall be used only for supply of taxable
goods (other than nil rated or fully exempt supplies).
(ii) The exemption from IGST and Compensation Cess to goods imported under AA may be
extended even if supplies, which are specified as deemed export vide Sr. Nos. 1, 2 and 3 of
the Table given in Notification No. 48/2017-Central Tax dated 18.10.2017 are made.
26.5. The GIC approved the decisions taken by the Committee on Exports pertaining to removal of
pre-import condition on imports made under Advance Authorization (AA) and extension of the
exemption from IGST and Compensation cess to goods imported under AA for making specified
deemed export supplies as mentioned in paragraph 26.4 above. The implementing notifications are yet
to be issued.
27. The decisions of the GIC are placed for information of the Council.

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Agenda Item 4: Decisions/recommendations of the IT Grievance Redressal Committee for
information of the Council
The third Meeting of the IT Grievance Redressal Committee (ITGRC) was held on 26th October
2018 (Minutes of the Meeting is attached as Annexure A of this agenda item).
2. Ms. Kajal Singh, EVP (Services), GSTN apprised that out of 1150 TRAN-1 cases analysed by
the GSTN till 16.10.2018, 268 TRAN-1 cases were placed before the ITGRC in its 3rd Meeting for
consideration. Out of these, 252 cases had been forwarded by nodal officers and 16 cases pertain to writ
petitions filed by taxpayers in various High Courts. These cases were categorized broadly reason-wise
and then further grouped into two major categories as ‘A’ and ‘B’. Category ‘A’ included cases in
which the taxpayer could not apparently file TRAN-1 because of technical glitches whereas Category
‘B’ included cases where detailed analysis at GSTN revealed that no technical issues were there in filing
TRAN-1 as per the system logs.
3. The decisions/recommendations of the ITGRC are placed for information of the Council.

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Annexure A
Minutes of the 3rd IT Grievance Redressal Committee (ITGRC) Meeting held on 26th October
2018
The 3rd meeting of the IT Grievance Redressal Committee (IT-GRC) was held in Kalpavriksha in North
Block, New Delhi on 26th October 2018. The list of officers who attended the meeting is attached as
Annexure-3. The Convener welcomed the members of the IT Grievance Redressal Committee and
requested EVP (Services) GSTN to present the agenda points.
2. Ms. Kajal Singh, EVP (Services), GSTN apprised the background that total 1150 cases of
TRAN-1 had been received from nodal officers till 16.10.2018. The details are as follows:
Table 1: Details of TRAN 1 cases presented before IT-GRC
S.
No.
Meeting Reference
No of TRAN-1 Cases
Cases
Considered
Cases Not
Considered
Nodal
Officer
Court
Cases Total
1 2 3 4 5 (3+4) 6 7
1
1st IT-GRC on 22.06.2018
161 9 170 122 48
2
2nd IT-GRC on 21.08.2018 262
78 340 213 127
3
3rd IT-GRC on 26.10.2018
(Current meeting)
252 16 268 To be discussed
4 Sub Total 778
5 Total TRAN-1 cases received till 16.10.2018 1150
6 Pending Cases (S. No. 5 - S. No. 4) 372
3. EVP (Services) explained that an analysis of further total 268 TRAN-1 cases were before
ITGRC for consideration. Out of these, 252 cases had been forwarded by nodal officers and 16 cases
pertained to Writ Petitions filed by taxpayers in various High Courts. Summary of cases presented before
the Committee is as under: -
Table-2: Summary of TRAN-1 cases examined and placed before 3rd IT-GRC
S.
No.
State of Taxpayer Received from Nodal Officer
Writs filed
in High
Courts
Total
Centre State
1 Andhra Pradesh 1 0 0 1
2 Chhattisgarh 2 0 0 2
3 Daman 1 0 0 1
4 Goa 1 2 0 3
5 Gujarat 3 2 0 5
6 Haryana 0 2 1 3
7 Jammu & Kashmir 0 1 0 1
8 Jharkhand 0 1 0 1
9 Karnataka 1 10 0 11
10 Kerala 1 0 4 5
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11 Madhya Pradesh 3 0 0 3
12 Maharashtra 49 18 0 67
13 New Delhi 4 6 1 11
14 Odisha 1 0 0 1
15 Punjab 0 2 1 3
16 Rajasthan 1 1 1 3
17 Tamil Nadu 0 128 4 132
18 Uttar Pradesh 6 2 1 9
19 West Bengal 3 0 3 6
Total 77 175 16 268
Further, the detailed list of 252 cases received from Nodal officers is at Annexure 1 of Agenda and list
of 16 cases pertaining to Writs is at Annexure 2 of Agenda for ready reference.
4. EVP, GSTN further explained that all the above cases had been examined by the GSTN team
and were categorized broadly reason-wise and then further grouped into two major categories as ‘A’
and ‘B’. Category ‘A’ included cases in which the taxpayer could not apparently file TRAN-1 because
of technical glitches whereas Category ‘B’ included cases where detailed analysis at GSTN revealed
that no technical issues were there in filing TRAN-1 as per the system logs.
5. EVP, GSTN thereafter elaborated the nature of technical issues experienced by the taxpayers in
filing TRAN-1 along with reasons, under category ‘A’, which consisted of following 05 sub-categories
and numbers pertaining to each sub-category were as per column 3 and 4 of Table 3 below:-
i. Cases where the taxpayer received the error “Processed with Error” and could not claim
transitional credit. The line items requiring declarations of earlier existing Law registration
numbers, were processed with error since the taxpayer had not added them in his registration
details.
ii. Cases where TRAN-1 filing was attempted by taxpayer for the first time on or before
27.12.2017, however the taxpayer could not file due to errors. The taxpayer in these cases
received messages such as “system error”, “upload in progress”, “save in progress” etc.
iii. Cases where TRAN-1 revision was attempted by taxpayer on or before 27.12.2017, however
the taxpayer could not file due to errors. The taxpayer in these cases received messages such
as “system error”, “upload in progress”, “save in progress” etc.
iv. TRAN-1 not attempted as per logs - due to Registration Issues. As per GST system logs
the taxpayer was not enabled to file TRAN-1 till its due date due to registration/migration
issues.
v. Incorrect Validation in Table 11. The deployed TRAN-1 erroneously restricted details of
invoices more than one year old.
Table-3: Cases having Technical Glitch
S.
No.
Category of cases Cases received from Nodal
Officers
Writ Petition
Cases
1 2 3 4
1
Processed with Error 41 (S. No 01 to 41 of
Annexure 1)
08 (S. No 01 to
08 of Annexure
2)
2 TRAN-1 attempted before 27.12.2017 &
System error, upload in progress, save in
progress
10 (S. No 42 to 51 of
Annexure 1)
NIL
3 TRAN-1 revision attempted before
27.12.2017 & System error, upload in
progress, save in progress
02 (S. No 52 and 53 of
Annexure 1)
NIL
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4 TRAN-1 not attempted due to registration
issue
08 (S. No 54 to 61 of
Annexure 1)
NIL
5 Incorrect validation in Table 11-Invoice
more than 01-year-old
01 (S. No 62 of Annexure 1) NIL
Sub Total 62 08
6. Category B had cases where no technical issues have been observed in TRAN-1 filing. EVP,
GSTN further elaborated the cases under the Category ‘B’, where no technical issues were found on the
basis of logs in GST system, as below in 7 categories and number of cases pertaining to each sub-
category had been mentioned in column 3 & 4 of Table 4 below: -
i. Cases in which as per GST system log, there were no evidences of error or submission/filing
of TRAN-1.
ii. Incorrect declaration of stock leading to problem in filing TRAN-2. Incorrect declaration in
TRAN-1 of stock not evidencing payment of taxes and duty restricted TRAN-2 filing.
iii. TRAN-1 was found successfully filed as per GST system logs and no technical errors were
found after examination. These also included cases where the taxpayer was unable to file as
they were in submit stage but were subsequently filed. Further, in some of these cases, the
error had been made by taxpayer in filling up the details or they wanted to revise for the third
time.
iv. TRAN-1 was filed but credit was not received: The taxpayer had filed TRAN-1 once
successfully but no credit had been posted in ledger and at the same time, no error had been
observed in logs.
v. TRAN-1 was filed twice as permitted under Law but credit was not received. No error had
been observed in logs.
vi. TRAN-1 could not be filed because the taxpayer was composition taxpayer at the time of filing
TRAN-1 and hence not allowed.
vii. Tax payer was not entitled to TRAN-1 credit as per Law being an ISD (Input Service
Distributor) taxpayer.
Table-4: Cases Not having Technical Glitch
S.No. Category of cases Cases received from Nodal
Officers
Writ Petition
Cases
1 2 3 4
1. Successfully filed his TRAN-1 and no
technical error but some error while filling the
FORM TRAN-1
122 (S. No 63 to 184
of Annexure 1)
04 (S.No 09 to
12 of Annexure
2)
2. Incorrect declaration of stock in TRAN-1, Not
evidencing payment of taxes and duty
3 (S. No 185 to 187
of Annexure 1)
NIL
3. No evidences of error or submission/filing of
TRAN-1
43 (S. No 188 to 230
of Annexure 1)
NIL
4. TRAN-1 is filed but credit not received 12 (S. No 231 to 242
of Annexure 1)
03 (S.No 13 to
15 of Annexure
2)
5. Filed TRAN-1 twice but no credit has been
received
08 (S. No 243 to 250
of Annexure 1)
01 (S.No 16 of
Annexure 2)
6. TRAN-1 not filed as Composition taxpayer 01 (S. No 251 of Annexure 1) NIL
7. ISD Taxpayer, not entitled to TRAN 1 01 (S. No 252 of Annexure 1) NIL
Sub Total 190 08
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7. Considering the above submissions, Committee discussed the cases of technical glitch of
category ‘A’ and found that fifth subcategory reported by EVP, GSTN i.e. of cases where due to
“incorrect validation in Table 11”, invoice more than 01-year-old was restricted from addition was a
newly added category of IT glitch which was not there in last two IT-GRC. After detailed discussion on
the issue, the case under this category was also accepted by the Committee to be covered under technical
glitch. After further elaboration and discussion, 70 cases pertaining to technical glitch categories as per
Table 3 above were considered for allowing filing of TRAN-1 subject to Law Committee
recommendations regarding consequential benefits related to filing of TRAN-1 and TRAN-2.
8. Further, during discussion on cases in category ‘B’, it emerged that for non-IT glitch cases,
Committee prima facie had no mandate and needed further discussion to address various concerns. Sh.
T. V. Somanathan, CCT, Tamil Nadu submitted regarding the final orders of Hon’ble High Court of
Madras in 3 cases wherein court had given specific directions to take up the cases as per grievance
redressal mechanism. Further, he also pointed out that taxpayers had made some clerical mistakes
apparent from records while filing TRAN-1 whereas GSTN and tax administration did not consider it
as technical glitch and was of the view that such cases needed to be resolved. But it was felt that these
could not be resolved in this forum since IT-GRC was empowered to take decisions in respect of
technical glitch cases only. However, the claim of taxpayers seemed genuine and State Commissioner
was therefore of the view that some SOP for dealing with such issues where Hon’ble High Courts had
passed orders needed to be evolved.
9. Dr. Rajeev Ranjan, Special Secretary, GST Council also supported these views and stated that
if a taxpayer had committed some clerical mistake and courts had given them relief to follow the
grievance mechanism then some mechanism ought to be there. Further, he stated that the benefit in such
cases where the error was of non-technical nature could not be considered by this Committee technically.
Thus, there was a need to take up this issue to the Council with an agenda point for addressing the non-
IT glitch cases in the proper spirit rather than addressing the technical glitch cases only. Sh. Dheeraj
Rastogi, Joint Secretary, GST Council submitted that in last two IT-GRC meetings, this Committee had
allowed re-filing of TRAN-1 in technical glitch cases and other cases of non-IT glitch nature were not
given any relief. The Council had also approved the findings of both IT-GRC meetings. Thus, to
maintain the uniformity, the past cases rejected in earlier meetings would also need to be reviewed and
included if non-IT glitch cases were also to be considered.
10. Sh. P.K. Jain, Pr. Director General had mentioned that while considering non-IT glitch cases
distinction shall not be maintained between taxpayer who had approached court and those who had not
approached the court but represented through nodal officer by following the Circular No. 39/13/2018-
GST dated 03.04.2018. Sh. Shashank Priya, Joint Secretary, GST Council stated that there was scope
for subjectivity if the non-IT glitch cases were considered and some uniform criteria would need to be
worked out.
11. Ms. Smaraki Mahapatra, CCT, West Bengal added that TRAN-1/TRAN-2 were unique as no
appeal mechanism was available under GST Act, hence more and more taxpayers were approaching
Courts and obtaining favourable orders. She was of the view that bona fide mistakes of taxpayer should
be considered to minimise the litigation in the larger interest of GST implementation. Thus, she agreed
that the matter should be referred to Council to reach some conclusion on this issue. Sh. Sanjeev
Kaushal, ACS, Haryana also supported the above view point that an agenda for non-IT glitch cases
should be forwarded to Council to reach on some conclusion where Council may empower this
Committee to decide non-IT glitch cases also.
12. Convener of the Committee proposed that meeting may be concluded stating that category ‘A’
cases (as per details in Table-3) having technical issue were allowed. He further suggested that a
reference to GST Council be made for evolving the process to consider the non-IT glitch cases presented
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 68 of 309
before the instant meeting and the past meetings for detailed discussion and further action to which all
members agreed.
13. Decision:
13.1. After detailed discussion considering the above facts, the IT-GRC decided to allow filing of
TRAN-1 in total 70 cases of category- ‘A’ as per column No. 3 and 4 of Table-3 on account of
technical/system issues as explained at para 5 above, subject to Law Committee recommendations
regarding consequential benefits related to filing of TRAN 1. Further, the IT-GRC decided not to allow
remaining 198 cases of category- ‘B’ as per Annexures indicated in column No. 3 and 4 of Table-4 in
absence of any evidence of technical/system errors in these cases as explained at para 6 above, as was
decided in similar cases in past two meetings.

13.2. An agenda item should be taken to the GST Council regarding cases where errors may have
been committed by taxpayers due to typographical reasons or lack of understanding of what was required
to be filled in various tables of TRAN 1. An agenda point is therefore required for further discussion in
the Council and decision thereupon in view of the following: -
a. Vide Circular no 39/13/2018 dated 03.04.2018 IT Grievance Redressal Mechanism was
put in place by the GST Council to address the grievances of taxpayers due to technical
glitches on GST Portal. However, GSTN is receiving various references through nodal
officers and writs in High Courts where non-technical issues were involved as per findings
of GSTN and the same were put up before IT-GRC for discussion and decision. As of now
IT-GRC had held its three meetings and such cases were not recommended by IT-GRC, as
IT-GRC had been empowered to take decisions in the technical glitch cases only.
b. Further, TRAN-1/TRAN-2 cases are unique in nature as no appeal mechanism is available
under GST act, hence more and more taxpayers were approaching courts and obtaining
favourable orders in view of the fact that Hon’ble courts were sympathetic and were of the
view that bona fide mistakes of taxpayer should be considered by Government.
c. In some cases, Hon’ble High Courts had given specific directions to take up the cases as
per grievance redressal mechanism due to the fact that taxpayer had made some clerical
mistakes apparent from records while filing TRAN-1. Prima facie, the claim of taxpayers
seemed genuine and members of the ITGRC were of the view that some SOP for dealing
with such issues where Hon’ble High Courts had passed orders needed to be evolved.
d. In last two IT-GRC meetings, IT-GRC in non-IT glitch cases had not given any relief.
Council had also approved the findings of both IT-GRC meetings. Now, to maintain the
uniformity, the cases rejected earlier would also need to be considered as per the SOP that
may be recommended by GST Council along with fresh non-IT glitch cases.
e. Hence the matter be referred to Council for discussion on this issue or Council may
empower IT Grievance Redressal Committee (IT-GRC) to consider and decide non-IT
glitch cases also. Further, it has been requested by GSTN that they should be recused from
the decision-making process on non-IT glitch cases.

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 69 of 309
Annexure 1

A. Category 1: Cases where the taxpayer received the error ‘Processed with error. ' The
taxpayer could not claim transitional credit as the line items requiring declarations of earlier
existing law registration were processed with error since the taxpayer had not added them in his
registration details.
S.N
o.
GSTIN/
Provisional
id
Legal Name (Name
reported by the
Nodal Officer is in
brackets)
State Constitution
of business
Nodal Officer
jurisdiction Name
Nodal
officers’
Govt.
1 26AAACT17
35C1ZT
TEMA INDIA
LIMITED (Tema india
pvt ltd)
Daman Public Limited
Company
Joint Commissioner,
GST Commissionerate,
Daman
Centre
2 30AACCS66
11E1ZY
SONESTA-INNS-
PVT. LTD
(SONESTA INNS
PVT LTD)
Goa Private
Limited
Company
Sarita. S Gadgil, Deputy
Commissioner of State
Taxes, Office of the
Commissioner of
Commercial Taxes,
Panaji
State
3 30AABCA6
065B1ZF
AVERINA
INTERNATIONAL
RESORTS PRIVATE
LIMITED (Averina
International Resorts
Pvt Ltd)
Goa Private
Limited
Company
Dr. Raghavendra P.,
Assistant
Commissioner, CGST
Commissionerate,
Margao
Centre
4 24AACCN5
773A1ZR
ATC TIRES
PRIVATE LIMITED
(ATC TIRES PVT
LTD)
Gujarat Private
Limited
Company
Jaykant S Dave, Deputy
Commissioner, Range
Bharuch
State
5 06AAGFT88
22P1ZI
TECHNO RTM
INDIA (Deepak
Kachroo)
Haryana Partnership Siddhartha Bhatti,
Superintendent, Office
of the Commissioner,
GST, Gurugram
Centre
6 06AAGCM7
782A1ZH
MITSUBISHI
ELECTRIC INDIA
PRIVATE LIMITED
(Mitsubishi electirc
india pvt ltd)
Haryana Private
Limited
Company
Abhishek Batra, Excise
& Taxation Officer,
Office of Dy. Excise
and Taxation
Commissioner,
Gurugram (East)
State
7 29AAACE62
33G1ZR
ESSAE
ELECTRONICS
PRIVATE LIMITED
(ESSAE
ELECTRONICS
PRIVATE LIMITED)
Karnata
ka
Private
Limited
Company
K S Basavaraj, Joint
Commissioner of
Commercial Taxes,
Karnataka
State
8 29AABCP23
54A1ZT
BRILLIO
TECHNOLOGIES
PRIVATE LIMITED
Karnata
ka
Private
Limited
Company
K. Ramakrishana,
Assistant
Commissioner, South
Centre
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 70 of 309
(BRILLIO
TECHNOLOGIES
PRIVATE LIMITED)
Division – 1, CGST
Commissionerate,
Bengaluru South.
9 29AAAAH5
296C1ZN
HASSAN DISTRICT
CENTRAL CO-
OPERATIVE BANK
LIMITED
Karnata
ka
Bank/Co
Operative
Bank
K S Basavaraj, Joint
Commissioner of
Commercial Taxes,
Karnataka
State
10 23AAACT19
68P1ZX
TPL PLASTECH
LIMITED (TPL
plastech ltd)
Madhya
Pradesh
Public Limited
Company
K.S Yadav, Assistant
Commissioner, CGST
Division, Ratlam
Centre
11 27AABCP38
99C1Z9
PRIDE TRAVELS
PRIVATE LIMITED
(Pride Travels pvt ltd)
Maharas
htra
Private
Limited
Company
Divish N.Shetty,
Superintendent, CGST
Commissionerate,
Mumbai East
Centre
12 27AAACW0
929P1ZV
WRITER LIFESTYLE
PRIVATE LIMITED
(Writer Lifestyle
Private Limited)
Maharas
htra
Private
Limited
Company
Divish N.Shetty,
Superintendent, CGST
Commissionerate,
Mumbai East
Centre
13 27AAACA3
874D1ZW
ZENITH
INDUSTRIAL
RUBBER
PRODUCTS
PRIVATE LIMITED
(Zenith industrial
rubber products ltd)
Maharas
htra
Private
Limited
Company
Rahul Raichur,
Assistant
Commissioner, CGST
Commissionerate
Mumbai South
Centre
14 27AAECP00
62G1ZP
PAYMATE INDIA
PRIVATE LIMITED
(PAYMATE india pvt
ltd)
Maharas
htra
Private
Limited
Company
Jayshankar Upadhyay,
Deputy Commissioner,
CGST
Commissionerate,
Mumbai West
Centre
15 27AAECS33
50C1ZP
SAMBE
ELECTRONICS PVT
LTD (Sambe
Electronics pvt ltd)
Maharas
htra
Private
Limited
Company
Amol Ket, Joint
Commissioner, CGST
Commissionerate,
Nashik
Centre
16 27AAACD4
361N1ZG
DELUXE PETRO
CHEM PVT LTD
(Deluxe petrochem pvt
ltd)
Maharas
htra
Private
Limited
Company
Pankaj Kumar, Joint
Commissioner, CGST
Commissionerate,
Mumbai Central
Centre
17 27AAACK8
450F1ZK
KAY NITROXYGEN
PRIVATE LI MITED
(KAY NITROXYGEN
PVT LTD)
Maharas
htra
Private
Limited
Company
Shri V.N. Thete,
Commissioner, CGST
Commissionerate,
Kolhapur
Centre
18 27AAVFM1
501D1ZH
MAHENDRA
READY MIX
CONCRETE PLANT
(MAHENDRA
READY MIX
CONCRETE PLANT)
Maharas
htra
Partnership Shri V.N. Thete,
Commissioner, CGST
Commissionerate,
Kolhapur
Centre
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 71 of 309
19 27AAACP61
33A1ZX
DP WORLD
PRIVATE LIMITED
(DP World Private
Limited)
Maharas
htra
Private
Limited
Company
Rahul Raichur,
Assistant Commr,
CGST
Commissionerate,
Mumbai South
Centre
20 27AAQFM6
664E1ZU
METALLICA
INDUSTRIES
(Metallica Industries)
Maharas
htra
Partnership Dr. R.K. Verma, Addl.
Commr, CGST
Commissionerate,
Palghar, Mumbai
Centre
21 27AACCV0
100D1Z4
VAKO SEALS
PRIVATE LIMITED
(Vako sales)
Maharas
htra
Private
Limited
Company
Divish N.Shetty,
Superintendent, CGST
Commissionerate,
Mumbai East
Centre
22 27AABCT78
86R1Z7
TAKSHI AUTO
COMPONENTS
PRIVATE LIMITED
(Takshi Auto
Components Pvt Ltd)
Maharas
htra
Private
Limited
Company
Shri Milind Gawai,
Commissioner, CGST
Commissionerate, Pune-
I
Centre
23 27AAACT23
28K1ZB
THE BOMBAY
DYEING AND
MANUFACTURING
COMPANY LTD
(The Bombay Dyeing
and Manufacturing Co
Limited)
Maharas
htra
Public Limited
Company
Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State
24 27AADCG2
450N1ZG
LEELA LIFESTYLE
SERVICES PRIVATE
LIMITED (Leela
lifestyle services pvt
ltd)
Maharas
htra
Private
Limited
Company
Rahul Raichur,
Assistant Commr,
CGST
Commissionerate,
Mumbai South
Centre
25 27AAACN9
074G1Z9
NEW ALLIANCE
DYE CHEM PVT
LTD (New Alliance
Dye Chem Private
Limited)
Maharas
htra
Private
Limited
Company
Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State
26 27AABCU5
321Q1ZY
ULTRAFINE
PRODUCTS
PRIVATE LIMITED
(ULTRAFINE
PRODUCTS PVT
LTD)
Maharas
htra
Private
Limited
Company
Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State
27 27AAFCV72
78R1Z7
VJ JINDAL COCOA
PRIVATE LIMITED
(VJ JINDAL COCOA
PVT LTD)
Maharas
htra
Private
Limited
Company
Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State

28 27AAICS86
81C1Z1
SHREEKRIPA
AUTOMOBILES
PRIVATE LIMITED
Maharas
htra
Private
Limited
Company
Dr. Sunil Bodhgire,
Deputy Commissioner
State
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 72 of 309
(SHREEKRIPA
AUTOMOBILE PVT
LTD)
State Tax, Mazgaon,
Mumbai
29 27BRRPS96
38H1ZS
RAMGOPAL
WASUDEO SHAHU
(RAMGOPAL
WASUDEO SHAHU)
Maharas
htra
Proprietorship Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State
30 27AACPK90
36G1ZP
SUNDEEP
SHASHIKANT
KARKHANIS
(SPACE FORTE)
Maharas
htra
Proprietorship Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State
31 27AABCW3
107G1ZL
WELCARE
LOGISTICS
PRIVATE LIMITED
(Welcare Logistics)
Maharas
htra
Private
Limited
Company
Divish N.Shetty,
Superintendent, CGST
Commissionerate,
Mumbai East
Centre
32 27AABCN4
424D1ZU
NUMEX BLOCKS (I)
PVT LTD (NUMEX
BLOCKS I PVT LTD)
Maharas
htra
Private
Limited
Company
Divish N.Shetty,
Superintendent, CGST
Commissionerate,
Mumbai East
Centre
33 27AADCS20
99B1ZG
SAMANTA
ORGANICS
PRIVATE LIMITED
(Samanta Organics pvt
ltd)
Maharas
htra
Private
Limited
Company
Dr. R.K. Verma,
Addl. Commr, CGST
Commissionerate,
Palghar, Mumbai
Centre
34 07AAGCC4
572J1ZG
CASAINTERNI
CONCEPTS
PRIVATE LIMITED
(CASAINTERNI
CONCEPTS
PRIVATE LTD)
New
Delhi
Private
Limited
Company
Pramod Kumar,
Commissioner, CGST
Commissionerate Delhi
East
Centre
35 07AAACZ37
43L1Z0
ZOLIJNS DESIGNS
PRIVATE LIMITED
(ZOLIJNS DESIGNS
PVT LTD)
New
Delhi
Proprietorship Pramod Kumar,
Commissioner, CGST
Commissionerate Delhi
East
Centre
36 03AALCS18
61K1Z7
SOOD STUDIO
PRIVATE LIMITED (
Sood studio Pvt ltd )
Punjab Private
Limited
Company
Pawan Garg,
Deputy Commissioner
of State Tax, Office of
the Deputy Excise and
Taxation Commissioner,
Ludhiana
State
37 09AFLPM58
11K1Z2
KAVIT
MANCHANDA (Kvit
Manchanda)
Uttar
Pradesh
Proprietorship Harish Kumar,
Assistant
Commissioner, CGST
Commissionerate,
Greater Noida
Centre
38 09AADCR5
660D1ZE
REAL CHEMSYS
PRODUCTS
PRIVATE LIMITED
Uttar
Pradesh
Private
Limited
Company
Harish Kumar,
Assistant
Commissioner, CGST
Centre
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 73 of 309
(M s Real Chemsys
Products Private
Limited)
Commissionerate,
Greater Noida
39 09AAACJ34
18Q1Z6
J S AUTO PRIVATE
LIMITED (J S Auto
pvt ltd)
Uttar
Pradesh
Private
Limited
Company
Commissioner, CGST
Commissionerate
Kanpur
Centre
40 09AAMCS9
941D1ZW
SPARSH
INDUSTRIES
PRIVATE LIMITED
(Sparsh Packaging pvt
ltd)
Uttar
Pradesh
Private
Limited
Company
Commissioner, CGST
Commissionerate
Kanpur
Centre
41 19AABCK3
219P1Z6
KISWOK
INDUSTRIES PVT
LTD (Kiswok
Industries)
West
Bengal
Private
Limited
Company
Ajeet Kumar,
Deputy Commissioner,
CGST
Commissionerate,
Kolkata North
Centre

A Category 2: Cases where the taxpayer received the error ‘TRAN-1 attempted but could not be
filed. ' As per GST system logs the taxpayer has attempted to submit fresh or revise TRAN1 but
could not file because of errors.
S.N
o.
GSTIN/
Provisional
id
Legal Name (Name
reported by the
Nodal Officer is in
brackets)
State Constitution
of business
Nodal Officer
jurisdiction Name
Nodal
officers’
Govt.
42 30AAACG4
447J1ZV
GUALA CLOSURES
INDIA PRIVATE
LIMITED (GUALA
CLOSURES INDIA
PRIVATE LIMITED)
Goa Private
Limited
Company
Sarita. S Gadgil, Deputy
Commissioner, Office
of the Commissioner,
State Taxes, Panaji
State
43 01ABBFS03
38R1Z5
SUNSHINE
TRADERS (M S
Sunshine Traders)
J&k Partnership Wajahat Mehamood,
State Admn.,
Commercial Taxes,
State Govt, J&K
State
44 20AAECT72
69F1ZE
TEKRIWAL
MOTORS PRIVATE
LIMITED (Tekriwal
Motors Pvt Ltd)
Jharkha
nd
Private
Limited
Company
Sheo Sahai Singh, Joint
Commissioner, Of State
Tax, Ranchi
State
45 27AAACA4
856B1Z0
ASIAN STAR
COMPANY LTD
(Asian star company
pvt ltd)
Maharas
htra
Public Limited
Company
Rahul Raichur,
Assistant
Commissioner, CGST
Commissionerate
Mumbai South
Centre
46 27AACPM3
191L1ZG
PARAG AMICHAND
MADHANI (Parag
&co)
Maharas
htra
Proprietorship Pankaj Kumar,
Joint Commissioner,
CGST
Commissionerate,
Mumbai Central
Centre
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47 27AAFCD05
46A1Z7
DUCATI INDIA
PRIVATE LIMITED
(M s DUCATI INDIA
PVT LTD)
Maharas
htra
Private
Limited
Company
Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State
48 27AAACI11
98L1ZA
INDUSIND MEDIA
AND
COMMUNICATIONS
LIMITED
(INDUSIND MEDIA
&
COMMUNICATIONS
LTD)
Maharas
htra
Public Limited
Company
Divish N.Shetty,
Superintendent, CGST
Commissionerate,
Mumbai East
Centre
49 07AAACE81
77D1ZO
ELDECO
INFRASTRUCTURE
& PROPERTIES
LIMITED (ELDECO
INFRASTRUCTURE
& PROPERTIES
LIMITED)
New
Delhi
Public Limited
Company
Pramod Kumar,
Commissioner, CGST
Commissionerate Delhi
East
Centre
50 09AAACK9
621Q1ZW
KTL PVT LTD (KTL
PVT LTD)
Uttar
Pradesh
Private
Limited
Company
Commissioner, CGST
Commissionerate
Kanpur
Centre
51 19AABCG1
667P1Z2
GTZ (INDIA)
PRIVATE LIMITED
(GTZ India Private
Limited)
West
Bengal
Private
Limited
Company
Shri Bhavan Lal Meena,
Deputy Commissioner,
CGST
Commissionerate,
Kolkata south
Centre

A Category 3: Cases where the taxpayer received the error ‘TRAN-1 revision attempted but could
not be filed. ' As per GST system logs the taxpayer has attempted to submit revised TRAN1 but
could not file because of errors.
S.N
o.
GSTIN/
Provisional
id
Legal Name (Name
reported by the
Nodal Officer is in
brackets) State
Constitution
of business
Nodal Officer
jurisdiction Name
Nodal
officers’
Govt.
52
27AABAL16
77J1ZE
L&T STEC JV
MUMBAI (Larsen and
turbo)
Maharas
htra
Society/ Club/
Trust/ AOP
Divish N.Shetty,
Superintendent, CGST
Commissionerate,
Mumbai East Centre
53
09AAACL01
40P4ZE
LARSEN & TOUBRO
LIMITED (Larsen and
turbo)
Uttar
Pradesh
Public Limited
Company
Joint Commissioner
(I.T.)
Commercial Taxes,
Head Quarter Lucknow State

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 75 of 309
A Category 4: Cases where the taxpayer received the error ‘Trans-1 not attempted as per logs -
due to Registration Issue ' As per GST system logs the taxpayer was not enabled to file TRAN1
till its due date due to registration/migration issues.
S.N
o.
GSTIN/
Provisional
id
Legal Name (Name
reported by the
Nodal Officer is in
brackets)
State Constitution
of business
Nodal Officer
jurisdiction Name
Nodal
officers’
Govt.
54 27AAACU0
564G4ZE
UNION BANK OF
INDIA (Union bank of
india )
Maharas
htra
Credit Card
Related
Services
Rahul Raichur,
Assistant
Commissioner, CGST
Commissionerate
Mumbai South
Centre
55 27AAECP22
88G1Z9
PRABHAT
TELECOMS (INDIA)
LIMITED
(PRABHAT
TELECOMS INDIA
LIMITED)
Maharas
htra
Public Limited
Company
Gurtesh Matharu,
Asst Commissioner,
Div-1, CGST
Commissionerate Thane
Centre
56 27AAGCA2
156C1Z3
AMGEN
TECHNOLOGY
PRIVATE LIMITED
(Amgen Technology
Private Limited)
Maharas
htra
Private
Limited
Company
Divish N.Shetty,
Superintendent, CGST
Commissionerate,
Mumbai East
Centre
57 33AVBPV83
66N1ZT
VIGNESHWARI
(VIGNESHWARI)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
58 33CMJPM16
37E1Z9
MUTHUSELVI
(MUTHUSELVI)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
59 33GOCPS09
01G1Z9
MANICKAM
SIRUMANI
SAGAYARAJ
(MANICKAM
SIRUMANI
SAGAYARAJ)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
60 33AADFO16
75L1Z4
OPPILIAPPA
AUTOMOBILES
(OPPILIAPPA
AUTOMOBILES)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
61 33AQZPM2
313B1Z2
DURAI MUTHAIAH
(DURAI
MUTHAIAH)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
State

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 76 of 309
Commissioner, State
Tax, Chennai

A Category 5: Cases where the taxpayer received the error ‘Incorrect validation of Date not more
than 1 years old for invoice in Table 11'
S.N
o.
GSTIN/
Provisional
id
Legal Name (Name
reported by the
Nodal Officer is in
brackets)
State Constitution
of business
Nodal Officer
jurisdiction Name
Nodal
officers’
Govt.
62 27AABCG7
955Q1ZS
RAHEJA
UNIVERSAL PVT
LIMITED (Raheja
Universal pvt ltd)
Maharas
htra
Private
Limited
Company
Divish N.Shetty,
Superintendent, CGST
Commissionerate,
Mumbai East
Centre

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
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B Category 1: Cases where the taxpayer received the error ‘As per GST system log, there are no
evidences of error or submission/filing of TRAN1. ' As per GST system log, there are no evidences
of error or submission/filing of TRAN1.
S.N
o.
GSTIN/
Provisional
id
Legal Name (Name
reported by the
Nodal Officer is in
brackets)
State Constitution
of business
Nodal Officer
jurisdiction Name
Nodal
officers’
Govt.
63 22AACHA2
320M1ZW
ARUN KUMAR JAIN
& SONS (Arun kumar
jain & sons)
Chhattis
garh
Hindu
Undivided
Family
Shri Sumit Kumar
Agrawal,
Assistant
Commissioner, CGST
Commissionerate,
Raipur
Centre
64 29AAHFB35
38R1ZS
BANGALORE
WHEELS
(BANGALORE
WHEELS)
Karnata
ka
Partnership K S Basavaraj,
Joint Commissioner of
Commercial Taxes,
(eAudit), Gandhinagar
State
65 29AAEFS95
08B1Z5
SRI
VENKATESHWARA
CERAMICS (Sri
Venkateshwara
ceramics)
Karnata
ka
Partnership K S Basavaraj,
Joint Commissioner of
Commercial Taxes,
(eAudit), Gandhinagar
State
66 32ADYPK71
83K1ZT
NAUSHAD SAIDU
KUNJU (Alpha
Trading co)
Kerala Proprietorship Dr Pravin Gavaskar,
Asst Commissioner,
CGST Division,
Alappuzha
Centre
67 23AHXPK26
73B1ZB
NILESH
RAMESHCHAND
KABARA (Nilesh
Kabra)
Madhya
Pradesh
Proprietorship Shri Neerav Kumar
Mallick,
Commissioner, CGST
Commissionerate,
Indore
Centre
68 23AANFA58
90R1ZO
ALSTONE
INTERNATIONAL
(Alstone international)
Madhya
Pradesh
Partnership Shri Neerav Kumar
Mallick,
Commissioner, CGST
Commissionerate,
Indore
Centre
69 27AAICS94
49L1ZI
SAI POINT
AUTOMOBILES
PRIVATE LIMITED
(M s Sai Point
Automobiles Private
Limited)
Maharas
htra
Private
Limited
Company
Sruti Vijayakumar,
Assistant
Commissioner, CGST
Commissionerate,
Thane
Centre
70 27AAAPP88
40R1ZX
JIGNESH
JASWANTRAI
PARKEH
(INTERLINK
TRADES)
Maharas
htra
Proprietorship Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State
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Page 78 of 309
71 27AALPJ47
66D1ZK
JANVHI JIGNESH
PAREKH (J n K
Composites)
Maharas
htra
Proprietorship Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State
72 27AABFC79
08E1ZM
C ABHAYKUMAR &
CO (M s C
Abhaykumar & Co)
Maharas
htra
Partnership Archana Nayak,
Deputy Commissioner,
CGST
Commissionerate, Navi
Mumbai
Centre
73 27AAACA9
289L1Z2
MUTHA
RESOURCES
PRIVATE LIMITED
(Mutha resoures pvt
ltd)
Maharas
htra
Private
Limited
Company
Rahil Raichur,
Assistant
Commissioner, CGST
Commissionerate
Mumbai South
Centre
74 27AABFE12
63G1ZS
ECONOMIC LAWS
PRACTICE
(Economic law
practice)
Maharas
htra
Partnership Rahul Raichur,
Assistant
Commissioner, CGST
Commissionerate
Mumbai South
Centre
75 27AASFA34
30C1ZQ
ARIHANT
DEVELOPERS
(Arihant Developers)
Maharas
htra
Partnership Amol Ket,
Joint Commissioner,
CGST
Commissionerate,
Nashik
Centre
76 27AAMFS94
85R1ZS
SWASTIK
FOUNDRY AND
MACHINE WORKS
(Swastic foundery and
Machine works)

Maharas
htra
Partnership Amol Ket,
Joint Commissioner,
CGST
Commissionerate,
Nashik
Centre
77 27ABXPM5
087B1Z7
CHANDRAKANT
MANOHAR
MACHALE
(Mahalaxmi
Enterprises)
Maharas
htra
Proprietorship Amol Ket,
Joint Commissioner,
CGST
Commissionerate,
Nashik
Centre
78 27AABCO3
758P1ZT
OMAN INDIA JOINT
INVESTMENT
FUND-
MANAGEMENT
COMPANY
PRIVATE LIMITED
(Oman India joint
investment fund
management co pvt
ltd)
Maharas
htra
Private
Limited
Company
Pankaj Kumar,
Joint Commissioner,
CGST
Commissionerate,
Mumbai Central
Centre
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 79 of 309
79 27AABCI74
36A1ZV
INDIRA
CONTAINER
TERMINAL
PRIVATE LIMITED
(INDIRA
CONTAINER
TERMINAL
PRIVATE LIMITED)
Maharas
htra
Private
Limited
Company
Rahul Raichur,
Assistant Commr,
CGST
Commissionerate,
Mumbai South
Centre
80 27AANCA3
504D1Z0
AMITY POWER
PRODUCTS
PRIVATE LIMITED
(Amity power product
pvt ltd)
Maharas
htra
Private
Limited
Company
Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State
81 27ADBFS10
79D1Z8
SANDESH KRUSHI
SEVA KENDRA
(SANDESH KRUSHI
SEVA KENDRA)
Maharas
htra
Partnership Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State
82 27AADFF52
99D1ZB
FERRO PACK
INDUSTRIES
(FERRO PACK
INDUSTRIES)
Maharas
htra
Partnership Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State
83 27AFGPD43
51L1ZF
HEMANT VASANT
DOSHI
(JALWARSHA
ENTERPRISES)
Maharas
htra
Proprietorship Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State
84 07AADPT77
23N1Z4
DEEPA TALWAR New
Delhi
Proprietorship Dushyant Kumar,
State Trade & Taxes
Department, Delhi
State
85 07AAACO5
641A1ZX
ORANGE
OVERSEAS
PRIVATE LIMITED
(Orange Overseas pvt
ltd)
New
Delhi
Private
Limited
Company
Pramod Kumar,
Commissioner, CGST
Commissionerate Delhi
East
Centre
86 07AIJPG562
9C1ZG
ANKUR GUPTA
(ANKUR GUPTA)
New
Delhi
Proprietorship Dushyant Kumar,
State Trade & Taxes
Department, Delhi
State
87 03AABFM2
816M1ZG
MODERN MOTOR
WORKS (MODERN
MOTOR WORKS)
Punjab Partnership Pawan Garg,
Deputy Commissioner
of State Tax, Office of
the Deputy Excise and
Taxation Commissioner,
Ludhiana
State
88 08ADHPJ96
72R1ZI
RAJENDRA JAIN
(Gaurav Industries)
Rajastha
n
Proprietorship Jitendra P Nawal,
Superintendent, CGST
Commissionerate,
Jodhpur
Centre
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 80 of 309
89 33AAMFK4
087H1Z4
KUMAR AUTO
AGENCY (KUMAR
AUTO AGENCY)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
90 33ADQPK59
12J2ZB
MUTHUVEERAN
CHETTIAR
KRISHNASWAMY
(MUTHUVEERAN
CHETTIAR
KRISHNASWAMY)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
91 33AACFI09
74R1ZZ
INNOVATIVE
MOTORS
(INNOVATIVE
MOTORS)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
92 33AAIFA57
09N1ZA
ARJUN FOUNDRY
(ARJUN FOUNDRY)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
93 33AAEFA94
54C1ZR
ALPHA CASTINGS
(ALPHA CASTINGS)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
94 33ABFFA83
77E1ZG
ALPHA
INDUSTRIES
(ALPHA
INDUSTRIES)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
95 33AAAFM0
916H1ZS
MAYURA'S
INDUSTRIAL
SERVICES
(MAYURA’S
INDUSTRIAL
SERVICES)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
96 33AAGCM0
617A1Z8
MAYURA
AUTOMATION &
ROBOTIC SYSTEMS
PRIVATE LIMITED
(MAYURA
AUTOMATION &
ROBOTIC SYSTEMS
PRIVATE LIMITED)
Tamil
Nadu
Private
Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
97 33ACVFS12
30R1ZJ
SRI SHUBHTEJ
EXPORTS (SRI
SHUBHTEJ
EXPORTS)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
State
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 81 of 309
Commissioner, State
Tax, Chennai
98 33ADAFS24
96K1ZU
SRI SABARI
TRADERS (SRI
SABARI TRADERS)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
99 33APBPS11
59L1ZR
VADIVEL
SELVASEKARAN
(VADIVEL
SELVASEKARAN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
100 33ACQPG62
26J1ZH
DESAPPA GOPAL
(DESAPPA GOPAL)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
101 33ACCPR52
87N1Z1
GOPAL RAJINI
(GOPAL RAJINI)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
102 33FFGPS283
4C1ZL
VELU SUDHAKAR
(VELU SUDHAKAR)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
103 33APOPP63
78K1Z4
PAVAN KUMAR
(PAVAN KUMAR)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
104 33ALOPA17
93P1ZO
KULANDAI
MANICKAM
AROCKIASAMY
(KULANDAI
MANICKAM
AROCKIASAMY)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
105 33AZJPC317
0H1ZP
CHELLAPANDI
(CHELLAPANDI)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
106 33AYEPJ04
19N1ZI
ANIFA
JAHEERHUSSAIN
(ANIFA
JAHEERHUSSAIN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 82 of 309
107 33BWTPK1
004L1ZI
KANNADASAN
(KANNADASAN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
108 33AQAPS17
24R1ZJ
PAULPANDIAN
SEETHALAKSHMI
(PAULPANDIAN
SEETHALAKSHMI)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
109 33BBYPV32
64M1ZP
MANIMARAN
TIMBER DEPOT
(NAGARAJ
VELRATHI)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
110 33CUKPK90
32L1ZA
VARATHARAJ
KARTHICK
(VARATHARAJ
KARTHICK)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
111 33ECSPK95
44R1ZG
KANNAN
NAGULUNARAYAN
ASAMY
(NARAYANASAMY
KANNAN NAGULU)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
112 33ANKPT68
27H1ZL
THIYAGARAJAN
(THIYAGARAJAN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
113 33ASPPJ870
9A1ZT
JOTHI (JOTHI) Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
114 33ARBPA81
19Q1ZP
SEENIVASHAGAN
ALANGUDIAN (SRI
RAJAMANI
JEWELLERY)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
115 33ASQPV52
37Q1ZQ
KANAGARAJ
VINAYAGAMOORT
HY (KANAGARAJ
VINAYAGAMOORT
HY)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
116 33AXCPM9
458M1ZW
GANESAN
MURUGAN
(GANESAN
MURUGAN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
State
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 83 of 309
Commissioner, State
Tax, Chennai
117 33ATQPV72
31B1ZL
JEGANANTHAN
ARAVINDHAN
(JEGANANTHAN
ARAVINDHAN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
118 33BMCPM8
178C1Z3
MURUGESAN
MAHESWARI
(MURUGESAN
MAHESWARI)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
119 33CNCPM4
072R1ZK
MAHADEVAN
(MAHADEVAN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
120 33ADAFS58
41A1ZK
S M P DAIRY FARM
(S M P DAIRY
FARM)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
121 33AHUPA45
85D1ZC
SELVARAJ
ANDREWS
(SELVARAJ
ANDREWS)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
122 33FYYPS35
42C1Z1
SRI MURUGAN
FILLING STATION
(SRI MURUGAN
FILLING STATION)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
123 33CQNPP67
38F1ZG
SANKARAN
PARTHIBAN
(SANKARAN
PARTHIBAN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
124 33FKUPS40
22M1ZJ
SAHUL HAMEED
SEYED
ABUTHAHEER
(SAHUL HAMEED
SEYED
ABUTHAHEER)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
125 33BSWPP11
03L1ZI
PANDIAN
(PANDIAN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 84 of 309
126 33AAIFG14
77H1ZG
GOLDEN CNC
(GOLDEN CNC)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
127 33ABZPV42
30D1ZG
KANAGARAJ
VANAJA
(KANAGAJOTHI
ELECTRONICS)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
128 33BYXPS69
29N1Z6
SURESH KUMAR
(SURESH KUMAR)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
129 33AACPB35
82A1ZI
PRITHVIRAJ
BAGRECHA
(PRITHVIRAJ
BAGRECHA)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
130 33AADPM6
215E1Z6
MANJU DEVI
BAGRECHA
(MANJU DEVI
BAGRECHA)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
131 33AAFPJ862
8L2ZE
LALIT KUMAR JAIN
(LALIT KUMAR
JAIN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
132 33AAHPR76
81M1Z0
JUTHMALJI
RAJESHKUMAR
JAIN (JUTHMALJI
RAJESHKUMAR
JAIN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
133 33ALCPJ381
2G1ZM
PRIYAL JUMANI
(PRIYAL JUMANI)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
134 33AAAPN37
39R1ZA
HUKAMCHAND
NANDLAL
(HUKAMCHAND
NANDLAL)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
135 33AAIFB28
89E1ZH
BHAVA TRADE
LINK (BHAVA
TRADE LINK)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
State
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 85 of 309
Commissioner, State
Tax, Chennai
136 33AABFR95
61J1ZY
R
KRISHNAMURTHY
& CO. ( R
KRISHNAMURTHY
& CO )
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
137 33AAPFP85
96D1ZQ
PNC ENTERPRISE
(PNC ENTERPRISE)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
138 33AAAAT2
058C1Z0
THE
TIRUCHANGODE
AGRICULTURAL
PRODUCERS CO-OP
MARKETING
SOCIETY LTD (THE
TIRUCHANGODE
AGRICULTURAL
PRODUCERS CO OP
MARKETING
SOCIETY LTD)
Tamil
Nadu
Society/ Club/
Trust/ AOP
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
139 33AALCS74
39R1ZG
SRTC TECH
SOLUTIONS
PRIVATE LIMITED
(SRTC TECH
SOLUTIONS
PRIVATE LIMITED)
Tamil
Nadu
Private
Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
140 33AACCM3
174A1Z2
MOTHER DAIRY
FRUIT &
VEGETABLE
PRIVATE LIMITED
(MOTHER DAIRY
FRUIT &
VEGETABLE
PRIVATE LIMITED)
Tamil
Nadu
Private
Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
141 33DBCPM5
650N1ZE
VELUSAMY
MUTHUVIJAYAN
(VELUSAMY
MUTHUVIJAYAN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
142 33AQKPK87
09J1ZI
KIRUTHIGASUBAN
THI
(KIRUTHIGASUBAN
THI)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
143 33AHFPS71
03J1ZC
KASTHURI
SUBBAREDDIAR
Tamil
Nadu
Proprietorship S. Ramaswamy, State
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 86 of 309
(KASTHURI
SUBBAREDDIAR)
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
144 33DMXPS03
61E1ZT
SANKAR (SANKAR) Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
145 33DAEPS73
26Q1Z1
MOHAMED
MUZAFAR SAHUL
HAMEED (RAIN
BIRD PIPES)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
146 33AEOPV26
21J1Z9
AYYAMAL
MASILAMANI
VIJAYARAJMOHAN
(AYYAMAL
MASILAMANI
VIJAYARAJMOHAN
)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
147 33AAXPK13
36Q1Z3
RAMALINGAM
KRISHNAN
(RAMALINGAM
KRISHNAN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
148 33GWSPS48
84L1ZC
SYED
ABUTHAHIRSAGAP
UDEEN (SYED
ABUTHAHIR)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
149 33ADVPN43
40A1ZR
KANDASAMY
NAGASUBRAMANI
AN (KANDASAMY
NAGASUBRAMANI
AN)
(presently cancelled)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
150 33ABHFA86
39B1ZN
ARR STEEL
TRADERS (ARR
STEEL TRADERS)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
151 33DRXPS19
63M1ZS
SELLARAMU
(SELLARAMU)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
152 33AISPH793
1D1Z8
HAMEETHABANUS
HIEKMOHAMMED
Tamil
Nadu
Proprietorship S. Ramaswamy, State
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 87 of 309
(SHIEKMOHAMME
D
HAMEETHABANU)
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
153 33BMBPM3
104M1ZB
KATTUBHAVA
MOHAMED ISMAIL
ABDULAJEES
MOHAMED
MEERAN (DEEN
MEERAN FIRE
WORKS)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
154 33CLJPK615
2P1ZM
NATARASAKAVUN
DER KUBENDRAN
(NATARASAKAVU
NDER
KUBENDRAN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
155 33BKUPM1
045C1ZD
MOHAMED AMIR
(K P N
HARDWARES)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
156 33BIRPS415
7G1ZV
SANKARAGANESA
N
SANKARAPANDIA
N
(SANKARAGANESA
N
SANKARAPANDIA
N)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
157 33BCYPS95
44Q1Z7
SAHULHAMEED
SAHILABANU
(NEELAM
INDUSTRIES)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
158 33AAJFK54
73C1ZH
K R S MEENATCHI
SUNDARA NADAR
& SONS (K R S
MEENATCHI
SUNDARA NADAR
& SONS)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
159 33AQYPV94
40R1ZF
NANJAI
VELMURUGAN
VIJAY (NANJAI
VELMURUGAN
VIJAY)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
160 33BVNPS17
65H1Z7
ATHIMOOLAM
SEETHALAKSHMI
(ATHIMOOLAM
SEETHALAKSHMI)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
State
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 88 of 309
Commissioner, State
Tax, Chennai
161 33DCUPS69
83P1Z6
SEETHALAKSHMI
(LAKSHMI
MARBLES)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
162 33ADIPJ576
0F1ZO
VELLAICHAMY
JEYARAJ
(VELLAICHAMY
JEYARAJ)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
163 33AABFP14
82E1ZN
PREMIER
ENTERPRISES
(PREMIER
ENTERPRISES)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
164 33AUAPR64
71N1Z6
RAJAPPAN
RAGHAVAN
(RAJAPPAN
RAGHAVAN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
165 33AAUFS29
21E1Z7
SRI ALAGU
PHARMA (SRI
ALAGU PHARMA)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
166 33AABCR75
88J1ZX
SPICA MODULAR
SOLUTIONS
LIMITED (SPICA
MODULAR
SOLUTIONS
LIMITED)
Tamil
Nadu
Public Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
167 33AAKCA6
027C1Z4
ASCENT
ENGINEERS &
INFRASTRUCTURE
S INDIA PRIVATE
LIMITED (ASCENT
ENGINEERS &
INFRASTRUCTURE
S INDIA PRIVATE
LIMITED)
Tamil
Nadu
Private
Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
168 33AAQPJ11
09D1Z7
ALAGU
JAYABALAN
(ALAGU
JAYABALAN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
169 33ACKPS13
87A1ZQ
JEYABALAN
SELVARANI
Tamil
Nadu
Proprietorship S. Ramaswamy, State
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 89 of 309
(JEYABALAN
SELVARANI)
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
170 33AACFA38
85F1ZO
ALAGU
PHARMACY C
(ALAGU
PHARMACY C)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
171 33AAIFA90
15F1ZS
ALAGU
PHARMACY K
(ALAGU
PHARMACY K)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
172 33AARFR17
81Q1ZE
RAYLUN
LEATHERS
(RAYLUN
LEATHERS)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
173 33AASPR39
50J1Z7
PERSOLLI SAMY
RAJA VELAYUTHA
RAJA (PERSOLLI
SAMY RAJA
VELAYUTHA RAJA)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
174 33AACCH3
922K1ZQ
HYDROMASS
TECHNOLOGY
INDIA PRIVATE
LIMITED
(HYDROMASS
TECHNOLOGY
INDIA PRIVATE
LIMITED)
Tamil
Nadu
Private
Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
175 33AAWPS0
071P1Z0
RAMU
SHYAMSUNDAR
(RAMU
SHYAMSUNDAR)
Tamil
Nadu
Private
Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
176 33ADGPS88
22H1ZC
NEELAMEGAM
SWARNIER
SETHURAMAN
(NEELAMEGAM
SWARNIER
SETHURAMAN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
177 33AIJPB959
7Q1ZE
NEELAMEGAM
SETHURAMAN
BALAJJI
(NEELAMEGAM
SETHURAMAN
BALAJJI)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 90 of 309
178 33AMSPK95
01E1Z1
NEELAMEGAM
SETHURAMAN
RAMJI
(NEELAMEGAM
SETHURAMAN
RAMJI)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State

179 33AABCA9
256E1ZW
AUTO SYNDICATE
PRIVATE LIMITED
(AUTO SYNDICATE
PRIVATE LIMITED)
Tamil
Nadu
Private
Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State

180 33AASFM10
38N1ZY
MADURAI
MEENAKSHI
AUTOS (MADURAI
MEENAKSHI
AUTOS)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State

181 33AAGFC95
27Q1ZW
CONSOLIDATED
PREMIUM
RETAILERS
(CONSOLIDATED
PREMIUM
RETAILERS)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State

182 33AGRPA01
43K1ZO
ANGAMUTHU
AMUTHAVEL
(ANGAMUTHU
AMUTHAVEL)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State

183 09AAFFG03
98C1ZI
GOLDEN TRADING
AGENCIES (Golden
trading agencies)
Uttar
Pradesh
Partnership Joint Commissioner
(I.T.)
Commercial Taxes,
Head Quarter Lucknow
State
184 29AABCG2
219B2Z3
GRANT
INVESTRADE
LIMITED (Grant
investrade ltd)
Maharas
htra
Public Limited
Company
Divish N.Shetty,
Superintendent, CGST
Commissionerate,
Mumbai East
Centre

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 91 of 309
B Category 2: Cases where the taxpayer received the error ‘Incorrect declaration of stock.
Problem in filing TRAN-2. ‘Incorrect declaration in TRAN1 of Stock not evidencing payment of
taxes and duty.
S.No. GSTIN/
Provisional id
Legal Name (Name
reported by the Nodal
Officer is in brackets)
State Constitution of
business
Nodal Officer
jurisdiction Name
Nodal
officers’
Govt.
185 29ADCPN463
0Q1Z1
VIDHURASWATHA
NANJUNDA RAO
(VIDHURASWATHA
NANJUDA RAO)
Karnataka Proprietorship K S Basavaraj, Joint
Commissioner of
Commercial Taxes,
Karnataka
State
186 07AAAFJ5441
N2Z6
JAKSON & COMPANY
(Jakson and company)
New Delhi Partnership Additional Commissioner,
GST, Delhi North
Centre
187 07AAACI3163
P1ZB
INDIAN OPTICS
PRIVATE LIMITED
(INDIAN OPTICS PVT
LTD)
New Delhi Private Limited
Company
Dushyant Singh, State
Trade & Taxes
Department, Delhi
State

B Category 3: Cases where the taxpayer received the error ‘Successfully Filed as Per Logs ' The
taxpayer has successfully filed TRAN1 and no technical errors has been found. This include cases
in which the taxpayer was unable to file as they were stuck in submit and have subsequently filed

S.N
o.
GSTIN/
Provisional
id
Legal Name (Name
reported by the
Nodal Officer is in
brackets)
State Constitution
of business
Nodal Officer
jurisdiction Name
Nodal
officers’
Govt.
188 22AADCI57
61L1ZG
ICON SOLAR-EN
POWER
TECHNOLOGIES
PRIVATE LIMITED
(M s Icon Solar en
Power Technologies
Pvt Ltd)
Chhattis
garh
Private
Limited
Company
Shri Sumit Kumar
Agrawal,
Assistant
Commissioner, CGST
Commissionerate,
Raipur
Centre
189 24AAKCS69
48Q1ZE
PRECISION
GASIFICATION
SERVICES PRIVATE
LIMITED (Precision
Gasification services)
Gujarat Private
Limited
Company
Lalit Prasad,
Commissioner, CGST
Commissionerate,
Rajkot
Centre
190 24AAVPT32
80C1ZH
MAHESHKUMAR
RAMANLAL
THAKKAR
(Maheshkumar
Ramanlal Thakkar)
Gujarat Proprietorship Kamleshkumar L.
Hadula,
Deputy Commissioner,
Range-5, Ahmedabad
State
191 24AAGCA3
693Q1Z4
ANS STEEL TUBES
LIMITED (M s Ans
Steel Tubes Ltd)
Gujarat Public Limited
Company
J.A Khan,
Commissioner, CGST
Commissionerate,
Ahmedabad (North)
Centre
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 92 of 309
192 24AAACU0
224D1Z4
UNIPRODUCTS
(INDIA) LIMITED
(Uniproducts India
Ltd)
Gujarat Public Limited
Company
J.A Khan,
Commissioner, CGST
Commissionerate,
Ahmedabad (North)
Centre
193 29AAFFE10
33J1ZL
EXELON
NETWORKS (
Excelon Networks )
Karnata
ka
Partnership K S Basavaraj, Joint
Commissioner of
Commercial Taxes,
(eAudit), Gandhinagar
State
194 29AJEPJ092
1G1ZH
NIKHIL KUMAR
RAMESH JAIN
(Mahaveer Marketing)
Karnata
ka
Proprietorship K S Basavaraj, Joint
Commissioner of
Commercial Taxes,
(eAudit), Gandhinagar
State
195 29AAECB28
22J1ZO
BHARATH
VEHICLE WORKS
PRIVATE LIMITED
(M s Bharath Vehicles
Works Private
Limited)
Karnata
ka
Private
Limited
Company
K S Basavaraj, Joint
Commissioner of
Commercial Taxes,
(eAudit), Gandhinagar
State
196 29AABCA9
292J1Z6
ASHOKA
BUILDCON
LIMITED (ASHOK
BUILDCON
LIMITED)
Karnata
ka
Public Limited
Company
K S Basavaraj, Joint
Commissioner of
Commercial Taxes,
(eAudit), Gandhinagar
State
197 27AAACT40
33H1ZK
VERTIV ENERGY
PRIVATE LIMITED
(M s Vertiv Energy
Private Limited)
Maharas
tra
Private
Limited
Company
Sruti Vijayakumar,
Assistant
Commissioner, CGST
Commissionerate,
Thane
Centre
198 27AAEFJ95
74A1ZA
JITENDRA'S
AUTOWORLD
(Jitendra’s Auto
World)
Maharas
htra
Partnership Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State
199 27AADCD4
200F1Z8
DALMIA DECORUS
PRVIATE LIMITED
(DALMIA DECORUS
PRVIATE LIMITED)
Maharas
htra
Private
Limited
Company
Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State
200 27AAACI65
61R1ZX
IFB INDUSTRIES
LTD (M s IFB
Industries Limited)
Maharas
htra
Public Limited
Company
Archana Nayak,
Deputy Commissioner,
CGST
Commissionerate, Navi
Mumbai
Centre
201 27AADCC2
991E1ZP
CHAIPERTECH
ELECTRONICS
PRIVATE LIMITED
(M s Chaipertech
Electronics private
Limited)
Maharas
htra
Private
Limited
Company
Archana Nayak,
Deputy Commissioner,
CGST
Commissionerate, Navi
Mumbai
Centre
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 93 of 309
202 27AAACH7
557G1ZF
HIDUSTHAN
NATIONAL GLASS
& INDUSTRIES LTD
(Hindustan national
glass and industries
ltd)
Maharas
htra
Public Limited
Company
Amol Ket,
Joint Commissioner,
CGST
Commissionerate,
Nashik
Centre
203 27AHUPK69
79P1ZW
KIRAN
JAIPRAKASH
KARWA (Vivanta
Energy Resources ltd)
Maharas
htra
Proprietorship Amol Ket,
Joint Commissioner,
CGST
Commissionerate,
Nashik
Centre
204 27AAAFR23
68E1ZC
REGAL SHOES
(Regal shoes)
Maharas
htra
Partnership Pankaj Kumar,
Joint Commissioner,
CGST
Commissionerate,
Mumbai Central
Centre
205 27AACCC60
16B1Z8
CLEARTRIP
PRIVATE LIMITED
(Cleartrip ltd)
Maharas
htra
Private
Limited
Company
Pankaj Kumar,
Joint Commissioner,
CGST
Commissionerate,
Mumbai Central
Centre
206 27AADCE75
28F1ZM
ANAX INDUSTRIES
PRIVATE LIMITED
(Anax Industries
Private Limited)
Maharas
htra
Private
Limited
Company
Shri V.N. Thete,
Commissioner, CGST
Commissionerate,
Kolhapur
Centre
207 27AACCR39
73J1Z0
DSM NUTRITIONAL
PRODUCTS INDIA
PRIVATE LIMITED
(DSM Nutritional
Products India Private
Limited)
Maharas
htra
Private
Limited
Company
Divish N.Shetty,
Superintendent, CGST
Commissionerate,
Mumbai East
Centre
208 07AAACT40
33H1ZM
VERTIV ENERGY
PRIVATE LIMITED
(VERTIV ENERGY
PRIVATE LIMITED)
New
Delhi
Private
Limited
Company
Dushyant Kumar,
State Trade & Taxes
Department, Delhi
State
209 21AABCB21
40C1ZR
B & A PACKAGING
INDIA LIMITED
(B&A Packaging ltd)
Odisha Public Limited
Company
J.Sateesh Chandar,
Joint Commissioner,
Office of the Principal
Commissioner, CGST,
Bhubaneshwar
Centre
210 33AAECB12
13B1ZP
BMP STEELS
PRIVATE LIMITED
(BMP STEELS
PRIVATE LIMITED)
Tamil
Nadu
Private
Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
211 33AAECK14
22B1ZD
KARISMAA
FOUNDATIONS
PRIVATE LIMITED
(KARISMAA
Tamil
Nadu
Private
Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
State
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 94 of 309
FOUNDATIONS
PRIVATE LIMITED)
Commissioner, State
Tax, Chennai
212 33ANCPS82
80K1ZK
PRADEEPKUMAR
SOMANI
(PRADEEPKUMAR
SOMANI)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
213 33AFVPS54
62G1ZX
SANJEEV KUMAR
SOMANI (SANJEEV
KUMAR SOMANI)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
214 33BVIPS891
8P1ZM
SHANMUGAM
(SHANMUGAM)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
215 33AABFL96
16J1Z8
LAKSHMI
ELECTRONICS
(LAKSHMI
ELECTRONICS)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
216 33AABCJ10
87G1ZU
JOYALUKKAS
INDIA PRIVATE
LIMITED
(JOYALUKKAS
INDIA PRIVATE
LIMITED)
Tamil
Nadu
Private
Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
217 33AADCK2
098J1ZF
KHIVRAJ VAHAN
PRIVATE LIMITED
(KHIVRAJ VAHAN
PRIVATE LIMITED)
Tamil
Nadu
Private
Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
218 33ADIPR41
87L1Z0
JAIN BHAWARLAL
RESHMA (JAIN
BHAWARLAL
RESHMA)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
219 33ABTPN38
46M1ZZ
PONNUSAMY
NATARAJAN
(PONNUSAMY
NATARAJAN)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
220 33AAFFM67
86L1ZQ
MAHALAXMI
JEWELLERY
(MAHALAXMI
JEWELLERY)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 95 of 309
221 33ABYPH84
51P1ZR
MOHAMMEDIBRAH
IM HAMEETHA
(MOHAMMEDIBRA
HIM HAMEETHA)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
222 33ACHFS45
44A1ZH
SREE
CHAKRAVARTHI
TYRES (SREE
CHAKRAVARTHI
TYRES)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
223 33AABCP38
05G1ZU
POPULAR
VEHICLES AND
SERVICES LIMITED
(POPULAR
VEHICLES AND
SERVICES PRIVATE
LIMITED)
Tamil
Nadu
Public Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
224 33AAACC4
175D1Z5
CANON INDIA
PRIVATE LIMITED
(CANON INDIA
PRIVATE LIMITED)
Tamil
Nadu
Private
Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
225 33BETPS72
42J1ZV
NARAYANASAMY
SENTHILKUMAR
(SHRI JANANI
TRADERS)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
226 33AAQFP97
80L1ZC
PAGE3 (PAGE) Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
227 33ABZFS01
95A1Z2
SWALTIK
SOLUTIONS
(SWALTIK
SOLUTIONS)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
228 33AADCS36
65F1ZH
SUSEE PREMIUM
AUTOMOBILES
PRIVATE LIMITED
(SUSEE PREMIUM
AUTOMOBILES
PRIVATE LIMITED)
Tamil
Nadu
Private
Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
229 33ACSFS62
97D1ZM
SRI
MUTHUMARIAMM
AN TRADERS (SRI
MUTHUMARIAMM
AN TRADERS)
Tamil
Nadu
Partnership S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 96 of 309
230 19AACCH3
669M1Z0
HAZEMAG INDIA
PRIVATE LIMITED
(Hazemag india pvt
ltd)
West
Bengal
Private
Limited
Company
Ajeet Kumar,
Deputy Commissioner,
CGST
Commissionerate,
Kolkata North
Centre

B Category 4: Cases where the taxpayer received the error ‘TRAN-1 filed but credit not received.
' The taxpayer has filed Tran-1 once successfully but no credit has been posted in ledger and no
errors has been observed in logs.
S.N
o.
GSTIN/
Provisional
id
Legal Name (Name
reported by the
Nodal Officer is in
brackets) State
Constitution
of business
Nodal Officer
jurisdiction Name
Nodal
officers’
Govt.
231
27ABCFM3
025A1ZX
DEEPA TALWAR
(M/s MAG
ENTERPRISES)
Maharas
htra Partnership
Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai State
232
27AACPC07
33G1ZB
SHAILESH
LAKHAMSHI
CHHEDA (M/s
Shubham Hardware)
Maharas
htra Proprietorship
Archana Nayak,
Deputy Commissioner,
CGST
Commissionerate, Navi
Mumbai Centre
233
27AAJCS07
60R1ZP
SOLO HARDWARE
PRIVATE LIMITED
(M s Solo Hardware
private limited)
Maharas
htra
Private
Limited
Company
Archana Nayak,
Deputy Commissioner,
CGST
Commissionerate, Navi
Mumbai Centre
234
27ALZPS06
00G1ZV
VIKRAM
BHAGWANRAO
SALUNKHE (Ideal
Agencies)
Maharas
htra Proprietorship
Shri V.N. Thete,
Commissioner, CGST
Commissionerate,
Kolhapur Centre
235
27AFRPK60
35R1ZK
NITIN SAMPATRAO
KADAM
(DHANANJAY
AUTOMOBILES)
Maharas
htra Proprietorship
Shri V.N. Thete,
Commissioner, CGST
Commissionerate,
Kolhapur Centre
236
07ACQPG01
82R2Z0
VIKAS GUPTA
(SHREE BALAJI
TUBES)
New
Delhi Proprietorship
Dushyant Singh, State
Trade & Taxes
Department, Delhi State
237
33AADCH6
649E1ZO
HEPTAGON
TECHNOLOGIES
PRIVATE LIMITED
(HEPTAGON
TECHNOLOGIES
PRIVATE LIMITED)
Tamil
Nadu
Private
Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai State
238
33CGIPS005
8Q1ZV
RAGHAV SOMANI
(RAGHAV SOMANI)
Tamil
Nadu Proprietorship S. Ramaswamy, State
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 97 of 309
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
239
33AABCK1
651R1ZC
KODAI
AUTOMOBILES
LIMITED (KODAI
AUTOMOBILES
LTD)
Tamil
Nadu
Public Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai State
240
33AEHPG96
20F2ZQ
SAMUVEL
GNANADHAS
(SAMUVEL
GNANADHAS)
Tamil
Nadu Proprietorship
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai State
241
33AGZPJ28
98Q1Z5
RENGASAMY
JEYACHANDRAN
(RENGASAMY
JEYACHANDRAN)
Tamil
Nadu Proprietorship
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai State
242
09AAACE33
07P1ZH
ENVIRAD
PROJECTS P LTD
(Envirad Projects)
Uttar
Pradesh
Private
Limited
Company
V.Valte,
Commissioner, CGST
Commissionerate,
Kanpur Centre

B Category 5: Cases where the taxpayer received the error ‘TRAN-1 Filed twice but credit not
received ' TRAN1 Filed twice but credit not received
S.N
o.
GSTIN/
Provisional
id
Legal Name (Name
reported by the
Nodal Officer is in
brackets)
State Constitution
of business
Nodal Officer
jurisdiction Name
Nodal
officers’
Govt.
243 37AACCV8
009M1ZW
VENSHIV
PHARMACHEM
PRIVATE LIMITED
(VENSHIV
PHARMACHEM
PRIVATE LIMITED)
Andhra
Pradesh
Private
Limited
Company
G. Gopala Krishna Rao,
Assistant
Commissioner, CGST
Commissionerate,
Kadapa
Centre
244 29ADOPH84
38G1Z2
HALE GOWDA (Sri
Manjunatha Designers
Tiles)
Karnata
ka
Proprietorship K S Basavaraj, Joint
Commissioner of
Commercial Taxes,
Karnataka
State
245 27AUNPS84
90D1ZZ
SURESH
CHANDRAKANT
SHUKLA (SURESH
CHANDRAKANT
SHUKLA)
Maharas
htra
Proprietorship Dr. Sunil Bodhgire,
Deputy Commissioner
State Tax, Mazgaon,
Mumbai
State
246 27ABGPJ96
49D1ZF
SUJEET MANIKRAO
JAGDHANE
Maharas
htra
Proprietorship Shri V.N. Thete,
Commissioner, CGST
Centre
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Page 98 of 309
(HARSHVARDHAN
INDUSTRIAL
SUPPLIERS)
Commissionerate,
Kolhapur
247 08AEMPB03
68N1Z8
TAHER SAIFUDDIN
(M/s Ahmed & Co)
Rajastha
n
Proprietorship Vijai Pal Singh,
Joint Commissioner,
State Govt, Jodhpur
State
248 33AADCB1
093N1ZN
FUTURE RETAIL
LIMITED (FUTURE
RETAIL LIMITED)
Tamil
Nadu
Public Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
249 33AACCT78
54L1ZX
TRIMAX
UMBRELLA
PRIVATE LIMITED
(TRIMAX
UMBRELLA
PRIVATE LIMITED)
Tamil
Nadu
Private
Limited
Company
S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State
250 33AHVPB58
78R1ZB
NATTANMAI
RAMANATHAN
BALAKUMAR
(NATTANMAI
RAMANATHAN
BALAKUMAR)
Tamil
Nadu
Proprietorship S. Ramaswamy, Joint
Commissioner, Office
of the Commissioner,
State Tax, Chennai
State
B Category 6: Cases where the taxpayer received the error ‘Composition Taxpayer- During
Trans-1 Filling Period’
S.N
o.
GSTIN/
Provisional
id
Legal Name (Name
reported by the
Nodal Officer is in
brackets)
State Constitution
of business
Nodal Officer
jurisdiction Name
Nodal
officers’
Govt.
251 33ERFPS875
3G1ZC
SAMSUBANU
(SAMSUBANU)
Tamil
Nadu
Proprietorship S. Ramaswamy,
Joint Commissioner,
Office of the
Commissioner, State
Tax, Chennai
State

B Category 7: ISD Taxpayer: The taxpayer is an ISD taxpayer and hence not entitled to Transition
Credit
S.N
o.
GSTIN/
Provisional
id
Legal Name (Name
reported by the
Nodal Officer is in
brackets)
State Constitution
of business
Nodal Officer
jurisdiction Name
Nodal
officers’
Govt.
252 27AAACJ32
13B2Z9
JYOTHY
LABORATORIES
LIMITED (Jyothy
Laboratories Ltd)
Maharas
htra
Public Limited
Company
Divish N.Shetty,
Superintendent, CGST
Commissionerate,
Mumbai East
Centre

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 99 of 309
Annexure 2
Writ Petition Cases of TRAN 1.
A Category 1: Processed with Error: The taxpayer could not claim transitional credit as the line
items requiring declarations of earlier existing law registration were processed with error since
the taxpayer had not added them in his registration details.
S.N
o.
GSTIN/
Provisional
id
Name reported
by the Taxpayer
in Writ Petition
State Constitution
of business
Status
1 32BKGPR12
00J1ZK
23117/2018-BM
Reeja v. STO &
Ors
Kerala Proprietorship The matter has been disposed of vide
judgment dated 16.07.2018. The Hon’ble
Court has directed that the process in terms
of the circular dated 3.4.2018 be followed.
2 19AAECK90
94M1ZO
11519/2018-
Goenka Real v.
UOI
West
Bengal
Private
Limited
Company
The matter is pending. The next date of
hearing in the matter is 13.12.2018.
3 19AAACO3
439Q1ZV
1229/2018-
OSCAR
EQUIPMENTS
PVT. LTD.
West
Bengal
Private
Limited
Company
The matter is pending. The next date of
hearing in the matter is 13.12.2018.
4 19AABCK3
219P1Z6
11227/2018-M/s
Kiswok Industries
Pvt. Ltd.
West
Bengal
Private
Limited
Company
The matter is pending. The next date of
hearing in the matter is 13.12.2018.
5 09AABFI67
00N1Z7
869/2018-
Industrial and
Building Glass
Industries v. UOI
Uttar
Pradesh
Partnership The matter has been disposed vide order
dated 5.07.2018. The Hon’ble Court has
directed as follows: -
The Respondents are directed to reopen the
portal within two weeks from today. In the
event they do not do so, they will entertain
the application of the Petitioner manually
and pass orders on it after due verification
of the credits as claimed by the Petitioner.
They will also ensure that the Petitioner is
allowed to pay its taxes on the regular
electronic system also which is being
maintained for use of the credit likely to be
considered for the Petitioner.
6 33AACCK8
026D1ZX
WPC 12986-
12987/2018-M/s
Surin Automotive
Pvt. Ltd.
Tamil
Nadu
Private
Limited
Company
The matter is pending. The next date of
hearing in this matter is not known since
matters in Madras High Court are listed
one day prior to the date of hearing.
7 07AABCR66
67C1ZD
WPC 8590 of
2018-Rajesh
Projects (India)
Pvt Ltd. Vs.
Commissioner,
Central GST &
Anr.
Delhi Private
Limited
Company
The next date of hearing in this matter is
25.09.2018.
8 09AAGCS03
95D6Z7
Writ Tax No.
884/2018 M/s
Fidelity
Information
Services India Ltd
v. Union of India
Uttar
Pradesh
Private
Limited
Company
Hon’ble Allahabad High Court vide
interim order dated 23.07.2018 has
directed to reopen the portal within two
weeks from today. In the event they do not
do so, they will entertain the GST TRAN-
1 of the Petitioner manually and pass
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 100 of 309
orders on it after due verification of the
credits as claimed by the petitioner. They
will also ensure that the Petitioner is
allowed to pay its taxes on the regular
electronic system also which is being
maintained for use of the credit likely to be
considered for the petitioner.

B Category 1: As per GST system log, there are no evidences of error or submission/filing of
TRAN1: There is no evidence of submission, filing or error before the due date.
S.N
o.
GSTIN/
Provisional
id
Name
reported by
the Taxpayer
in Writ
Petition
State Constitut
ion of
Business
Issue Status
9 03ACNPK17
67B1ZW
15045/2018-
M/s Gaina
Trading
Company v.
UOI
Punjab Proprietor
ship
Allegation in the Writ
Petition: -The Petitioner was
unable to file TRAN-1 due to
technical glitches and bad
health condition of the father.

Further investigation by
GSTN: - An email was sent on
24.08.2018 to the taxpayers
requesting for the following: -
i. Exact technical glitch faced
by them while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical
error/emails sent to help-desk
along with ticket numbers.
The taxpayers were requested
to provide the above-
mentioned details by end of day
28.08.2018.

No response has been
received from the Petitioner
in response to GSTN’s email
dated 24.08.2018.
The matter has
been disposed of
vide order dated
20.07.2018. The
Hon’ble Court
granted the
Petitioner the
liberty to
approach his
nodal officer in
terms of the
circular dated
3.4.2018.
10 06AABCC15
09J1Z0
14640/2018-
CONTINENT
AL
CORRUGAT
ORS
PRIVATE
LIMITED v.
UOI
Haryana Private
Limited
Company
Allegation in the Writ
Petition: -The Petitioner tried
to file Tran-1 on 27.12.2017 but
due to non-functioning of GST
Portal, data could not be
uploaded.

Further investigation by
GSTN: - An email was sent on
24.08.2018 to the taxpayers
requesting for the following: -
i. Exact technical glitch faced
by them while filing TRAN-1
ii. Nature of error noticed
The matter has
been disposed of
vide order dated
20.07.2018. The
Hon’ble Court
granted the
Petitioner the
liberty to
approach his
nodal officer in
terms of the
circular dated
3.4.2018.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 101 of 309
iii. Screen-shots of technical
error/emails sent to help-desk
along with ticket numbers.
The taxpayer was requested to
provide the abovementioned
details by end of day
28.08.2018.

No response has been
received from the Petitioner
in response to GSTN’s email
dated 24.08.2018.
11 32ABLFS59
91G1ZS
22275/2018-
Sevenseas
Exporter
Kerala Partnershi
p
Allegation in the Writ
Petition: -The Petitioner could
not file TRAN-1 but GST
Portal was non-responsive.

Further investigation by
GSTN: - An email was sent on
24.08.2018 to the taxpayers
requesting for the following: -
i. Exact technical glitch faced
by them while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical
error/emails sent to help-desk
along with ticket numbers.
The taxpayers were requested
to provide the above-
mentioned details by end of day
28.08.2018.

Response provided by the
Petitioner: -The Petitioner in
response to GSTN’s email
dated 24.08.2018 has stated
that: while trying to log into
www.gst.gov.in they could not
even enter/ log into the
particular site/page. Screen was
just blank; not even loaded.
The matter has
been disposed of
vide order dated
05.07.2018 with
the direction to
follow the
procedure
prescribed under
circular dated
3.4.2018.
12 32AADFC84
23G1ZT
W.P.
24610/2018-
Cee Pee
Marble &
Granite
Kerala Partnershi
p
Allegation in the Writ
Petition: - The Petitioner has
successfully filed GST TRAN-
1 however credit of Rs.
5,17,704 which ought to have
been credited to his electronic
credit ledger has not been
credited.

Further investigation by
GSTN: - An email was sent on
24.08.2018 to the taxpayers
requesting for the following: -
The matter has
been disposed of
on 24.07.2018
with the
direction to
follow the
process
prescribed under
circular dated
3.4.2018.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 102 of 309
i. Exact technical glitch faced
by them while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical
error/emails sent to help-desk
along with ticket numbers.
The taxpayer was requested to
provide the above-mentioned
details by end of day
28.08.2018.

No response has been
received from the Petitioner
in response to GSTN’s email
dated 24.08.2018.

B Category 4: TRAN-1 filed but credit not received. TRAN-1 filed but credit not received. There
was no error logged in filing for TRAN-1.
S.No. GSTIN/ Provisional
id
Name
reported by
the
Taxpayer in
Writ
Petition
State Constitution
of business
Issue Status
13 33AAGCM0518C1Z4 21321/2018
Tvl.M.S.R.
Iron and
Steel
Industries
India Pvt.
Ltd v. UOI
& Ors
Tamil
Nadu
Private
Limited
Company
The Petitioner had
wrongly declared the
stock value in column
7(d) due to which the
credit had not been
reflected in his
Electronic Credit
Ledger. To avail the
excise duty on stock,
the same had to be
declared in column
7(a).

The taxpayer has made
a mistake in filing
TRAN-1 form and no
technical glitch was
found.
The matter has
been disposed of
vide order dated
21.08.2018. The
Hon’ble Court
has directed that
the procedure
prescribed under
circular dated
3.4.2018 be
followed.
14 33AAMFB6860B1ZO

21322/2018
Balu Iron
and Steel
Company
Tamil
Nadu
Partnership The Petitioner had
wrongly declared the
stock value in column
7(d) due to which the
credit had not been
reflected in his
Electronic Credit
Ledger. To avail the
excise duty on stock,
the same had to be
declared in column
7(a).
The matter has
been disposed of
vide order dated
21.08.2018. The
Hon’ble Court
has directed that
the procedure
prescribed under
circular dated
3.4.2018 be
followed.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 103 of 309
The taxpayer has made
a mistake in filing
TRAN-1 form and no
technical glitch was
found.
15 33AAECR3728H1ZH
21323/2018
Ramesh Iron
and Steel
Company
India Pvt.
Ltd.
Tamil
Nadu
Private
Limited
Company
The Petitioner had
wrongly declared the
stock value in column
7(d) due to which the
credit had not been
reflected in his
Electronic Credit
Ledger. To avail the
excise duty on stock the
same had to be declared
in column 7(a).

B Category 5: TRAN1 Filed twice but credit not received
S.No
.
GSTIN/
Provision
al id
Name reported
by the
Taxpayer in
Writ Petition
State Constitutio
n of
business
Issue Status
16 32AAMF
G0190P1
Z5
WP(C)
20287/2018
filed by G & C
Infra
Innovations
Kerala Partnership Allegation in the Writ Petition: -
The Petitioner while filing TRAN-2
is getting the following error "You
have not declared in Part 7B of table
7(a) of TRAN-1, so you are not
permitted to fill any details in table
4 of TRAN-2.
In these cases also considering the
fact that the taxpayer has made an
effort to file a Writ Petition alleging
technical glitches further
investigation was carried out by
GSTN.

Further investigation by GSTN: -
An email was sent on 24.08.2018 to
the taxpayer requesting for the
following: -
i. Exact technical glitch faced by
THEM while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical
error/emails sent to help-desk along
with ticket numbers.

No response was received from
the taxpayer.
The matter
has been
disposed of
vide
judgment
dated
22.06.2018.
The Hon’ble
Court has
directed to
follow the
procedure as
prescribed
under
circular dated
3.4.2018.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 104 of 309
Annexure 3

Members (Centre)
• Sh. Mahender Singh, Member (GST), CBIC
• Dr. Rajeev Ranjan, Special Secretary, GSTC
• Sh. P.K. Jain, Pr. Director General, DG-Audit, CBIC
• Sh. Sandeep M. Bhatnagar, Director General, DG-Systems, CBIC

Members (States) (through VC)
• Sh. Sanjeev Kaushal, ACS, Haryana
• Sh. T. V. Somanathan, CCT, Tamil Nadu
• Sh. P.D. Vaghela, CCT, Gujarat
• Ms. Smaraki Mahapatra, CCT, West Bengal

Special Invitees
• Sh. Shashank Priya, Joint Secretary, GST Council
• Sh. Dheeraj Rastogi, Joint Secretary, GST Council
• Sh. Upender Gupta, Commissioner, GST Policy Wing, CBIC
• Sh. Prakash Kumar, CEO, GSTN (through VC)
• Ms. Kajal Singh, EVP (Services), GSTN (through VC)

Others
• Sh. Gauri Shankar Sinha, Additional Commissioner, GST Council
• Sh Ravneet Singh Khurana, Joint Commissioner, GST Policy Wing, CBIC
• Sh. Rakesh Agarwal, Deputy Commissioner, GST Council
• Sh Arjun Kumar Meena, Deputy Commissioner, GST Council
• Sh. Mahesh Kumar, Under Secretary, GST Council

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 105 of 309
Agenda Item 5: Review of Revenue Position
In the 30th GST Council Meeting held on 28th September, 2018, revenue collection figures for
July and August, 2018 were placed before the Council. The Table 1 below gives the details of revenue
collected as Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), Integrated
Goods and Services Tax (IGST) and Cess from September, 2018 to November, 2018 including the
details of funds transferred to the Centre and States on account of settlement of funds.

Table 1*: GST revenue for September-November, 2018
(Figures in Rs. crore)
Month September’18 October’18 November'18
CGST 15,318 16,464 16,812
SGST 21,061 22,826 23,070
IGST 50,070 53,419 49,726
Domestic 24,762 26,511 25,593
Imports 25,308 26,908 24,133
Comp Cess 7,993 8,000 8,031
Domestic 7,224 7,045 7,189
Imports 769 955 842
Total 94,442 100,710 97,637
*Figures rounded to nearest whole number

2. Table 2 below shows the IGST collected, refunded and settled/apportioned during the period

Table 2**: IGST Collection/Settlement/Apportionment/Refund from September’18-
November’18
(Figures in Rs. crore)
Month September’18 October’18 November’18
IGST Collections 50,070 53,419 49,729
IGST Refunds 6,514 5,657 7,813
IGST Settlement 29,210 62,597 33,966
CGST 15,255 17,490 18,262
SGST 13,954 15,107 15,704
CGST ad hoc 15,000
SGST ad hoc 15,000
Net 14,346 -14,835 7,950
**Figures rounded to nearest whole number

The balance IGST carried forward from the previous months is Rs. 9801 crore. Therefore, the balance
IGST available with the Centre after settlement/provisional settlement/refund as on 1st December 2018
is Rs. 17,262 crore.

Revenue Trends

3. The details of State-wise revenue to be protected and percentage revenue shortfall of GST
collections between April-November, 2018 as compared to the period August-17 to March-18 are given
in Table 3 below:

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 106 of 309
Table 3
S. No. State Aug-17 to March-18 Apr-18 to Nov-18
1 Puducherry 45% 43%
2 Himachal Pradesh 42% 37%
3 Uttarakhand 39% 34%
4 Bihar 38% 20%
5 Punjab 37% 37%
6 Jammu & Kashmir 37% 28%
7 Meghalaya 32% 14%
8 Chhattisgarh 31% 26%
9 Odisha 31% 25%
10 Tripura 30% 19%
11 Madhya Pradesh 26% 17%
12 Jharkhand 26% 16%
13 Goa 23% 25%
14 Karnataka 22% 21%
15 Assam 21% 7%
16 Rajasthan 18% 10%
17 Haryana 18% 16%
18 Kerala 16% 16%
19 Nagaland 15% -16%
20 Gujarat 14% 14%
21 West Bengal 13% 9%
22 Uttar Pradesh 12% 7%
23 Sikkim 9% -13%
24 Andhra Pradesh 7% -2%
25 Telangana 6% 1%
26 Delhi 6% 21%
27 Tamil Nadu 4% 6%
28 Maharashtra 3% 5%
29 Manipur 0% -27%
30 Arunachal Pradesh -1% -48%
31 Mizoram -4% -51%
Grand Total 20% 10%

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 107 of 309

Trends in Return Filing
4. The Table 4 below shows the trend in returns in FORM GSTR-3B till due date and till date for
return periods upto October, 2018
Table 4
Tax
Period
Taxpayers
eligible to file
Filed till due
date
% till due
date of filing
Filed till date
13th Dec., 2018
% till date
13th Dec.,
2018
Jul-17 74,61,214 38,34,877 51.40% 70,76,360 93.94%
Aug-17 75,32,807 27,25,183 36.18% 74,00,449 93.37%
Sep-17 79,25,831 39,34,256 49.64% 71,35,996 87.51%
Oct-17 81,54,303 43,68,711 53.58% 71,70,724 89.72%
Nov-17 79,92,517 49,13,065 61.47% 72,27,719 88.33%
Dec-17 81,82,277 54,26,278 66.32% 73,10,247 87.41%
Jan-18 83,63,437 53,94,018 64.50% 73,98,778 86.58%
Feb-18 85,45,661 54,51,004 63.79% 74,60,566 85.67%
Mar-18 87,08,493 52,83,962 60.68% 74,29,626 84.26%
Apr-18 88,17,798 56,38,813 63.95% 75,17,863 82.41%
May-18 91,22,309 56,18,925 61.60% 75,55,632 81.10%
Jun-18 93,16,710 58,39,034 62.67% 75,59,211 79.82%
Jul-18 94,70,282 64,39,259 67.99% 75,45,416 78.47%
Aug-18 96,15,273 57,02,349 59.31% 74,52,775 77.17%
Sep-18 96,57,239 64,19,403 66.47% 72,04,912 73.84%
Oct-18 97,57,664 53,98,369 55.32% 70,76,360 93.94%

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 108 of 309

5. Till now, the highest level of return filing was observed for December, 2017 and after that, a
downward trend was being observed. However, for July, 2018, highest level of return filing till now, at
68% has been observed. The next two tables show the state-wise breakup of this data.
Table 5: Return filling on due date
State
Code
State/UT
Name
Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18
1
Jammu and
Kashmir 60% 59% 59% 64% 59% 63% 59%
2
Himachal
Pradesh 69% 67% 65% 72% 63% 70% 66%
3 Punjab 80% 78% 76% 82% 74% 79% 75%
4 Chandigarh 75% 73% 73% 79% 69% 78% 73%
5 Uttarakhand 59% 58% 57% 63% 56% 63% 57%
6 Haryana 70% 69% 68% 73% 63% 71% 64%
7 Delhi 64% 64% 63% 68% 59% 66% 59%
8 Rajasthan 68% 67% 65% 71% 63% 71% 64%
9 Uttar Pradesh 71% 70% 68% 73% 66% 73% 67%
10 Bihar 55% 54% 53% 60% 54% 58% 52%
11 Sikkim 55% 54% 54% 62% 54% 58% 52%
12
Arunachal
Pradesh 30% 30% 30% 36% 31% 35% 32%
13 Nagaland 30% 33% 34% 41% 37% 41% 36%
14 Manipur 34% 33% 31% 44% 38% 43% 37%
15 Mizoram 42% 42% 42% 47% 44% 48% 43%
16 Tripura 56% 56% 56% 64% 58% 61% 59%
17 Meghalaya 48% 49% 51% 57% 53% 57% 54%
18 Assam 41% 42% 42% 48% 41% 44% 42%
51.40%
36.18%
49.64%
53.58%
61.47%
66.32%
64.50% 63.79%
60.68%
63.95%
61.60% 62.67%
67.99%
59.31%
66.47%
55.32%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18
% of filing till due date
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
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19 West Bengal 67% 65% 65% 70% 62% 67% 64%
20 Jharkhand 59% 58% 58% 66% 58% 63% 57%
21 Odisha 58% 54% 54% 62% 52% 59% 56%
22 Chhattisgarh 52% 51% 52% 62% 51% 59% 51%
23
Madhya
Pradesh 60% 61% 61% 69% 60% 67% 61%
24 Gujarat 72% 72% 71% 76% 68% 75% 67%
25
Daman and
Diu 62% 63% 62% 69% 58% 67% 59%
26
Dadra and
Nagar Haveli 61% 61% 61% 66% 56% 65% 57%
27 Maharashtra 62% 61% 61% 67% 56% 65% 59%
29 Karnataka 62% 62% 62% 67% 60% 65% 61%
30 Goa 56% 56% 56% 61% 52% 60% 55%
31 Lakshadweep 25% 22% 22% 22% 21% 24% 20%
32 Kerala 59% 58% 58% 55% 40% 62% 52%
33 Tamil Nadu 59% 59% 59% 63% 57% 62% 57%
34 Puducherry 58% 57% 58% 63% 54% 63% 55%
35
Andaman and
Nicobar
Islands 23% 24% 27% 32% 25% 30% 25%
36 Telangana 56% 55% 54% 60% 49% 57% 54%
37
Andhra
Pradesh 60% 61% 60% 67% 57% 63% 61%
97
Other
Territory 54% 55% 65% 71% 60% 77% 68%

Table 6: Return filling till date
State
Code
State/UT
Name
Apr 18 May 18
Jun
18
Jul 18 Aug 18 Sep 18 Oct 18
1
Jammu and
Kashmir 83% 81% 80% 78% 77% 75% 71%
2
Himachal
Pradesh 87% 84% 83% 82% 81% 79% 77%
3 Punjab 92% 90% 89% 89% 88% 87% 85%
4 Chandigarh 89% 88% 88% 88% 88% 87% 85%
5 Uttarakhand 80% 79% 77% 76% 74% 73% 70%
6 Haryana 87% 86% 85% 83% 82% 80% 77%
7 Delhi 84% 83% 81% 79% 78% 77% 73%
8 Rajasthan 86% 84% 82% 81% 80% 80% 76%
9 Uttar Pradesh 87% 86% 84% 83% 82% 81% 78%
10 Bihar 79% 77% 75% 73% 72% 70% 66%
11 Sikkim 83% 82% 79% 78% 76% 73% 67%
12
Arunachal
Pradesh 62% 60% 57% 55% 52% 48% 42%
13 Nagaland 64% 63% 61% 59% 57% 54% 49%
14 Manipur 65% 64% 62% 60% 57% 54% 49%
15 Mizoram 71% 69% 67% 65% 63% 60% 54%
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16 Tripura 79% 78% 76% 75% 74% 72% 69%
17 Meghalaya 75% 74% 73% 71% 70% 67% 63%
18 Assam 68% 66% 64% 62% 60% 58% 54%
19 West Bengal 86% 84% 82% 81% 80% 78% 74%
20 Jharkhand 84% 82% 81% 79% 78% 76% 72%
21 Odisha 79% 76% 74% 73% 72% 70% 66%
22 Chhattisgarh 84% 81% 81% 80% 78% 75% 70%
23
Madhya
Pradesh 87% 85% 84% 84% 82% 81% 77%
24 Gujarat 90% 88% 87% 86% 85% 84% 81%
25
Daman and
Diu 86% 85% 84% 82% 81% 78% 74%
26
Dadra and
Nagar Haveli 86% 84% 83% 81% 79% 76% 71%
27 Maharashtra 83% 81% 80% 78% 77% 75% 71%
29 Karnataka 83% 81% 80% 78% 77% 75% 72%
30 Goa 80% 78% 76% 75% 73% 71% 66%
31 Lakshadweep 38% 37% 35% 34% 32% 29% 27%
32 Kerala 87% 86% 84% 83% 81% 79% 75%
33 Tamil Nadu 79% 77% 76% 75% 74% 73% 71%
34 Puducherry 81% 79% 77% 77% 75% 73% 70%
35
Andaman and
Nicobar
Islands 57% 55% 52% 49% 47% 43% 37%
36 Telangana 82% 80% 78% 77% 75% 73% 70%
37
Andhra
Pradesh 84% 82% 81% 80% 80% 79% 76%
97
Other
Territory 81% 80% 82% 82% 81% 79% 76%

6. The revenue position from the months of September, 2018 to November, 2018 under GST is
placed for information of the Council.

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Agenda Item 7: Issues recommended by the Law Committee for the consideration of the GST
Council
Agenda Item 7(i): Extension of the due date for furnishing the statement in FORM GSTR-8 by
electronic commerce operator for the months of October, November and December, 2018
The provisions related to tax collected at source (TCS) by electronic commerce operators
(ECOs) contained in section 52 of the Central Goods and Services Tax Act, 2017 (CGST Act for short)
have been brought into effect from 01st October, 2018 vide notification No. 51/2018 -Central Tax dated
13.09.2018.
2. Several representations were received from the ECOs on the issues being faced by them related
to registration in States where they do not have any physical presence. Accordingly, based on the
proposal of the Law Committee and approved by GIC, it was clarified in the revised FAQs on TCS
issued on 30th November, 2018 that in order to facilitate the obtaining of registration in each State/UT,
the e-commerce operator may declare the Head Office as its place of business for obtaining registration
in that State/UT where it does not have physical presence. It may be noted that each State/UT has
indicated one administrative jurisdiction where all e-commerce operators having business (but not
having physical presence) in that State/UT shall register. The proper officer for the purpose of
registration of ECOs has also been notified by each State/UT.
3. Further, certain ECOs who were unable to obtain registration in the month of October, 2018
because of the above-mentioned issue but collected TCS for the said month were unable to furnish the
details in the statement in FORM GTSR-8. This issue was also clarified in the revised FAQs on TCS
issued on 30th November, 2018 to the effect that the ECOs who have been unable to obtain registration
in the month of October, 2018 but have already collected TCS for the said month, may furnish the details
of TCS collected in the month of October, 2018 in the first return in FORM GTSR-8 to be filed after
obtaining registration.
4. In this regard, it is submitted that the due date for furnishing the statement in FORM GSTR-8
for the month of October, 2018 was 10th November, 2018. The ECOs who could not furnish the
statement by the due date are now liable to pay interest under section 52(6) of the CGST Act along with
penalty under section 122(1)(vi) of the CGST Act.
5. Accordingly, the Law Committee has proposed extending the due date for furnishing the
statement in FORM GSTR-8 for the months of October, November and December, 2018 as detailed
below:
Period Due date
Proposed due date
October, 2018 10th November, 2018
31st January, 2019 November, 2018 10th December, 2018
December, 2018 10th January, 2019
6. It is stated that the last dates for furnishing the return in FORM GSTR-7 by TDS deductors for
the months of October, November & December, 2018 were also extended till 31st January, 2019 vide
notification No. 66/2018 dated 29.11.2018.
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7. Accordingly, approval of the GST Council is sought for extending the due date for furnishing
the statement in FORM GSTR-8 by ECOs for the months of October, November and December,
2018 till 31st January, 2019. The requisite notification shall be issued by the Central and State
Governments.

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Agenda Item 7(ii): Extension of last date for allowing migration of taxpayers who received
Provisional Identification Number (PID) till 31st December, 2017
The GST Council in its 28th meeting held on 21st July, 2018 had allowed migration of persons
who did not file the complete FORM GST REG-26 of the Central Goods and Services Tax Rules, 2017
(hereinafter referred to as “CGST Rules”) but received only a Provisional Identification Number (PID)
(hereinafter referred to as “such taxpayers”) till 31st December, 2017. Such taxpayers were required to
furnish certain details to the jurisdictional nodal officer of the Central Government or State Government
on or before the 31st August, 2018. The detailed guidelines for the migration of such taxpayers was
specified vide notification No. 31/2018-CT dated 6th August, 2018. The entire process of migration was
required to be completed by 30th September, 2018.
2. In this regard, GSTN has informed that out of 7390 valid PIDs, they have completed the
migration of 2252 GSTINs who have activated their profile and complied. Emails for the 7390 cases
have already been triggered and on receipt of the compliance mail from the eligible taxpayers, GSTN
shall complete the process of migration for the remaining valid PIDs (5138) also.
3. Further, GSTN has stated that they have received details of 529 taxpayers (as on 11th November,
2018) from the nodal officers of the States/Centre for allowing migration. These applications have been
received by the nodal officers after the due date viz., 31st August, 2018. State wise break –up of the
requests received is given below: -
State Request from State Request from Centre
Andhra Pradesh 10 4
Assam 2 7
Bihar 1 1
Chandigarh 0 5
Chhattisgarh 19 0
Daman and Diu 0 1
Dadar Nagar and Haveli 1 1
Goa 2 1
Gujarat 30 1
Haryana 3 1
Himachal Pradesh 13 0
Karnataka 34 0
Kerala 28 4
Madhya Pradesh 11 4
Maharashtra 26 5
New Delhi 21 16
Punjab 2 4
Tamil Nadu 197 36
Telangana 1 7
Uttar Pradesh 3 2
West Bengal 4 4
Odisha 0 15
Rajasthan 0 1
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State Request from State Request from Centre
Sikkim 0 1
Total 408 121
4. The Law Committee in its meeting held on 10th and 11th December, 2018 has proposed that one
more opportunity may be given to such taxpayers who had received only a PID till 31st December, 2017
(including these 529 taxpayers) to complete the migration process.
5. Further, as informed by GSTN, only 2252 GSTINs out of 7390 valid PIDs have activated their
profile and completed the migration process so far as per the procedure laid down vide notification No.
31/2018-CT dated 6th August, 2018. Whereas, the last date for furnishing the return in FORM GSTR-
3B and the details of outward supplies in FORM GSTR-1 for the period July, 2017 to November, 2018
by such taxpayers has been notified to be 31st December, 2018 vide notifications No. 47/2018-CT, No.
43/2018-CT and 44/2018-CT, all dated 10th September, 2018 respectively.
6. In this regard, it is proposed that the migration window may be extended for all persons who
did not file the complete FORM GST REG-26 but received only a PID till 31st December, 2017. This
would include such taxpayers who have applied to the nodal officers of the States/Centre after the
stipulated last date viz., 31st August, 2018. It is proposed that such taxpayers should be required to
furnish the requisite details to the jurisdictional nodal officer of the Central Government or State
Government on or before 31st January, 2019 and the requisite details by email to GSTN by 28th
February, 2019. Such taxpayers shall be deemed to have been registered with effect from the 1st July,
2017. In this regard, it is proposed to amend notification No. 31/2018-CT dated 6th August, 2018
accordingly. The State Governments would also be required to issue the requisite notification.
7. Further, it is proposed that the last date for furnishing the return in FORM GSTR-3B and the
details of outward supplies in FORM GSTR-1 for the period July, 2017 to February, 2019/quarters
July, 2017 to December, 2018 by such taxpayers should be extended till 31st March, 2019.
8. It is further proposed to extend the benefit of the extension of the due date for furnishing the
return in FORM GSTR-3B and the details of outward supplies in FORM GSTR-1 to all such taxpayers
who have migrated to GST pursuant to the procedure laid down vide notification No. 31/2018-CT dated
6th August, 2018 as amended in light of para 6 above. This shall ensure parity in terms of furnishing the
return in FORM GSTR-3B and the details of outward supplies in FORM GSTR-1 for the period July,
2017 to February, 2019/quarters July, 2017 to December, 2018 by all such taxpayers who could not
complete the migration process that is, who did not file the complete FORM GST REG-26 but received
only a PID till 31st December, 2017.
9. Accordingly, approval of the GST Council is sought for the following:
(i) allowing migration of persons who did not file the complete FORM GST REG-26 but
received only a PID till 31st December, 2017 to furnish the requisite details to the jurisdictional
nodal officer of the Central Government or State Government on or before 31st January, 2019
and the requisite details by email to GSTN by 28th February, 2019;
(ii) Further, extending the last date for furnishing the return in FORM GSTR-3B and the
details of outward supplies in FORM GSTR-1 for the period July, 2017 to February,
2019/quarters July, 2017 to December, 2018 by such taxpayers till 31st March, 2019.
10. Requisite notifications would be issued by the Central and State Governments.
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Agenda Item 7(iii): FAQ on Banking, Insurance and Stock Brokers Sector
Representations were received from the Association of National Exchange Members of India
and the BSE broker’s forum on question No. 80 in the FAQ released on “Banking, Insurance and Stock
Brokers Sector”. The said question and its reply is as below:
Sl. No. Question Answer

(d) interest or late fee or penalty for delayed payment of any consideration for any
supply.
3. The Law Committee has discussed this issue and proposed that since settlement
obligations/margin trading facilities are transactions which are in the nature of extending loans or
advances, the same are covered by entry No. 27 of notification No.12/2017-CT dated 28.06.2017.
Accordingly, it is proposed to amend the reply to the question No. 80 in the FAQs as below:
Sl. No. Question Answer

80. Is GST leviable on interest/ delayed
payment charges charged to clients for
debit for settlement obligations/ margin
trading facility?
Any interest/ delayed payment charges charged for
delay in payment of brokerage amount/ settlement
obligations/ margin trading facility shall not be
leviable to GST since settlement obligations/
margin trading facilities are transactions which
are in the nature of extending loans or advances
and are covered by entry No. 27 of notification
No.12/2017- Central Tax (Rate) dated 28th June,
2017.
4. Accordingly, approval of the GST Council is sought for amending the said answer in the FAQ
released on “Banking, Insurance and Stock Brokers Sector”.
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Agenda Item 7(iv): Amending SOP issued on TDS - Issues on furnishing of return in FORM
GSTR-7 by registered persons required to deduct tax at source under section 51 of the CGST Act
for period during which the deductor was not registered
The provisions of section 51 of the Central Goods and Services Tax Act, 2017 (CGST Act for
short) were brought into force from 01st October, 2018 vide notification No. 50/2018 - Central Tax dated
13.09.2018. According to sub-rule (1) of rule 66 of the Central Goods and Services Tax Rules, 2017
(CGST Rules for short), every registered person required to deduct tax at source under section 51 of the
CGST Act, 2017 is required to furnish a return in FORM GSTR-7. There have been certain cases where
persons required to deduct tax at source have obtained registration after 01st October, 2018. Doubts have
been raised whether such persons should report the details of tax deducted during the intervening period
(i.e. from 01st October, 2018 till the date of registration) while filing their first return in FORM GSTR-
7.
2. The Law Committee, in its meeting held from 14th to 16th November, 2018, had discussed this
issue and proposed that furnishing of the return in FORM GSTR-7 should be allowed for a period prior
to registration by condoning the delay in obtaining registration. It was decided that all such deductions
made on or after 1st October, 2018 but before the date of registration may be included in the first return
to be furnished by the deductor after obtaining registration.
3. Accordingly, the SOP (Standard Operating Procedure) on TDS (Tax Deduction at Source) issued
on 28th September, 2018 is proposed to be suitably modified in order to clarify the same. The draft
changes in the SOP on TDS are as follows:
a. Insertion of Para 10.3 after Para 10.2:
“10. 3 Filing of TDS Return for period during which there was no registration:
All deductions made on or after 1st October, 2018 but before the date of registration may be
included in the first return to be furnished after obtaining registration.”

b. Insertion of FAQ No. 68 after FAQ No. 67
FAQ no. 68
S.No. Question Answer
1. “What needs to be done if I have
taken registration for TDS on 1st
November, 2018 but was required
to deduct TDS from 1st October,
2018?

All deductions made earlier must be included while
furnishing the first return. In other words, while
furnishing the return for the month of November, 2018,
TDS deducted for the months of October and
November, 2018 shall be included in the said return.”
4. Accordingly, approval of the GST Council is sought for amending the SOP on TDS as detailed
in paragraph 3 above.

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Agenda Item 7(v): Update on the implementation status of the issues referred to the Law
Committee by the GST Council
The GST Council in its various meetings from time to time had referred various issues to the
Law Committee (LC for short) for examination. The LC has examined the issues and the proposals of
the LC on the issues are as follows.
Issue No. 1:
2. The Law Committee to suggest a method to ensure that taxpayers availing the benefit of
filing quarterly tax return pay the correct estimated amount of tax every month and to charge
interest where tax paid in any month was less than the value of supply declared in that month (28th
GST Council Meeting held on 21st July 2018).
2.1. Proposal of LC: The GST law should have a provision to the effect that the payment of tax
would be made on a monthly basis on self-assessment basis accompanied by a monthly payment
statement wherein the monthly credit availed and output liability is declared. In case of any short
payment during any month vis-a-vis the actual liability, the taxpayer would, at the time of filing the
quarterly return, pay the differential amount along with the tax for the third month with interest. In case
the tax administration, during audit or otherwise, detects that payment liability declared was less than
his actual output tax liability and/ or excess ITC was availed, then, interest would be leviable and all the
other provisions of the Act would apply.
Issue No. 2:
3. The Law Committee to examine to introduce a provision in the GST Law to allow a buyer
to pay tax for the supplies received from a new or unknown supplier (28th GST Council Meeting
held on 21st July 2018).
3.1. Proposal of LC: In the new return design, the input tax credit can be availed upon uploading of
invoices by the supplier and this is not contingent upon the payment of tax by the said supplier.
Accordingly, the recipient has the option of not making payment of the tax amount involved to the
supplier if the invoice is not uploaded. In view of this, LC is of the opinion that no new provision is
required to be introduced. Further, in the event of the tax in respect of invoices uploaded not being paid
by the supplier, the same has to be recovered first from the defaulting supplier. Besides, introducing an
option for the recipient to pay the tax, instead of the supplier, would require large-scale changes to the
return design, software and the Law/rules. This would also require introduction of a new provision of
refund on account of accumulated ITC at the hands of the supplier because the tax liability has been
discharged by the recipient while the ITC keeps accruing in the hands of the supplier. Even if the said
provision were to be introduced, this would lead to increase in the working capital requirement of both
the supplier (on account of accumulation of ITC) and the recipient (on account of having to pay the tax,
in cash, on supplies received by him).

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Issue No. 3:
4. The Law Committee may consider the issue of exclusion of Brick Kilns, Menthol and Sand
Mining activities from the benefit of Composition scheme (28th GST Council Meeting held on 21st
July 2018).
4.1. Proposal of LC: The GST Council Secretariat, vide their OM dated 6.11.2018, had written to
the States to send their details/ inputs in respect of brick kilns, menthol and sand mining activities in a
prescribed format. It is seen from the GST Council Secretariat’s mail dated 20.11.2018 addressed to the
States that the details/inputs have been received from only 17 States. The matter would be examined on
receipt of the details/inputs from the remaining States.
Issue No. 4:
5. The Law Committee to examine the feasibility of introducing MRP-based and capacity-
based tax assessment under GST (29th GST Council Meeting held on 04th August 2018).
5.1. Proposal of LC: It is not advisable to adopt capacity based levy/MRP based levy as GST is a
value added tax and tax is levied on the supply of goods. Further, if such capacity based/MRP based
levy is introduced, it would not be possible to collect tax at the subsequent stage in the value chain in
case it is a single point levy. Further, in case the levy is limited to the first point of supply, the tax would
not flow to the consuming State and the self-policing nature of GST would be defeated as there would
be a greater incentive to evade tax at the first stage of supply.
5.2. In case MRP based levy is introduced as a multi-point levy, the compliance burden would
remain the same as tax would be collected at each stage of supply. This would also increase the working
capital requirement for every taxpayer in the value chain because the taxable value would be artificially
high. Further, taxation on the basis of MRP will create inequity in the market as a large number of goods
are sold below the MRP/on discounted price during off-season sales but consumer would end up paying
tax on the MRP thereof rather than on the transaction value.
Issue No. 5:
6. The Law Committee shall frame a proposal to deny the facility of generation of e-way bills
to taxpayers who had not filed returns for two consecutive tax periods (30th GST Council Meeting
held on 28th September 2018).
6.1. Proposal of LC: The Law Committee in its meeting held on 29th – 31st October 2018 has
recommended insertion of a new rule 138 E in the Central Goods and Services Tax Rules, 2017 (CGST
Rules for short) to provide, inter alia, that no person (including a consignor, consignee, transporter, an
e-commerce operator or a courier agency) shall be allowed to furnish the information in Part A of
FORM GST EWB-01 in respect of a registered person, whether as a supplier or a recipient, who—
(a) being a person paying tax under section 10, has not furnished returns for two consecutive tax
periods, or
(b) being a person other than a person specified in clause (a), has not furnished returns for a
consecutive period of two months.
6.2. The rule shall be notified as part of the CGST Rules but shall come into force only after the
system application for the same has been developed by GSTN and NIC.

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Issue No. 6:
7. The Law Committee shall examine further simplification of the application form for filing
anti-profiteering complaints (30th GST Council Meeting held on 28th September 2018).
7.1. Proposal of LC: CCT, Maharashtra shall formulate a draft and the Form would be simplified in
consultation with National Anti-profiteering Authority (NAA).
Issue No. 7:
8. GSTN would engage with the Law Committee to explore ways of expediting completion of
software development for Forms GSTR-9 (Annual Return for regular taxpayers), GSTR-9A
(Annual Return for compounding taxpayers) and GSTR-9C (Reconciliation Statement) (30th GST
Council Meeting held on 28th September 2018).
8.1. Proposal of LC: GSTN has informed that software development process is at an advanced stage.
Issue No. 8:
9. Law Committee to examine the problem of small contractors executing works contract for
the Government due to time of supply provisions under GST (30th GST Council Meeting held on
28th September 2018).
9.1. Proposal of LC: During the visit of the Finance Secretary to Uttarakhand to review the revenue
gap of State, a point was raised as to how to ameliorate the plight of small works contractors with annual
turnover up to Rs. 50 lakhs who become liable to pay tax on issuing an invoice but get their payment
after a delay of 3 to 4 months.
9.2. The matter was considered by the LC in its meeting held on 14th-16th November 2018. It was
felt that it is not advisable to make a special dispensation for works contractors, to the exclusion of other
similarly placed small taxpayers. If the facility is extended to works contractors, there would be demands
to extend similar facility to other small taxpayers. This will entail deferment of revenue. It was noted
that the GST provisions in this regard are similar to the practice under the erstwhile Central Excise and
VAT regimes. The erstwhile service tax regime had, however, a special dispensation for small service
providers who were proprietors or partnership concerns.
9.3. Further, providing the facility being demanded would require large scale amendments to the
GST Acts viz., sections 12, 13, 16, 37, 38, 39, 42, 43, 43A of the CGST Act, et al. Even after amendment
of the GST Acts, the following complications may arise:
A. As per the proposed return system (which has already been approved by the GST Council),
the tax liability of the supplier is created on the system upon uploading of the invoice by him
and such upload also entitles the recipient to avail input tax credit. If, in order to defer the tax
liability of the supplier, the law were to provide for uploading of invoices by him only on receipt
of consideration, then the credit to the recipient too will get deferred because the credit is linked
to the uploading of the invoice by the supplier.
Alternatively, even if the law were to be amended to provide that the invoice can be uploaded
without receipt of consideration but the tax liability on such invoices will be required to be
discharged by the supplier only on receipt of consideration, extensive changes in the new return
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system (which has already been finalized by the GST Council in its 28th Meeting held on 21st
July 2018) would be required. In such cases:-
a) the supplier will have to indicate invoices in respect of which consideration has not been
received from the recipient;
b) the system has to flag such invoices;
c) the supplier will have to subsequently indicate the invoices uploaded in respect of which
payment has been received in the return period; and
d) the system will have to maintain records of all such events.
B. It may be noted that a safeguard has been built in the present system whereby credit availed
by the recipient will have to be reversed if the consideration to the supplier is not paid within
180 days from the date of the invoice. This induces the recipient to make payment to the supplier
within 180 days otherwise he risks losing the credit.
9.4. In view of the complications discussed aforesaid, the proposal is not acceptable.
10. The status of the issues referred to the Law Committee by the GST Council, as above, is placed
before the GST Council for information and consideration.

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Agenda Item 7(vi): Request for exemption from provisions relating to Tax Deduction at Source
(TDS) in case of taxable supplies between Government Authority to another Government
Authority or to PSU and vice versa
The provisions of section 51 of Central Goods and Services Tax Act, 2017 (Tax deduction at
source) have been brought into force with effect from 01st October, 2018 vide notification No. 50/2018-
Central Tax dated 13.09.2018.
2. Various representations have been received from different Government departments and
Ministries including Ministry of Railways seeking exemption from TDS provisions. The primary issues
raised in their representation are as follows:

i. Indian Railways (IR) is part of the Central government and primarily engaged in providing
services relating to transportation of goods and passengers by rail. The users of the transportation
services provided by IR are not only individual passengers, but also businesses. These include
various governmental undertakings, public sector undertakings etc. like NTPC, Coal India, SAIL
etc. who avail goods transportation services provided by Railways. When TDS is to be deducted
by the PSUs availing Railway transportation services, money flowing in directly to the
Consolidated Fund of India would stand reduced to that extent. The TDS amount deducted remains
outside the Consolidated Fund of India until the said amount is deposited into the Government
Account by the PSUs. The average delay in crediting the amount of TDS to the Government
Account works out to 25 days (as the TDS will be credited by the 10th of the subsequent month).
ii. A similar situation would arise when Railways Departmental Manufacturing Units make sales
of rolling stock to Indian Railway Finance Corporation (IRFC), under the lease arrangement or
sell wheelsets to PSUs for manufacture of wagons.
3. The issue was discussed in the Law Committee meeting held on 29th and 30th October, 2018.
The Law Committee has recommended grant of exemption from the requirement of TDS in respect of
supplies made from one Government authority to another Government authority or from one
Government authority to a PSU and vice versa. It may be mentioned that supply from one PSU to another
PSU has already been exempted from requirement of TDS vide notification No. 61/2018-Central Tax
dated 05.11.2018. Similar exemption will have to be granted under the respective SGST Acts also.
4. The above proposal of grant of exemption from the requirement of TDS is submitted for approval
by the GST Council. Requisite notifications would be issued by the Central and State Governments.

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Agenda Item 7(vii): Amendments to the CGST Rules, 2017
The Law Committee, in its meetings held from 29th October to 31st October, 2018, 14th to 16th
November, 2018 and 29th to 30th November, 2018 had proposed various changes in the Central Goods
and Services Tax Rules, 2017 (hereinafter referred to as the “CGST Rules”), as detailed below:
1. Amendment to Rule 12:
1.1 It has been represented that a number of e-commerce operators do not necessarily have
a physical presence in all the States. Depending on the supplies made through the e-
commerce operator, they might be required to register in States where they do not have
a physical presence as per the provisions of section 52 read with section 22 and section
24(x) of the Central Goods and Services Tax Act, 2017 (CGST Act for short). In order
to facilitate e-commerce operators to comply with the provisions of section 52 of the
CGST Act, they may be given the option to provide the address of their head office
(which may be located in a different State) while applying for registration in those States
where they do not have a physical presence. Accordingly, the following sub-rule (1A)
may be inserted after sub-rule (1) of rule 12 of the CGST Rules:

Rule 12 (1A)
“(1A) - A person applying for registration to collect tax in accordance with the
provisions of section 52, in a State where he does not have a physical presence, shall
mention the name of the State or Union territory in PART A of the application in
FORM GST REG-07 and mention the name of the State or Union territory in PART
B thereof in which the principal place of business is located which may be different
from the State or Union territory mentioned in PART A.”

2. Amendment to Rule 41:
2.1 It was observed that for the apportionment of unutilized ITC consequent to a demerger,
in the ratio of assets between new entities, the proviso to rule 41(1) does not clarify
whether the value of all assets is to be included or only value of those assets is to be
included on which ITC has been availed.
2.2 In this regard, the following Explanation may be added after rule 41(1) of the CGST
Rules:

Explanation to Rule 41(1)
Explanation.- For the purposes of this clause, it is hereby clarified that the ‘value
of assets’ means the ‘value of the entire assets of the business whether or not input
tax credit has been availed thereon.’

3. Amendment to rule 45:
3.1 It has been represented that a principal sending his goods for job work is facing
difficulty in entering the details of challans issued by the job worker(s) while sending
the goods to another job worker for further processing. As per the provisions of rule
45(3) of the CGST Rules, the details of the challans in respect of goods dispatched to
a job worker or received from a job worker or sent from one job worker to another
during a quarter have to be mentioned in FORM GST ITC-04.
3.2 In order to obviate this problem of the principal not having the information regarding
the details of subsequent challans issued by the job-workers and to align the rule with
the FORM GST ITC-04 amended vide notification No. 39/2018 – Central Taxes dated
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04.09.2018, it is proposed that sub-rule (3) of rule 45 of the CGST Rules may be
amended as follows:

Rule 45(3)
“(3) The details of challans in respect of goods dispatched to a job worker or received from
a job worker or sent from one job worker to another during a quarter shall be included in
FORM GST ITC-04 furnished for that period on or before the twenty-fifth day of the month
succeeding the said quarter or within such further period as may be extended by the
Commissioner by a notification in this behalf:”
4. Amendment to Rule 46:
4.1 The Law Committee in its meeting held on the 11th and 12th October, 2018 had proposed
inserting a proviso to rule 46 to prescribe that computer-generated invoices may not be
mandated to have signature or digital signature. The said proposal was not implemented
as it was felt that inconsistencies in rules 49, 54(2) and 54 (4) need to be addressed
before inserting the said proviso.
4.2 It is now proposed to insert a fifth proviso to rule 46 of the CGST Rules as detailed
below:
5th proviso to Rule 46
46. Tax invoice- Subject to rule 54, a tax invoice referred to in section 31 shall be issued
by the registered person containing the following particulars, namely, -
(a) …
(p) …; and
(q) signature or digital signature of the supplier or his authorised representative:
Provided that …:
Provided further that …:
Provided also that …:
Provided also that …;
Provided also that the signature or digital signature of the supplier or his authorised
representative shall not be required in the case of issuance of an electronic invoice in
accordance with the provisions of the Information Technology Act, 2000.

5. Amendment to rules 49, 54(2) and 54 (4):
5.1 It was observed that the proposed insertion of the 5th proviso to rule 46 (as detailed in
sl. No. 4 above in case of invoices) creates inconsistencies in few other rules relating to
bill of supply, consolidated tax invoices and tickets etc.
5.2 It is therefore, proposed that provisos may be added in rules 49, 54(2) and 54 (4) of the
CGST Rules so as to make them consistent with the proposed amendment in rule 46 of
the CGST Rules as per the details below:
3rd proviso may be inserted in rule 49
“Provided also that the signature or digital signature of the supplier or his authorised
representative shall not be required in the case of issuance of an electronic bill of supply in
accordance with the provisions of the Information Technology Act, 2000.”
1st proviso may be inserted in Rule 54(2)
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“Provided that the signature or digital signature of the supplier or his authorised
representative shall not be required in the case of issuance of a consolidated tax invoice or
any other document in lieu thereof in accordance with the provisions of the Information
Technology Act, 2000.”
1st proviso may be inserted in Rule 54(4)
“Provided that the signature or digital signature of the supplier or his authorised
representative shall not be required in the case of issuance of ticket in accordance with the
provisions of the Information Technology Act, 2000.”
6. Amendment to rule 89:-
6.1 Under rule 89 (5) relating to refund of unutilized ITC on account of inverted duty
structure, the term “relevant period” for which refund can be filed has not been defined.
Accordingly, it is proposed that “relevant period”, under rule 89(5) of the CGST Rules
may be defined so as to have the same meaning as assigned to “relevant period” in rule
89 (4) of the CGST Rules.
6.2 Accordingly, the proposed amendment in explanation (b) to sub-rule (5) of rule 89 of
the CGST Rules is as follows:
Explanation (b) to rule 89(5)-
For the purposes of this sub-rule, the expressions-
(a) …..
(b) “Adjusted Total turnover” and “relevant period” shall have the same meaning
as assigned to it them in sub-rule (4).

7. Amendment to rule 96: -
7.1 It is felt that after the issuance of the Sea Cargo Manifest and Transshipment
Regulations, 2018, certain provisions of the CGST Rules are required to be aligned with
the said regulations.
7.2 Clause 2(1)(h) of notification No. 38/2018-Customs (N.T.) dated 11.05.2018 (vide
which the above-mentioned regulations were notified), defines “departure manifest” to
mean integrated declaration required to be delivered by an authorized carrier before
departure of a vessel or train or truck for imported goods, export goods and coastal
goods.
7.3 To align both the laws, it is proposed that the same may be included in rule 96 of the
CGST Rules that provides for refund of IGST paid on goods or services exported out
of India. Accordingly, clause (a) of sub-rule (1) of rule 96 of the CGST Rules is sought
to be amended as below:

Rule 96 (1) (a)
(a) the person in charge of the conveyance carrying the export goods duly files a
departure manifest or an export manifest or an export report covering the number
and the date of shipping bills or bills of export; and

8. Amendment to rule 101(1):
8.1 It was observed that there is an inherent contradiction in the law as far as “period” for
which proceedings can be initiated for evasion (i.e. under section 73 & 74 of the CGST
Act); and the period for which audit (i.e. under section 65 of the CGST Act) can be
undertaken.
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8.2 It appears that proceedings under section 73 or 74 of the CGST Act can be taken up
for a tax period or multiple tax periods in a financial year; whereas audit under section
65 of the CGST Act is mandatorily for a financial year and multiples thereof.
8.3 It is proposed that “period” for which proceedings may be initiated under all these
sections may be harmonized. Accordingly, the following amendments in rule 101 of
the CGST Rules is proposed:

Rule 101(1)
“101. Audit. -(1) The period of audit to be conducted under sub-section (1) of section 65
shall be a financial year or part thereof or multiples thereof.”

9. Insertion of Rule 109B:
According to section 108 of the CGST Act, the Revisional Authority can order revision of any
order of a subordinate officer after giving the person concerned an opportunity of being heard.
However, there is no corresponding rule in the CGST Rules, 2017 to operationalize the said
provision. Therefore, it is proposed to insert rule 109B of the CGST Rules, as below:
Rule 109B
109B. Notice to person and order of revisional authority in case of revision.
(1) Where the Revisional Authority decides to pass an order in revision under section 108
which is likely to affect the person adversely, the Revisional Authority shall serve on him a
notice in FORM GST RVN-01 and shall give him a reasonable opportunity of being heard.
(2) The Revisional Authority shall, along with its order under sub-section (1) of section 108,
issue a summary of the order in FORM GST APL-04 clearly indicating the final amount of
demand confirmed.

10. Amendment to rule Explanation 1 to sub-section (1) of section 138:
Due to supersession of the notification No. 32/2017 – Central Tax, dated the 15th September,
2017 after the issuance of notification No. 56/2018 – Central Tax dated 23rd October, 2018, it is
proposed to amend the Explanation 1 to sub-rule (1) of rule 138 of the CGST Rules as follows:
Explanation 1 to sub-rule (1) rule (138)
Explanation 1. – For the purposes of this rule, the expression “handicraft goods” has the
meaning as assigned to it in the Government of India, Ministry of Finance, notification
No.32/2017 56/2018-Central Tax dated the 15th September, 2017 23rd October, 2018
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide
number G.S.R 1158 (E) dated the 15th September, 2017 as amended from time to time.
11. Insertion of rule 138E after rule 138D:
11.1 Instances have been observed where a taxpayer has not filed returns, but he has been
issuing e-way bills as required for transportation of goods under rule 138 of the CGST
Rules.
11.2 Presently, there are no provisions in the CGST Rules which restrict such taxpayers from
generating e-way bills.
11.3 Accordingly, it is proposed to insert provisions for restricting such taxpayers from
generating e-way bills in case they have not filed their returns by inserting a new rule
138E in the CGST Rules as detailed below:
Rule 138E
“138E. Restriction on furnishing of information in PART A of FORM GST EWB-
01.- Notwithstanding anything contained in sub-rule (1) of rule 138, no person
(including a consignor, consignee, transporter, an e-commerce operator or a courier
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agency) shall be allowed to furnish the information in PART A of FORM GST EWB-
01 in respect of a registered person, whether as a supplier or a recipient, who,—
(a) being a person paying tax under section 10, has not furnished the returns for
two consecutive tax periods, or
(b) being a person other than a person specified in clause (a), has not furnished
the returns for a consecutive period of two months:

Provided that the Commissioner may, on sufficient cause being shown and for
reasons to be recorded in writing, by order, allow furnishing of the said information
in PART A of FORM GST EWB 01, subject to such conditions and restrictions as
may be specified by him:

Provided further that no order rejecting the request of such person to furnish the
information in PART A of FORM GST EWB 01 under the first proviso shall be
passed without affording the said person a reasonable opportunity of being heard:

Provided also that the permission granted or rejected by the Commissioner of State
tax or Commissioner of Union territory tax shall be deemed to be granted or, as the
case may be, rejected by the Commissioner.

Explanation: – For the purposes of this rule the expression “Commissioner” shall
mean the jurisdictional Commissioner in respect of the persons specified in clauses
(a) and (b).”

Since GSTN and NIC have to develop the functionalities, it is proposed to notify this rule for the time
being but to bring it into effect from a date to be notified later when GSTN and NIC informs that the
functionality has been developed and is ready to be deployed.

12. Amendment to sub-rule (5) of rule 142
12.1 While self-assessed tax is posted in the Liability Register on filing of return, interest
liability which has not been declared in the return or paid by the registered person is not
posted to the ledger. Whereas, sub-section (12) of section 75 of the CGST Act provides
for recovery of interest due on the unpaid self-assessed tax, if any. Further, in cases
where the taxpayer makes payment of due tax and interest as per an adjudication order,
further interest is also liable to be paid for the period from the date of order till the date
of actual payment. In order to post the interest liability in the Liability Register, an order
is required to be issued.
12.2 Thus, it is proposed to amend sub-rule (5) of rule 142 of the CGST Rules in order to
mention sub-section (12) of section 75 therein for enabling the officers to issue an order
in FORM GST DRC-07 for posting the interest liability in cases detailed above. The
proposed change is as below:
Rule 142(5)
(5) A summary of the order issued under sub-section (9) of section 73 or sub-section (9) of section 74
or sub-section (12) of section 75 or sub-section (3) of section 76 or section 125 or section 129 or section
130 shall be uploaded electronically in FORM GST DRC-07, specifying therein the amount of tax,
interest and penalty payable by the person chargeable with tax.

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13. Amendment of FORM RFD-01A to include additional types of refunds
13.1 GSTN has informed that the following types of refunds have been made
available on the common portal and therefore these types of refunds may be notified
in the FORM GST RFD-01A: -
1
Refund on account of Assessment/Provisional
Assessment/Appeal/Any Other Order
2
Tax paid on an intra-state supply which is subsequently held to
be inter-state supply and vice-versa
3 Excess payment of Tax, if any
4 Any Other

13.2 Rule 89 (5) of the CGST Rules was amended vide notification No. 21/2018 – Central
Taxes dated 18.04.2018 so as to align the same with the provisions of section 54(3) of the CGST
Act. However, the relevant statements in FORM GST RFD-01A were not amended. It is, therefore,
proposed to amend Statement 1 and Statement 1A accordingly.

13.3 Law Committee, in its meeting held on 12th October, 2018 has decided that in Statement
1A of FORM GST RFD-01A, it may be specified that for imports or supplies received under
reverse charge mechanism, the GSTIN of supplier shall mean GSTIN of applicant (recipient).
13.4 As the refund on account of inverted duty structure can be claimed in case of B2B as
well as B2C supplies, it is proposed to add a Column in Statement 1A to indicate the type of invoice.
13.5 In view of the above, following amendments are proposed to be carried out in FORM
GST RFD-01A: -
i. The various types of refunds mentioned at 13.1 above need to be included in S .No.
7 of FORM GST RFD-01A.
ii. In statement 1 regarding refund on account of inverted duty structure, column 1
may be read as “turnover of inverted rated supply of goods and services” and
column 2 as “tax payable on such inverted rated supply of goods and services”.
iii. Changes in statement 1A:- “details of invoices of inward supplies of inputs
received” and “tax paid on inward supplies of inputs”.
iv. In respect of column 2 (“GSTIN of the supplier”) of statement 1A, it may be
mentioned that “In case of imports or supplies received under reverse charge
mechanism [sub-section (3) of CGST Act or sub-section (3) of section 5 of IGST
Act], the GSTIN of supplier will mean GSTIN of applicant (recipient).”
v. Invoice type (B2B/B2C) is proposed to be inserted as Column 12 in Statement-
1A.
vi. Statement 6 for ‘Refund type: On account of change in POS (inter-State to
intra-State and vice versa)’ may be inserted; and
vii. Statement 7 for ‘Refund type: Excess payment of tax, if any in case of last return
filed’ may be inserted.
Accordingly, the amended version of FORM GST RFD-01A is placed at ANNEXURE-I.
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14. Amendment of FORM GST RFD-01
On account of changes suggested in FORM GST RFD-01A above at S.No.11, the following
changes are proposed in FORM GST RFD-01 so as to align the two Forms:
i. In S.No. 7 (d) (ii), the words “finalization of” may be added before “provisional
assessment”
ii. In statement 1 regarding refund on account of inverted duty structure, column 1 may be
read as “turnover of inverted rated supply of goods and services” and column 2 as “tax
payable on such inverted rated supply of goods and services”.
iii. Changes in statement 1A:- “details of invoices of inward supplies of inputs received” and
“tax paid on inward supplies of inputs”.
iv. In respect of column 2 (GSTIN of the supplier) of statement 1A, it may be mentioned that
“In case of imports or supplies received under reverse charge mechanism [sub-section (3)
of CGST Act or sub-section (3) of section 5 of IGST Act], the GSTIN of supplier will mean
GSTIN of applicant (recipient).”
v. Invoice type (B2B/B2C) is proposed to be inserted as Column 12 in Statement-1A.
vi. The following changes are proposed to be made in statement 6:
• The heading of statement 6 may be read as ‘Refund Type: On account of change
in POS of the supplies (inter-State to intra-State and vice versa)’.
• The heading of column 1 of Statement 6 may be read as ‘Recipient’s GSTIN/UIN
Name (in case of B2C).
• The present heading for Column 2 – 10 of Statement 6 may be amended as ‘Details
of tax paid invoices covering on transaction considered as intra –State / inter-State
transaction earlier’. Also, this amended heading may be applicable for Column 6
– 10 only. The heading in respect of column 2-5 may continue to remain “Invoice
details”.
• The heading for Column 11 – 15 of Statement 6 may be read as ‘Taxes re-assessed
on Ttransaction which were held inter-State / intra-State supply subsequently’.
Accordingly, the amended version of FORM GST RFD-01 is placed at ANNEXURE-II.
15. Amendment to be made in the annual return furnished in FORM GSTR-9 and FORM GSTR-
9A and insertion of instructions
15.1 Following instructions are proposed to be added to FORM GSTR-9, FORM GSTR-
9A and FORM GSTR-9C (as applicable):
• The return in FORM GSTR-9 and FORM GSTR-9A would be in respect of
supplies etc. ‘made during the year’ and not ‘as declared in returns filed during
the year’.
• All returns in FORM GSTR-1 and FORM GSTR-3B have to be filed before
filing of FORM GSTR-9 and FORM GSTR-9C. Also, all returns in FORM
GSTR-4 have to be filed before filing of FORM GSTR-9A.
• Payments allowed through DRC-03 without acknowledgement by proper
officer – navigation table, reasons for payment, tax period to be mentioned as
FY 2017-18.
• Such payments will be allowed only in cash
• ITC cannot be availed through the annual return or the reconciliation Statement.
Applicable ITC not availed earlier, can only be availed through return in FORM
GSTR-3B for upto the month of September 2018 and not through FORM
GSTR-9, FORM GSTR-9A or FORM GSTR-9C.
• If the payment of tax for a supply has been made in the return for FY 2017-18,
then supply is required to be declared in Part II of FORM GSTR-9. If payment
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for a supply has been made between April to September, 2018, then supply
related to such payment shall be declared in Part V of FORM GSTR-9.
• HSN code may be declared only for those inward supplies whose value
independently accounts for 10% or more of the total value of inward supplies.
• However, in cases where the value in Table 8D of FORM GSTR-9 is negative,
then the total of 8E and 8F may not be equal to the value declared in Table 8D.
The “out of D” portion of label may be removed.
• If amount stated in table 4D of FORM GSTR-3B was not included in table 4A
of FORM GSTR-3B, then no entry may be added in table 7E of FORM GSTR-
9. However, if amount mentioned in table 4D of GSTR-3B was included in
table 4A of FORM GSTR-3B, then entry will come in 7E of FORM GSTR-9.
Label in GSTR-9 to be amended accordingly.
• All Invoices pertaining to previous FY (irrespective of month in which such
invoice is reported in GSTR-1) would be auto-populated in Table 8A of
GSTR-9.
• ITC for a particular year will be the year in which the recipient avails the ITC
even if reversed due to non-payment by recipient in FY 2017-18 but the same
was reclaimed in FY 2018-19. In such cases, ITC would be reflected in GSTR-
2A of FY 2017-18 and reversed in FY 2017-18 and then reclaimed in FY 2018-
19. Such ITC would be availed in FY 2018-19 and will not be considered in
GSTR-9 for FY 2017-18.
• The value of “non-GST supply” shall also include the value of “no supply” and
may be reported in Table 5D, 5E and 5F of FORM GSTR-9.
• In Table 7F of FORM GSTR-9C, it is proposed to clarify that taxable turnover
would not include the turnover on which tax is payable on reverse charge basis
and that it will be net of debit and credit notes.
15.2 The following changes in headings in FORM GSTR-9 and FORM GSTR-9C have also
been proposed:
• In FORM GSTR-9, in Table 5F, the words “non-GST supply” shall be followed
by words “(includes ‘no supply’)”
• In FORM GSTR-9C, in Part II, in S.No. 5E, the figures and brackets “(+)” shall
be replaced with figures and brackets “(-)”.
• In FORM GSTR-9C, in Part II, in S.No. 5J, the figure “(-)” shall be replaced
with “(+)”.
15.3 A verification statement by the registered person who is uploading the Reconciliation
Statement in FORM GSTR-9C is proposed to be added.

15.4 Accordingly, the amended versions of FORM GSTR-9, FORM GSTR-9A and FORM
GSTR-9C are placed at ANNEXURE-III, ANNEXURE-IV and ANNEXURE-V respectively.
16. Insertion of FORM GST RVN-01
On account of the proposed insertion of rule 109B of the CGST Rules as discussed at S.No. 9
above, FORM GST RVN-01 may be inserted after FORM GST APL-03. It would enable the Revisional
Authority to revise the order passed by a subordinate officer and issue notice to the concerned person.
The draft of the FORM GSTR RVN-01 is placed below:
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FORM GST RVN-01
[See rule 109B]

Reference No. Date -

To,
………………………………………..
………………………………………..
………………………………………..
GSTIN:……………………………….
Order No. –
Date -
Notice under section 108

Whereas it has come to the notice of the undersigned that decision/order passed under this Act/ the <<
Name of the State>> Goods and Services Tax Act, 2017/the Integrated Goods and Services Tax Act, 2017/
the Goods and Services Tax (Compensation to States) Act, 2017 by ……………..(Designation of officer)is
erroneous in so far as it is prejudicial to the interest of revenue and is illegal or improper or has not
taken into account certain material facts, and therefore, I intend to pass an order in revision under section
108 on grounds specified in the document attached herewith.

You are hereby directed to furnish a reply to this notice within seven working days from the date
of service of this notice.

You are hereby directed to appear before the undersigned on DD/MM/YYYY at
HH/MM
If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the
appointed date and time, the case will be decided ex parte on the basis of available records and on merits

Place: Signature:

Date: Designation:
Jurisdiction / Office –
17. Amendment to FORM GST APL-04
On account of the proposed insertion of rule 109B of the CGST Rules as discussed at S.No. 9
above, changes need to be made in FORM GST APL-04 so that the Revisional Authority can indicate
the amount confirmed and include the summary of its order in FORM GST APL-04. The proposed
changes in FORM GST APL-04 are as mentioned below:

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Form GST APL-04
[See rules 109B, 113 (1), 115]

SUMMARY OF THE DEMAND AFTER ISSUE OF ORDER BY THE APPELLATE
AUTHORITY, REVISIONAL AUTHORITY, TRIBUNAL OR COURT

Reference Order no. - Date of order -

1. GSTIN/ Temporary
ID/UIN -
2. Name of the appellant / person -
3. Address of the appellant /
person-
4. Order appealed against or intended to be revised - Number- Date-
5. Appeal no. Date-
6. Personal Hearing –
7. Order in brief-
8. Status of order- Confirmed / Modified / Rejected
9. Amount of demand confirmed after appeal / revision:
Particu
lars
Central tax State / UT tax Integrated tax Cess Total
Dispu
ted
Amou
nt
Amou
nt in
disput
e /
earlie
r
order
Determ
ined
Amoun
t
Dispu
ted
Amou
nt
Amou
nt in
disput
e /
earlie
r
order
Determ
ined
Amoun
t
Dispu
ted
Amou
nt
Amou
nt in
disput
e /
earlie
r
order
Determ
ined
Amoun
t
Dispu
ted
Amou
nt
Amou
nt in
disput
e /
earlie
r
order
Determ
ined
Amoun
t
Dispu
ted
Amou
nt
Amou
nt in
disput
e /
earlie
r
order
Determ
ined
Amoun
t
1 2 3 4 5 6 7 8 9 10 11
a) Tax
b)
Interes
t

c)
Penalt
y

d)
Fees

e)
Others

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f)
Refun
d
;

10. Place of supply wise details of IGST demand
Place of Supply
(Name of State /
UT)
Demand Tax Interest Penalty Other Total
1 2 3 4 5 6 7
Disputed amount
Amount in dispute /
earlier order

Determined Amount

Place:
Date:
Signature:

Name of the Appellate Authority / Revisional
Authority/ Tribunal / Jurisdictional Officer
Designation:
Jurisdiction:
18. Accordingly, approval of the GST Council is sought so that the above detailed amendments in
the CGST Rules, 2017 may be carried out. Pari materia changes would also be required to be carried
out in the respective SGST Rules. The notification carrying out the said amendments shall be issued
after due vetting by the Union Law Ministry.

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Annexure – I
FORM-GST-RFD-01 A
[See rules 89(1) and 97A]
Application for Refund (Manual)
(Applicable for casual taxable person or non-resident taxable person, tax deductor, tax collector and
other registered taxable person)
1. GSTIN / Temporary
ID

2. Legal Name
3. Trade Name, if any
4. Address
5. Tax period
(if applicable)
From <Year><Month> To <Year><Month>

6. Amount of Refund
Claimed (Rs.)
Act Tax Interest Penalty Fees Others Total
Central tax
State / UT tax
Integrated tax
Cess
Total
7. Grounds of Refund
Claim (select from
drop down)
(a) Excess balance in Electronic Cash Ledger
(b) Exports of services- with payment of tax
(c) Exports of goods / services- without payment of tax (accumulated ITC)
(d) ITC accumulated due to inverted tax structure [under clause (ii) of first
proviso to section 54(3)]
(e)

On account of supplies made to SEZ unit/ SEZ developer (with payment of
tax)
(f) On account of supplies made to SEZ unit/ SEZ developer (without payment
of tax)
(g) Recipient of deemed export supplies/ Supplier of deemed export supplies
(h)
On account of order
Sr.
No.
Type of order Order
no.
Order
date
Order
Issuing
Authority
Payment
reference no.,
if any
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[DECLARATION [second proviso to section 54(3)]
I hereby declare that the goods exported are not subject to any export duty. I also declare that I
have not availed any drawback of central excise duty/service tax/central tax on goods or services
or both and that I have not claimed refund of the integrated tax paid on supplies in respect of
which refund is claimed.
Signature
Name –
Designation / Status].

(i) Assessment
(ii) Finalization of
Provisional
assessment

(iii) Appeal
(iv) Any other order
(specify)

(i) Tax paid on an intra-State supply which is subsequently held to be inter-State
supply and vice versa (change of POS)
(j) Excess payment of tax, if any
(k) Any other (specify)
DECLARATION [section 54(3)(ii)]
I hereby declare that the refund of ITC claimed in the application does not include ITC availed on goods or services
used for making ‘nil’ rated or fully exempt supplies.
Signature
Name –
Designation / Status
DECLARATION [rule 89(2)(f)]
I hereby declare that the Special Economic Zone unit /the Special Economic Zone developer has not availed of the
input tax credit of the tax paid by the applicant, covered under this refund claim.

Signature
Name –
Designation / Status
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 135 of 309
DECLARATION [rule 89(2)(g)]
(For recipient/supplier of deemed export)
In case refund claimed by recipient
I hereby declare that the refund has been claimed only for those invoices which have been detailed in statement 5B
for the tax period for which refund is being claimed and the amount does not exceed the amount of input tax credit
availed in the valid return filed for the said tax period.I also declare that the supplier has not claimed refund with
respect to the said supplies.
In case refund claimed by supplier
I hereby declare that the refund has been claimed only for those invoices which have been detailed in statement 5B
for the tax period for which refund is being claimed and the recipient shall not claim any refund with respect of the
said supplies and also, the recipient has not availed any input tax credit on such supplies.
Signature
Name –
Designation / Status

UNDERTAKING
I hereby undertake to pay back to the Government the amount of refund sanctioned along with interest in case it is
found subsequently that the requirements of clause (c) of sub-section (2) of section 16 read with sub-section (2) of
section 42 of the CGST/SGST Act have not been complied with in respect of the amount refunded.

Signature
Name –
Designation / Status

SELF- DECLARATION [rule 89(2)(l)]
I/We ____________________ (Applicant) having GSTIN/ temporary Id -------, solemnly affirm and certify that in
respect of the refund amounting to Rs. ---/ with respect to the tax, interest, or any other amount for the period from--
-to----, claimed in the refund application, the incidence of such tax and interest has not been passed on to any other
person.

Signature
Name –
Designation / Status

(This Declaration is not required to be furnished by applicants, who are claiming refund under clause (a) or clause
(b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54.)

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
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Annexure-1
Statement -1 [rule 89(5)]
Refund Type: ITC accumulated due to inverted tax structure [clause (ii) of first proviso to section 54(3)]
(Amount in Rs.)
Turnover of
inverted rated
supply of goods
and services
Tax payable on
such inverted
rated supply of
goods and
services
Adjusted
total turnover
Net input tax
credit

Maximum refund
amount to be claimed
[(1×4÷3)-2]
1 2 3 4 5

Statement 1A [rule 89(2)(h)]
Refund Type: ITC accumulated due to inverted tax structure [clause (ii) of first proviso to section
54(3)]
Sl
.
N
o.
Details of invoices of
inward supplies of
inputs received
Tax paid on inward
supplies of inputs
Details of invoices of
outward supplies issued
Tax paid on outward
supplies
GST
IN
of
the
supp
lier
*
N
o.
Da
te
Tax
able
Valu
e
Integr
ated
Tax
Cen
tral
Tax
State
Tax
/Uni
on
territ
ory
Tax
N
o.
Da
te
Tax
able
Valu
e
Invoic
e type
(B2B/
B2C)
Integr
ated
Tax
Cen
tral
Tax
State
Tax
/Uni
on
territ
ory
Tax
1 2 3 4 5 6 7 8 9 10 11 12 123 134 145

8. Verification
I/We<Taxpayer Name> hereby solemnly affirm and declare that the information given herein above
is true and correct to the best of my/our knowledge and belief and nothing has been concealed
therefrom.
I/We declare that no refund on this account has been received by me/us earlier.

Place Signature of Authorised Signatory
Date (Name)
Designation/ Status
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 137 of 309
* In case of imports or supplies received under reverse charge mechanism [sub-section (3) of CGST Act
or sub-section (3) of section 5 of IGST Act], the GSTIN of supplier will mean GSTIN of applicant
(recipient).
Statement- 2 [rule 89(2)(c)]
Refund Type: Exports of services with payment of tax
(Amount in Rs.)
Sr.
No.
Invoice details Integrated tax Cess BRC/
FIRC
Integrated
tax and
cess
involved
in debit
note, if
any
Integrated
tax and
cess
involved
in credit
note, if
any
Net
Integrated
tax and
cess
(6+7+10 -
11)
No. Date Value Taxable
value
Amt. No. Date
1 2 3 4 5 6 7 8 9 10 11 12

Statement- 3 [rule 89(2)(b) and 89(2)(c)]
Refund Type: Export without payment of tax (accumulated ITC)
(Amount in Rs.)
Sr.
No.
Invoice details Goods/
Services
(G/S)
Shipping bill/ Bill of
export
EGM
Details
BRC/
FIRC
No. Date Value Port code No. Date Ref
No.
Date No. Date
1 2 3 4 5 6 7 8 9 10 11 12

Statement- 3A [rule 89(4)]
Refund Type: Export without payment of tax (accumulated ITC) – calculation of refund amount
(Amount in Rs.)
Turnover of zero rated
supply of goods and services
Net input tax credit Adjusted total
turnover
Refund amount
(1×2÷3)
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
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1 2 3 4

Statement-4 [rule 89(2)(d) and 89(2)(e)]
Refund Type: On account of supplies made to SEZ unit or SEZ Developer (on payment of tax)
(Amount in Rs.)
GSTIN
of
recipient
Invoice details Shipping
bill/ Bill
of export/
Endorsed
invoice by
SEZ
Integrated Tax Cess Integrated
tax and
cess
involved
in debit
note, if
any
Integrated
tax and
cess
involved
in credit
note, if
any
Net
Integrated
tax and
cess
(8+9+10–
11)
No. Date Value No. Date Taxable
Value
Amt.
1 2 3 4 5 6 7 8 9 10 11 12

Statement-5A [rule 89(4)]
Refund Type: On account of supplies made to SEZ unit / SEZ developer without payment of tax
(accumulated ITC) – calculation of refund amount
(Amount in Rs.)
Turnover of zero rated
supply of goods and services
Net input tax credit Adjusted total
turnover
Refund amount
(1×2÷3)
1 2 3 4

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 139 of 309
Statement 5B [rule 89(2)(g)]
Refund Type: On account of deemed exports
(Amount in Rs)
Sl.
No.
Details of invoices of outward supplies
in case refund is claimed by
supplier/Details of invoices of inward
supplies in case refund is claimed by
recipient
Tax paid
GSTIN
of the
supplier
No. Date Taxable
Value
Integrated
Tax
Central
Tax
State Tax /Union
Territory Tax
Cess
1 2 3 4 5 6 7 8 9

Statement-6 [rule 89(2)(j)]
Refund Type: On account of change in POS (inter-State to intra-State and vice versa)

Order Details (issued in pursuance of sections 77 (1) and (2), if any:
Order No: Order Date:

(Amount in Rs.)
Recipients’
GSTIN/
UIN
Name
(in case
B2C)

Invoice details Details of tax paid on transaction
considered as intra –State / inter-State
transaction earlier
Taxes re-assessed on transaction
which were held inter State / intra-
State supply subsequently
Integrated
tax
Central
tax
State/
UT
tax
Cess Place
of
Supply
Integrated
tax
Central
tax
State/
UT
tax
Cess Place
of
Supply

No. Date Value Taxable
Value
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
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Statement-7 [rule 89(2)(k)]
Refund Type: Excess payment of tax, if any in case of last return filed.

(Amount in Rs.)
Tax period ARN of
return
Date of
filing
return
Tax Paid in Excess
Integrated tax Central
tax
State/
UT tax
Cess
1 2 3 4 5 6 7

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 141 of 309
Annexure – II
FORM-GST-RFD-01
[See rule 89(1)]
Application for Refund
(Applicable for casual or non-resident taxable person, tax deductor, tax collector, un-registered person
and other registered taxable person)
1. GSTIN /
Temporary
ID

2. Legal Name
3. Trade Name,
if any

4. Address

5. Tax period
(if applicable)
From <Year><Month> To <Year><Month>

6. Amount of
Refund
Claimed
(Rs.)
Act Tax Interest Penalty Fees Others Total
Central
tax

State / UT
tax

Integrated
tax

Cess
Total
7. Grounds of
refund claim
(select from
drop down)
(a) Excess balance in Electronic Cash Ledger
(b) Exports of services- with payment of tax
(c) Exports of goods / services- without payment of tax (accumulated
ITC)
(d) On account of order
Sr.
No.
Type of order Order
no.
Order
date
Order
Issuing
Authority
Payment
reference
no., if any
(i) Assessment
(ii) Finalization
of Provisional
assessment

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
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(iii) Appeal
(iv) Any other
order
(specify)

(e) ITC accumulated due to inverted tax structure
[clause (ii) of first proviso to section 54(3)]
(f) On account of supplies made to SEZ unit/ SEZ developer
(with payment of tax)
(g) On account of supplies made to SEZ unit/ SEZ developer
(without payment of tax)
(h) Recipient of deemed export supplies/ Supplier of deemed export
supplies
(i) Tax paid on a supply which is not provided, either wholly or
partially, and for which invoice has not been issued (tax paid on
advance payment)
(j) Tax paid on an intra-State supply which is subsequently held to be
inter-State supply and vice versa(change of POS)
(k) Excess payment of tax, if any
(l) Any other (specify)
8. Details of
Bank account
Name of
bank
Address
of branch
IFSC Type of account Account No.

9. Whether Self-Declaration filed by Applicant
u/s 54(4), if applicable

Yes No
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 143 of 309

DECLARATION [rule 89(2)(g)]
(For recipient/supplier of deemed export)
In case refund claimed by recipient
I hereby declare that the refund has been claimed only for those invoices which have been detailed
in statement 5B for the tax period for which refund is being claimed and the amount does not
exceed the amount of input tax credit availed in the valid return filed for the said tax period. I also
declare that the supplier has not claimed refund with respect to the said supplies.

In case refund claimed by supplier
I hereby declare that the refund has been claimed only for those invoices which have been detailed
in statement 5B for the tax period for which refund is being claimed. I also declare that the recipient
shall not claim any refund with respect of the said supplies and also, the recipient has not availed
any input tax credit on such supplies.
Signature
Name –
Designation / Status

UNDERTAKING
I hereby undertake to pay back to the Government the amount of refund sanctioned along with
interest in case it is found subsequently that the requirements of clause (c) of sub-section (2) of
section 16 read with sub-section (2) of section 42 of the CGST/SGST Act have not been complied
with in respect of the amount refunded.
Signature
Name –
Designation / Status

DECLARATION [section 54(3)(ii)]
I hereby declare that the refund of input tax credit claimed in the application does not
include ITC availed on goods or services used for making ‘nil’ rated or fully exempt supplies.
Signature
Name –
Designation / Status
DECLARATION [rule 89(2)(f)]
I hereby declare that the Special Economic Zone unit /the Special Economic Zone
developer has not availed of the input tax credit of the tax paid by the applicant, covered under
this refund claim.
Signature
Name –
Designation / Status

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 144 of 309

Annexure-1

Statement -1 [rule 89(5)]
Refund Type: ITC accumulated due to inverted tax structure [clause (ii) of first proviso to section
54(3)]
(Amount in Rs.)
Turnover of
inverted rated
supply of goods
and services
Tax payable on
such inverted
rated supply of
goods and
services
Adjusted
total turnover
Net input tax
credit
Maximum refund
amount to be claimed
[(1×4÷3)-2]
1 2 3 4 5

SELF- DECLARATION [rule 89(2)(l)]
I ____________________ (Applicant) having GSTIN/ temporary Id -------, solemnly affirm
and certify that in respect of the refund amounting to Rs. ---/ with respect to the tax, interest,
or any other amount for the period from---to----, claimed in the refund application, the
incidence of such tax and interest has not been passed on to any other person.

Signature
Name –
Designation / Status
(This Declaration is not required to be furnished by applicants, who are claiming refund under clause
(a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54.)
10. Verification
I/We <Taxpayer Name> hereby solemnly affirm and declare that the information
given herein above is true and correct to the best of my/our knowledge and belief
and nothing has been concealed therefrom.
I/We declare that no refund on this account has been received by me/us earlier.

Place Signature of Authorised Signatory
Date (Name)
Designation/ Status
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 145 of 309
Statement 1A [rule 89(2)(h)]
Refund Type: ITC accumulated due to inverted tax structure [clause (ii) of first proviso to section
54(3)]
Sl
.
N
o.
Details of invoices of
inward supplies of
inputs received
Tax paid on
inward supplies of
inputs
Details of invoices of
outward supplies issued
Tax paid on
outward supplies
GST
IN of
the
suppl
ier *
N
o.
Da
te
Taxa
ble
Valu
e
Inte
grat
ed
Tax
Cen
tral
Tax
State
Tax
/Uni
on
territ
ory
Tax
No
.
D
at
e
Taxa
ble
Valu
e
Invoic
e type
(B2B/
B2C)
Int
egr
ate
d
Ta
x
Cent
ral
Tax
State
Tax
/Uni
on
territ
ory
Tax
1 2 3 4 5 6 7 8 9 1
0
11 12 12
3
134 145

* In case of imports or supplies received under reverse charge mechanism [sub-section (3) of CGST Act
or sub-section (3) of section 5 of IGST Act], the GSTIN of supplier will mean GSTIN of applicant
(recipient).
Statement- 2 [rule 89(2)(c)]
Refund Type: Exports of services with payment of tax
(Amount in Rs.)
Sr.
No.
Invoice details Integrated tax Cess BRC/ FIRC Integrated
tax and
cess
involved
in debit
note, if
any
Integrated
tax and
cess
involved
in credit
note, if
any
Net
Integrated
tax and
cess
(6+7+10 -
11)
No. Date Value

Taxable
value
Amt. No. Date
1 2 3 4 5 6 7 8 9 10 11 12

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 146 of 309
Statement- 3 [rule 89(2)(b) and 89(2)(c)]
Refund Type: Export without payment of tax (accumulated ITC)
(Amount in Rs.)
Sr. No. Invoice details Goods/
Services
(G/S)
Shipping bill/ Bill of
export
EGM Details BRC/ FIRC
No. Date Value Port code No. Date Ref
No.
Date No. Date
1 2 3 4 5 6 7 8 9 10 11 12

Statement- 3A [rule 89(4)]
Refund Type: Export without payment of tax (accumulated ITC) – calculation of refund amount
(Amount in Rs.)
Turnover of zero rated
supply of goods and
services
Net input tax
credit
Adjusted total
turnover
Refund amount
(1×2÷3)
1 2 3 4

See Also

37th GST Council Meeting - Volume 2

Statement-4 [rule 89(2)(d) and 89(2)(e)]
Refund Type: On account of supplies made to SEZ unit or SEZ Developer (on payment of tax)
(Amount in Rs.)
GSTIN
of
recipien
t
Invoice details Shipping
bill/ Bill
of export/
Endorsed
invoice
by SEZ
Integrated
Tax
Ces
s
Integrate
d tax and
cess
involved
in debit
note, if
any
Integrate
d tax and
cess
involved
in credit
note, if
any
Net
Integrate
d tax and
cess
(8+9+10
– 11)
No
.
Dat
e
Valu
e
No
.
Dat
e
Taxabl
e
Value
Amt
.

1 2 3 4 5 6 7 8 9 10 11 12

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 147 of 309
Statement-5 [rule 89(2)(d) and 89(2)(e)]
Refund Type: On account of supplies made to SEZ unit or SEZ Developer (without payment of tax)
(Amount in Rs.)
Sr. No. Invoice details Goods/ Services
(G/S)
Shipping bill/ Bill of export/
Endorsed invoice no.
No. Date Value No. Date
1 2 3 4 5 6 7

Statement-5A [rule 89(4)]
Refund Type:On account of supplies made to SEZ unit / SEZ developer without payment of tax
(accumulated ITC) – calculation of refund amount
(Amount in Rs.)
Turnover of zero rated
supply of goods and
services
Net input tax credit Adjusted total
turnover
Refund amount
(1×2÷3)
1 2 3 4

Statement 5B [rule 89(2)(g)]
Refund Type: On account of deemed exports
(Amount in Rs)
Sl.
No.
Details of invoices of outward supplies
in case refund is claimed by
supplier/Details of invoices of inward
supplies in case refund is claimed by
recipient
Tax paid
GSTIN
of the
supplier
No. Date Taxable
Value
Integrated
Tax
Central
Tax
State Tax /Union
Territory Tax
Cess
1 2 3 4 5 6 7 8 9

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 148 of 309
Statement-6 [rule 89(2)(j)]
Refund Type: On account of change in POS of the supplies (inter-State to intra-State and vice versa)
Order Details (issued in pursuance of sections 77 (1) and (2), if any: Order No: Order Date:
(Amount in Rs.)
Recipient
’s
GSTIN/
UIN
Name
(in case
B2C)
Invoice details Details of tax paid invoices
covering on transaction
considered as intra –State / inter-
State transaction earlier
Taxes re-assessed on Ttransaction
which were held inter State / intra-
State supply subsequently
Integrate
d tax
Centr
al tax
State
/ UT
tax
Ces
s
Place
of
Suppl
y
Integrate
d tax
Centr
al tax
State
/ UT
tax
Ces
s
Place
of
Suppl
y
No
.
Dat
e
Valu
e
Taxabl
e
Value
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Statement-7 [rule 89(2)(k)]
Refund Type: Excess payment of tax, if any in case of last return filed.
(Amount in Rs.)
Tax period ARN of
return
Date of
filing
return
Tax Payable
Integrated tax Central
tax
State/
UT tax
Cess
1 2 3 4 5 6 7

Annexure-2
Certificate [rule 89(2)(m)]
This is to certify that in respect of the refund amounting to Rs.<<>> -------------- (in words) claimed by
M/s----------------- (Applicant’s Name) GSTIN/ Temporary ID------- for the tax period < ---->, the
incidence of tax and interest, has not been passed on to any other person. This certificate is based on the
examination of the books of account and other relevant records and returns particulars maintained/
furnished by the applicant.
Signature of the Chartered Accountant/ Cost Accountant:
Name:
Membership Number:
Place:
Date:
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 149 of 309

Note - This Certificate is not required to be furnished by the applicant, claiming refund under
clause (a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54 of
the Act.
Instructions –
1. Terms used:
a. B to C: From registered person to unregistered person
b. EGM: Export General Manifest
c. GSTIN: Goods and Services Tax Identification Number
d. IGST: Integrated goods and services tax
e. ITC: Input tax credit
f. POS: Place of Supply (Respective State)
g. SEZ: Special Economic Zone
h. Temporary ID: Temporary Identification Number
i. UIN: Unique Identity Number
2. Refund of excess amount available in electronic cash ledger can also be claimed through return or
by filing application.
3. Debit entry shall be made in electronic credit or cash ledger at the time of filing the application.
4. Acknowledgement in FORM GST RFD-02will be issued if the application is found complete in all
respects.
5. Claim of refund on export of goods with payment of IGST shall not be processed through this
application.
6. Bank account details should be as per registration data. Any change in bank details shall first be
amended in registration particulars before quoting in the application.
7. Declaration shall be filed in cases wherever required.
8. ‘Net input tax credit’ means input tax credit availed on inputs during the relevant period for the
purpose of Statement-1 and will include ITC on input services also for the purpose of Statement-3A and
5A.
9. ‘Adjusted total turnover’ means the turnover in a State or a Union territory, as defined under clause
(112) of section 2 excluding the value of exempt supplies other than zero-rated supplies, during the
relevant period.
10. For the purpose of Statement-1, refund claim will be based on supplies reported in GSTR-1 and
GSTR-2.
11. BRC or FIRC details will be mandatory where refund is claimed against export of services details
of shipping bill and EGM will be mandatory to be provided in case of export of goods.
12. Where the invoice details are amended (including export), refund shall be allowed as per the
calculation based on amended value.
13. Details of export made without payment of tax shall be reported in Statement-3.
14. Availability of refund to be claimed in case of supplies made to SEZ unit or SEZ developer without
payment of tax shall be worked out in accordance with the formula prescribed in rule 89(4).
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
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15. ‘Turnover of zero rated supply of goods and services’ shall have the same meaning as defined in
rule 89(4).
Annexure – III
FORM GSTR - 9
[See rule 80]
Annual Return
Pt. I Basic Details
1 Financial Year
2 GSTIN
3A Legal Name
3B Trade Name (if any)
Pt. II Details of Outward and inward supplies declared made during the financial year
(Amount in ₹ in all tables)

Nature of Supplies Taxable Value Central
Tax
State
Tax /
UT
Tax
Integrate
d Tax
Cess
1 2 3 4 5 6
4 Details of advances, inward and outward supplies on which tax is payable as declared in
returns filed made during the financial year
A
Supplies made to un-registered
persons (B2C)

B
Supplies made to registered persons
(B2B)
C
Zero rated supply (Export) on
payment of tax (except supplies to
SEZs)
D Supply to SEZs on payment of tax
E Deemed Exports
F
Advances on which tax has been
paid but invoice has not been issued
(not covered under (A) to (E)
above)
G
Inward supplies on which tax is to
be paid on reverse charge basis
H Sub-total (A to G above)
I
Credit Notes issued in respect of
transactions specified in (B) to (E)
above (-)

J
Debit Notes issued in respect of
transactions specified in (B) to (E)
above (+)

K
Supplies / tax declared through
Amendments (+)
L
Supplies / tax reduced through
Amendments (-)
M Sub-total (I to L above)
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 151 of 309
N
Supplies and advances on which tax
is to be paid (H + M) above
5
Details of Outward supplies on which tax is not payable as declared in returns filed made
during the financial year
A
Zero rated supply (Export) without
payment of tax

B
Supply to SEZs without payment of
tax

C
Supplies on which tax is to be paid
by the recipient on reverse charge
basis
D Exempted
E Nil Rated
F
Non-GST supply (includes ‘no
supply’)
G Sub-total (A to F above)
H
Credit Notes issued in respect of
transactions specified
in A to F above (-)
I
Debit Notes issued in respect of
transactions specified
in A to F above (+)
J
Supplies declared through
Amendments (+)
K
Supplies reduced through
Amendments (-)
L Sub-Total (H to K above)
M
Turnover on which tax is not to be
paid (G + L above)

N
Total Turnover (including
advances) (4N + 5M - 4G above)

Pt. III Details of ITC as declared in returns filed during for the financial year

Description Type Central
Tax
State
Tax /
UT
Tax
Integrate
d Tax
Cess
1 2 3 4 5 6
6 Details of ITC availed as declared in returns filed during the financial year
A
Total amount of input tax credit availed through FORM
GSTR-3B (sum total of Table 4A of FORM GSTR-3B) <Auto>
<Auto
> <Auto> <Auto>
B
Inward supplies (other than imports
and inward supplies liable to
reverse charge but includes services
received from SEZs)
Inputs
Capital Goods

Input Services

C
Inward supplies received from
unregistered persons liable to
reverse charge (other than B above)
on which tax is paid & ITC availed
Inputs
Capital Goods
Input Services

D
Inward supplies received from
registered persons liable to reverse
charge (other than B above) on
which tax is paid and ITC availed
Inputs
Capital Goods
Input Services

E Inputs

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
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Import of goods (including supplies
from SEZs)
Capital Goods
F
Import of services (excluding inward supplies from
SEZs)
G Input Tax credit received from ISD
H
Amount of ITC reclaimed (other than B above) under
the provisions of the Act
I Sub-total (B to H above)
J Difference (I - A above)
K
Transition Credit through TRAN-I (including revisions
if any)
L Transition Credit through TRAN-II
M Any other ITC availed but not specified above
N Sub-total (K to M above)
O Total ITC availed (I + N above)
7
Details of ITC Reversed and Ineligible ITC as declared in returns filed for during the financial
year
A As per Rule 37
B As per Rule 39
C As per Rule 42
D As per Rule 43
E As per section 17(5)
F Reversal of TRAN-I credit
G Reversal of TRAN-II credit
H Other reversals (pl. specify)
I Total ITC Reversed (Sum of A to H above)
J Net ITC Available for Utilization (6O - 7I)
8 Other ITC related information
A
ITC as per GSTR-2A (Table 3 & 5 thereof)
<Auto>
<Auto
> <Auto> <Auto>
B
ITC as per sum total of 6(B) and 6(H) above <Auto
>
C
ITC on inward supplies (other than imports and inward
supplies liable to reverse charge but includes services
received from SEZs) received during 2017-18 but
availed during April to September, 2018

D Difference [A-(B+C)]
E ITC available but not availed (out of D)
F ITC available but ineligible (out of D)
G
IGST paid on import of goods (including supplies from
SEZ)

H
IGST credit availed on import of goods (as per 6(E)
above)
<Auto
>
I Difference (G-H)
J
ITC available but not availed on import of goods (Equal
to I)
K
Total ITC to be lapsed in current financial year
(E + F + J) <Auto>
<Auto
>
<Auto> <Auto>
Pt. IV Details of tax paid as declared in returns filed during the financial year
Description Paid through ITC
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 153 of 309
9 Tax
Payable
Paid through
cash
Central
Tax
State
Tax /
UT
Tax
Integrate
d Tax
Cess
1 2 3 4 5 6 7
Integrated Tax
Central Tax
State/UT Tax
Cess
Interest
Late fee
Penalty
Other
Pt. V Particulars of the transactions for the previous FY declared in returns of April to September of
current FY or upto date of filing of annual return of previous FY whichever is earlier

Description Taxable Value Central
Tax
State
Tax /
UT
Tax
Integrate
d Tax
Cess
1 2 3 4 5 6
10
Supplies / tax declared through
Amendments (+) (net of debit
notes)
11
Supplies / tax reduced through
Amendments (-) (net of credit
notes)

12
Reversal of ITC availed during
previous financial year

13
ITC availed for the previous
financial year

14 Differential tax paid on account of declaration in 10 & 11 above
Description Payable Paid
1 2 3

Integrated Tax
Central Tax
State/UT Tax
Cess
Interest
Pt.
VI Other Information
15 Particulars of Demands and Refunds

Details Central
Tax
State Tax /
UT Tax
Integrated Tax Cess Interest Penalty Late
Fee /
Others
1 2 3 4 5
A
Total
Refund
claimed
B
Total
Refund
sanctione
d
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
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C
Total
Refund
Rejected
D
Total
Refund
Pending
E
Total
demand
of taxes
F
Total
taxes paid
in respect
of E
above
G
Total
demands
pending
out of E
above
16
Information on supplies received from composition taxpayers, deemed supply under section 143 and
goods sent on approval basis

Details Taxable Value Central
Tax
State
Tax /
UT
Tax
Integrate
d Tax
Cess
1 2 3 4 5 6
A
Supplies received from
Composition taxpayers
B Deemed supply under Section 143
C
Goods sent on approval basis but
not returned

17 HSN Wise Summary of outward supplies
HSN
Code
UQC Total
Quantit
y
Taxable
Value
Rate of Tax Central
Tax
State
Tax /
UT
Tax
Integrate
d Tax
Cess
1 2 3 4 5 6 7 8 9

18 HSN Wise Summary of Inward supplies
HSN
Code
UQC Total
Quantit
y
Taxable
Value
Rate of Tax Central
Tax
State
Tax /
UT
Tax
Integrate
d Tax
Cess
1 2 3 4 5 6 7 8 9

19 Late fee payable and paid
Description Payable Paid
1 2 3
A Central Tax
B State Tax
Verification:
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my
knowledge and belief and nothing has been concealed there from and in case of any reduction in output tax liability
the benefit thereof has been/will be passed on to the recipient of supply.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 155 of 309
Signature
Place Name of Authorised Signatory
Date Designation / Status
Instructions: –
2. Terms used:
j. GSTIN: Goods and Services Tax Identification Number
k. UQC: Unit Quantity Code
l. HSN: Harmonized System of Nomenclature Code

3. It is mandatory to file all your FORM GSTR-1 and FORM GSTR-3B for the FY 2017-18 before
filing this return. The details for the period between July 2017 to March 2018 are to be provided in
this return.
4. It may be noted that additional liability for the FY 2017-18 not declared in FORM GSTR-1 and
FORM GSTR-3B may be declared in this return. However, taxpayers cannot claim input tax credit
unclaimed during FY 2017-18 through this return.
5. Part II consists of the details of all outward supplies & advances received during the financial
year for which the annual return is filed. The details filled in Part II is a consolidation of all the
supplies declared by the taxpayer in the returns filed during the financial year. It may be noted that
all the supplies for which payment has been made through FORM GSTR-3B between July 2017 to
March 2018 shall be declared in this part. The instructions to fill Part II are as follows:
Table No. Instructions
4A Aggregate value of supplies made to consumers and unregistered persons on which tax
has been paid shall be declared here. These will include details of supplies made
through E-Commerce operators and are to be declared as net of credit notes or debit
notes issued in this regard. Table 5, Table 7 along with respective amendments in Table
9 and Table 10 of FORM GSTR-1 may be used for filling up these details.
4B Aggregate value of supplies made to registered persons (including supplies made to
UINs) on which tax has been paid shall be declared here. These will include supplies
made through E-Commerce operators but shall not include supplies on which tax is to
be paid by the recipient on reverse charge basis. Details of debit and credit notes are to
be mentioned separately. Table 4A and Table 4C of FORM GSTR-1 may be used for
filling up these details.
4C Aggregate value of exports (except supplies to SEZs) on which tax has been paid shall
be declared here. Table 6A of FORM GSTR-1 may be used for filling up these details.
4D Aggregate value of supplies to SEZs on which tax has been paid shall be declared here.
Table 6B of GSTR-1 may be used for filling up these details.
4E Aggregate value of supplies in the nature of deemed exports on which tax has been
paid shall be declared here. Table 6C of FORM GSTR-1 may be used for filling up
these details.
4F Details of all unadjusted advances i.e. advance has been received and tax has been paid
but invoice has not been issued in the current year shall be declared here. Table 11A of
FORM GSTR-1 may be used for filling up these details.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
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4G Aggregate value of all inward supplies (including advances and net of credit and debit
notes) on which tax is to be paid by the recipient (i.e.by the person filing the annual
return) on reverse charge basis. This shall include supplies received from registered
persons, unregistered persons on which tax is levied on reverse charge basis. This shall
also include aggregate value of all import of services. Table 3.1(d) of FORM GSTR-
3B may be used for filling up these details.
4I Aggregate value of credit notes issued in respect of B to B supplies (4B), exports (4C),
supplies to SEZs (4D) and deemed exports (4E) shall be declared here. Table 9B of
FORM GSTR-1 may be used for filling up these details.
4J Aggregate value of debit notes issued in respect of B to B supplies (4B), exports (4C),
supplies to SEZs (4D) and deemed exports (4E) shall be declared here. Table 9B of
FORM GSTR-1 may be used for filling up these details.
4K & 4L Details of amendments made to B to B supplies (4B), exports (4C), supplies to SEZs
(4D) and deemed exports (4E), credit notes (4I), debit notes (4J) and refund vouchers
shall be declared here. Table 9A and Table 9C of FORM GSTR-1 may be used for
filling up these details.
5A Aggregate value of exports (except supplies to SEZs) on which tax has not been paid
shall be declared here. Table 6A of FORM GSTR-1 may be used for filling up these
details.
5B Aggregate value of supplies to SEZs on which tax has not been paid shall be declared
here. Table 6B of GSTR-1 may be used for filling up these details.
5C Aggregate value of supplies made to registered persons on which tax is payable by the
recipient on reverse charge basis. Details of debit and credit notes are to be mentioned
separately. Table 4B of FORM GSTR-1 may be used for filling up these details.
5D,5E and
5F
Aggregate value of exempted, Nil Rated and Non-GST supplies shall be declared here.
Table 8 of FORM GSTR-1 may be used for filling up these details.
The value of “no supply” shall also be declared under Non-GST here supply (5F).
5H Aggregate value of credit notes issued in respect of supplies declared in 5A, 5B, 5C,
5D, 5E and 5F shall be declared here. Table 9B of FORM GSTR-1 may be used for
filling up these details.
5I Aggregate value of debit notes issued in respect of supplies declared in 5A, 5B, 5C,
5D, 5E and 5F shall be declared here. Table 9B of FORM GSTR-1 may be used for
filling up these details.
5J & 5K Details of amendments made to exports (except supplies to SEZs) and supplies to SEZs
on which tax has not been paid shall be declared here. Table 9A and Table 9C of FORM
GSTR-1 may be used for filling up these details.
5N Total turnover including the sum of all the supplies (with additional supplies and
amendments) on which tax is payable and tax is not payable shall be declared here.
This shall also include amount of advances on which tax is paid but invoices have not
been issued in the current year. However, this shall not include the aggregate value of
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 157 of 309
inward supplies on which tax is paid by the recipient (i.e. by the person filing the annual
return) on reverse charge basis.

6. Part III consists of the details of all input tax credit availed and reversed in the financial year for
which the annual return is filed. The instructions to fill Part III are as follows:
Table No. Instructions
6A Total input tax credit availed in Table 4A of FORM GSTR-3B for the taxpayer would
be auto-populated here.
6B Aggregate value of input tax credit availed on all inward supplies except those on which
tax is payable on reverse charge basis but includes supply of services received from
SEZs shall be declared here. It may be noted that the total ITC availed is to be classified
as ITC on inputs, capital goods and input services. Table 4(A)(5) of FORM GSTR-3B
may be used for filling up these details.
This shall not include ITC which was availed, reversed and then reclaimed in the ITC
ledger. This is to be declared separately under 6(H) below.
6C Aggregate value of input tax credit availed on all inward supplies received from
unregistered persons (other than import of services) on which tax is payable on reverse
charge basis shall be declared here. It may be noted that the total ITC availed is to be
classified as ITC on inputs, capital goods and input services. Table 4(A)(3) of FORM
GSTR-3B may be used for filling up these details.
6D Aggregate value of input tax credit availed on all inward supplies received from
registered persons on which tax is payable on reverse charge basis shall be declared
here. It may be noted that the total ITC availed is to be classified as ITC on inputs,
capital goods and input services. Table 4(A)(3) of FORM GSTR-3B may be used for
filling up these details.
6E Details of input tax credit availed on import of goods including supply of goods
received from SEZs shall be declared here. It may be noted that the total ITC availed
is to be classified as ITC on inputs and capital goods. Table 4(A)(1) of FORM GSTR-
3B may be used for filling up these details.
6F Details of input tax credit availed on import of services (excluding inward supplies
from SEZs) shall be declared here. Table 4(A)(2) of FORM GSTR-3B may be used for
filling up these details.
6G Aggregate value of input tax credit received from input service distributor shall be
declared here. Table 4(A)(4) of FORM GSTR-3B may be used for filling up these
details.
6H Aggregate value of input tax credit availed, reversed and reclaimed under the
provisions of the Act shall be declared here.
6J The difference between the total amount of input tax credit availed through FORM
GSTR-3B and input tax credit declared in row B to H shall be declared here. Ideally,
this amount should be zero.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 158 of 309
6K Details of transition credit received in the electronic credit ledger on filing of FORM
GST TRAN-I including revision of TRAN-I (whether upwards or downwards), if any
shall be declared here.
6L Details of transition credit received in the electronic credit ledger after filing of FORM
GST TRAN-II shall be declared here.
6M Details of ITC availed but not covered in any of heads specified under 6B to 6L above
shall be declared here. Details of ITC availed through FORM ITC-01 and FORM ITC-
02 in the financial year shall be declared here.
7A, 7B,
7C, 7D,
7E, 7F, 7G
and 7H
Details of input tax credit reversed due to ineligibility or reversals required under rule
37, 39, 42 and 43 of the CGST Rules, 2017 shall be declared here. This column should
also contain details of any input tax credit reversed under section 17(5) of the CGST
Act, 2017 and details of ineligible transition credit claimed under FORM GST TRAN-
I or FORM GST TRAN-II and then subsequently reversed. Table 4(B) of FORM
GSTR-3B may be used for filling up these details. Any ITC reversed through FORM
ITC -03 shall be declared in 7H. If the amount stated in Table 4D of FORM GSTR-3B
was not included in table 4A of FORM GSTR-3B, then no entry should be made in table
7E of FORM GSTR-9. However, if amount mentioned in table 4D of GSTR-3B was
included in table 4A of FORM GSTR-3B, then entry will come in 7E of FORM GSTR-
9.
8A The total credit available for inwards supplies (other than imports and inwards supplies
liable to reverse charge but includes services received from SEZs) received during
pertaining to FY 2017-18 and reflected in FORM GSTR-2A (table 3 & 5 only) shall be
auto-populated in this table. This would be the aggregate of all the input tax credit that
has been declared by the corresponding suppliers in their FORM GSTR-I.
8B The input tax credit as declared in Table 6B and 6H shall be auto-populated here.
8C Aggregate value of input tax credit availed on all inward supplies (except those on
which tax is payable on reverse charge basis but includes supply of services received
from SEZs) received during July 2017 to March 2018 but credit on which was availed
between April to September 2018 shall be declared here. Table 4(A)(5) of FORM
GSTR-3B may be used for filling up these details.
8D Aggregate value of the input tax credit which was available in FORM GSTR-2A (table
3 & 5 only) but not availed in FORM GSTR-3B returns shall be computed based on
values of 8A, 8B and 8C.
However, there may be circumstances where the credit availed in FORM GSTR-3B
was greater than the credit available in FORM GSTR-2A. In such cases, the value in
row 8D shall be negative.
8E & 8F Aggregate value of the input tax credit which was available in FORM GSTR-2A (table
3 & 5 only) but not availed in any of the FORM GSTR-3B returns shall be declared
here. The credit shall be classified as credit which was available and not availed in
FORM GSTR-3B or and the credit was not availed in FORM GSTR-3B as the same was
ineligible shall be declared here. The sum total of both the rows should be equal to
difference in 8D. Ideally, if 8D is positive, the sum of 8E and 8F shall be equal to 8D.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
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8G Aggregate value of IGST paid at the time of imports (including imports from SEZs)
during the financial year shall be declared here.
8H The input tax credit as declared in Table 6E shall be auto-populated here.
8K The total input tax credit which shall lapse for the current financial year shall be
computed in this row.
7. Part IV is the actual tax paid during the financial year. Payment of tax under Table 6.1 of FORM
GSTR-3B may be used for filling up these details.
8. Part V consists of particulars of transactions for the previous financial year but declared in paid
in the FORM GSTR-3B returns of April to September of current FY or date of filing of Annual
Return for previous financial year (for example in the annual return for the FY 2017-18, the
transactions declared in April to September 2018 for the FY 2017-18 shall be declared), whichever
is earlier. The instructions to fill Part V are as follows:
Table No. Instructions
10 & 11 Details of additions or amendments to any of the supplies already declared in the
returns of the previous financial year but such amendments were furnished in Table
9A, Table 9B and Table 9C of FORM GSTR-1 of April to September of the current
financial year or date of filing of Annual Return for the previous financial year,
whichever is earlier shall be declared here.
12 Aggregate value of reversal of ITC which was availed in the previous financial year
but reversed in returns filed for the months of April to September of the current
financial year or date of filing of Annual Return for previous financial year, whichever
is earlier shall be declared here. Table 4(B) of FORM GSTR-3B may be used for filling
up these details.
13 Details of ITC for goods or services received in the previous financial year but ITC for
the same was availed in returns filed for the months of April to September of the current
financial year or date of filing of Annual Return for the previous financial year
whichever is earlier shall be declared here. Table 4(A) of FORM GSTR-3B may be
used for filling up these details. However, any ITC which was reversed in the FY 2017-
18 as per second proviso to sub-section (2) of section 16 but was reclaimed in FY 2018-
19, the details of such ITC reclaimed again shall be furnished in the annual return for
FY 2018-19.

9. Part VI consists of details of other information. The instructions to fill Part VI are as
follows:

Table No. Instructions
15A, 15B,
15C and
15D
Aggregate value of refunds claimed, sanctioned, rejected and pending for processing
shall be declared here. Refund claimed will be the aggregate value of all the refund
claims filed in the financial year and will include refunds which have been sanctioned,
rejected or are pending for processing. Refund sanctioned means the aggregate value
of all refund sanction orders. Refund pending will be the aggregate amount in all refund
application for which acknowledgement has been received and will exclude provisional
refunds received. These will not include details of non-GST refund claims.
15E, 15F
and 15G
Aggregate value of demands of taxes for which an order confirming the demand has
been issued by the adjudicating authority shall be declared here. Aggregate value of
taxes paid out of the total value of confirmed demand as declared in 15E above shall
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 160 of 309
be declared here. Aggregate value of demands pending recovery out of 15E above
shall be declared here.
16A Aggregate value of supplies received from composition taxpayers shall be declared
here. Table 5 of FORM GSTR-3B may be used for filling up these details.
16B Aggregate value of all deemed supplies from the principal to the job-worker in terms
of sub-section (3) and sub-section (4) of Section 143 of the CGST Act shall be declared
here.
16C Aggregate value of all deemed supplies for goods which were sent on approval basis
but were not returned to the principal supplier within one eighty days of such supply
shall be declared here.
17 & 18 Summary of supplies effected and received against a particular HSN code to be
reported only in this table. It will be optional for taxpayers having annual turnover upto
₹ 1.50 Cr. It will be mandatory to report HSN code at two digits level for taxpayers
having annual turnover in the preceding year above ₹ 1.50 Cr but upto ₹ 5.00 Cr and
at four digits’ level for taxpayers having annual turnover above ₹ 5.00 Cr. UQC details
to be furnished only for supply of goods. Quantity is to be reported net of returns.
Table 12 of FORM GSTR-1 may be used for filling up details in Table 17. It may
be noted that this summary details are required to be declared only for those inward
supplies which in value independently account for 10 % or more of the total value of
inward supplies.
19 Late fee will be payable if annual return is filed after the due date.

9. Towards the end of the return, taxpayers shall be given an option to pay any additional liability
declared in this form, through FORM DRC-03. Taxpayers shall select “Annual Return” in the
drop down provided in FORM DRC-03. It may be noted that such liability can be paid through
electronic cash ledger only.

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 161 of 309
Annexure – IV
FORM GSTR – 9A
[See rule 80]
Annual Return (For Composition Taxpayer)
Pt. I Basic Details
1 Financial Year
2 GSTIN
3A Legal Name <Auto>
3B Trade Name (if any) <Auto>
4
Period of composition scheme during the year
(From ---- To ----)
5 Aggregate Turnover of Previous Financial Year
(Amount in ₹ in all tables)
Pt. II Details of outward and inward supplies declared in returns filed made during the financial year

Description Turnover Rate of
Tax
Central
Tax
State / UT
Tax
Integrated
tax
Cess

1 2 3 4 5 6 7
6 Details of Outward supplies on which tax is payable as declared in returns filed made during the
financial year
A Taxable
B Exempted, Nil-rated
C Total
7 Details of inward supplies on which tax is payable on reverse charge basis (net of debit/credit notes)
declared in returns filed during for the financial year

Description Taxable
Value
Central Tax State Tax /
UT Tax
Integrated
Tax
Cess
1 2 3 4 5 6
A
Inward supplies liable
to reverse charge
received from
registered persons

B
Inward supplies liable
to reverse charge
received from
unregistered persons

C Import of services
D
Net Tax Payable on
(A), (B) and (C)
above
8 Details of other inward supplies as declared in returns filed during for the financial year
A
Inward supplies from
registered persons
(other than 7A above)
B Import of Goods
Pt. III Details of tax paid as declared in returns filed during the financial year
9 Description Total tax payable Paid
1 2 3
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 162 of 309
Integrated Tax
Central Tax
State/UT Tax
Cess
Interest
Late fee
Penalty
Pt. IV Particulars of the transactions for the previous FY declared in returns of April to September of
current FY or upto date of filing of annual return of previous FY whichever is earlier

Description Turnover Central
Tax
State Tax /
UT Tax
Integrated
Tax
Cess
1 2 3 4 5 6
10
Supplies / tax (outward) declared
through Amendments (+) (net of
debit notes)
11
Inward supplies liable to reverse
charge declared through
Amendments (+) (net of debit notes)
12
Supplies / tax (outward) reduced
through
Amendments (-) (net of credit notes)

13
Inward supplies liable to reverse
charge reduced through
Amendments (-) (net of credit notes)

14 Differential tax paid on account of declaration made in 10, 11, 12 & 13 above
Description Payable Paid
1 2 3
Integrated Tax
Central Tax
State/UT Tax
Cess
Interest
Pt. V Other Information
15 Particulars of Demands and Refunds

Description Central
Tax
State Tax /
UT Tax
Integrated
Tax
Cess Interest Penalty Late Fee
/ Others

1 2 3 4 5 6 7 8
A
Total
Refund
claimed
B
Total
Refund
sanctioned
C
Total
Refund
Rejected
D
Total
Refund
Pending
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
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E
Total
demand of
taxes
F
Total taxes
paid in
respect of E
above

G
Total
demands
pending out
of E above

16 Details of credit reversed or availed

Description Central
Tax
State Tax /
UT Tax
Integrated
Tax
Cess

1 2 3 4 5
A
Credit reversed on opting in the composition
scheme (-)

B
Credit availed on opting out of the composition
scheme (+)
17 Late fee payable and paid
Description Payable Paid
1 2 3
A Central Tax
B State Tax

Place Signature
Name of Authorised Signatory
Date
Designation / Status
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 164 of 309
Instructions: –
1. It is mandatory to file all your FORM GSTR-4 for the FY 2017-18 before filing this return. The
details for the period between July 2017 to March 2018 shall be provided in this return.
2. It may be noted that additional liability for the FY 2017-18 not declared in FORM GSTR-4 may
be declared in this return.
3. Part I consists of basic details of taxpayer. The instructions to fill Part I are as follows :
Table No. Instructions
5 Aggregate turnover for the previous financial year is the turnover of the financial year
previous to the year for which the return is being filed. For example for the annual
return for FY 2017-18, the aggregate turnover of FY 2016-17 shall be entered into this
table. It is the sum total of turnover of all taxpayers registered on the same PAN.

4. Part II consists of the details of all outward and inward supplies in the financial year for which
the annual return is filed. The instructions to fill Part II are as follows:
Table No. Instructions
6A Aggregate value of all outward supplies net of debit notes / credit notes, net of advances
and net of goods returned for the entire financial year shall be declared here. Table 6
and Table 7 of FORM GSTR-4 may be used for filling up these details.
6B Aggregate value of exempted, Nil Rated and Non-GST supplies shall be declared here.
7A Aggregate value of all inward supplies received from registered persons on which tax
is payable on reverse charge basis shall be declared here. Table 4B, Table 5 and Table
8A of FORM GSTR-4 may be used for filling up these details.
7B Aggregate value of all inward supplies received from unregistered persons (other than
import of services) on which tax is payable on reverse charge basis shall be declared
here. Table 4C, Table 5 and Table 8A of FORM GSTR-4 may be used for filling up
these details.
7C Aggregate value of all services imported during the financial year shall be declared
here. Table 4D and Table 5 of FORM GSTR-4 may be used for filling up these details.
8A Aggregate value of all inward supplies received from registered persons on which tax
is payable by the supplier shall be declared here. Table 4A and Table 5 of FORM
GSTR-4 may be used for filling up these details.
8B Aggregate value of all goods imported during the financial year shall be declared here.

5. Part IV consists of the details of amendments made for the supplies of the previous financial
year in the returns of April to September of the current FY or date of filing of Annual Return for
previous financial year (for example in the annual return for the FY 2017-18, the transactions
declared in April to September 2018 for the FY 2017-18 shall be declared), whichever is earlier.
The instructions to fill Part V are as follows:
Table No. Instructions
Details of additions or amendments to any of the supplies already declared in the
returns of the previous financial year but such amendments were furnished in Table 5
(relating to inward supplies) or Table 7 (relating to outward supplies) of FORM
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 165 of 309
10,11,12,13
and 14
GSTR- 4 of April to September of the current financial year or upto the date of filing
of Annual Return for the previous financial year, whichever is earlier shall be declared
here.

6. Part V consists of details of other information. The instruction to fill Part V are as follows:

Table No. Instructions
15A, 15B,
15C and
15D
Aggregate value of refunds claimed, sanctioned, rejected and pending for processing
shall be declared here. Refund claimed will be the aggregate value of all the refund
claims filed in the financial year and will include refunds which have been sanctioned,
rejected or are pending for processing. Refund sanctioned means the aggregate value
of all refund sanction orders. Refund pending will be the aggregate amount in all refund
application for which acknowledgement has been received and will exclude provisional
refunds received. These will not include details of non-GST refund claims.
15E, 15F
and 15G
Aggregate value of demands of taxes for which an order confirming the demand has
been issued by the adjudicating authority has been issued shall be declared here.
Aggregate value of taxes paid out of the total value of confirmed demand in 15E above
shall be declared here. Aggregate value of demands pending recovery out of 15E above
shall be declared here.
16A Aggregate value of all credit reversed when a person opts to pay tax under the
composition scheme shall be declared here. The details furnished in FORM ITC-03
may be used for filling up these details.
16B Aggregate value of all the credit availed when a registered person opts out of the
composition scheme shall be declared here. The details furnished in FORM ITC-01
may be used for filling up these details.
17 Late fee will be payable if annual return is filed after the due date.”;
7. Towards the end of the return, taxpayers shall be given an option to pay any additional liability
declared in this form, through FORM DRC-03. Taxpayers shall select “Annual Return” in the drop
down provided in FORM DRC-03. It may be noted that such liability shall be paid through
electronic cash ledger only.

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Annexure – V
FORM GSTR-9C
See rule 80(3)
PART – A - Reconciliation Statement
Pt. I Basic Details
1
Financial
Year
2 GSTIN
3A Legal Name < Auto>
3B
Trade Name
(if any) <Auto>
4 Are you liable to audit under any Act? <<Please specify>>
(Amount in ₹ in all tables)
Pt.
II
Reconciliation of turnover declared in audited Annual Financial Statement with
turnover declared in Annual Return (GSTR9)
5 Reconciliation of Gross Turnover
A
Turnover (including exports) as per audited financial
statements for the State / UT (For multi-GSTIN units under
same PAN the turnover shall be derived from the audited
Annual Financial Statement)
B Unbilled revenue at the beginning of Financial Year (+)
C Unadjusted advances at the end of the Financial Year (+)
D Deemed Supply under Schedule I (+)
E
Credit Notes issued after the end of the financial year
but reflected in the annual return
(+-)
F
Trade Discounts accounted for in the audited Annual
Financial Statement but are not permissible under GST (+)
G Turnover from April 2017 to June 2017 (-)
H Unbilled revenue at the end of Financial Year (-)
I
Unadjusted Advances at the beginning of the Financial
Year (-)
J
Credit notes accounted for in the audited Annual
Financial Statement but are not permissible under GST
(-+)
K
Adjustments on account of supply of goods by SEZ
units to DTA Units (-)
L Turnover for the period under composition scheme (-)
M
Adjustments in turnover under section 15 and rules
thereunder
(+/-
)
N
Adjustments in turnover due to foreign exchange
fluctuations
(+/-
)
O
Adjustments in turnover due to reasons not listed above
(+/-
)
P Annual turnover after adjustments as above <Auto>
Q Turnover as declared in Annual Return (GSTR9)
R Un-Reconciled turnover (Q - P) AT1
6 Reasons for Un - Reconciled difference in Annual Gross Turnover
A Reason 1 <<Text>>
B Reason 2 <<Text>>
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C Reason 3 <<Text>>
7 Reconciliation of Taxable Turnover
A Annual turnover after adjustments (from 5P above) <Auto>
B
Value of Exempted, Nil Rated, Non-GST supplies, No-Supply
turnover
C Zero rated supplies without payment of tax
D
Supplies on which tax is to be paid by the recipient on reverse
charge basis
E Taxable turnover as per adjustments above (A-B-C-D) <Auto>
F
Taxable turnover as per liability declared in Annual Return
(GSTR9)
G Unreconciled taxable turnover (F-E) AT 2
8 Reasons for Un - Reconciled difference in taxable turnover
A Reason 1 <<Text>>
B Reason 2 <<Text>>
C Reason 3 <<Text>>
Pt.
III Reconciliation of tax paid
9 Reconciliation of rate wise liability and amount payable thereon
Tax payable

Description Taxable Value
Central
tax
State tax
/ UT tax
Integrated Tax
Cess, if
applicable
1 2 3 4 5 6
A 5%
B 5% (RC)
C 12%
D 12% (RC)
E 18%
F 18% (RC)
G 28%
H 28% (RC)
I 3%
J 0.25%
K 0.10%
L Interest
M Late Fee
N Penalty
O Others
P
Total
amount to
be paid as
per tables
above <Auto> <Auto> <Auto> <Auto>
Q
Total
amount paid
as declared
in Annual
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Return
(GSTR 9)
R
Un-
reconciled
payment of
amount
(PT1)
10 Reasons for un-reconciled payment of amount
A Reason 1 <<Text>>
B Reason 2 <<Text>>
C Reason 3 <<Text>>
11
Additional amount payable but not paid (due to reasons specified under Tables
6,8 and 10 above)
To be paid through Cash
Description Taxable Value
Central
tax
State tax
/ UT tax
Integrated tax
Cess, if
applicable

1 2 3 4 5 6
5%
12%
18%
28%
3%
0.25%
0.10%
Interest
Late Fee
Penalty

Others
(please
specify)
Pt.
IV Reconciliation of Input Tax Credit (ITC)
12 Reconciliation of Net Input Tax Credit (ITC)
A
ITC availed as per audited Annual Financial Statement for the
State/ UT (For multi-GSTIN units under same PAN this should
be derived from books of accounts)
B
ITC booked in earlier Financial Years claimed in current
Financial Year (+)
C
ITC booked in current Financial Year to be claimed in
subsequent Financial Years (-)
D
ITC availed as per audited financial statements or books of
account <Auto>
E ITC claimed in Annual Return (GSTR9)
F Un-reconciled ITC ITC 1
13 Reasons for un-reconciled difference in ITC
A Reason 1 <<Text>>
B Reason 2 <<Text>>
C Reason 3 <<Text>>
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14
Reconciliation of ITC declared in Annual Return (GSTR9) with ITC availed on
expenses as per audited Annual Financial Statement or books of account
Description Value
Amount of
Total ITC
Amount of eligible
ITC availed
1 2 3 4
A Purchases
B Freight / Carriage
C Power and Fuel
D
Imported goods
(Including received
from SEZs)

E Rent and Insurance
F
Goods lost, stolen,
destroyed, written off
or disposed of by way
of gift or free samples

G Royalties
H
Employees' Cost
(Salaries, wages,
Bonus etc.)

I Conveyance charges
J Bank Charges
K Entertainment charges
L
Stationery Expenses
(including postage
etc.)

M
Repair and
Maintenance

N
Other Miscellaneous
expenses

O Capital goods
P Any other expense 1
Q Any other expense 2
R
Total amount of
eligible ITC availed <<Auto>>
S
ITC claimed in Annual
Return (GSTR9)
T
Un-reconciled ITC
(ITC 2)
15 Reasons for un - reconciled difference in ITC
A Reason 1 <<Text>>
B Reason 2 <<Text>>
C Reason 3 <<Text>>
16
Tax payable on un-reconciled difference in ITC (due to reasons specified in 13
and 15 above)
Description Amount Payable
Central Tax
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State/UT
Tax

Integrated
Tax
Cess
Interest
Penalty
Pt.
V Auditor's recommendation on additional Liability due to non-reconciliation
To be paid through Cash
Description Value
Central
tax
State tax
/ UT tax
Integrated tax
Cess, if
applicable
1 2 3 4 5 6
5%
12%
18%
28%
3%
0.25%
0.10%

Input Tax
Credit
Interest
Late Fee
Penalty

Any other
amount paid
for supplies
not included
in Annual
Return
(GSTR 9)

Erroneous
refund to be
paid back

Outstanding
demands to
be settled

Other (Pl.
specify)

Verification:
I hereby solemnly affirm and declare that the information given herein above is true and correct to the
best of my knowledge and belief and nothing has been concealed there from.
**(Signature and stamp/Seal of the Auditor)
Place: ……………
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Name of the signatory …………………
Membership No………………
Date: ……………
Full address ………………………

Verification of registered person:
I hereby solemnly affirm and declare that I am uploading the reconciliation statement in FORM GSTR-
9C prepared and duly signed by the Auditor and nothing has been tampered or altered by me in the
statement. I am also uploading other statements, as applicable, including financial statement, profit and
loss account and balance sheet etc.

Signature
Place:
Date:
Name of Authorized Signatory
Designation/status
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Instructions: –
1. Terms used:
(a) GSTIN: Goods and Services Tax Identification Number
2. It is mandatory to file all your FORM GSTR-1, FORM GSTR-3B and FORM GSTR -9 for the
FY 2017-18 before filing this return. The details for the period between July 2017 to March 2018
are to be provided in this statement for the financial year 2017-18. The reconciliation statement is
to be filed for every GSTIN separately.
3. The reference to current financial year in this statement is the financial year for which the
reconciliation statement is being filed for.
4. Part II consists of reconciliation of the annual turnover declared in the audited Annual Financial
Statement with the turnover as declared in the Annual Return furnished in FORM GSTR-9 for this
GSTIN. The instructions to fill this part are as follows :-
Table No. Instructions
5A The turnover as per the audited Annual Financial Statement shall be declared here.
There may be cases where multiple GSTINs (State-wise) registrations exist on the same
PAN. This is common for persons / entities with presence over multiple States. Such
persons / entities, will have to internally derive their GSTIN wise turnover and declare
the same here. This shall include export turnover (if any). It may be noted that reference
to audited Annual Financial Statement includes reference to books of accounts in case
of persons / entities having presence over multiple States.
5B Unbilled revenue which was recorded in the books of accounts on the basis of accrual
system of accounting in the last financial year and was carried forward to the current
financial year shall be declared here. In other words, when GST is payable during the
financial year on such revenue (which was recognized earlier), the value of such
revenue shall be declared here.
(For example, if rupees Ten Crores of unbilled revenue existed for the financial year
2016-17, and during the current financial year, GST was paid on rupees Four Crores
of such revenue, then value of rupees Four Crores rupees shall be declared here)
5C Value of all advances for which GST has been paid but the same has not been
recognized as revenue in the audited Annual Financial Statement shall be declared here.
5D Aggregate value of deemed supplies under Schedule I of the CGST Act, 2017 shall be
declared here. Any deemed supply which is already part of the turnover in the audited
Annual Financial Statement is not required to be included here.
5E Aggregate value of credit notes which were issued after 31st of March for any supply
accounted in the current financial year but such credit notes were reflected in the annual
return (GSTR-9) shall be declared here.
5F Trade discounts which are accounted for in the audited Annual Financial Statement but
on which GST was leviable (being not permissible) shall be declared here.
5G Turnover included in the audited Annual Financial Statement for April 2017 to June
2017 shall be declared here.
5H Unbilled revenue which was recorded in the books of accounts on the basis of accrual
system of accounting during the current financial year but GST was not payable on
such revenue in the same financial year shall be declared here.
5I Value of all advances for which GST has not been paid but the same has been
recognized as revenue in the audited Annual Financial Statement shall be declared here.
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5J Aggregate value of credit notes which have been accounted for in the audited Annual
Financial Statement but were not admissible under Section 34 of the CGST Act shall
be declared here.
5K Aggregate value of all goods supplied by SEZs to DTA units for which the DTA units
have filed bill of entry shall be declared here.
5L There may be cases where registered persons might have opted out of the composition
scheme during the current financial year. Their turnover as per the audited Annual
Financial Statement would include turnover both as composition taxpayer as well as
normal taxpayer. Therefore, the turnover for which GST was paid under the
composition scheme shall be declared here.
5M There may be cases where the taxable value and the invoice value differ due to
valuation principles under section 15 of the CGST Act, 2017 and rules thereunder.
Therefore, any difference between the turnover reported in the Annual Return (GSTR
9) and turnover reported in the audited Annual Financial Statement due to difference
in valuation of supplies shall be declared here.
5N Any difference between the turnover reported in the Annual Return (GSTR9) and
turnover reported in the audited Annual Financial Statement due to foreign exchange
fluctuations shall be declared here.
5O Any difference between the turnover reported in the Annual Return (GSTR9) and
turnover reported in the audited Annual Financial Statement due to reasons not listed
above shall be declared here.
5Q Annual turnover as declared in the Annual Return (GSTR 9) shall be declared here.
This turnover may be derived from Sr. No. 5N, 10 and 11 of Annual Return (GSTR 9).
6 Reasons for non-reconciliation between the annual turnover declared in the audited
Annual Financial Statement and turnover as declared in the Annual Return (GSTR 9)
shall be specified here.
7 The table provides for reconciliation of taxable turnover from the audited annual
turnover after adjustments with the taxable turnover declared in annual return (GSTR-
9).
7A Annual turnover as derived in Table 5P above would be auto-populated here.
7B Value of exempted, nil rated, non-GST and no-supply turnover shall be declared here.
This shall be reported net of credit notes, debit notes and amendments if any.
7C Value of zero rated supplies (including supplies to SEZs) on which tax is not paid shall
be declared here. This shall be reported net of credit notes, debit notes and amendments
if any.
7D Value of reverse charge supplies on which tax is to be paid by the recipient shall be
declared here. This shall be reported net of credit notes, debit notes and amendments if
any.
7E The taxable turnover is derived as the difference between the annual turnover after
adjustments declared in Table 7A above and the sum of all supplies (exempted, non-
GST, reverse charge etc.) declared in Table 7B, 7C and 7D above.
7F Taxable turnover as declared in Table (4N – 4G) + (10-11) 4N of the Annual Return
(GSTR9) shall be declared here.
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8 Reasons for non-reconciliation between adjusted annual taxable turnover as derived
from Table 7E above and the taxable turnover declared in Table 7F shall be specified
here.

5. Part III consists of reconciliation of the tax payable as per declaration in the reconciliation
statement and the actual tax paid as declared in Annual Return (GSTR9). The instructions to fill this
part are as follows: -
Table No. Instructions
9 The table provides for reconciliation of tax paid as per reconciliation statement and
amount of tax paid as declared in Annual Return (GSTR 9). Under the head labelled
“RC”, supplies where tax was paid on reverse charge basis by the recipient (i.e. the
person for whom reconciliation statement has been prepared) shall be declared.
9P The total amount to be paid as per liability declared in Table 9A to 9O is auto populated
here.
9Q The amount payable as declared in Table 9 of the Annual Return (GSTR9) shall be
declared here. It should also contain any differential tax paid on Table 10 or 11 of the
Annual Return (GSTR9).
10 Reasons for non-reconciliation between payable / liability declared in Table 9P above
and the amount payable in Table 9Q shall be specified here.
11 Any amount which is payable due to reasons specified under Table 6, 8 and 10 above
shall be declared here.

6. Part IV consists of reconciliation of Input Tax Credit (ITC). The instructions to fill Part IV are
as under: -
Table No. Instructions
12A ITC availed (after reversals) as per the audited Annual Financial Statement shall be
declared here. There may be cases where multiple GSTINs (State-wise) registrations
exist on the same PAN. This is common for persons / entities with presence over
multiple States. Such persons / entities, will have to internally derive their ITC for each
individual GSTIN and declare the same here. It may be noted that reference to audited
Annual Financial Statement includes reference to books of accounts in case of persons
/ entities having presence over multiple States.
12B Any ITC which was booked in the audited Annual Financial Statement of earlier
financial year(s) but availed in the ITC ledger in the financial yearfor which the
reconciliation statement is being filed for shall be declared here. This shall include
transitional credit which was booked in earlier years but availed during Financial Year
2017-18.
12C Any ITC which has been booked in the audited Annual Financial Statement of the
current financial year but the same has not been credited to the ITC ledger for the said
financial year shall be declared here.
12D ITC availed as per audited Annual Financial Statement or books of accounts as derived
from values declared in Table 12A, 12B and 12C above will be auto-populated here.
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12E Net ITC available for utilization as declared in Table 7J of Annual Return (GSTR9)
shall be declared here.
13 Reasons for non-reconciliation of ITC as per audited Annual Financial Statement or
books of account (Table 12D) and the net ITC (Table12E) availed in the Annual Return
(GSTR9) shall be specified here.
14 This table is for reconciliation of ITC declared in the Annual Return (GSTR9) against
the expenses booked in the audited Annual Financial Statement or books of account.
The various sub-heads specified under this table are general expenses in the audited
Annual Financial Statement or books of account on which ITC may or may not be
available. Further, this is only an indicative list of heads under which expenses are
generally booked. Taxpayers may add or delete any of these heads but all heads of
expenses on which GST has been paid / was payable are to be declared here.
14R Total ITC declared in Table 14A to 14Q above shall be auto populated here.
14S Net ITC availed as declared in the Annual Return (GSTR9) shall be declared here.
Table 7J of the Annual Return (GSTR9) may be used for filing this Table.
15 Reasons for non-reconciliation between ITC availed on the various expenses declared
in Table 14R and ITC declared in Table 14S shall be specified here.
16 Any amount which is payable due to reasons specified in Table 13 and 15 above shall
be declared here.

7. Part V consists of the auditor’s recommendation on the additional liability to be discharged by the
taxpayer due to non-reconciliation of turnover or non-reconciliation of input tax credit. The auditor
shall also recommend if there is any other amount to be paid for supplies not included in the Annual
Return. Any refund which has been erroneously taken and shall be paid back to the Government
shall also be declared in this table. Lastly, any other outstanding demands which is recommended
to be settled by the auditor shall be declared in this Table.
Towards, the end of the reconciliation statement taxpayers shall be given an option to pay their
taxes as recommended by the auditor.
8. Towards the end of the return, taxpayers shall be given an option to pay any additional liability
declared in this form, through FORM DRC-03. Taxpayers shall select “Reconciliation Statement”
in the drop down provided in FORM DRC-03. It may be noted that such liability shall be paid
through electronic cash ledger only.

PART – B- CERTIFICATION
I. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn
up by the person who had conducted the audit:

* I/we have examined the—
(a) balance sheet as on ………
(b) the *profit and loss account/income and expenditure account for the period beginning from
………..…to ending on ……., and
(c) the cash flow statement for the period beginning from ……..…to ending on ………, —attached
herewith, of M/s …………… (Name), …………………….………… (Address),
..…………………(GSTIN).
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2. Based on our audit I/we report that the said registered person—
*has maintained the books of accounts, records and documents as required by the
IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder
*has not maintained the following accounts/records/documents as required by the
IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder:
1.
2.
3.
3. (a) *I/we report the following observations/ comments / discrepancies / inconsistencies; if any:
…………………………………….
…………………………………….
3. (b) *I/we further report that, -
(A) *I/we have obtained all the information and explanations which, to the best of *my/our knowledge
and belief, were necessary for the purpose of the audit/ information and explanations which, to the best
of *my/our knowledge and belief, were necessary for the purpose of the audit were not provided/partially
provided to us.
(B) In *my/our opinion, proper books of account *have/have not been kept by the registered person so
far as appears from*my/ our examination of the books.
(C) I/we certify that the balance sheet, the *profit and loss/income and expenditure account and the cash
flow Statement are *in agreement/not in agreement with the books of account maintained at the Principal
place of business at ……………………and ** ……………………additional place of business within
the State.
4. The documents required to be furnished under section 35 (5) of the CGST Act and Reconciliation
Statement required to be furnished under section 44(2) of the CGST Act is annexed herewith in Form
No. GSTR-9C.
5. In *my/our opinion and to the best of *my/our information and according to explanations given to
*me/us, the particulars given in the said Form No.GSTR-9C are true and correct subject to following
observations/qualifications, if any:
(a) ……………………………………………………………………………………
(b) ……………………………………………………………………………………
(c) ……………………………………………………………………………………
………………………………………
………………………………………
**(Signature and stamp/Seal of the Auditor)
Place: ……………
Name of the signatory …………………
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Membership No………………
Date: ……………
Full address ………………………
II. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by a
person other than the person who had conducted the audit of the accounts:
*I/we report that the audit of the books of accounts and the financial statements of M/s.
………...........…………………. (Name and address of the assessee with GSTIN) was conducted by
M/s. …………………………………………..………. (full name and address of auditor along with
status), bearing membership number in pursuance of the provisions of the …………………………….
Act, and *I/we annex hereto a copy of their audit report dated ……………………………. along with a
copy of each of:-
(a) balance sheet as on ………
(b) the *profit and loss account/income and expenditure account for the period beginning from
……….…to ending on …….,
(c) the cash flow statement for the period beginning from …….…to ending on ………, and
(d) documents declared by the said Act to be part of, or annexed to, the *profit and loss
account/income and expenditure account and balance sheet.
2. I/we report that the said registered person—
*has maintained the books of accounts, records and documents as required by the
IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder
*has not maintained the following accounts/records/documents as required by the
IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder:
1.
2.
3.
3. The documents required to be furnished under section 35 (5) of the CGST Act and Reconciliation
Statement required to be furnished under section 44(2) of the CGST Act is annexed herewith in Form
No.GSTR-9C.
4. In *my/our opinion and to the best of *my/our information and according to examination of books of
account including other relevant documents and explanations given to *me/us, the particulars given in
the said Form No.9C are true and correct subject to the following observations/qualifications, if any:
(a) …………………………….…………………………….………………………
(b) …………………………….…………………………….………………………
(c) …………………………….…………………………….………………………
………………………………………
**(Signature and stamp/Seal of the Auditor)
Place: ……………
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Name of the signatory …………………
Membership No………………
Date: ……………
Full address ………………………”.
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Agenda Item 7(viii): IGST Rules for determination of Place of Supply
The law Committee has proposed to notify the rules for determination of place of supply in case
of inter-State supply under sections 10(2), 12(3), 12(7), 12(11) and 13(7) of the Integrated Goods and
Services Tax Act, 2017. The draft rules also propose to correct a typographical error in sub-rule (h) of
rule 3 of the Integrated Goods and Services Tax Rules, 2017. The draft notification for notifying the
rules is placed as Annexure A.
2. The GST Council may approve notifying the said rules.
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ANNEXURE - A
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3,
SUB-SECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)
[Central Board of Indirect Taxes and Customs]

Notification No. /2018 – Integrated Tax
New Delhi, the January, 2019
,1939Saka

G.S.R. (E). - In exercise of the powers conferred by sub section (14) of section 12 read with section
22 of the Integrated Goods and Services Tax Act , 2017 (13 of 2017), the Central Government hereby
makes the following rules to further amend the Integrated Goods and Services Tax Rules, 2017, namely:-
1. Short title and commencement.- (1) These rules may be called the Integrated Goods and
Services Tax (Amendment) Rules, 2018.
(2) They shall be deemed to have come into force on the 1st day of July, 2017.
(3) Rule 3 shall be renumbered as rule 7.
(4) Before rule 3, as so renumbered, the following shall be inserted namely:-
“ 3. --- (Left vacant for future use)
4. The supply of services attributable to different States or Union territories, in the case
of:

(a) services directly in relation to an immovable property, or
(b) lodging accommodation by a hotel, inn, guest house, homestay, club or campsite, by whatever
name called and including a house boat or any other vessel , or
(c) accommodation in any immovable property for organizing any marriage or reception or matters
related thereto, official, social, cultural, religious or business function including services
provided in relation to such function at such property or
(d) any services ancillary to the services in clauses (a), (b) and (c),
where such immovable property or boat or vessel is located in more than one State or Union
territory shall, in the absence of any contract or agreement between the supplier of services and
recipient of services for apportioning the value of the services, be determined in accordance
with the provisions of sub-section (3) of section 12 of the Integrated Goods and Services Tax
Act, 2017 in the following manner namely:-

(1) In case of services provided by way of lodging accommodation by a hotel, inn, guest house,
club or campsite, by whatever name called (except in cases where such property is a single
property located in two or more contiguous States and/or Union territories) and services
ancillary to such services, the supply of services shall be treated as made in each of the
respective States or Union territories in proportion to the number of nights stayed in such
accommodation.
(2) In case of all other services in relation to immovable property including services by way of
accommodation in any immovable property for organizing any marriage or reception etc.
(including cases of supply of accommodation by a hotel, inn, guest house, club or campsite, by
whatever name called, where such property is a single property located in two or more
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contiguous States and/or Union territories) and services ancillary to such services, the supply of
services shall be treated as made in each of the respective States or Union territories in
proportion to the area of the property lying in each State/Union territory.
(3) In case of services provided by way of lodging accommodation by a house boat or any other
vessel and services ancillary to such services, the supply of services shall be treated as made in
each of the respective States or Union territories in proportion to the time spent by the boat or
vessel in each such State or Union territory, which shall be determined on the basis of a
declaration made to the effect by the service provider.
Illustration 1: A hotel chain X charges a consolidated sum of Rs.30,000/- for stay in its two
establishments in Delhi and Agra where the stay in Delhi is for 2 nights and the stay in Agra is
for 1 night. The place of supply in this case is both in the Union territory of Delhi and in the
State of Uttar Pradesh and the service shall be deemed to have been provided in the Union
territory of Delhi and in the State of Uttar Pradesh in the ratio 2:1 respectively. The value of
services provided will thus be apportioned as Rs.20,000/- in the Union territory of Delhi and
Rs.10,000/- in the State of Uttar Pradesh and tax liability shall be calculated accordingly.

Illustration 2: There is a piece of land measuring 20,000 square feet which is partly in State S1,
say 12,000 square feet, and partly in State S2, say 8000 square feet. Site preparation work has
been entrusted to T. The ratio of land in the two States works out to 12:8 or 3:2 (simplified). The
place of supply is in both S1 and S2. The service shall be deemed to have been provided in the
ratio of 12:8 or 3:2 (simplified) in the States S1 and S2 respectively.

Illustration 3: A company C provides the service of 24 hours accommodation in a houseboat,
which is situated in Kerala and Karnataka inasmuch as the guests board the house boat in
Kerala and stay there for 22 hours but it also moves into Karnataka for 2 hours (as declared by
the service provider). The place of supply of this service is in the States of Kerala and Karnataka.
The service shall be deemed to have been provided in the ratio of 22:2 or 11:1 (simplified) in
the States of Kerala and Karnataka, respectively.

5. The supply of services attributable to different States or Union territories, in the case of
services provided by way of organisation of a cultural, artistic, sporting, scientific, educational or
entertainment event , including supply of services in relation to a conference, fair, exhibition,
celebration or similar events and services ancillary to the organisation of any such events or assigning
of sponsorship to such events , where the services are supplied to a person other than a registered person
and the event is held in more than one State or Union territory for which a consolidated amount is
charged for supply of such services, shall, in the absence of any contract or agreement between the
supplier of services and recipient of services for apportioning the value of the services, be determined
in accordance with the provisions of sub-section (7) of section 12 of the Integrated Goods and Services
Tax Act, 2017 by treating the supply of services as made in each of the respective States or Union
territories in the proportion as arrived at by application of the generally accepted accounting principles.
Illustration: An event management company E has to organise some promotional events in
states S1 and S2 for a recipient R. 3 events are to be organised in S1 and 2 in S2. They charge
a consolidated amount of Rs.10,00,000 from R. The place of supply of this service is in both the
States S1 and S2. Say the ratio of expenditure arrived at by the application of generally accepted
accounting principles to the available data is 3:2. The service shall be deemed to have been
provided in the ratio 3:2 in S1 and S2 respectively. The value of services provided will thus be
apportioned as Rs. 6,00,000/- in S1 and Rs. 4,00,000/- in S2 and tax liability shall be calculated
accordingly.

6. The supply of services attributable to different States or Union territories, in the case of
supply of services relating to a leased circuit where the leased circuit is installed in more than one State
or Union territory and a consolidated amount is charged for supply of such services, shall, in the absence
of any contract or agreement between the supplier of services and recipient of services for apportioning
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the value of the services, be determined in accordance with the provisions of sub-section (11) of section
12 of the Integrated Goods and Services Tax Act, 2017 in the following manner namely:-

(1) The number of points in a circuit shall first be determined in the following manner:
(a) in the case of a circuit between two points or places, the starting point or place of the circuit,
and concomitantly the State or Union territory in which it is located, and the end point or place
of the circuit, and concomitantly the State or Union territory in which it is located, will
invariably constitute two points;
(b) any intermediate point or place in the circuit and concomitantly the State or Union territory
in which it is located will also constitute a point provided that the benefit of the leased circuit is
also available at that intermediate point;
(2) The supply of services shall be treated as made in each of the respective States or Union territories
in proportion to the number of points lying in the State or Union territory.
Illustration 1: A company T installs a leased circuit between the Delhi and Mumbai offices of a
company C. The starting point of this circuit is in Delhi and the end point of the circuit is in
Mumbai. Hence one point of this circuit is in Delhi and another in Maharashtra. The place of
supply of this service is in the States of Delhi and Maharashtra. The service shall be deemed to
have been provided in the ratio of 1:1 in the States of Delhi and Maharashtra, respectively.

Illustration 2: A company T installs a leased circuit between the Chennai, Bengaluru and
Mysuru offices of a company C. The starting point of this circuit is in Chennai and the end point
of the circuit is in Mysuru. The circuit also connects Bengaluru. Hence one point of this circuit
is in Tamil Nadu and two points in Karnataka. The place of supply of this service is in the States
of Tamil Nadu and Karnataka. The service shall be deemed to have been provided in the ratio
of 1:2 in the States of Tamil Nadu and Karnataka, respectively.

Illustration 3: A company T installs a leased circuit between the Kolkata, Patna and Guwahati
offices of a company C. There are 3 points in this circuit in Kolkata, Patna and Guwahati. One
point each of this circuit is, therefore, in West Bengal, Bihar and Assam. The place of supply of
this service is in the States of West Bengal, Bihar and Assam. The service shall be deemed to
have been provided in the ratio of 1:1:1 in the states of West Bengal, Bihar and Assam,
respectively.”

(5) In rule 7, as renumbered, in sub rule (h), for the words “in the case of advertisements over
internet”, the words “in the case of advertisements over internet, the service shall be deemed to have
been provided all over India” shall be substituted.
(6) After rule 7, as renumbered, the following shall be inserted, namely;-
“8. The proportion of value attributable to different States or Union territories, in the case of
supply of services in more than one State or Union territory under sub section (3) of section 13 of the
Integrated Goods and Services Tax Act, 2017, shall, in the absence of any contract or agreement between
the supplier of services and recipient of services for apportioning the value of the services, be determined
in accordance with the provisions of sub-section (7) of the said section 13 in the following manner:-
(1) in the case of services supplied on the same goods, by equally dividing the value of the
service in each of the States and Union territories where the service is performed;
(2) in the case of services supplied on different goods, by dividing the value of the service in the
ratio of the invoice value of goods in each of the States and Union territories on which the
service is performed;
(3) costing principle
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(4) in the case of services supplied to individuals, by applying the generally accepted accounting
principles.

Illustration-1: A company C which is located in Kolkata is providing the services of testing of a
machine and the testing service on the machine is carried out in Orissa and Andhra Pradesh.
The place of supply is in Orissa and Andhra Pradesh and the value of the service in Orissa and
Andhra Pradesh will be ascertained by dividing the value of the service equally between these
two States.
Illustration-2: A company C which is located in Delhi is providing the service of servicing of
two cars belonging to Mr. X. One car is of manufacturer J and is located in Delhi and is serviced
by its Delhi workshop. The other car is of manufacturer A and is located in Gurugram and is
serviced by its Gurugram workshop. The value of service attributable to the Union Territory of
Delhi and the State of Haryana shall be calculated by applying the ratio of the value of car J
and the value of car A, to the total value of the service.
Illustration-3: A makeup artist M has to provide make up services to an actor A. A is shooting
some scenes in Mumbai and some scenes in Goa. M provides the makeup services in Mumbai
and Goa. The services are provided in Maharashtra and Goa and the value of the service in
Maharashtra and Goa will be ascertained by applying the generally accepted accounting
principles.
9. The proportion of value attributable to different States or Union territories, in the case of
supply of services in more than one State or Union territory under sub section (4) of section 13 of the
Integrated Goods and Services Tax Act, 2017, shall, in the absence of any contract or agreement between
the supplier of services and recipient of services for apportioning the value of the services, be
determined in accordance with the provisions of sub-section (7) of the said section 13 by applying the
provisions of rule 4 mutatis mutandis.
10. The proportion of value attributable to different States or Union territories, in the case of
supply of services in more than one State or Union territory under sub section (5) of section 13 of the
Integrated Goods and Services Tax Act, 2017, shall, in the absence of any contract or agreement between
the supplier of services and recipient of services for apportioning the value of the services, be
determined in accordance with the provisions of sub-section (7) of the said section 13 by applying the
provisions of rule 5 mutatis mutandis.
[F. No. xx/xx/2018-GST]
Under Secretary to the Government of India
Note: The principal rules were published in the Gazette of India Extraordinary vide number G.S.R-
699(E) dated 28th June, 2017 and were last amended by notification 12/2017-Integrated tax dated 15th
November 2017 , which was published in the Gazette of India Extraordinary vide number G.S.R- (E)
dated 15th November, 2017.

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Agenda Item 7(ix): Circular to clarify certain issues under GST
Various representations have been received seeking clarification on certain issues under the GST
laws. The Law Committee in its various meetings has proposed to clarify the following issues:
a) Whether the supply of used vehicles, seized and confiscated goods, old and used goods, waste
and scrap by Government departments are taxable under GST?
b) Whether penalty in accordance with section 73 (11) of the Central Goods and Services Tax Act,
2017 (CGST Act for short) should be levied in cases where the return in FORM GSTR-3B has
been filed after the due date of furnishing such return?
c) In case a debit note is to be issued under section 142(2)(a) of the CGST Act or a credit note
under section 142(2)(b) of the CGST Act, what will be the tax rate applicable – the rate in the
pre-GST regime or the rate applicable under GST?
d) Applicability of the provisions of section 51 of the CGST Act related to TDS in the context of
notification No. 50/2018-Central Tax dated 13.09.2018.
e) What is the correct valuation methodology for ascertainment of GST on account of Tax
collected at source (TCS) under Income Tax Act, 1961?
f) Who will be considered as the ‘owner of the goods’ for the purposes of section 129(1) of the
CGST Act?
2. It is proposed to issue a Circular to clarify the above issues. Accordingly, a draft Circular
clarifying these issues is enclosed to this agenda as Annexure A.
3. Accordingly, the approval of the GST Council is sought for the issuance of the said Circular.
Similar Circular would be issued by States also.
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Annexure A
Circular No. / /2018-GST
F. No. CBEC-20/16/03/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
*****
New Delhi, Dated the , 2018
To,
The Principal Chief Commissioners/ Chief Commissioners/Principal Commissioners/ Commissioners
of Central Tax (All)/ The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Clarification on certain issues (sale by government departments to unregistered person;
leviability of penalty under section 73(11) of the CGST Act; rate of tax in case of debit notes /
credit notes issued under section 142(2) of the CGST Act; applicability of notification No. 50/2018-
Central Tax; valuation methodology in case of TCS under Income Tax Act and definition of owner
of goods) related to GST-Reg.
Various representations have been received seeking clarification on certain issues under the
GST laws. In order to clarify these issues and to ensure uniformity of implementation across field
formations, the Board, in exercise of its powers conferred under section 168 (1) of the Central Goods
and Services Tax Act, 2017 (hereinafter referred to as the “CGST Act”) hereby clarifies the issues as
below:
Sl.
No
Issue Clarification
1. Whether the supply of used
vehicles, seized and
confiscated goods, old and
used goods, waste and scrap
by Government departments
are taxable under GST?

1. It may be noted that intra-State and inter-State supply
of used vehicles, seized and confiscated goods, old and
used goods, waste and scrap made by the Central
Government, State Government, Union territory or a
local authority is a taxable supply under GST.
2. Vide notification No. 36/2017-Central Tax (Rate) and
notification No. 37/2017- Integrated Tax (Rate) both
dated 13.10.2017, it has been notified that intra-State
and inter-State supply respectively of used vehicles,
seized and confiscated goods, old and used goods,
waste and scrap by the Central Government, State
Government, Union territory or a local authority to any
registered person, would be subject to GST on reverse
charge basis as per which tax is payable by the recipient
of such supplies.
3. A doubt has arisen about taxability of intra-State and
inter-State supply of used vehicles, seized and
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confiscated goods, old and used goods, waste and scrap
made by the Central Government, State Government,
Union territory or a local authority to an unregistered
person.
4. It was noted that such supply to an unregistered person
is also a taxable supply under GST but is not covered
under notification No. 36/2017-Central Tax (Rate) and
notification No. 37/2017- Integrated Tax (Rate) both
dated 13.10.2017.
5. In this regard, it is clarified that the respective
Government departments (i.e. Central Government,
State Government, Union territory or a local authority)
shall be liable to get registered and pay GST on intra-
State and inter-State supply of used vehicles, seized and
confiscated goods, old and used goods, waste and scrap
made by them to an unregistered person subject to the
provisions of sections 22 and 24 of the CGST Act.

2. Whether penalty in
accordance with section 73
(11) of the CGST Act should
be levied in cases where the
return in FORM GSTR-3B
has been filed after the due
date of filing such return?
1. As per the provisions of section 73(11) of the CGST
Act, penalty is payable in case self-assessed tax or any
amount collected as tax has not been paid within a
period of thirty days from the due date of payment of
such tax.
2. It may be noted that a show cause notice (SCN for
short) is required to be issued to a person where it
appears to the proper officer that any tax has not been
paid or short paid or erroneously refunded or where
input tax credit has been wrongly availed or utilised for
any reason under the provisions of section 73(1) of the
CGST Act. The provisions of section 73(11) of the
CGST Act can be invoked only when the provisions of
section 73 are invoked.
3. The provisions of section 73 of the CGST Act are
generally not invoked in case of delayed filing of the
return in FORM GSTR-3B because tax alongwith
applicable interest has already been paid but after the
due date for payment of such tax. It is accordingly
clarified that penalty under the provisions of section
73(11) of the CGST Act is not payable in such cases. It
is further clarified that since the tax has been paid late
in contravention of the provisions of the CGST Act, a
general penalty under section 125 of the CGST Act
may be imposed after following the due process of law.
3. In case a debit note is to be
issued under section
142(2)(a) of the CGST Act or
a credit note under section
142(2)(b) of the CGST Act,
what will be the tax rate
applicable – the rate in the
pre-GST regime or the rate
applicable under GST?
1. It may be noted that as per the provisions of section
142(2) of the CGST Act, in case of revision of prices
of any goods or services or both on or after the
appointed day (i.e., 01.07.2017), a supplementary
invoice or debit/credit note may be issued which shall
be deemed to have been issued in respect of an outward
supply made under the CGST Act.
2. It is accordingly clarified that in case of revision of
prices, after the appointed date, of any goods or
services supplied before the appointed day thereby
requiring issuance of any supplementary invoice, debit
note or credit note, the rate as per the provisions of the
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GST Acts (both CGST and SGST or IGST) would be
applicable.
4. Applicability of the
provisions of section 51 of
the CGST Act (TDS) in the
context of notification No.
50/2018-Central Tax dated
13.09.2018.
1. A doubt has arisen about the applicability of long line
mentioned in clause (a) of notification No. 50/2018-
Central Tax dated 13.09.2018.
2. It is clarified that the long line written in clause (a) in
notification No. 50/2018-Central Tax dated 13.09.2018
is applicable to both the items (i) and (ii) of clause (a)
of the said notification. Thus, an authority or a board or
any other body whether set up by an Act of Parliament
or a State Legislature or established by any
Government with fifty-one per cent. or more
participation by way of equity or control, to carry out
any function would only be liable to deduct tax at
source.
3. In other words, the provisions of section 51 of the
CGST Act are applicable only to such authority or a
board or any other body set up by an Act of Parliament
or a State legislature or established by any Government
in which fifty one per cent. or more participation by
way of equity or control is with the Government.
5. What is the correct valuation
methodology for
ascertainment of GST on Tax
collected at source (TCS)
under the provisions of the
Income Tax Act, 1961?
1. Section 15(2) of CGST Act specifies that the value of
supply shall include “any taxes, duties cesses, fees and
charges levied under any law for the time being in force
other than this Act, the SGST Act, the UTGST Act and
the GST (Compensation to States) Act, if charged
separately by the supplier.”
2. It is clarified that as per the above provisions, taxable
value for the purposes of GST shall include the TCS
amount collected under the provisions of the Income
Tax Act since the value to be paid to the supplier by the
buyer is inclusive of the said TCS.
6. Who will be considered as
the ‘owner of the goods’ for
the purposes of section
129(1) of the CGST Act?
It is hereby clarified that if the invoice or any other specified
document is accompanying the consignment of goods, then
either the consignor or the consignee should be deemed to be
the owner. If the invoice or any other specified document is not
accompanying the consignment of goods, then in such cases,
the proper officer should determine who should be declared as
the owner of the goods.

2. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
3. Difficulty if any, in the implementation of this Circular may be brought to the notice of the Board.
Hindi version will follow.
Commissioner (GST)
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Agenda Item 7(x): Circular to clarify denial of composition option by tax authorities and
effective date thereof
Various representations have been received seeking clarification on certain issues under the GST
laws. The Law Committee in its meeting held on 29th -30th November, 2018 has proposed to clarify the
following issues relating to composition scheme under GST:
a) the date from which withdrawal from the composition scheme shall take effect in a case where
the composition taxpayer has exercised such option;
b) the effective date of denial of the option to pay tax under the composition scheme where action
has been initiated by the tax authorities to deny such option to the composition taxpayer; and
c) the follow up action to be taken by the tax authorities when the composition option is denied to
the taxpayer retrospectively.
2. It is proposed to issue a Circular to clarify the above issues. Accordingly, a draft Circular
clarifying these issues is enclosed to this agenda as Annexure A.
3. Accordingly, the approval of the GST Council is sought for the issuance of the Circular. Similar
Circular would be issued by the States also.
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Annexure A
Circular No. --/--/2018-GST

F. No. CBEC/--/--/--/2018-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
***

New Delhi, Dated the –th December, 2018
To,
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners
of Central Tax (All) /The Principal Directors General/Directors General (All)
Subject: Denial of composition option by tax authorities and effective date thereof - Reg.
Madam/Sir,
Rule 6 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the “CGST
Rules”) deals with the validity of the composition levy. As per the said rule, the option exercised by a
registered person to pay tax under the composition scheme shall remain valid so long as he satisfies the
conditions mentioned in section 10 of the Central Goods and Services Tax Act, 2017 (hereinafter
referred to as the “CGST Act”) and the CGST Rules. The rule lays down the procedure for withdrawal
from the composition scheme by a taxpayer who intends to withdraw from the said scheme and also the
procedure for denial of option to the taxpayer to pay tax under the said scheme where he has contravened
the provisions of the CGST Act or the CGST Rules.

2. In this connection, doubts have been raised as to the date from which withdrawal from the
composition scheme shall take effect in a case where the composition taxpayer has exercised such
option to withdraw. Doubts have also been raised regarding the effective date of denial of the option to
pay tax under the composition scheme where action has been initiated by the tax authorities to deny
such option to the composition taxpayer. Further, clarification has been sought regarding the follow up
action to be taken by the tax authorities when the composition option is denied to the taxpayer
retrospectively. In order to clarify these issues and to ensure uniformity in the implementation of the
provisions of the law across field formations, the Board, in exercise of its powers conferred by section
168 (1) of the CGST Act, hereby clarifies the issues raised as below.

3. Sub-rule (2) of rule 6 of the CGST Rules provides that the composition taxpayer shall pay tax
under sub-section (1) of section 9 of the CGST Act as a normal taxpayer from the day he ceases to
satisfy any of the conditions of the composition scheme and shall issue tax invoice for every taxable
supply made thereafter. Sub-rule (3) of rule 6 of the CGST Rules provides that the registered person
who intends to withdraw from the composition scheme shall, before the date of such withdrawal, file
an application in FORM GST CMP-04 on the common portal. He shall file intimation for withdrawal
from the scheme in FORM GST CMP-04 within seven days of the occurrence of such event.
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4. As per sub-rule (4) of rule 6 of the CGST Rules, where the proper officer has reasons to believe
that the registered person was not eligible to pay tax under section 10 of the CGST Act or has
contravened the provisions of the CGST Act or the CGST Rules, he may issue a notice to such person
in FORM GST CMP-05 to show cause as to why the option to pay tax under section 10 of the CGST
Act shall not be denied. Upon receipt of the reply to the show cause notice from the registered person
in FORM GST CMP-06, the proper officer shall, in accordance with the provisions of sub-rule (5) of
rule 6 of the CGST Rules, issue an order in FORM GST CMP-07 within a period of thirty days of the
receipt of such reply, either accepting the reply, or denying the option to pay tax under section 10 of
the CGST Act from the date of the option or from the date of the event concerning such contravention,
as the case may be.

5. It is clarified that in a case where the taxpayer has sought withdrawal from the composition
scheme, the effective date shall be the date indicated by him in his intimation/application filed in
FORM GST CMP-04 but such date may not be prior to the commencement of the financial year in
which such intimation/application for withdrawal is being filed. If at any stage it is found that he has
contravened any of the provisions of the CGST Act or the CGST Rules, action may be initiated for
recovery of tax, interest and penalty. In case of denial of option by the tax authorities, the effective
date of such denial shall be from a date, including any retrospective date as may be determined by tax
authorities, but shall not be prior to the date of contravention of the provisions of the CGST Act or the
CGST Rules. In such cases, as provided under sub-section (5) of section 10 of the CGST Act, the
proceedings would have to be initiated under the provisions of section 73 or section 74 of the CGST
Act for determination of tax, interest and penalty for the period starting from the date of contravention
of provisions till the date of issue of order in FORM GST CMP-07. It is also clarified that the registered
person shall be liable to pay tax under section 9 of the CGST Act from the date of issue of the order in
FORM GST CMP-07. Provisions of section 18(1)(c) of the CGST Act shall apply for claiming credit
on inputs held in stock, inputs contained in semi-finished or finished goods held in stock and on capital
goods on the date immediately preceding the date of issue of the order.

6. It is requested that suitable trade notices may be issued to publicize the contents of this circular.
7. Difficulties, if any, faced in implementation of the above instructions may be brought to the
notice of the Board at an early date. Hindi version would follow.

Commissioner (GST)

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Agenda Item 7(xi): Clarification on refund related issues
Due to the non-availability of the complete electronic refund module, a work around was
prescribed vide Circular No. 17/17/2017-GST dated 15.11.2017 and Circular No. 24/24/2017-GST
dated 21.12.2017, wherein a taxpayer was required to file FORM GST RFD-01A on the common
portal, generate the Acknowledgement Receipt Number (ARN), take print-outs of the same, and submit
it physically in the office of the jurisdictional proper officer, along with all the supporting documents.
2. It has been learnt that this requirement of physical submission of documents in the tax office is
causing undue hardship to the taxpayers. Therefore, in order to further simplify the refund process, a
process was devised in consultation with GSTN to automate the submission of the refund application,
so that the need for a taxpayer to visit a jurisdictional tax office for submission of the refund claim would
be obviated. The said process has been elaborated in a draft Circular which, after certain modifications,
was approved by the Law Committee.
3. The said Circular also contains clarification on certain other refund related issues which have
been raised before CBIC, viz. the manner in which the amount of refund permissible on account of
inverted duty structure is to be calculated, the delay in disbursal of refunds after issuance of sanction
order, processing of those refund applications that have been generated on the common portal but have
not yet been received in the jurisdictional tax offices, refund of accumulated input tax credit of
compensation cess, non-consideration of ITC of GST paid on invoices of earlier tax period availed in
subsequent tax period, some common mis-interpretations of the meaning of inputs and refund of
accumulated ITC of input services and capital goods arising on account of inverted duty structure, etc.
4. A draft Circular clarifying all these points, duly recommended by the Law Committee in its
meeting held on 30th November, 2018 and 11th December, 2018, is enclosed as Annexure-A for approval
of the GST Council. Similar circular would be issued by the States also.
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ANNEXURE-A
DRAFT
Circular No. …/…/2018-GST
F. No…./…/…-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
***

New Delhi, Dated the …., 2018
To,
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of
Central Tax (All) / The Principal Directors General/ Directors General (All) / The Principal Chief
Controller of Accounts (CBIC)
Madam/Sir,
Subject: Clarification on refund related issues- regarding
Various representations have been received seeking clarification on various issues relating to
refund. In order to clarify these issues and to ensure uniformity in the implementation of the provisions
of law across field formations, the Board, in exercise of its powers conferred by section 168 (1) of the
Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby clarifies the
issues detailed hereunder:
Physical submission of refund claims with jurisdictional proper officer:
2. Due to the non-availability of the complete electronic refund module, a work around was
prescribed vide Circular No. 17/17/2017-GST dated 15.11.2017 and Circular No. 24/24/2017-GST
dated 21.12.2017, wherein a taxpayer was required to file FORM GST RFD-01A on the common
portal, generate the Acknowledgement Receipt Number (ARN), take print-outs of the same, and submit
it physically in the office of the jurisdictional proper officer, along with all the supporting documents.
It has been learnt that this requirement of physical submission of documents in the jurisdictional tax
office is causing undue hardship to the taxpayers. Therefore, in order to further simplify the refund
process, the following instructions, in partial modification of the aforesaid circulars, are issued:
a) All documents/undertaking/statements to be submitted along with the claim for refund in
FORM GST RFD-01A shall be uploaded on the common portal at the time of filing of the
refund application. Circular No. 59/33/2018-GST dated 04.09.2018 specified that instead of
providing copies of all invoices, a statement of invoices needs to be submitted in a prescribed
format and copies of only those invoices need to be submitted the details of which are not found
in FORM GSTR-2A for the relevant period. It is now clarified that the said statement and these
invoices, instead of being submitted physically, shall be electronically uploaded on the common
portal at the time of filing the claim of refund in FORM GST RFD-01A. Neither the application
in FORM GST RFD-01A, nor any of the supporting documents, shall be required to be
submitted physically in the office of the jurisdictional proper officer.
b) However, the taxpayer will still have the option to physically submit the refund application to
the jurisdictional proper officer in FORM GST RFD-01A, along with supporting documents,
if he so chooses. A taxpayer who still remains unallocated to the Central or State Tax Authority
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will necessarily have to submit the refund application physically. They can choose to do so
before the jurisdictional proper officer of either the State or the Central tax authority as was
earlier clarified vide Circular No. 17/17/2017 dated 15.11.2017.
c) The ARN will be generated only after the claimant has completed the process of filing the refund
application in FORM GST RFD-01A, and has completed uploading of all the supporting
documents/undertaking/statements/invoices and, where required, the amount has been debited
from the electronic credit/cash ledger.
d) As soon as the ARN is generated, the refund application along with all the supporting documents
shall be transferred electronically to the jurisdictional proper officer who shall be able to view
it on the system. The application shall be deemed to have been filed under rule 90(2) of the
Central Goods and Services Tax Rules, 2017 (hereinafter referred to as “CGST Rules”) on the
date of generation of the said ARN and the time limit of 15 days to issue an acknowledgement
shall be counted from that date. This will obviate the need for a claimant to visit the
jurisdictional tax office for the submission of the refund application. Accordingly, the
acknowledgement for the complete application or deficiency memo, as the case may be, would
be issued by the jurisdictional tax officer based on the documents so received electronically
from the common portal. However, the said acknowledgement or deficiency memo shall
continue to be issued manually for the time being.
e) If a refund application is electronically transferred to the wrong jurisdictional officer, he/she
shall reassign it to the correct jurisdictional officer electronically within a period of three days.
In such cases, the application shall be deemed to have been filed under rule 90(2) of the CGST
Rules only after it has been so reassigned. Deficiency memos shall not be issued in such cases
merely on the ground that the applications were received electronically in the wrong jurisdiction.
Where the facility of electronic re-assignment is not available, the present arrangement shall
continue.
f) It has already been clarified vide Circular No. 70/44/2018-GST dated 26.10.2018 that after the
issuance of a deficiency memo, taxpayers would be required to submit the rectified refund
application under the earlier Application Reference Number (ARN) only. It is further clarified
that the rectified application, which is to be treated as a fresh refund application, will be
submitted manually in the office of the jurisdictional proper officer.
3. It may be noted that the documents/statements/undertakings/invoices to be submitted along with
the refund application in FORM GST RFD-01A are the same as have been prescribed under the CGST
Rules and various Circulars issued on the subject from time to time. Only the method of submission of
these documents/statements/undertakings/invoices is being changed from the physical mode to the
electronic mode. It may also be noted that the other stages of processing of a refund claim submitted in
FORM GST RFD-01A by the jurisdictional tax officer shall continue to be carried out manually for
the time being, as is being presently done.
Calculation of refund amount for claims of refund of accumulated Input Tax Credit (ITC) on
account of inverted duty structure:
4. Representations have been received stating that while processing the refund of unutilized ITC
on account of inverted tax structure, the departmental officers are denying the refund of ITC of GST
paid on those inputs which are procured at equal or lower rate of GST than the rate of GST on outward
supply, by not including the amount of such ITC while calculating the maximum refund amount as
specified in rule 89(5) of the CGST Rules. The matter has been examined and the following issues are
clarified:
a) Refund of unutilized ITC in case of inverted tax structure, as provided in section 54(3) of the
CGST Act, is available where ITC remains unutilized even after setting off of available ITC for
the payment of output tax liability. Where there are multiple inputs attracting different rates of
tax, in the formula provided in rule 89(5) of the CGST Rules, the term ‘Net ITC’ covers the ITC
availed on all inputs in the relevant period, irrespective of their rate of tax.
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b) The calculation of refund of accumulated ITC on account of inverted tax structure, in cases
where several inputs are used in supplying the final product/output, can be clearly understood
with help of the following example:
i. Suppose a manufacturing process involves the use of an input A (attracting 5 per cent
GST) and input B (attracting 18 per cent GST) to manufacture output Y (attracting 12
per cent GST).
ii. The refund of accumulated ITC in the situation at (i) above, will be available under
section 54(3) of the CGST Act read with rule 89(5) of the CGST Rules, which
prescribes the formula for the maximum refund amount permissible in such situations.
iii. Further assume that the claimant supplies the output Y having value of Rs. 3,000/-
during the relevant period for which the refund is being claimed. Therefore, the turnover
of inverted rated supply of goods and services will be Rs. 3,000/-. Since the claimant
has no other outward supplies, his adjusted total turnover will also be Rs. 3,000/-.
iv. If we assume that Input A, having value of Rs. 500/- and Input B, having value of Rs.
2,000/-, have been purchased in the relevant period for the manufacture of Y, then Net
ITC shall be equal to Rs. 385/- (Rs. 25/- and Rs. 360/- on Input A and Input B
respectively).
v. Therefore, multiplying Net ITC by the ratio of turnover of inverted rated supply of
goods and services to the adjusted total turnover will give the figure of Rs. 385/-.
vi. From this, if we deduct the tax payable on such inverted rated supply of goods or
services, which is Rs. 360/-, we get the maximum refund amount, as per rule 89(5) of
the CGST Rules which is Rs. 25/-.
Disbursal of refund amounts after sanction:
5. Section 56 of the CGST Act clearly states that if any tax ordered to be refunded is not refunded
within 60 days of the date of receipt of application, interest at the rate of 6 per cent (notified vide
notification No. 13/2017-Central Tax dated 28.06.2017) on the refund amount starting from the date
immediately after the expiry of sixty days from the date of receipt of application (ARN) till the date of
refund of such tax shall have to be paid to the claimant. It may be noted that any tax shall be considered
to have been refunded only when the amount has been credited to the bank account of the claimant.
Therefore, interest will be calculated starting from the date immediately after the expiry of sixty days
from the date of receipt of the application till the date on which the amount is credited to the bank
account of the claimant. Accordingly, all tax authorities are advised to issue the final sanction orders in
FORM GST RFD-06 within 45 days of the date of generation of ARN, so that the disbursement is
completed within 60 days by both Central and State Tax Authorities for CGST / IGST / UTGST /
Compensation Cess and SGST respectively.

Refund applications that have been generated on the portal but not physically received in the
jurisdictional tax offices:

6. There are a large number of applications for refund in FORM GST RFD-01A which have been
generated on the common portal but have not yet been physically received in the jurisdictional tax
offices. With the implementation of electronic submission of refund application, as detailed in para 2
above, this problem is expected to reduce. However, for the applications (except those relating to refund
of excess balance in the electronic cash ledger) which have been generated on the common portal before
the issuance of this Circular and which have not yet been physically received in the jurisdictional offices
(list of all applications pertaining to a particular jurisdictional office which have been generated on the
common portal, if not already available, may be obtained from DG-Systems), the following guidelines
are laid down:
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a) All refund applications in which the amount claimed is less than the statutory limit of Rs. 1,000/-
should be rejected and the amount re-credited to the electronic credit ledger of the applicant
through the issuance of FORM GST RFD-01B.
b) For all applications wherein an amount greater than Rs. 1000/- has been claimed, a list of
applications which have not been received in the jurisdictional tax office within a period of 60
days starting from the date of generation of ARN may be compiled. A communication may be
sent to all such claimants on their registered email ids, informing that the application needs to
be physical submitted to the jurisdictional tax office within 15 days of the date of the email. The
contact details and the address of the jurisdictional officer may also be provided in the said
communication. The claimant may be further informed that if he/she fails to physically submit
the application within 15 days of the date of the email, the application shall be summarily
rejected and the debited amount, if any, shall be re-credited to the electronic credit ledger.
7. For the applications generated on the common portal before the issuance of this Circular in
relation to refund of excess balance from the electronic cash ledger which have not yet been received in
the jurisdictional office, the amount debited in the electronic cash ledger in such applications may be re-
credited through FORM GST RFD-01B provided that there are no liabilities in the electronic liability
register. The said amount shall be re-credited even though the return in FORM GSTR-3B, as the case
may be for the relevant period has not been filed.
8. For the refund applications generated on the common portal after the issuance of this Circular,
and for the refund applications generated on the common portal before the issuance of this Circular and
which have been physically received in the jurisdictional tax offices before the issuance of this Circular,
the existing guidelines, as modified by this Circular may be followed.
Issues related to refund of accumulated Input Tax Credit of Compensation Cess:

9. Several representations have been received requesting clarifications on certain issues related to
refund of accumulated input tax credit of compensation cess on account of zero-rated supplies made
under Bond/Letter of Undertaking. These issues have been examined and are clarified as below:
a) Issue: A registered person uses inputs on which compensation cess is leviable (E.g. coal) to
export goods on which there is no levy of compensation cess (E.g. aluminum). For the period
July, 2017 to May, 2018, no ITC is availed of the compensation cess paid on the inputs received
during this period. ITC is only availed of the CGST, SGST/UTGST or IGST charged on the
invoices for these inputs. This ITC is utilized for payment of IGST on export of goods. Vide
Circular No. 45/19/2018-GST dated 30.05.2018, it was clarified that refund of accumulated ITC
of compensation cess on account of zero-rated supplies made under Bond/Letter of Undertaking
is available even if the exported product is not subject to levy of cess. After the issuance of this
Circular, the registered person decides to start exporting under bond/LUT without payment of
tax. He also decides to avail (through the return in FORM GSTR-3B) the ITC of compensation
cess, paid on the inputs used in the months of July, 2017 to May, 2018, in the month of July,
2018. The registered person then goes on to file a refund claim for ITC accumulated on account
of exports for the month of July, 2018 and includes the said accumulated ITC for the month of
July, 2018. How should the amount of compensation cess to be refunded be calculated?
Clarification: In the instant case, refund on account of compensation cess is to be recomputed
as if the same was available in the respective months in which the refund of unutilized credit of
CGST/SGST/UTGST/IGST was claimed on account of exports made under LUT/Bond. If the
aggregate of these recomputed amounts of refund of compensation cess is less than or equal to
the eligible refund of compensation cess calculated in respect of the month in which the same
has actually been claimed, then the aggregate of the recomputed refund of compensation cess
of the respective months would be admissible. Further, the recomputed amount of eligible
refund (of compensation cess) in respect of past periods, as aforesaid, would not be admissible
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in respect of consignments exported on payment of IGST. This process would be applicable for
application for refund of compensation cess (not claimed earlier) in respect of the past period.
b) Issue: A registered person uses coal for the captive generation of electricity which is further
used for the manufacture of goods (say aluminium) which are exported under Bond/Letter of
Undertaking without payment of duty. Refund claim is filed for accumulated Input Tax Credit
of compensation cess paid on coal. Can the said refund claim be rejected on the ground that coal
is used for the generation of electricity which is an intermediate product and not the final product
which is exported and since electricity is exempt from GST, the ITC of the tax paid on coal for
generation of electricity is not available?
Clarification: There is no distinction between intermediate goods or services and final goods
or services under GST. Inputs have been clearly defined to include any goods other than capital
goods used or intended to be used by a supplier in the course or furtherance of business. Since
coal is an input used in the production of aluminium, albeit indirectly through the captive
generation of electricity, which is directly connected with the business of the registered person,
input tax credit in relation to the same cannot be denied.
c) Issue: A registered person avails ITC of compensation cess (say, of Rs. 100/-) paid on purchases
of coal every month. At the same time, he reverses a certain proportion (say, half i.e. Rs. 50/-)
of the ITC of compensation cess so availed on purchases of coal which are used in making zero
rated outward supplies. Both these details are entered in the FORM GSTR-3B filed for the
month as a result of which an amount of Rs. 50/- only is credited in the electronic credit ledger.
The reversed amount (Rs. 50/-) is then shown as a 'cost' in the books of accounts of the registered
person. However, the registered person declares Rs. 100/- as 'Net ITC' and uses the same in
calculating the maximum refund amount which works out to be Rs. 50/- (assuming that export
turnover is half of total turnover). Since both the balance in the electronic credit ledger at the
end of the tax period for which the claim of refund is being filed and the balance in the electronic
credit ledger at the time of filing the refund claim is Rs. 50/- (assuming that no other
debits/credits have happened), the system will proceed to debit Rs. 50/- from the ledger as the
claimed refund amount. The question is whether the proper officer should sanction Rs. 50/- as
the refund amount or Rs. 25/- (i.e. half of the ITC availed after adjusting for reversals)?
Clarification: ITC which is reversed cannot be held to have been 'availed' in the relevant period.
Therefore, the same cannot be part of refund of unutilized ITC on account of zero-rated supplies.
Moreover, the reversed ITC has been accounted as a cost which would have reduced the income
tax liability of the claimant. Therefore, the same amount cannot, at the same time, be refunded
to him/her in the ratio of export turnover to total turnover. However, if the said reversed amount
is again availed in a later tax period, subject to the restriction under section 16(4) of the CGST
Act, it can be refunded in the ratio of export turnover to total turnover in that tax period in the
same manner as detailed in para 9(a) above. This is subject to the restriction that the accounting
entry showing the said ITC as cost is also reversed.

Non-consideration of ITC of GST paid on invoices of earlier tax period availed in subsequent tax
period:

10. Presently, ITC is reflected in the electronic credit ledger on the basis of the amount of the ITC
availed on self declaration basis in FORM GSTR-3B for a particular tax period. It may happen that the
goods purchased against a particular tax invoice issued in a particular month, say August 2017, may be
declared in the FORM GSTR-3B filed for a subsequent month, say September 2017. This is inevitable
in cases where the supplier raises an invoice, say in August, 2017, and the goods reach the recipient’s
premises in September, 2017. Since GST law mandates that ITC can be availed only after the goods are
received, the recipient can only avail the ITC on such goods in the FORM GSTR-3B filed for the month
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of September, 2017. However, it has been observed that field officers are excluding such invoices from
the calculation of refund of unutilized ITC filed for the month of September, 2017.

11. In this regard, it is clarified that ‘Net ITC’ as defined in rule 89(4) of the CGST Rules means
input tax credit availed on inputs and input services during the relevant period. Relevant period means
the period for which the refund claim has been filed. Input tax credit can be said to have been ‘availed’
when it is entered into the electronic credit ledger of the registered person. Under the current
dispensation, this happens when the said taxable person files his/her monthly return in FORM GSTR-
3B. Further, section 16(4) of the CGST Act stipulates that ITC may be claimed on or before the due date
of filing of the return for the month of September following the financial year to which the invoice
pertains or the date of filing of annual return, whichever is earlier. Therefore, the input tax credit of
invoices issued in August, 2017, ‘availed’ in September, 2017 cannot be excluded from the calculation
of the refund amount for the month of September, 2017.
Misinterpretation of the meaning of the term “inputs”:

12. It has been represented that on certain occasions, departmental officers do not consider ITC on
stores and spares, packing materials, materials purchased for machinery repairs, printing and stationery
items, as part of Net ITC on the grounds that these are not directly consumed in the manufacturing
process and therefore, do not qualify as input. There are also instances where stores and spares charged
to revenue are considered as capital goods and therefore the ITC availed on them is not included in Net
ITC, even though the value of these goods has not been capitalized in his books of account by the
claimant.

13. In relation to the above, it is clarified that the input tax credit of the GST paid on inputs shall be
available to a registered person as long as he/she uses or intends to use such inputs for the purposes of
his/her business and there is no specific restriction on the availment of such ITC anywhere else in the
GST Act. The GST paid on inward supplies of stores and spares, packing materials etc. shall be available
as ITC as long as these inputs are used for the purpose of the business and/or for effecting taxable
supplies, including zero-rated supplies, and the ITC for such inputs is not restricted under section 17(5)
of the CGST Act. Further, capital goods have been clearly defined in section 2(19) of the CGST Act as
goods whose value has been capitalized in the books of account and which are used or intended to be
used in the course or furtherance of business. Stores and spares, the expenditure on which has been
charged as a revenue expense in the books of account, cannot be held to be capital goods.

Refund of accumulated ITC of input services and capital goods arising on account of inverted
duty structure:

14. Section 54(3) of the CGST Act provides that refund of any unutilized ITC may be claimed
where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax
on output supplies (other than nil rated or fully exempt supplies). Further, section 2(59) of the CGST
Act defines inputs as any goods other than capital goods used or intended to be used by a supplier in
the course or furtherance of business. Thus, inputs do not include services or capital goods. Therefore,
clearly, the intent of the law is not to allow refund of tax paid on input services or capital goods as part
of refund of unutilized input tax credit. Accordingly, in order to align the CGST Rules with the CGST
Act, notification No. 26/2018-Central Tax dated 13.06.2018 was issued wherein it was stated that the
term Net ITC, as used in the formula for calculating the maximum refund amount under rule 89(5) of
the CGST Rules, shall mean input tax credit availed on inputs during the relevant period other than the
input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both. In view of the
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above, it is clarified that both the law and the related rules clearly prevent the refund of tax paid on input
services and capital goods as part of refund of input tax credit accumulated on account of inverted duty
structure.

15. All previous Circulars/Instructions issued on the subject stand modified accordingly. It is
requested that suitable trade notices may be issued to publicize the contents of this circular.

16. Difficulty, if any, in implementation of this Circular may please be brought to the notice of the
Board. Hindi version would follow.

Commissioner (GST)

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Agenda Item 7(xii): Clarification on export of services under GST
Representations have been received seeking clarification on certain issues related to export of
services under the GST laws wherein an exporter of services outsources a portion of the services contract
to another person located outside India and does not receive the full consideration for the outsourced
services in India.
2. The Law Committee has proposed to clarify the issues regarding taxability and availability of
export benefit by way of an example for greater clarity.
3. A draft Circular is annexed as Annexure-A to this Agenda Note clarifying the doubts being
raised on the above subject.
4. Accordingly, approval of the GST Council is sought for the issuance of the Circular. Similar
Circular would be issued by States also.

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Annexure-A
Draft Circular No. __/__/2018-GST
F. No. …/…./…../-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
***
New Delhi, Dated the December, 2018
To,
The Principal Chief Commissioners/ Chief Commissioners/Principal Commissioners/ Commissioners
of Central Tax (All)/ The Principal Directors General/ Directors General (All)

Madam/Sir,

Subject: Clarification on export of services under GST– regarding
Representations have been received seeking clarification on certain issues relating to export of
services under the GST laws. The same have been examined and the clarifications on the same are as
below:
Sl.
No.
Issue Clarification
1. In case an exporter of services
outsources a portion of the services
contract to another person located
outside India, what would be the tax
treatment of the said portion of the
contract at the hands of the exporter?
There may be instances where the full
consideration for the outsourced
services is not received by the exporter
in India.
1. Where an exporter of services located in India is
supplying certain services to a recipient located
outside India, either wholly or partly through any
other supplier of services located outside India, the
following two supplies are taking place:-
(i) Supply of services from the exporter of
services located in India to the
recipient of services located outside
India for the full contract value;
(ii) Import of services by the exporter of
services located in India from the
supplier of services located outside
India with respect to the outsourced
portion of the contract.
Thus, the total value of services as agreed to in the
contract between the exporter of services located in
India and the recipient of services located outside
India will be considered as export of services if all
the conditions laid down in section 2(6) of the
Integrated Goods and Services Tax Act, 2017
(IGST Act for short) read with section 13(2) of the
IGST Act are satisfied.
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2. It is clarified that the supplier of services located
in India would be liable to pay integrated tax on
reverse charge basis on the import of services on
that portion of services which has been provided by
the supplier located outside India to the recipient of
services located outside India. Furthermore, the
said supplier of services located in India would be
eligible for taking input tax credit of the integrated
tax so paid.

3. Thus, even if the full consideration for the
services as per the contract value is not received in
convertible foreign exchange in India due to the fact
that the recipient of services located outside India
has directly paid to the supplier of services located
outside India (for the outsourced part of the
services), that portion of the consideration shall
also be treated as receipt of consideration for export
of services in terms of section 2(6)(iv) of the IGST
Act, provided the:
(i) integrated tax has been paid by the
supplier located in India for import of
services on that portion of the services
which has been directly provided by
the supplier located outside India to the
recipient of services located outside
India; and
(ii) RBI by general instruction or by
specific approval has allowed that a
part of the consideration for such
exports can be retained outside India.

Illustration: ABC Ltd. India has received an order
for supply of services amounting to $ 5,00,000/- to
a US based client. ABC Ltd. India is unable to
supply the entire services from India and asks XYZ
Ltd. Mexico (who is not merely an establishment of
a distinct person viz. ABC Ltd. India, in accordance
with the Explanation 1 in Section 8 of the IGST
Act) to supply a part of the services (say 40% of the
total contract value). ABC Ltd. India shall be the
exporter of services for the entire value if the
invoice for the entire amount is raised by ABC Ltd.
India. The services provided by XYZ Ltd. Mexico
to the US based client shall be import of services by
ABC Ltd. India and it would be liable to pay
integrated tax on the same under reverse charge and
also be eligible to take input tax credit of the
integrated tax so paid. Further, if the provisions
contained in section 2(6) of the IGST Act are not
fulfilled with respect to the realization of
convertible foreign exchange, say only 60% of the
consideration is received in India and the remaining
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amount is directly paid by the US based client to
XYZ Ltd. Mexico, even in such a scenario, 100%
of the total contract value shall be taken as
consideration for the export of services by ABC
Ltd. India provided integrated tax on import of
services has been paid on the part of the services
provided by XYZ Ltd Mexico directly to the US
based client and RBI (by general instruction or by
specific approval) has allowed that a part of the
consideration for such exports can be retained
outside India. In other words, in such cases, the
export benefit will be available for the total
realization of convertible foreign exchange by ABC
Ltd. India and XYZ Ltd. Mexico.

Commissioner (GST)

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Agenda Item 7(xiii): Requirement of submission of invoices for processing of refund claims of
unutilised Input Tax Credit (ITC) in FORM GST RFD-01A
As per the initial conceptualization of returns and refund under GST, refund of unutilized ITC
could be given only when the inward and the outward supplies were matched (through filing of returns
in FORM GSTR-1, GSTR-1A, GSTR-2, GSTR-2A) and tax on the same was paid (through filing of
return in FORM GSTR-3 or FORM GSTR-3B). However, since system-based matching did not work
as envisaged, it was proposed to take an undertaking from the claimant as part of refund application
itself that the amount of refund would be paid back to the Government in case it was subsequently found
that the tax had not been paid on the supply as required under Section 16(2)(c) of the CGST Act/SGST
Act, 2017 or the inward and the outward supply involving the refund claim did not match (requirements
under Sections 41 and 42 of CGST/SGST Act, 2017). Accordingly, it was proposed to allow the
following refunds (both provisional and final), without matching and without excluding the amount of
provisionally accepted input tax credit:
a) Unutilised input tax credit in case of zero-rated supplies (exports and supplies to SEZs) of goods
or services or both;
b) Unutilised input tax credit in case of inverted duty structure in case of goods (including supply
of goods to merchant exporters);
c) IGST paid on zero rated supplies (exports and supplies to SEZs) of services; and
d) IGST or CGST/SGST/UTGST paid on deemed export of goods
subject to furnishing an undertaking as part of refund application itself that the amount of refund would
be paid back to the Government in case it is found subsequently that the requirement of Section 16(2)(c)
read with Section 42 (2) of the CGST/SGST Act,2017 have not been complied with. This proposal was
accepted in the 24th Meeting of the GST Council held via video-conference on 16th December, 2017
(Para 9 of the minutes of the said meeting refers).
2. Accordingly, in exercise of the powers conferred under section 168 (1) of the Central Goods
and Services Tax Act, 2017, Circular No. 24/24/2017-GST dated 21.12.2017 was issued wherein it was
clarified that since the date of furnishing of FORM GSTR 1 from July, 2017 onwards has been extended
while the dates of furnishing of FORM GSTR 2 and FORM GSTR 3 for such period are yet to be
notified, it has been decided to allow sanction of refund of provisionally accepted input tax credit at this
juncture. However, the registered persons applying for refund must give an undertaking to the effect
that the amount of refund sanctioned would be paid back to the Government with interest in case it is
found subsequently that the requirements of clause (c) of sub-section (2) of section 16 read with sub-
section (2) of sections 42 of the CGST Act, 2017 have not been complied with in respect of the amount
refunded.
3. However, after issuance of the above clarification, several representations were received
regarding the differing practices being followed in respect of verification of invoices on which the refund
of input tax credit was being claimed through FORM GST RFD-01A. In order to ensure uniformity in
implementation of the provisions relating to GST refund, it was clarified vide Circular No. 37/11/2018-
GST dated 15.03.2018 that in a completely electronic environment, the information of the recipients’
invoices would be dependent upon the suppliers’ information, thus putting an in-built check-and-balance
in the system. However, as the refund claims are being filed by the recipient in a semi-electronic
environment and is completely based on the information provided by them, it is necessary that invoices
are scrutinized.
4. It was subsequently represented by various trade bodies and businesses that the requirement to
submit all invoices on the basis of which refund of input tax credit is being claimed was proving too
cumbersome. In order to facilitate refund claimants in this aspect, it was clarified, vide Circular No.
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59/33/2018-GST dated 04.09.2018 that the refund claim shall be accompanied by a print-out of FORM
GSTR-2A of the claimant for the relevant period for which the refund is claimed. The proper officer
shall rely upon FORM GSTR-2A as an evidence of the accountal of the supply by the corresponding
supplier in relation to which the input tax credit has been availed by the claimant. It was also clarified
that in situations in which FORM GSTR-2A does not contain the details of all the invoices relating to
the input tax credit availed, possibly because the supplier’s FORM GSTR-1 was delayed or not filed,
the proper officer may call for the hard copies of such invoices if he deems it necessary for the
examination of the claim for refund. It was emphasized, in the same Circular, that the proper officer
shall not insist on the submission of an invoice (either original or duplicate) the details of which are
present in FORM GSTR-2A of the relevant period submitted by the claimant.
5. The issue was also examined in the meeting of the Law Committee held from 14th to 16th
November, 2018 where it was informed that certain State tax administrations are denying refund in
respect of those invoices which are not reflected in FORM GSTR-2A of the relevant period of the
claimant. In this regard, it is stated that there may be some invoices pertaining to certain inward supplies
on which Input Tax Credit (ITC) has been availed by the claimant, on self-declaration basis in FORM
GSTR-3B, which might not appear in FORM GSTR-2A of the relevant period because of the delay in
filing the details of outward supply in FORM GSTR-1 by the corresponding supplier. It has been
clarified vide Circular No. 59/33/2018-GST dated 04.09.2018 that self-certified copies of such invoices
may be submitted by the claimant along with the refund claim, on the basis of which the refund claim
may be processed by the jurisdictional proper officer.
6. It may be mentioned that mere appearance of invoices in FORM GSTR-2A does not ensure
that the tax on such invoices has been paid by the corresponding suppliers as wide gap has been seen in
the number of FORM GSTR-1 (based on which FORM GSTR-2A is auto-populated) and FORM
GSTR-3B (through which GST is paid) filed by suppliers as well as the output tax liability as per FORM
GSTR-1 and FORM GSTR-3B.

7. It may also be noted in this regard that the utilization of input tax credit for payment of taxes is
also currently being done without any scrutiny of the invoices on which the said input tax credit has
been availed. The refund of IGST paid on export of goods is also being disbursed without any such
scrutiny. In such a situation, imposing the requirement of scrutiny of invoices in case of refunds of
accumulated input tax credit on account of zero rated supplies or on account of inverted duty structure
might lead to differential treatment of the same input tax credit, when used towards different purposes.

8. In view of the differences between the practices being followed by the various tax authorities,
it is proposed that the GST Council may take a view on whether applications for refund of input tax
credit submitted in FORM GST RFD-01A, including all classes of refunds specified in para 1 above,
can be processed on the basis of self-certified copies of invoices submitted by the claimant in case the
invoices do not appear in FORM GSTR-2A of the relevant period or refund would be allowed only to
the extent of those invoices which appear in FORM GSTR-2A.
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Agenda Item 7(xiv): Proposal for centralized Authority for Advance Ruling and centralized
Appellate Authority for Advance Ruling under GST
I. Advance Ruling under GST: Legal Framework
Chapter XVII of the Central Goods and Services Tax Act, 2017 (hereafter referred to as the
CGST Act) contains the provisions for advance ruling under GST. An Authority for Advance Ruling
(AAR) and Appellate Authority for Advance Ruling (AAAR) have been constituted in every State under
the provisions of the respective SGST Acts. According to sub-section (2) of section 97 of the CGST
Act, any registered person or a person desirous of obtaining registration can seek advance ruling in
respect of the following:
a) classification of any goods or services or both;
b) applicability of a notification issued under the provisions of this Act;
c) determination of time and value of supply of goods or services or both;
d) admissibility of input tax credit of tax paid or deemed to have been paid;
e) determination of the liability to pay tax on any goods or services or both;
f) whether applicant is required to be registered;
g) whether any particular thing done by the applicant with respect to any goods or services or both
amounts to or results in a supply of goods or services or both, within the meaning of that term.
2. The concerned officer, the jurisdictional officer or an applicant aggrieved by any advance ruling
may appeal to the AAAR. Further, the advance ruling pronounced by AAR or the AAAR shall be
binding only on the applicant who had sought it and on the concerned officer or the jurisdictional officer
in respect of the applicant.
II. Need for a Central Authority for Advance Ruling
3. It has been observed that AARs in various States are pronouncing different decisions on similar
issues involving similar facts. Conflicting decisions by AAR in different States on similar issue is
causing confusion among taxpayers as well as tax officials. To overcome these challenges, two models
of AAR are proposed, as follows:
a. MODEL - I: A Central AAR may be established with members both from Central taxes and
State taxes. The State members shall be nominated on a rotation basis. Various benches of the
Central AAR shall be established at different places across the country. The decision of the
Central AAR and its benches shall have validity throughout the territory of India wherever the
applicant is registered (on same PAN) and shall not be limited to the State where the bench of
AAR is located. This shall ensure uniformity in decisions in respect of distinct persons
registered in various States (on same PAN) engaged in the same activity and reduce confusion
among all stakeholders.
b. MODEL - II: The existing mechanism where each State has a separate AAR and AAAR may
be continued with the following additional features:

i) For the registered persons/entities having presence in more than one State but having the
same PAN and carrying out similar business activity, such registered person/entity may
approach the AAR of that State in which their head office is situated.
ii) The decision of the AAR, as discussed above at point (i), shall be binding on all such
registered persons/entities in all the States where such registered persons/entities are
located. It shall also be binding on the tax officers under whose jurisdiction such registered
persons/entities are located.
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III. Alternate Model suggested by the Trade
4. It has been observed that the benches of AAR in States have been providing conflicting rulings
on issues of similar nature. Also, AAR and AAAR have not been constituted in some States. As the
AAR consists only of tax officials, it has been represented that its decisions are based on a revenue
centric approach. Thus, it is imperative to ensure that AAR remains independent and judicious in its
approach. It has been proposed that the State level benches of AAR should work under the guidance of
a Central AAR comprising of two retired judges, chartered accountant, advocate and one officer from
the tax department. State benches of the Central AAR should also have at least one judicial member,
one accountant and one tax official.
IV. Proposal of the Law Committee
5. The Law Committee in its meeting held on 29th November and 30th November, 2018 had
proposed to continue with the existing mechanism for advance ruling in so far as the applications seeking
rulings before the Authority for Advance Ruling (AAR) is concerned.
6. However, in respect of appeals against rulings of AAR, it has been proposed to constitute a
National Bench along with various regional benches of the AAAR. The structure shall be similar to the
Appellate Tribunal, except in so far as its composition is concerned. Such regional benches of the AAAR
shall exercise jurisdiction in respect of AAR rulings emanating from the States located in the specified
region. In case the issue emanates from two or more regions, such appeals may be assigned by the
National Bench of AAAR to a particular Regional Bench. In such cases, the order of the Regional Bench
shall be binding on the applicant in respect of all his registrations all over India having the same PAN
engaged in the same activity as well as on all the respective jurisdictional authorities of the registrations
of the applicant having the same PAN.
V. Proposal for consideration
7. It is proposed to establish a centralized Authority of Advance Ruling (AAR) with regional
benches to replace the existing State-specific AARs. There would be a National Bench along with
various regional benches of the AAR. This would address the problems being faced by the taxpayers in
terms of conflicting rulings given by AAR in different States on similar issue to a large extent.
8. Further, in respect of appeals against the rulings of AAR, it is proposed to constitute a National
Bench along with various regional benches of the AAAR as proposed by the Law Committee and
detailed in para 6 above.
9. This proposal would require amendments to Chapter XVII (Advance Ruling) of the CGST Act,
2017 and the respective State GST Acts.
10. Accordingly, in-principle approval of the GST Council is sought for re-structuring the AAR and
AAAR as proposed in paragraph 7 and 8 above. Law Committee may be directed to draft the legal
provisions accordingly which may be brought before the GST Council for final approval.

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Agenda Item 7(xv): Suggestions made for allowing quarterly payment by small taxpayers
Representations have been received regarding the working capital crunch faced by small and
medium businesses owing to the requirement under GST law to deposit their GST liability every month
even when payments (especially from Government agencies) remain pending for much longer.
Accordingly, it has been suggested that such businesses may be allowed to make payments on a quarterly
basis. This suggestion has been made on the following grounds:
a) Small and medium businesses are suffering because of the requirement under GST to pay taxes on
a monthly basis. This is because the payments to these businesses are often made after 60-90 days
and in many cases (especially from Government departments) the payments are even further delayed
or not made at all. Forcing these businesses to pay taxes on a monthly basis in such a scenario leads
to a debilitating shortage of working capital.
b) The cost of capital for the Government of India (3-month bond yield) is around 6.8 per cent while
the cost of capital for small businesses for a quarter is around 15 to 18 per cent. Therefore, it makes
sense for the Government to take off at least some of the burden of the working capital shortage
from the small and medium businesses.
c) A scheme wherein both the return filing and the payment of taxes could be made by small taxpayers
on a quarterly basis would greatly mitigate this problem. At the same time, the small taxpayers
should be allowed to upload invoices continually on which the purchasers should be able to take
input tax credit, even if the payment of taxes is made at the end of the quarter.
2. In this regard, it is submitted that under the new return model (approved by the GST Council)
monthly payment is to be done by small taxpayers after self-assessing both the input tax credit and the
outward tax liability for that month. It is to be done through an extremely simple form which does not
require any other details apart from the self-assessed input tax credit and the outward tax payable.
Notwithstanding this facility in the new return model, it has been represented that small taxpayers must
be given the facility to make quarterly payment along with quarterly return filing.
3. The GST Council, while discussing this issue earlier, had agreed to allow quarterly filing for
small taxpayers but did not agree to allow quarterly payment. This issue was also placed before the Law
Committee for its consideration in its meeting held on 30.11.2018. The Law Committee discussed the
issue in depth and concluded that there would arise the following difficulties in agreeing to the proposal
of quarterly payment by small taxpayers:
a) It would adversely affect the liquidity position of the States, particularly the smaller States
through:
i. Lower SGST cash collections, and
ii. Lower IGST settlement
b) It is liable to be misused
4. Accordingly, the matter is now placed before the GST Council for taking a view on the matter
i.e. whether the taxpayers having turnover upto Rs. 5 crore may be allowed to pay tax on quarterly basis
while the buyers from them should be allowed to take input tax credit at the time of purchases i.e. even
before the tax is due to be paid by the supplier.

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Agenda Item 7(xvi): Issuance of a Circular to clarify taxability of medicines and consumables
supplied to in-patients in hospitals during the course of treatment
Representations have been received seeking clarification on certain issues related to the
taxability of medicines and consumables supplied to in-patients in hospitals during the course of
treatment. This issue was placed before the GST Implementation Committee (GIC) in its 22nd meeting
held on 10.10.2018 wherein it was decided to refer the matter back to the Law Committee for detailed
examination and thereafter, place the same before the GST Council.
2. Accordingly, the issue was discussed by the Law Committee in its meeting held on 29th and 30th
November, 2018.
3. A draft Circular is annexed as Annexure-A to this Agenda Note clarifying the doubts being
raised on the above subject.

4. Accordingly, approval of the GST Council is sought for the issuance of the Circular. Similar
Circular would be issued by States also.

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ANNEXURE A
Circular No. / /2018-GST
F. No. 349/43/2017-GST (Vol. I)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
***

New Delhi, Dated the December, 2018
To,
The Principal Chief Commissioners/ Chief Commissioners/Principal Commissioners/ Commissioners
of Central Tax (All) / The Principal Directors General/ Directors General (All)

Madam/Sir,
Subject: Circular to clarify taxability of medicines, consumables and implants supplied to in-
patients in hospitals during the course of medical treatment – Reg.
During the course of medical treatment of in-patients in the hospitals, various medicines,
consumables and implants are utilized. Doubts have been raised on the issue of taxability of medicines
and consumables, etc. supplied to in-patients in the hospitals during the course of medical treatment.
The supply of health care services classifiable under chapter heading 9993 are exempt from GST vide
Sl. No. 74 of notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017 as amended. Whereas,
some of these items are billed to the in-patients at MRP (Maximum Retail Price) which is inclusive of
all taxes, the patients are being charged separately for various items where component-wise break-up is
shown in the invoice. At times, the hospitals may offer a package deal where the invoice issued to the
patients mentions only the total package cost which is inclusive of the price of the medicines,
consumables and implants without a detailed break-up of the individual components. Even in this case,
hospitals have component-wise break-up available with them and the same is maintained by them for
their accounting purposes.
2. In this regard, it is noted that the supply of health care services and the supply of medicines,
consumables and implants to the in-patients appear to be two separate supplies. The in-patients are
charged separately for the supply of medicines, consumables and implants. Even in those cases where a
package deal is offered and where the invoice mentions only the total package cost, the break-up of the
individual components is very much available with the hospitals since the total package cost can be
arrived at only after adding the cost of the individual items viz., medicines, consumables and implants
which have been supplied to the in-patients.
3. Further, the Government declares the ceiling price for essential and life-saving medicines by
issuing Drug Pricing Control Order (DPCO for short) from time to time. The maximum retail price for
such drugs is fixed on the basis of a ceiling price plus local taxes, as applicable which are required to be
adhered to even by the hospitals. As per the provisions of the Drugs and Cosmetics Act, 1940, hospitals
are categorized as retailers since they are engaged in retail sale of drugs, medicines and medical devices.
It may be noted that the in-house pharmacies of these hospitals are already paying GST on the sale of
medicines, consumables and implants to the out-patients because the over-the-counter sale of such items
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is a taxable supply of goods under GST. It is seen that even in those cases where the pharmacy supplies
items to the in-patients during the course of medical treatment, it has to comply with the provisions of
DPCO and the Drugs and Cosmetics Act, 1940 referred to above which mandates maintenance of a
separate cash or credit memo of every item-wise sale or supply of medicines and consumables by the
pharmacy. Thus, the hospitals maintain break-up of the values of the medicines, consumables and
implants separately even in case of package deal but do not show it separately on the invoices issued to
the in-patients.
4. Since the value of health care services and the medicines, consumables and implants, etc.
supplied to the in-patients is known separately, therefore, such supply of medicines, consumables and
implants and health-care services does not constitute a composite supply as defined in section 2(30) of
the Central Goods and Services Tax Act, 2017 (CGST Act for short). It is important to note that supply
of two or more ‘taxable’ supplies only can be regarded as a composite supply in terms of section 2(30)
of the CGST Act. It is an admitted fact that the supply of health care services has already been exempted
vide Sl. No. 74 of notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017 as amended. The
said notification has been issued in exercise of the powers conferred by sub-section (1) of section 11 of
the CGST Act. Since health care services qualify to be an exempt supply in terms of section 2(47) of
the CGST Act, thus the supply of health care services (which is a exempted supply) and supply of the
medicines, consumables and implants, etc. (for which there is no exemption and hence, a taxable supply)
do not satisfy the definition of composite supply as defined in section 2(30) of the CGST Act.
5. Further, it is stated that the medicines, consumables and implants are billed to the in-patients at
MRP (Maximum Retail Price) which is inclusive of all taxes. As MRP is inclusive of GST, it appears
that the hospitals have collected GST from the in-patients, and thus, are required to deposit the same to
the Government as per the provisions of section 76 of the CGST Act.
6. It has also been noted that the sale of medicines, consumables and implants, etc. both to in-
patients and out-patients was subject to payment of VAT in accordance with the provisions contained
in DPCO and the Drugs and Cosmetics Act, 1940.
7. In a similar context, the Board, with the approval of the GST Council, has already clarified vide
Circular No. 47/21/2018-GST dated 08th June, 2018 that in case of servicing of cars involving both
supply of goods (spare parts) and services (labour), where the value of goods and services are shown
separately, the goods and services would be liable to tax at the rates as applicable to such goods and
services separately.
8. In the light of the above, it is clarified that in cases where hospitals are billing certain items such
as medicines, consumables and implants separately to the in-patients, they shall be liable to pay GST on
the supply of such items to the in-patients. It is further clarified that even in the case of package deals
where the detailed break-up of such items is not mentioned in the invoice, since the hospitals are required
to comply with the provisions of DPCO and the Drugs and Cosmetics Act, 1940 and maintain / show
the break-up of the cost of such items in their accounts, they shall be liable to pay GST accordingly.
However, there would be no liability to pay GST on the supply of health care services which is exempted
vide Sl. No. 74 of notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017 as amended.
9. Since the hospitals would be engaged in the supply of both exempt and taxable supply, the
hospitals would be eligible to avail input tax credit on the inward supply of capital goods, inputs and
input services to them which are used or intended to be used in the course or furtherance of their business
in accordance with the provisions contained in Chapter V of the CGST Act read with Chapter V of the
Central Goods and Services Tax Rules, 2017.
10. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
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11. Difficulty if any, in the implementation of this Circular may be brought to the notice of the
Board. Hindi version will follow.

(Commissioner (GST)

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Agenda Item 7(xvii): Amendments to the CGST Rules, 2017, consequential to notifying the
provisions of the CGST (Amendment) Act, 2018, SGST (Amendment) Act, 2018 and IGST
(Amendment) Act, 2018
It may be recalled that the CGST (Amendment) Act, 2018 (31 of 2108) (hereinafter referred to
as the “CGST Amendment Act”) and the IGST (Amendment) Act, 2018 (32 of 2108) (hereinafter
referred to as the “IGST Amendment Act”) had received the assent of the Hon’ble President of India
on the 29th August, 2018, and published in the Gazette of India, Extraordinary, Part II on 30th August,
2018. The Law Committee, in its meeting held from 29th October to 31st October, 2018 had proposed
various changes in the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the CGST
Rules) consequential to such amendments. These may be notified once the provisions of the CGST
(Amendment) Act, 2018; SGST (Amendment) Act, 2018 and IGST (Amendment) Act, 2018 are brought
into force. The proposed amendments are summarized in the below Table and detailed in a point-wise
manner below:
Sl.
No.
Amendment in CGST Act, 2017
(section)
Consequential amendment in Rules and
FORMS
1 10 Amendment in heading of Chapter-II
2 10 Amendment in Rule 7 and FORM GSTR-4
3 25 Amendment in Rule 8(1)
4 2(18), 25 Amendment in Rule 11
5 29 Insertion of Rule 21A
6 25 Insertion of Rule 41A
7 20, 54 of the CGST Act, 2017 & 2(6) of
the IGST Act, 2017
Amendment to Rule 42 and 43
8 34 Insertion of sub-rule (1A) in rule 53
9 35 Amendment to sub-rule (3) of rule 80
10 Renaming of CBEC to CBIC vide Finance
Act, 2018
Amendment to clause (a) of sub-rule (1) of rule
83
11 48 Amendment to sub-rule (8) of rule 83
12 Insertion of 49A and 49B Amendment to Rule 85
13 Insertion of 49A and 49B Amendment to Rule 86
14
Sub-section (8) of section 54
Amendment to clause (f) of sub-rule (2) of rule
89
15 54 of the CGST Act, 2017 & 2(6) of IGST
Act, 2017
Amendment to Rule 96A
16 2(18) Amendment to FORM GST REG-01
17
29
Amendments to FORM GST REG-17 and
FORM GST REG-20
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18 25 Insertion of FORM GST ITC-02A
19 48 Amendments to FORM GST PCT-05
20 107 Amendments to FORM GST APL-01
21 112 Amendments to FORM GST APL-05

1. Changes in heading of Chapter-II: It has been proposed that the heading of Chapter-II of the
CGST Rules may be amended as Composition Rules Levy i.e. the word “Rules” may be amended
as the word “Levy”.

2. Changes in Rule 7 and FORM GSTR-4: On account of changes in section 10 vide CGST
(Amendment) Act 2018 so as to allow composition taxpayer to supply services of value not
exceeding ten per cent. of turnover in a State or Union Territory in the preceding financial year or
five lakh rupees, whichever is higher, it is proposed that in column (3) “Rate of Tax”, in sl. no. (3)
of the Table appended to rule 7, shall be amended so as to read as “half per cent. of the turnover of
taxable supplies of goods and services in the State or Union territory.”. Further, Table 6 and Table
7 of FORM GSTR-4 shall be amended to include the turnover of services, as follows:
FORM GSTR-4
6. Tax on outward supplies made (Net of advance and goods returned)
Rate of tax Total
Turnover
Out of turnover reported
in (2), turnover of
services
Composition tax amount
Central
Tax
State/UT Tax
1 2 3 4 5

7. Amendments to Outward Supply details furnished in returns for earlier tax periods
in Table No. 6
Quart
er
Rat
e
Original details Revised details
Total
Turno
ver
Out of
turnov
er
report
ed in
(3),
turnov
er of
servic
es
Centr
al
Tax
State/
UT
Tax
Total
Turno
ver
Out of
turnov
er
report
ed in
(7),
turnov
er of
servic
es
Centr
al
Tax
State/
UT
Tax
1 2 3 4 5 6 7 8 9 10

3. Amendment to Rule 8(1): 2nd proviso to section 25(1) inserted vide CGST (Amendment) Act,
2018 provides for compulsory separate registration of a SEZ Unit or SEZ developer. Since this
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requirement flows from the Act now, the first proviso to rule 8 requiring a SEZ unit/SEZ developer
to obtain separate registration for units located outside the SEZ is not relevant anymore.
Accordingly, rule 8 (1) of the CGST Rules is proposed to be amended as below:
Rule 8(1)
Provided that a person having a unit(s) in a Special Economic Zone or being a
Special Economic Zone developer shall make a separate application for
registration as a business vertical distinct from his other units located outside
the Special Economic Zone:

Provided further that every person being an Input Service Distributor shall make
a separate application for registration as such Input Service Distributor.

4. Amendment to Rule 11: As the concept of “business vertical” has been omitted and provision for
granting a separate registration for multiple places of business in a State / Union Territory inserted
vide proviso to section 25(2) of the CGST (Amendment) Act, 2018, it is proposed to substitute the
words “business verticals” with “places of business”. Accordingly, the following changes to rule
11 of the CGST Rules are proposed:
Rule 11
Separate registration for multiple business verticals places of business within
a State or a Union territory.-(1) Any person having multiple business verticals
places of business within a State or a Union territory, requiring a separate
registration for any such place of business of its business verticals under
subsection (2) of section 25 shall be granted separate registration in respect of
each such place of business of the verticals subject to the following conditions,
namely:-
(a) such person has more than one business vertical place of business as
defined in clause (85) of section 2 as defined in clause (18) of section 2;
(b) the business vertical of a taxable person shall not be granted
registration to pay tax under section 10 if any one of the other business
verticals of the same person is paying tax under section 9 such person
shall not be granted registration to pay tax under section 10 for any of
his places of business if he is paying tax under section 9 for any other
place of business;
(c) all separately registered business verticals places of business of such
person shall pay tax under the Act on supply of goods or services or both
made to another registered business vertical places of business of such
person and issue a tax invoice or a bill of supply, as the case may be, for
such supply.
Explanation.- For the purposes of clause (b), it is hereby clarified that where any
business vertical place of business of a registered person that has been granted a
separate registration becomes ineligible to pay tax under section 10, all other
business verticals registered places of business of the said person shall become
ineligible to pay tax under the said section.
(2) A registered person eligible opting to obtain separate registration for business
verticals a place of business may shall submit a separate application in FORM
GST REG-01 in respect of each such vertical place of business.
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5. Insertion of Rule 21A: There may be time lag between the filing of application for cancellation
of registration by taxpayer and issuance of order of cancellation by the proper officer. During this
period, taxpayer has to comply with various provisions of the Act such as timely filing of returns.
Therefore, in order to facilitate taxpayers and to reduce compliance burden while the process of
cancellation is underway, a provision of “deemed suspension” has been introduced vide section
29(1) and 29(2) of the CGST (Amendment) Act, 2018 wherein the registration shall be deemed to
be suspended from the date of submission of application for cancellation of registration by the
taxpayer. Accordingly, the following rule 21A is proposed to be inserted in the CGST Rules:

6. Insertion of rule 41A after rule 41: If a registered person obtains separate registration for multiple
places of business within a State/Union Territory in terms of section 25(2) of the CGST
(Amendment) Act, 2018, there needs to be a provision for apportionment of unutilized ITC
available with the unit already registered as a single unit in a State / Union Territory between the
newly registered units. Therefore, it is proposed to insert rule 41A in the CGST Rules, as below:

Rule 41A
“Rule 41A. Transfer of Credit on obtaining separate registration for multiple
places of business within a State or a Union territory.-
(1) A registered person who has obtained separate registration for multiple
places of business in accordance with the provisions of rule 11 and who intends
to transfer, either wholly or partly, the unutilized input tax credit lying in his
electronic credit ledger to any or all of the newly registered entities, shall furnish
within a period of thirty days from obtaining such registrations, the details in
FORM GST ITC-02A electronically on the common portal, either directly or
through a Facilitation Centre notified in this behalf by the Commissioner:

Provided that input tax credit shall be transferred to the newly registered entities
in the ratio of the value of assets held by them at the time of registration.
Rule 21A
“Rule 21A. Suspension of registration.- (1) Where a registered person has applied for
cancellation of registration under rule 20, the registration shall be deemed to be
suspended from the date of submission of the application or the date from which the
cancellation is sought, whichever is later, pending the completion of proceedings for
cancellation of registration under rule 22.
(2) Where the proper officer has reasons to believe that the registration of a person is
liable to be cancelled under section 29 or under rule 21, he may, after affording the said
person a reasonable opportunity of being heard, suspend the registration of such person
with effect from a date to be determined by him, pending the completion of the
proceedings for cancellation of registration under rule 22.
(3) A registered person, whose registration has been suspended under sub-rule (1) or
sub-rule (2), shall not make any taxable supply during the period of suspension and shall
not be required to furnish any return under section 39 or the statement under section 52.
(4) The suspension of registration under sub-rule (1) or sub-rule (2) shall be deemed to
be revoked upon completion of the proceedings by the proper officer under rule 22 and
such revocation shall be effective from the date on which the suspension had come into
effect.”
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Explanation.- For the purposes of this clause, it is hereby clarified that the
‘value of assets’ means the ‘value of entire assets of the business whether or not
input tax credit has been availed thereon.’
(2) The transferee shall, on the common portal, accept the details so furnished
by the transferor and, upon such acceptance, the unutilized credit specified in
FORM GST ITC-02A shall be credited to his electronic credit ledger.”

7. Amendment to rule 42 and rule 43: Entry 92A of the Union List of the Seventh Schedule is
“Central Sales Tax”. Consequent to the addition of “Entry 92A” in clause (c) of the Explanation to
section 20 vide CGST (Amendment) Act, 2018 , the term “turnover” shall exclude any duty or tax
levied under Entry 92A. Further section 2(6) has been amended vide IGST (Amendment) Act, 2018
so as to provide that the supply of service would be treated as export of services if the payment for
the said services has been received even in indian rupees whereever permitted by the RBI. In
consonance with the said changes vide CGST (Amendment) Act, 2018 and the IGST (Amendment)
Act, 2018 it is proposed to amend the Explanation to rules 42 and 43 of the CGST Rules, as follows:
Explanation to sub-clause (i) of sub-rule (1) of rule 42 may be amended as follows:
“Explanation: For the purposes of this clause, it is hereby clarified that the
aggregate value of exempt supplies and the total turnover shall exclude the
amount of any duty or tax levied under entry 84 and 92A of List I of the Seventh
Schedule to the Constitution and entry 51 and 54 of List II of the said Schedule;”
Explanation to sub-clause (g) of sub-rule (1) of rule 43 may be amended as follows:
“Explanation.- For the purposes of this clause, it is hereby clarified that the
aggregate value of exempt supplies and the total turnover shall exclude the
amount of any duty or tax levied under entry 84 and 92A of List I of the Seventh
Schedule to the Constitution and entry 51 and 54 of List II of the said Schedule;”
Explanation (a) sub-rule (2) of rule 43 may be omitted :
For the purposes of rule 42 and this rule, it is hereby clarified that the aggregate
value of exempt supplies shall exclude: -
(a) the value of supply of services specified in the notification of the Government
of India in the Ministry of Finance, Department of Revenue No. 42/2017-
IntegratedTax (Rate), dated the 27th October, 2017 published in the Gazette of
India, Extraordinary, Part II, Section 3, Sub-section (i), vide number GSR
1338(E) dated the 27th October, 2017; omitted
(b) the value of services by way of accepting deposits, ……
(c) the value of supply of services............

8. Insertion of sub-rule (1A) in rule 53: Presently, a revised tax invoice referred to in section 31 and
credit/debit notes referred to in section 34 are required to contain particulars as stated in rule 53(1)
of the CGST Rules. As section 34 (1) & Section 34(3) of the CGST Act, 2017 have been amended
to provide for issuance of credit and debit note for more than one tax invoice also, it is suggested
to insert a new sub-rule exclusively for credit and debit note. The existing sub-rule (1) of rule 53
of the CGST Rules will remain for revised invoice only and rule 53 of the CGST Rules would be
accordingly amended. Accordingly, rule 53(1) of the CGST Rules is proposed to be amended and
in rule 53 of the CGST Rules, after sub-rule (1), the following sub-rule is proposed to be inserted,
namely:
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Rule 53(1A)
(1) A revised tax invoice referred to in section 31 and credit or debit notes
referred to in section 34 shall contain the following particulars, namely,-
(a)……
(b)……
.“(1A) A credit or debit note referred to in section 34 shall contain the following
particulars, namely, -
(a) name, address and Goods and Services Tax Identification Number of the
supplier;
(b) nature of the document;
(c) a consecutive serial number not exceeding sixteen characters, in one or
multiple series, containing alphabets or numerals or special characters-hyphen
or dash and slash symbolised as “-” and “/” respectively, and any combination
thereof, unique for a financial year;
(d) date of issue of the document;
(e) name, address and Goods and Services Tax Identification Number or
Unique Identity Number, if registered, of the recipient;
(f) name and address of the recipient and the address of delivery, along with
the name of State and its code, if such recipient is un-registered;
(g) serial number(s) and date(s) of the corresponding tax invoice(s) or, as
the case may be, bill(s) of supply;
(h) value of taxable supply of goods or services, rate of tax and the amount
of the tax credited or, as the case may be, debited to the recipient; and
(i) signature or digital signature of the supplier or his authorised
representative.”

9. Amendment to sub-rule (3) of rule 80: On account of change in section 35(5) vide CGST
(Amendment) Act, 2018, rule 80(3) of the CGST Rules is required to be amended to exclude “any
Department of the Central Government or a State Government or a local authority, whose books of
account are subject to audit by the Comptroller and Auditor-General of India or an auditor
appointed for auditing the accounts of local authorities under any law for the time being in force.”
Accordingly, rule 80(3) of the CGST Rules is proposed to be amended as follows:
Rule 80(3)
“Every registered person, other than those referred to in the proviso to sub-section (5) of
section 35, whose aggregate turnover during a financial year exceeds two crore rupees
shall get his accounts audited as specified under sub-section (5) of section 35 and he shall
furnish a copy of audited annual accounts and a reconciliation statement, duly certified,
in FORM GSTR-9C, electronically through the common portal either directly or through
a Facilitation Centre notified by the Commissioner.”

10. Amendment to clause (a) of sub-rule (1) of rule 83: CBEC as defined in section 2(16) has been
renamed as CBIC vide the Finance Act, 2016. Accordingly Rule 83(1)(a) of the CGST Rules is
proposed to be amended as follows:
Rule 83(1)(a)
“that he is a retired officer of the Commercial Tax Department of any State Government
or of the Central Board of Excise Indirect Taxes and Customs, Department of Revenue,
Government of India, who, during his service under the Government, had worked in a
post not lower than the rank of a Group-B gazetted officer for a period of not less than
two years”

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11. Amendment to sub-rule (8) of rule 83: Section 48(2) has been amended vide CGST
(Amendment) Act, 2018 so as to provide that GST practitioner may now perform such other
functions as may be prescribed. Accordingly Rule 83(8) of the CGST Rules is proposed to be
amended as follows:
Rule 83(8)
Rule 83 (8) A goods and services tax practitioner can undertake any or all of
the following activities on behalf of a registered person, if so authorised by him
to-
(a) furnish the details of outward and inward supplies;
(b) furnish monthly, quarterly, annual or final return;
(c) make deposit for credit into the electronic cash ledger;
(d) file a claim for refund; and
(e) file an application for amendment or cancellation of registration:;
(f) furnish information for generation of e-way bill;
(g) furnish details of challan in FORM GST ITC-04;
(h) file an application for amendment or cancellation of enrolment under rule
58; and
(i) file an intimation to pay tax under the composition scheme or withdraw
from the said scheme:
Provided that where any application relating to a claim for refund or an application for
amendment or cancellation of registration or where an intimation to pay tax under
composition scheme or to withdraw from such scheme has been submitted by the goods
and services tax practitioner authorised by the registered person, a confirmation shall be
sought from the registered person and the application submitted by the said practitioner
shall be made available to the registered person on the common portal and such
application shall not be proceeded with further until the registered person gives his
consent to the same.

12. Amendment to rule 85:- Consequent to the insertion of section 49A and 49B vide CGST
(Amendment) Act, 2018 which stipulate the conditions for utilization of ITC and order of utilization
of ITC respectively, it is proposed that debit from the Electronic Liability Register should also be
subjected to the provisions of these two sections. Accordingly, sub-rule (3) of rule 85 of the CGST
Rules is proposed to be amended, as below:
Rule 85(3)
(3) Subject to the provisions of section 49, section 49A and section 49B, payment of
every liability by a registered person as per his return shall be made by debiting the
electronic credit ledger maintained as per rule 86 or the electronic cash ledger maintained
as per rule 87 and the electronic liability register shall be credited accordingly.

13. Amendment to rule 86: Consequent to the insertion of section 49A and 49B vide CGST
(Amendment) Act, 2018 that stipulate the conditions for utilization of ITC and order of utilization
of ITC respectively, it is proposed that debit from Electronic Credit Ledger should also be subjected
to the provisions of these two sections. Accordingly, the following amendments are proposed in
rule 86 (2) of the CGST Rules:
Rule 86 (2)
(2) The electronic credit ledger shall be debited to the extent of discharge of any liability
in accordance with the provisions of section 49 or section 49A or section 49B.
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14. Amendment to Rule 89
14.1 According to the provisions of clause (f) of the sub-rule (2) of rule 89 of the CGST
Rules, it is not clear whether SEZ unit or the supplier to SEZ has to submit the declaration
regarding non-availment of ITC of the tax paid by the supplier. It may be clearly specified that
the SEZ unit or SEZ developer has to submit the declaration. Accordingly, the proposed
amendment to clause (f) of the sub-rule (2) of rule 89 of the CGST Rules is detailed below:
Clause (f) of the sub-rule (2) of rule 89
(f) a declaration to the effect by the Special Economic Zone unit or the Special
Economic Zone developer to the effect that it has not availed the input tax credit of
the tax paid by the supplier of goods or services or both, in a case where the refund
is on account of supply of goods or services made to a Special Economic Zone unit
or a Special Economic Zone developer;

15. Amendment to rule 96A:
15.1 It was observed that for ease of reference, the heading of rule 96A of the CGST Rules
is required to be amended. Further, consequent to the addition of the words “or in Indian
rupees wherever permitted by RBI” in the Explanation (2)(c)(i) under section 54 vide
CGST (Amendment) Act, 2018 and section 2(6)(iv) vide IGST (Amendment) Act,
2018, it is proposed to amend Rule 96A of the CGST Rules that provides for export of
goods/services under LUT or bond.
15.2 In light of the above, the Law Committee has recommended following formulation and
amendments to rule 96A of the CGST Rules:
Rule 96A
96A. Refund of integrated tax paid on e Export of goods or services under bond or
Letter of Undertaking.
(1) Any registered person availing the option to supply goods or services for export
without payment of integrated tax shall furnish, prior to export, a bond or a Letter of
Undertaking in
FORM GST RFD-11to the jurisdictional Commissioner, binding himself to pay the
tax due along with the interest specified under sub-section (1) of section 50 within a
period of —
(a) fifteen days after the expiry of three months, or such further period as may
be allowed by the Commissioner, from the date of issue of the invoice for
export, if the goods are not exported out of India; or
(b) fifteen days after the expiry of one year, or such further period as may be
allowed by the Commissioner, from the date of issue of the invoice for
export, if the payment of such services is not received by the exporter in
convertible foreign exchange or in Indian rupees, wherever permitted by the
Reserve Bank of India.

16. Amendment to FORM GST REG-01: In view of the amendment relating to doing away with the
concept of “business vertical” vide CGST (Amendment) Act, 2018, it is proposed to substitute the
words “business verticals” with “places of business”. Accordingly, instruction 12 of the FORM
GST REG-01 is proposed to be amended, as follows:

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FORM GST REG-01
12. Any person having multiple places of business business verticals within a
State, requiring a separate registration for any of its places of business business
verticals shall need to apply separately in respect of each such place of business.

17. Amendments to FORM GST REG-17 and FORM GST REG-20: With the insertion of proviso
to sub-section (1) of section 29 and sub-section (2) of section 29 relating to suspension of
registration vide CGST (Amendment) Act, 2018, the relevant FORMS need to be amended to
provide for the administrative capability and facility of suspension in the system. Accordingly, it
is proposed to insert “Note” at the end of FORM GST REG-17 and FORM GST REG-20, as
detailed below:
FORM GST REG-17
“Note: - Your registration stands suspended with effect from ---------- (date).”
FORM GST REG-20
“Suspension of the registration stands revoked with effect from ---------- (date).”
18. Insertion of FORM GST ITC-02A: In view of the amendment doing away with the concept of
“business vertical” vide CGST (Amendment) Act, 2018, scenarios may exist wherein a taxpayer
has obtained a single registration in a State or Union Territory, but may want to avail the facility
of taking multiple registrations in the same State after coming into effect of the said amendment.
In such cases, provisions for transfer of ITC from a single GSTIN to multiple GSTINs in the same
State or Union Territory may be effected through the proposed FORM GST ITC-02A. It is
proposed to insert the said form as per details below:

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FORM GST ITC-02A
[See rule – 41A]
Declaration for transfer of ITC pursuant to registration under sub-section (2) of
section 25
1. GSTIN of transferor
2. Legal name of transferor
3. Trade name of transferor, if
any

4. GSTIN of transferee
5. Legal name of transferee
6. Trade name of transferee, if
any

7. Details of ITC to be transferred
8. Verification

I __________________________________________ hereby solemnly affirm and
declare that the information given hereinabove is true and correct to the best of my
knowledge and belief and nothing has been concealed there from.

Signature of authorized signatory _______________________________________
Name
_______________________________________
Designation/Status ____________________________
Date---dd/mm/yyyy
Instructions:
1) Transferor refers to the registered person who has a single registration in a State
or Union territory.
Transferee refers to the place of business for which a separate registration has been
obtained under rule 11.
Tax Amount of matched ITC
available
Amount of matched ITC to be transferred
1 2 3
Central
Tax
State Tax
UT Tax
Integrated
Tax

Cess
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19. Amendments to FORM GST PCT-05: Section 48 has been amended vide CGST (Amendment)
Act, 2018 so as to enable GST Practitioner to carry out few more functions. Accordingly Rule 83(8)
of the CGST Rules is proposed to be amended as per details in point no. 11 above. In the Table
appended to FORM GST PCT-05, after sl. no. 5, the following entries are proposed to be inserted:

FORM GST PCT-05
6 To furnish information for generation of e-way
bill

7 To furnish details of challan in FORM GST ITC-
04

8 To file an application for amendment or
cancellation of enrolment under rule 58

9 To file an intimation to pay tax under the
composition scheme or withdraw from the said
scheme

20. Amendments to FORM GST APL-01:- In view of the amendment to sub-section (6) of
section 107 vide CGST (Amendment) Act, 2018, the Law Committee, in its meeting held from
29th October to 31st October had proposed to include the details of PoS (Place of Supply) in
FORM GST APL-01 if the admitted amount paid by the appellant is IGST. Accordingly, it is
proposed to insert Table 18 with heading “Place of supply wise details of the integrated tax
paid (admitted amount only) in table 15(a), Part (a), if any” after S.No. 17 in the said Form.
Also, a cap has been put on the amount of pre-deposit. Accordingly, the following amendments
are proposed in FORM GST APL-01:
Table 15(a)(b):
The words “(10% of disputed tax)” may be substituted by the words:
“Pre-deposit (10% of disputed tax /cess but not exceeding Rs.25 Crore
each in respect of CGST, SGST or Cess, or not exceeding Rs. 50 Crore
in respect of IGST and Rs.25 Crore in respect of Cess)”
Table 15(a) Part (b):
The words “(pre-deposit 10% of the disputed tax and Cess)” may be substituted
by the words:
Details of payment of admitted amount and pre-deposit “(pre-deposit
10% of the disputed tax and Cess but not exceeding Rs. 25 Crore each
in respect of CGST, SGST or Cess or not exceeding Rs. 50 Crore in
respect of IGST and Rs.25 Crore in respect of Cess)”

Insertion of Table 18 after S.No. 17
18. Place of supply wise details of the integrated tax paid (admitted amount only) in
table 15(a), Part (a), if any
Place of Supply
(Name of
State/UT)
Demand Tax Interest Penalty Other Total
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1 2 3 4 5 6 7
Admitted amount
[table 15(a), part
(a)]

21. Amendments to FORM GST APL-05:- In view of the amendment to sub-section (6) of section
107 vide CGST (Amendment) Act, 2018, the Law Committee, in its meeting held from 29th October
to 31st October had proposed to include the details of PoS (Place of Supply) in FORM GST APL-
05 if the admitted amount paid by the appellant is IGST. Accordingly, it is proposed to insert Table
15 with heading “Place of supply wise details of the integrated tax paid (admitted amount only) in
table 14(a), Part (a), if any” after Table 14 in the said Form. Also, a cap has been put on the amount
of pre-deposit. Accordingly, the following amendments are proposed in FORM GST APL-05:
Table 14(a)(b):
The words “(20% of disputed tax)” may be substituted by the words:
“Pre-deposit (20% of disputed tax/cess but not exceeding Rs.50 Crore each
in respect of CGST, SGST or Cess or not exceeding Rs.100 Crore in respect
of IGST and Rs.50 Crore in respect of Cess)”

Table 14(a) Part (b):
The words “(pre-deposit of 20% of the disputed admitted tax and Cess)” may be
substituted by the words:
Details of payment of admitted amount and pre-deposit “(pre-deposit of
20% of the disputed admitted tax and Cess but not exceeding Rs. 50 Crore
each in respect of CGST, SGST or Cess or not exceeding Rs.100 Crore in
respect of IGST and Rs. 50 Crore in respect of Cess)”

Insertion of Table 15 after Table 14
15. Place of supply wise details of the integrated tax paid (admitted amount only) in
table 14(a), Part (a), if any
Place of Supply
(Name of
State/UT)
Demand Tax Interest Penalty Other Total
1 2 3 4 5 6 7
Admitted
amount [table
14(a), part (a)]

22. Accordingly, the approval of the GST Council is sought so that the above detailed amendments
in the CGST Rules, 2017 may be carried out once the provisions of CGST (Amendment) Act, 2018,
IGST (Amendment) Act, 2018 and SGST (Amendment) Act, 2018 come into force. Pari materia
changes would also be required to be carried out in the respective SGST Rules. The notification carrying
out the said amendments shall be issued after due vetting by the Union Law Ministry. It is also requested
that the GIC may be authorized to approve any further changes, if required, in the Rules.
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Agenda Item 7(xviii): Proposal to extend the due date for availing ITC on the invoices or debit
notes relating to such invoices issued during the FY 2017-18 under section 16(4) of CGST Act,
2017 till the due date for furnishing of return for the month upto March, 2019
The Agenda note is in regard to the due date for availment of input tax credit (ITC) on the
invoices or debit notes relating to such invoices issued during the FY 2017-18 (hereinafter referred to as
“the said documents”). In this regard, the relevant provision is sub-section (4) of Section 16 of the CGST
Act, 2017 (hereinafter referred to as the “CGST Act”) reads as follows:
“A registered person shall not be entitled to take input tax credit in respect of any invoice or
debit note for supply of goods or services or both after the due date of furnishing of the return under
section 39 for the month of September following the end of financial year to which such invoice or invoice
relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier.”
2. It may be noted that the last date for furnishing return for the month of September, 2018 was
25.10.2018 and the last date for furnishing annual return for FY 2017-18, as extended on 11.12.2018, is
31.03.2019 (this is also proposed to be extended to 30.06.2019 vide separate agenda). Hence, ITC on the
said documents was required to be availed by earlier of these two dates i.e. ITC was to be availed by
25.10.2018.
3. It was clarified, vide press release dated 18.10.2018, that the furnishing of outward details in
FORM GSTR-1 by the corresponding supplier(s) and the facility to view the same in FORM GSTR-
2A by the recipient is in the nature of taxpayer facilitation and does not impact the ability of the taxpayer
to avail ITC on self-assessment basis in consonance with the provisions of section 16 of the CGST Act.
The apprehension that ITC can be availed only on the basis of reconciliation between FORM GSTR-
2A and FORM GSTR-3B carried out before the due date for filing of return in FORM GSTR-3B for
the month of September, 2018 is unfounded as the said exercise can be carried out thereafter also.
4. In spite of the said clarification, various representations have been received requesting to extend
the due date of claiming ITC on the said documents. It is pertinent to mention that FY 2017-18 was the
first year of implementation of GST and taxpayers were still in the process of familiarising themselves
with the new taxation system. Moreover, the return process, as envisaged, was not implemented. FORM
GSTR-2 and FORM GSTR-3 were kept in abeyance. A simplified return in FORM GSTR-3B was to
be furnished along with the details of outward supply in FORM GSTR-1. Trade and industry have
represented that since FORM GSTR-2 is in abeyance, they are facing problem in reconciling their
purchases with the details declared by their corresponding suppliers in FORM GSTR-1. Many suppliers
have not furnished details of outward supplies in FORM GSTR-1 and therefore FORM GSTR-2A does
not reflect the complete picture of inward supply as many entries are missing from the same. It may also
be noted that the due date for furnishing FORM GSTR-1 for the months of July, 2017 to September,
2018 was extended till 31.10.2018 vide notification No. 43/2018- Central Tax and 44/2018- Central Tax
both dated 10.09.2018 in order to provide some more time to the taxpayers to comply with the new
taxation system. In view of all these, various representations have been received to extend the due date
for availment of ITC on the said documents.
5. It is pertinent to mention that while drafting the law, it was expected that the taxpayer would
reconcile his inward supplies for a given FY and avail ITC accordingly. After that, he may furnish his
annual return. He could have done the same simultaneously and therefore earlier of the two dates were
prescribed. It was expected that with the finalisation of annual statements, a registered person would be
able to finalise his claim for ITC also. But now various representations have been received wherein it
has been stated that trade and industry has not been able to reconcile ITC on the said documents for FY
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2017-18 and this exercise would get completed before the last date for furnishing annual return for FY
2017-18 i.e. 31.03.2019 (which is also proposed to be extended to 30.06.2019 vide a separate agenda).
6. The issue was deliberated by the Law Committee in its meeting held on 15.12.2018. The
Committee discussed the issues involved in detail and observed that the only reason the extension in
period is being sought is that the recipient had not availed the input tax credit on the said documents as
the corresponding suppliers had not uploaded the said documents in their FORM GSTR-1.
7. Accordingly, the Law Committee has recommended that the proposal to allow input tax credit
beyond 25.10.2018 may be agreed to, as a onetime measure and in consultation with the Union Law
Ministry, subject to the conditions that :
i. the recipient would avail credit during the extended period (i.e. after 25.10.2018 till 20.04.2019)
only on said documents which are uploaded by the corresponding suppliers in their statement in
FORM GSTR-1 upto the month of March, 2019/quarter January-March, 2019, in relaxation of the
proviso to section 37(3) of the CGST Act;
ii. the recipient would avail the credit on the said documents so uploaded in his return in FORM
GSTR-3B upto the month of March, 2019.
8. Accordingly, approval of the GST Council is sought for approving the proposal as contained in
para 7 above. The decision would be implemented by way of a notification in exercise of the powers
under sections 148 or 172 or under any other provision of the law in consultation with the Union Law
Ministry. A similar notification would be issued by States also.

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Agenda Item 7(xix): Extension of the due date for furnishing of annual returns in FORM GSTR-
9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017
- 2018
As approved by GIC, the due date for filing of annual return in FORM GSTR-9, FORM
GSTR-9A and reconciliation statement in FORM GSTR-9C as per section 44(1) of the Central Goods
and Services Tax Act, 2017 (CGST Act for short) was extended till 31.03.2019 vide removal of
difficulty order No. 1/2018 – Central Tax, dated 11.12.2018. The said section read with rule 80(1) of
the Central Goods and Services Tax Rules, 2017 (CGST Rules for short), provided for furnishing an
annual return electronically in FORM GSTR-9/FORM GSTR-9A for every financial year on or before
the thirty-first day of December following the end of such financial year. Section 44(2) of the CGST
Act read with rule 80(3) of the CGST Rules provides for furnishing electronically an annual return in
FORM GSTR-9 along with a copy of the audited annual accounts and a reconciliation statement in
FORM GSTR-9C by those registered persons whose turnover during a financial year exceeds two crore
rupees on or before the thirty-first day of December following the end of such financial year.
2. Various representations have been received from the trade and industry to further extend the
due date for filing the annual return and the reconciliation statement under section 44 as this is the first
year of implementation of the GST regime and this return / reconciliation statement has to be filed for
the first time. Further it has been represented that the annual return is more detailed and the taxpayers
require more time to comply with the requirements.
3. It may also be submitted that even though the said forms have been notified in the month of
September, 2018 and are in public domain, the system utilities for the same are yet to be made available
on the common portal. Further, various taxpayers have represented that the time period for availing
credit in respect of invoices or debit notes related to such invoices issued during July, 2017 to March,
2018 (this is also proposed to be extended to 20.04.2019 vide separate agenda). If the availment of such
credit is allowed for an additional time period, it may be prudent that the due date for filing of annual
return/reconciliation statement be extended for a suitable time period beyond such date.
4. The issue was deliberated by the Law Committee in its meeting held on 15.12.2018. The
Committee observed that the last date for furnishing the annual return for FY 2017-18 has already been
extended till 31st March, 2019. In view of the fact that date for availment of credit is proposed to be
extended till the furnishing of the return in FORM GSTR-3B upto the month of March, 2019, the due
date for filing of annual return / reconciliation statement for FY 2017-18 may be extended till 30th June,
2019.
5. Accordingly, approval of the GST Council is sought for extending the due date for furnishing
of annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM
GSTR-9C for the Financial Year 2017-2018 till 30th June, 2019. The said return/statement would be
available for furnishing on common portal latest from 1st April, 2019. It may be recalled that in
consultation with the Union Law Ministry, extension of due date for furnishing of annual return/
reconciliation statement has already been extended vide a removal of difficulty order under section 172
of the CGST Act. Further extension would also be carried out by issuance of a removal of difficulty
order in consultation with Union Law Ministry. States would be required to issue similar order.

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Agenda Item 7(xx): Proposal for amendment of Section 50 of CGST Act, 2017 to allow payment of
interest on net cash liability
The liability to pay interest in case of non-payment of tax arises out of the provisions contained
in Section 50 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the “CGST
Act”) which reads as follows:
“Every person who is liable to pay tax in accordance with the provisions of this Act or the rules
made thereunder, but fails to pay the tax or any part thereof to the Government within the period
prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his
own, interest at such rate, not exceeding eighteen per cent., as may be notified by the
Government on the recommendations of the Council.”
It may be seen from the above provision that interest is applicable on the amount of tax that has not been
paid by the registered person.
2 Various other sections related to payment of tax are as follows:
i. Section 49(2) of the CGST Act provides that the input tax credit as self-assessed in the return
(not necessarily be a valid return) of a registered person shall be credited to his electronic credit
ledger.
ii. Section 49(3) and 49(4) of the CGST Act provides that the amount available in the electronic
cash ledger may be used for payment towards tax, interest, penalty, fees or any other amount
whereas the amount available in the electronic credit ledger may be used for payment towards
output tax. The term “tax dues” has been defined, as per Explanation (b) to section 49 of the
CGST Act so as to mean the tax payable under the CGST Act and does not include interest, fee
and penalty.
iii. Section 39(7) of the CGST Act provides that the tax payable as per the return is required to be
paid not later than the last date on which the return is required to be furnished.
iv. Section 2(117) of the CGST Act provides that a valid return means a return furnished under
section 39(1) of the CGST Act on which self-assessed tax has been paid in full.
3. A perusal of above provisions indicate that the law permits furnishing of a return without
payment of full tax as self-assessed as per the said return but the said return would be regarded as an
invalid return. The said return, however, would not be used for the purposes of matching of ITC and
settlement of funds. Thus, although the law permits part payment of tax but no such facility has been yet
made available on the common portal. This being the case, a registered person cannot even avail his
eligible ITC as he cannot furnish his return unless he is in a position to deposit his entire tax liability as
self-assessed by him. This inflexibility of the system increases the interest burden. The same is illustrated
as below:
Suppose a registered person has self-assessed his tax liability as Rs. 100/- for a particular tax
period. He has an amount of Rs. 10/- as balance in his electronic credit ledger and he is eligible
to avail Rs. 80/- as input tax credit (which would be credited to his electronic credit ledger only
on furnishing of return). He is, therefore, required to pay only Rs. 10/- from his electronic cash
ledger. The IT system will not allow the said registered person to furnish his return (and
therefore the ITC of Rs. 80/- will not be credited in his electronic credit ledger) until he is in a
position to discharge his complete self-assessed liability of Rs. 100/-. He would be liable to pay
interest on the entire self-assessed tax liability of Rs. 100/- as he is not able to pay Rs. 10/- or
part thereof from his electronic cash ledger.
It may be seen from the above that if the facility for part payment, as permitted under law, was available,
the registered person would have been required to pay interest only on Rs. 10/- but presently he is liable
for interest on entire tax liability of Rs. 100/-.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 228 of 309
4. It is also pertinent to mention that the liability of any registered person is related to the value
addition made by him since GST is leviable only on value addition. Accordingly, input tax credit is
allowed to the registered person in respect of the tax paid by him on his inward supplies. And, while
making the outward supplies, the input tax credit so allowed is permitted to be utilised for discharging
his output tax liability. The remaining part which is generally equivalent to the tax on value addition is
discharged through electronic cash ledger. Hence, by this mechanism the registered person effectively
pays tax only on the value addition made by him. If this concept is applied for interest payable, then, it
appears that the interest should also be charged on the tax payable on the value addition only, i.e. the
amount of tax which is required to be paid through electronic cash ledger.
5. Presently the interest is not calculated by the IT system. The registered person himself calculates
the said interest and deposits the same. It appears, therefore, that any change would not pose any IT
related challenge.
6. The issue was deliberated by the Law Committee in its meeting held on 15.12.2018. The
Committee observed that the proposal to charge interest only on the net liability of the taxpayer, after
taking into account the admissible credit, may be accepted in principle. Accordingly, the interest would
be charged on the delayed payment of the amount payable through the electronic cash ledger. However,
where invoices/debit notes have been uploaded in statements pertaining to the period subsequent to the
period in which they should have been uploaded, the interest shall be calculated on the amount of tax
calculated on the taxable value from the date on which the tax on such invoices was due. This would
require amendment to the Law.
7. Accordingly, in-principle approval of the GST Council is sought for carrying out the amendment
in CGST/SGST Act as per the proposal contained in para 6 above. Law Committee may be directed to
frame suitable amendments in the law. Similar amendments would be required in the respective SGST
Acts also.

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Page 229 of 309
Agenda Item 7(xxi): Reduction in amount of late fees leviable on account of delayed furnishing of
FORM GSTR-1, FORM GSTR-3B and FORM GSTR-4 for the months/quarters from July, 2017
to September, 2018
Reference is invited to the information sheet (Annexure A) regarding furnishing of details of
outward supplies in FORM GSTR-1, and the returns in FORM GSTR-3B and FORM GSTR-4 for
the months/quarters from July, 2017 to September, 2018. It may be seen from that percentage of
furnishing for:
i) FORM GSTR-1 was around 80% till March 2018 and has fallen to around 50% to
60% post March 2018;
ii) FORM GSTR-3B was around 85% to 90% till June 2018 and has reduced to around
75% post June 2018; and
iii) FORM GSTR-4 has been around 75% to 80%.
2. Various representations have been received from the trade and industry to further extend the
due date for furnishing the details of outward supplies in FORM GSTR-1, and the returns in FORM
GSTR-3B and FORM GSTR-4. There have been various requests to waive the late fees, especially for
small taxpayers, as in many cases, the amount of late fees, especially in case of taxpayers with
nil/minimal tax liability, is more than the total tax liability. It has also been represented that in many
cases such delays have been due to ignorance; system related issues and /or due to difficulty of
compliance, and a lenient view may be taken by the Government.
3. Presently, the due date for furnishing the details of outward supplies in FORM GSTR-1, as
specified vide notification Nos. 43/2018 – Central Tax (for taxpayers with turnover upto Rs. 1.5 crore),
44/2018 – Central Tax (for taxpayers with turnover above Rs. 1.5 crore), both dated 10.09.2018 and
returns in FORM GSTR-3B & FORM GSTR-4 , is as follows:
Quarterly GSTR-1 (Taxpayers with turnover up to Rs. 1.5 crore)
Sl. No. Period Normal Tax payers Migrated Taxpayers*
1 July, 17 to Sept, 18 31/10/18 31/12/18
2 Oct, 18 to Dec, 18 31/01/19 31/01/19
3 Jan, 19 to Mar, 19 30/04/19 30/04/19
* those availing benefit of Not. 31/2018-Central Tax dated 06.08.2018
Monthly GSTR-1 (Taxpayers with turnover above Rs. 1.5 crore)
Sl. No. Period Normal Tax payers Migrated Taxpayers*
1 July, 17 to Sept, 18 31/10/18 31/12/18
2 Oct, 18 to Nov, 18 11th of succeeding month 31/12/18
3 Dec, 18 to Mar, 19 -do- 11th of succeeding month
* those availing benefit of Not. 31/2018-Central Tax dated 06.08.2018

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 230 of 309
Monthly GSTR-3B
Sl.
No.
Period Normal Tax payers Migrated Taxpayers
1 July, 17 to
June, 18
Already Over*1 31/12/18
2 July, 18 Already Over*2 31/12/18
3 Aug, 18 Already Over 31/12/18
4 Sept, 18 to
Nov, 18
20th of succeeding month 31/12/18*3
5 Dec, 18 to
Mar, 19
20th of succeeding month 20th of succeeding month

*1 - Date for July, 2017 extended to 25.08.2018 and 28.08.2018 for certain categories of taxpayers
(depending on whether taxpayers have not opted or opted to file FORM GST TRAN-1 on or before the
28th August, 2017 respectively) vide Notification No. 23/2017 – Central Tax dated 17.08.2018 further
amended by Notification No. 24/2017 – Central Tax dated 21.08.2018
- Date for December, 2017 extended to 22.01.2018 vide Notification No. 2/2018 – Central Tax dated
20.01.2018
- Date for April, 2018 extended to 22.05.2018 vide Notification No. 23/2018 – Central Tax dated
18.05.2018
*2 - Date for July, 2018 extended to 24.08.2018 vide Notification No. 35/2018 – Central Tax dated
21.08.2018
*3 - Date for migrated taxpayers for July, 2017 to November, 2018 extended to 31.12.2018 vide
Notification No. 45 to 47/2018 – Central Tax dated 10.09.2018
Filing of GSTR-4 for the quarter of July to September, 2017 was extended till 15.11.2017 vide
Notification No. 41/2017 – Central Tax dated 13.10.2017.
Remarks: Some alternate dates have been prescribed for taxpayers whose principal place of
business was located in State of Kerala, Kodagu district of State of Karnataka, Mahe in UT of
Puducherry, Srikakulam district in State of Andhra Pradesh and 11 districts of Tamil Nadu vide
various notifications issued from time to time.
4. Section 44 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the
“CGST Act”) provides for levy of late fees for non-furnishing of FORM GSTR-1, FORM GSTR-3 or
FORM GSTR-4 of one hundred rupees for every day. Presently late fees for delay in furnishing of
FORM GSTR – 3B by the due date is twenty rupees (Rs. 10/- under CGST Act plus Rs 10/- under
SGST Act) for NIL filers and fifty rupees (Rs. 25/- under CGST Act plus Rs 25/- under SGST Act) for
others (prescribed vide notification No. 64/2017 – Central Tax dated 15.11.2017). Similar reduction was
allowed in case of late furnishing of FORM GSTR-4 vide notification No.73/2017- Central tax dated
29.12.2017 and that for late furnishing of details of outward supplies in FORM GSTR-1 vide
notification No. 4/2018- Central tax dated 23.01.2018.
5. It may be mentioned that the last date for furnishing of details of outward supplies in FORM
GSTR-1 for the months of July 2017 to September 2018 was extended vide notification Nos. 43/2018-
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 231 of 309
Central Tax and 44/2018- Central Tax both dated 10.09.2018. It has been seen that the reduction in /
waiver of late fees generally result in increased voluntary compliance in furnishing of returns thereby
resulting in more auto-population of FORM GSTR-2A and /or increased tax payments.
6. Keeping in view the above facts, it was proposed that, as a one time measure, the late fees may
be completely waived in case the details of outward supplies in FORM GSTR-1 and/or returns in
FORM GSTR-3B and FORM GSTR-4 for the months / quarters July, 2017 to September, 2018, if the
said details/returns are furnished latest by 31st March, 2019. It was also proposed that no refund of late
fees may be granted to those taxpayers who have already furnished such details /returns.
7. The issue was deliberated by the Law Committee in its meeting held on 15.12.2018. Views were
expressed that the late fees payable by such taxpayers may be reduced if the requisite return/statements
are filed by 31st March, 2019 subject to the condition that the late fees payable by taxpayers with NIL
tax liability may be limited to Rs.500/- + Rs.500/- per return (instead of present limit of Rs.5000/- +
Rs.5000/- per return) and by other taxpayers may be reduced to Rs.1000/- + Rs.1000/- per return. It was
also stated that this reduction may be available only in respect of returns/statements (FORM GSTR-
1/FORM GSTR-3B/FORM GSTR-4) for the period July, 2017 to September, 2018. The late fees
already deposited shall not, however, be refunded.
8. Accordingly, the matter is placed before the GST Council for deliberations and approval of the
proposal enumerated in paragraph 6 or paragraph 7 above. Relevant notifications would be issued
accordingly in consultation with the Union Law Ministry. Similar notifications would be issued by the
States also.

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Return Filing Summary (Financial Year:
2018-19)
13.12.201
8

Return
Type
Particulars July'17
August'1
7
Septembe
r'17
October
'17
November
'17
December
'17
GSTR 1
Eligibility 74,61,214 32,60,937 79,25,831
34,38,89
1
31,26,495 81,82,277
Returns Filed 58,50,872 24,60,874 66,19,102
25,29,31
8
25,59,013 66,59,340
Return Filing
%
78.42% 75.47% 83.51% 73.55% 81.85% 81.39%
GSTR 3B
Eligibility 74,61,214 75,32,807 79,25,831
81,54,30
3
79,92,517 81,82,277
Returns Filed 63,96,140 69,65,932 73,00,358
70,82,88
4
71,36,997 72,05,680
Return Filing
%
85.73% 92.47% 92.11% 86.86% 89.30% 88.06%
GSTR 4
Eligibility 11,41,565 17,24,344
Returns Filed 9,69,016 14,47,839
Return Filing
%
84.88% 83.96%

Return
Type
Particulars January'18
February
'18
March'18 April'18 May'18 June'18
GSTR 1
Eligibility 32,29,377 32,74,028 87,08,493
44,96,31
6
46,82,345 93,16,710
Returns Filed 25,43,039 25,37,513 67,01,316
26,17,10
8
26,26,342 66,65,595
Return Filing
%
78.75% 77.50% 76.95% 58.21% 56.09% 71.54%
GSTR 3B
Eligibility 83,63,437 85,45,661 87,08,493
88,17,79
8
91,22,309 93,16,710
Returns Filed 72,95,346 73,86,980 74,48,374
74,29,62
6
75,17,863 75,55,632
Return Filing
%
87.23% 86.44% 85.53% 84.26% 82.41% 81.10%
GSTR 4
Eligibility 19,31,061 17,66,630
Returns Filed 14,81,504 14,21,231
Return Filing
%
76.72% 80.45%

Return
Type
Particulars July'18
August'1
8
Septembe
r'18
October
'18
November
'18
GSTR 1 Eligibility 47,75,626
47,26,891
96,57,239

46,09,44
4
45,72,118
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 233 of 309
Returns Filed 25,81,669
25,15,289
62,83,013

21,87,04
8
13,35,796
Return Filing
%
54.06% 53.21% 65.06% 47.45% 29.22%
GSTR 3B
Eligibility 94,70,282
96,15,273
96,57,239

97,57,66
4
98,46,645
Returns Filed 75,59,211
75,45,416
74,52,775

72,04,91
2
14,75,811
Return Filing
%
79.82% 78.47% 77.17% 73.84% 14.99%
GSTR 4
Eligibility 17,74,379
Returns Filed 13,11,073
Return Filing
%
73.89%

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Page 234 of 309
Agenda Item 7(xxii): Proposal to extend benefit of composition levy for small service providers
Section 10 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the
“CGST Act”) provides for the provisions in respect of the composition levy. It states that a registered
person, whose aggregate turnover in the preceding financial year did not exceed one crore rupees, may
opt to pay, in lieu of the tax payable by him, an amount of tax calculated at such rate as may be
prescribed. Presently the manufacturers who have opted for composition levy are required to pay @ 1%
of the turnover, suppliers of restaurant services at the rate of 5% of the turnover and others @ 1% of the
taxable turnover.
2. Further, Section 10(2) of the CGST Act lays down certain restrictions relating to the availability
of the benefits of the composition levy which are as follows:
(a) He is not engaged in the supply of services other than supplies referred to in clause (b)
of paragraph 6 of Schedule II;
(b) He is not engaged in making any supply of goods which are not leviable to tax under
this Act;
(c) He is not engaged in making any inter-State outward supplies of goods;
(d) He is not engaged in making any supply of goods through an electronic commerce
operator who is required to collect tax at source under section52; and
(e) He is not a manufacturer of such goods as may be notified by the Government on the
recommendations of the Council:
Hence, presently the composition scheme is not available to the exclusive service providers
except to the suppliers of restaurant services.
3. Consequent to the CGST (Amendment) Act, 2018, with effect from a date yet to be notified,
Section 10 of CGST Act has been amended wherein, the following proviso would be inserted after
proviso to sub-section (1), namely:
“Provided further that person who opt to pay tax under clause (a) or clause (b)
or clause (c) may supply services (other than those referred to in clause (b) of paragraph
6 of Schedule II), of value not exceeding ten per cent. of turnover in a State or Union
territory in the preceding financial year or five lakh rupees, whichever is higher.”
Amendment has also been carried out in clause (a) of sub-section (2) for effecting the above change.
4. By virtue of the above-mentioned law amendment, a provision has already been made to extend
the benefit of composition levy to the manufacturers and other suppliers of goods who are also supplying
services to the extent of value not exceeding 10% of their turnover in a State or Union Territory in the
preceding Financial Year or five lakh rupees, whichever is higher. However, composition levy is still
not available to the exclusive service providers. Various representations, including from Chamber of
Small Industry Associations, have been received stating that the supplier of services should also be
placed at equal footing with that of the supplier of goods and they should also be allowed the benefit of
opting for composition levy.
5. It is submitted that there is no distinction between manufacturer, trader or service provider in
the GST regime. All the taxpayers are regarded as suppliers and they obtain registration as such supplier.
As per the latest data (based on the extrapolated turnover for the month of April 2018 to September
2018) made available by the GSTN, there are about 58.70 lakh registered persons whose turnover is
upto Rs. 50 lakhs out of total registered persons numbering about 87.26 lakhs (who are non-composition
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 235 of 309
taxpayers). Further there are about 17.74 lakh composition taxpayers. The supplier of goods, out of
58.70 lakh registered persons, though eligible for composition levy, have not opted for the said scheme.
6. In view of the above facts, it was proposed that the benefit of composition levy may be extended
to those exclusive service providers whose aggregate turnover in the preceding financial year did not
exceed fifty lakh rupees. They may be liable to pay an amount @ 5 % of the aggregate turnover in the
State/ Union territory without any input tax credit. The proposal would require suitable amendments in
the law.
7. The proposal was discussed at length by the Law Committee in its meeting held on 15.12.2018.
Views were expressed that the composition taxpayers not being entitled to input tax credit implies that
the tax at the full rate on a substantial part of the value of their supplies was already realised and only
the value addition made by them was, in effect, compounded. Further, by and large, creditable supplies
form a comparatively smaller part of the total value of the supplies of exclusive service providers and
that the value addition in such cases was, consequently, of a much higher order and different for different
services thereby rendering the prescription of a single rate of composition tax for services very difficult.
It was also stated that exclusive service providers may not be allowed to opt for composition as it will
substantially distort the level-playing field between service providers who opt for composition in
comparison to the service providers with marginally higher turnover who are not eligible for
composition levy. There was also a view that possibly the only benefit that such service providers stand
to gain by being entitled to composition would be in the form of lower compliance burden which, in any
case, stands ameliorated by their being entitled to file quarterly returns.
8. Accordingly, the issue of extending the benefit of composition levy for small service providers
is placed before the GST Council for further deliberation. The proposal would require amendment in
law.

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Agenda Item 7(xxiii): Proposal to introduce the new return system on trial basis from 01.04.2019
and on mandatory basis from 01.07.2019
GST Council in its 28th Meeting held on 21.07.2018 approved the features and formats of the
proposed new returns. It also directed that these features and formats may be put in the public domain
for one month to seek comments. Thereafter, based on feedback, the finalisation of features and formats
of the return may be done and the same may be approved by GIC. The Council also approved that the
new return system may be implemented from 01.01.2019 on best effort basis. The relevant extract of
the minutes is reproduced below: -
“19. For Agenda Item 6(iii), the Council approved the following:
i) The return design and format of monthly and quarterly returns including the SAHAJ and the
SUGAM as contained in Presentation at Annexure 5 of the Minutes;
……..
iv) To put the key features and the formats of the new returns in the public domain for one
month to seek comments;
v) Final features of the return formats to be finalized with any minor amendments due to inputs
received from various stakeholders with the approval of the GIC;
vi) The final provision in the Law in relation to Returns to be finalized in consultation with the
Ministry of Law and on the basis of other inputs received to be finally approved by GIC;
vii) The new return format will be implemented from 1st January 2019 on best effort basis;
…..”
2. Accordingly, incorporating the various feedbacks and suggestions of trade and industry, field
formations and GSTN, the Law Committee has finalised the new return system in its meeting held on
10.12.2018 & 11.12.2018. The finalised document will now be placed before GIC for final approval.
GSTN has been fully associated in finalisation work and has started the development of same.
3. In light of the same and taking into consideration the time required by GSTN to develop the
new system, the Law Committee, in its meeting held on 15.12.2018, has proposed that the new return
system may be implemented on a trial basis from 01.04.2019 and on mandatory basis from 01.07.2019.
4. Accordingly, approval of the GST Council is sought for implementing the proposal as
mentioned in paragraph 3 above.

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Agenda Item 7(xxiv): Single interface for disbursal of refund amounts
As per procedure for refunds approved by the Council, the refund for IGST, CGST, SGST and
Cess is ordered by a single authority depending upon the tax authority to which the taxpayer is assigned
based on the division of the tax payer base. However, for the actual payment of the refund amount, the
refund order is being forwarded to the respective authorities and it gets paid separately. For this purpose,
it has been decided that each authority shall nominate a nodal officer to receive the refund orders issued
by the other tax authority. The nodal officers should send it for payment of the amount and after the
amount is credited to the taxpayer’s account, the tax authorities shall inform their other counterpart.
2. This system has been in operation for some time now and there have been representations that
this system requires taxpayers to interface with two authorities most of the time. This is causing delay
in getting full refund and goes against the spirit of single interface, which is one of the core features of
the GST design. This issue has been discussed in past as to whether the refund can be paid by a single
authority and the amounts can be settled between the Centre and the States later so that the taxpayer gets
his refund in time without delay.
3. It is, therefore, proposed that all refund orders in FORM GST RFD-04/06 should be issued on
GSTN without any exception by both authorities and the orders shall be transmitted to the Public Finance
Management System (PFMS), the payment system of the Central Government and the payment of all
taxes viz. CGST, IGST, SGST and Compensation Cess shall be done by Pay and Accounts Officer(s)
of the Central Government by debiting the cash account of the Centre and crediting the bank account of
the tax payer.
4. The net amount of the SGST refund paid from the cash account of Central Government for the
period from 21st of previous month to 20th of the current month can be adjusted alongwith the IGST
apportionment that happens around 26th of every month. While CGST and IGST refunds can be debited
directly to the respective heads, SGST refunds disbursed through PFMS from the Centre’s cash account
can initially be debited to the suspense head. The suspense head can be credited from the IGST portion
that will be released alongside and the State SGST account shall be debited accordingly. This would
complete the account requirement and will also ensure that the entire refund amount is transferred to the
taxpayer in one go.
5. There are a few pre-requisites for this proposal to be implemented. Firstly, the refund process
from FORM GST RFD-01 to FORM GST RFD-06 shall have to be fully done on the GSTN Portal
(for Model 2 States) or should be fully integrated with the IT system of tax administration. Unless all
refund orders in FORM GST RFD-04/06 are on the portal, this system cannot function. Secondly, the
GSTN system should be fully integrated with PFMS and should be able to push the data relating to
refund orders on to PFMS. It should also be able to fetch the details of successful and unsuccessful
payments from PFMS. Once this integration is complete, the proposed system can be operationalized.
It is expected that this system will smoothen refund process to a large extent.
6. This issue was deliberated in detail by the Law Committee in its meeting held on 15.12.2018.
Since the issue relates to receipts and payments and treasury procedures, it was felt that the views of the
State Governments may be sought. The views of the States have been sought separately by the GST
Council Secretariat by email on 15.12.2018. The matter is placed before the Council for discussion. The
views as received from States till 20th December 2018 will be placed before the Council during
discussion.

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
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Agenda Item 7(xxv): Rationalisation of cash ledgers in GST
Section 49 of the CGST and SGST Act provide that any amount paid by the taxpayer through
the GST Challan shall get credited in the cash ledger. Any amount that needs to be paid through cash,
is paid from the cash ledger. Section 54 separately provides for refund of balance from the cash ledger.
Currently, there are five ledgers, namely, tax, interest, penalty, fine and others for each of the four taxes,
namely, IGST, CGST, SGST and cess. This requires twenty ledgers in which taxpayers are required to
make deposit.
2. Many demands have come from various quarters that there should be one cash ledger from
which all components of each tax should be allowed to be paid. This will ensure that the taxpayers can
optimally utilise the balances in cash ledger. In many cases, taxpayers have deposited cash into wrong
ledger and then they have been compelled to take refund later. They have represented that instead they
should be allowed to use the balance for payment of any component of any tax. The daily credit and
debit into the cash ledger for the month of November, 2018 can be seen in the figure below.

3. It may be noted that any amount that is deposited through challan into the ledger gets credited
directly to the Consolidated Fund of India or the State and gets classified depending on the ledger in
which the amount is credited at the time when the amount is deposited. Therefore, if the cash ledgers
are rationalized in a manner that there is one cash ledger from which all components of each respective
tax should be allowed to be paid, a mechanism for classification needs to be devised to ensure that the
amounts credited gets accounted based on the returns filed by the taxpayers.
4. This issue was deliberated in detail by the Law Committee in its meeting held on 15.12.2018and
it was felt that this proposal needs to be examined in detail not only for operational details but also in
the light of the accounting treatment. It was observed that the amount being deposited in a single ledger
would nevertheless have to be credited to the Consolidated Fund of either the Centre or that of the State
and transfer of a part of the said sum from one Fund to the other would tantamount to withdrawal from
the Consolidated Fund in which it was originally deposited. Once a mechanism has been devised to
effect such a transfer, the operational details have to be sorted out. Accordingly, it was felt that a
Committee of Officers from the Central and State Governments, Central and State Accounting
authorities, C&AG and GSTN can be set up to work out the modalities. In principle approval of GST
-2500
2500
7500
12500
17500
22500
27500
32500
37500
0
1
-N
o
v
0
2
-N
o
v
0
3
-N
o
v
0
4
-N
o
v
0
5
-N
o
v
0
6
-N
o
v
0
7
-N
o
v
0
8
-N
o
v
0
9
-N
o
v
1
0
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v
1
1
-N
o
v
1
2
-N
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v
1
3
-N
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v
1
4
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v
1
5
-N
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v
1
6
-N
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v
1
7
-N
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v
1
8
-N
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v
1
9
-N
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v
2
0
-N
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v
2
1
-N
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v
2
2
-N
o
v
2
3
-N
o
v
2
4
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v
2
5
-N
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v
2
6
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2
7
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o
v
2
8
-N
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v
2
9
-N
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v
3
0
-N
o
v
Credit Debit Net
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Council is sought on this proposal of rationalization of cash ledger as contained in paragraph 3 and
constitution of a Committee for working out the modalities.

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Agenda Item 8: Approval of modifications in Articles of Association (AOA) and Memorandum of
Association (MOA) of Goods and Services Tax Network (GSTN) based on decision of the GST
Council to convert it into a 100% Government-owned entity
The GST Council in its 27th Meeting held on 04th May 2018 decided that GSTN will be
converted into a 100% Government-owned entity by transferring 51% equity shares held by the Non-
Government institutions to the Centre and States equally.
2. The Union Cabinet in its Meeting held on 26th September 2018 has approved the proposal to
convert GSTN into a fully-owned Government company with 50% equity of the company to be held by
the Central Government and the balance 50% to be held by various States and Union Territories. Letter
of Department of Revenue conveying the decision of the Union Cabinet is at Annexure-1.
3. In order to implement change in shareholding pattern of GSTN, AOA & MOA of GSTN are
required to be changed as per the provisions of the Companies Act, 2013 and Rules made thereunder.
Required changes in provisions, reasons for the change is at Annexure-2.
4. The proposed shareholding pattern would be as per Annexure-3 post conversion of GSTN into
100% Government-owned Entity. The total number of shares are 1 crore, 50% of which i.e. 50 lakh will
go to Central Government. The remaining 50 lakh shares when divided equally amongst 31 States comes
to 1,61,290.32. After allocating 1,61,290 to each State, 10 shares are left.
5. These left over 10 shares are miniscule percentage of the total number of 1 crore shares. These
10 shares cannot be distributed equally among 32 stakeholders. In the erstwhile GSTN shareholding
pattern, the Empowered Committee had 80000 shares. On this analogy, these 10 shares may be allotted
to the GST Council, which represents the Centre as well as the States.
6. Accordingly, it is proposed to allot the shares as per Annexure-3 with balance 10 shares to be
allotted to the GST Council. Further, the modified AOA and MOA of GSTN are placed before the
Council for in-principle approval and GIC may be authorised to go through the in detail and finalise the
same.

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Annexure-1

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Annexure-2
Proposed changes in Article of Association
of
Goods and Services Tax Network
Article Existing Articles Proposed Articles Reason for Change
The Companies Act, 1956 The Companies Act,
2013
Replacement of
Companies Act, 1956
by Companies Act,
2013.

Company Not For Profit

(Section 25 Company)

No Change

(Section 8 Company)
Substitution of
Section 8 (in place of
Section 25) under
Companies Act, 2013.
Articles of Association of Goods and Services
Tax Network

No Change
Definitions No Change
1 In the interpretation of these Articles, the
following expressions shall have the following
meanings, unless there be in the subject or context
anything inconsistent or repugnant thereto: -
No Change

a) “Act” means the Companies Act, 1956 and
includes any statutory modification or re-
enactment thereof for the time being in force and
all rules made there under.
“Act” means the
Companies Act, 2013
and includes any
statutory modification
or re-enactment thereof
for the time being in
force and all rules made
there under.
Enactment of
Companies Act, 2013.
b) “Board” means the Board of Directors of the
Company.
“Board of Directors” or
“Board”, in relation to
the Company, means the
collective body of the
directors of the company.
“Board of Directors”
or “Board as used and
defined under Section
2(10) of the
Companies Act, 2013.
c) “Capital” means the capital raised or authorized to
be raised for the purpose of the Company.
No Change
d) “Central Government” means the Government of
India and includes any organization, agency,
institution, body or department under it.
No Change
e) “Chairman” means the Chairman of the Board or
the person elected or appointed to preside over the
Board or/and General meetings of the Company.
No Change
f) “Chief Executive Officer” means Chief Executive
Officer of the Company.
"Chief Executive
Officer” (CEO) means
an officer of the
company, who has been
"Chief Executive
Officer” as defined
under Section 2(18)
of the Companies Act,
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
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designated as such by it.
2013.
g) “Committee” means a committee duly constituted
under these Articles.
No Change
h) “Company” means GOODS AND SERVICES
TAX NETWORK, registered under the Act.
“Company” means
GOODS AND
SERVICES TAX
NETWORK, registered
under the Companies Act
1956.
Company was
incorporated under the
Companies Act 1956.
i) “Director” means a Director of the Company for
the time being.
"Director” means a
director appointed to the
Board of the Company.
“Director” as defined
under Section 2(34) of
the Companies Act,
2013.
j) “EC” means the Empowered Committee of State
Finance Ministers constituted as a society under
the Societies Registration Act, 1860 for the time
being and includes its successors and for the
purposes of the Company and these Articles,
represents all State Governments in the Company.
Deleted Replacement of EC by
GST Council. Refer
Article 1(l) as
mentioned below.
k) “Financial Year” or “Year” means the period in
respect of which any income and expenditure
account of the Company is laid before it in its
Annual General Meeting is made up, whether that
period is a year or not.
“Financial Year” or
“Year” means the period
ending on the 31st day
of March every year, in
respect whereof
financial statement of
the company is made up.
“Financial Year” as
defined under Section
2(41) of the
Companies Act, 2013.
l) Insertion of new definition. “Goods & Services Tax
Council” or “GST
Council” means the joint
forum of the Centre and
the States constituted as
per Article 279A of the
amended Constitution of
India for the time being
and includes its
successors and for the
purposes of the
Company and these
Articles, represents the
Centre and the States in
the Company, which
shall consist of the
following members:
a) Union Finance
Minister - Chairperson
• b) The Union Minister of
State, in-charge of
Replacement of EC
by GST Council.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
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Revenue of finance -
Member
• c) The Minister in-
charge of finance or
taxation or any other
Minister nominated by
each State Government -
Members
l) “Government” means the Central Government and
the State Governments.
No Change
m) “Member” means any person who agrees in
writing to become a member of the Company and
whose name is registered in the Register of
Members.
“member”, in relation to
the company, means—

(i) the subscriber to the
memorandum of the
company who shall be
deemed to have agreed to
become member of the
company, and on its
registration, shall be
entered as member in its
register of members;

(ii) every other person
who agrees in writing to
become a member of the
company and whose
name is entered in the
register of members of
the company;

(iii) every person holding
shares of the company
and whose name is
entered as a beneficial
owner in the records of a
depository;
“Member” as defined
under Section 2(55) of
the Companies Act,
2013.
n) “Member(s) of Group A, Group B and Group C”
means the Member(s) of respective Group
mentioned in Table I of Article 6.
No Change
o) “Non-Government Institutions” means those
institutions/ entities/ body corporates that do not
come under the definition of Government above
and do not constitute Government Company under
the Act.
No Change
p) “Office” means the Registered Office of the
Company.
No Change
q) “Ordinary Resolution” and “Special Resolution”
shall have the meanings assigned thereto
“Ordinary Resolution”
and “Special Resolution”
Reference of new
Section under the
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respectively be Section 189 of the Act.
shall have the meanings
assigned thereto
respectively be Section
114 of the Act.
Companies Act, 2013.
r) “Register” means the register of Members to be
kept pursuant to the Act.
No Change
s) “Seal” means the common seal of the Company
approved by the Board from time to time.
No Change
t) “Secretary” means the secretary of the Company.
“Secretary” or
“Company Secretary”
means a company
secretary as defined in
clause (c) of sub-section
(1) of section 2 of the
Company Secretaries
Act, 1980, (56 of 1980)
who is appointed by the
company to perform the
functions of a company
secretary under this
Act.

“Secretary” or
“Company Secretary”
as used and defined
under the Companies
Act, 2013.
u) “Share(s)” means the share(s) or stock into which
the Capital is divided.
“Share” means a share(s)
in the share capital of the
company and includes
stock.
“Share” as defined
under Section 2(84) of
the Companies Act,
2013.
v) “Shareholders’ Agreement” means the agreement
in the format attached as Annexure A to these
Articles and which is to be entered by and amongst
every person or entity who intends to be a
shareholder of the Company and such agreement
forms integral part of the Articles.
No change
w) “State Government(s)” means the Government of
the State(s) in the Union of India and the Union
Territories and includes any organization, agency,
institution, body or department under it/them.
No change
x) “Union Territories” means the Union Territories of
Puducherry and the National Capital Territory of
Delhi and includes any organization, agency,
institution, body or department under it/them.
No change

INTERPRETATION

2. In these Articles, subject to the aforesaid and unless the context otherwise requires:

i) Words or expressions contained in these Articles shall
bear the same meanings as in Act;
No change

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ii)
References to Articles are to articles of this Articles of
Association as originally framed and as amended from
time to time;
No change
iii) Headings to Articles are for convenience only and are
to be ignored in construing this Articles of
Association;
No change
iv) References to a “entities” are to be construed so as to
include any firm, company, Government or any joint
venture, association, proprietorship or partnership
(whether or not having a separate legal personality);
No change
v) References to a “company”, are to be construed so as
to include any company, corporation, or other body
corporate, wherever and however established;
No change
vi) References to a “nominee” or “proxy” are to be
construed to mean as a duly appointed nominee or
proxy as the case may be and the term proxy and
nominee are used interchangeably;
References to a “nominee”
or “proxy” are to be
construed to mean as a
duly appointed nominee or
proxy as the case may be.
The Term Nominee
and Proxy can’t be
change
interchangeably
vii) Words denoting the singular include the plural and
vice versa and words importing the masculine gender
include feminine and neuter genders and vice versa;
No change
viii) The word “month” wherever used shall mean the
period of time which ends on the same date as it
commenced in the previous month but if there is no
numerically corresponding date in the following
month then the period shall end on the last day of the
month;
No change
ix) References to “Rs.” or “Rupees” or “INR” are
references to lawful currency of India.
No change

PRIVATE SECTION 25 COMPANY
PRIVATE SECTION 8
COMPANY
Reference of new
Section under the
Companies Act,
2013.
3. The Company is a private company within the meaning
of Section 2 (35) and 3 (1) (iii) of the Act and
accordingly:
The Company is a
private company within
the meaning of Section 2
(68) of the Act and
accordingly:

Reference of new
Section under the
Companies Act,
2013.
a) the rights to transfer its Shares is restricted;
a) restricts the right
to transfer its
shares;
As referred under
Companies Act,
2013.
b) the number of its Members is limited to fifty (50) not
including:
b) limits the number of its
members to two
As referred under
Companies Act,
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i. persons who are in the employment of
the Company; and
ii. persons who, having been formerly in
the employment of the Company,
were members of Company while in
that employment and have continued
to be Members after the employment
ceased. Provided that for the purpose
of this Article, where two (2) persons
or entities hold one or more Shares in
the Company jointly, they shall be
treated as a single Member;

hundred, not
including:

i. persons who are in the
employment of the
Company; and
ii. persons who, having
been formerly in the
employment of the
Company, were
members of Company
while in that
employment and have
continued to be
Members after the
employment ceased.
Provided that for the
purpose of this Article,
where two (2) persons
or entities hold one or
more Shares in the
Company jointly, they
shall be treated as a
single Member;

2013.
c) no invitation shall be issued to the public to subscribe
for any Shares in, or debentures of the Company; and
c) prohibits any
invitation to the
public to
subscribe for
any securities of
the company;
As referred under
Companies Act,
2013.
d) no invitations or acceptance of deposits shall be made
from persons other than its Members and Directors.
d) Deleted No reference under
Companies Act,
2013.

4 The Company intends to apply its profits, if any, or
other income in promoting its objects, and to prohibit
the payment of any dividends to its Members. Table A
of Schedule I of the Act shall apply except as otherwise
provided in these Articles.
No change

COMPANY TO BE GOVERNED BY THESE ARTICLES
5 The management of the Company will be as per these
Articles.
No change

SHARE CAPITAL
6 The authorized share capital of the Company shall be Rs.
10,00,00,000/- (Rs. Ten (10) Crores only) divided into
1,00,00,000 (One Crore) equity shares of Rs. 10/- (Rs. Ten
only) each which can be increased or reduced subject to the
provisions of the Act.
The authorized share capital of the Company shall be Rs.
10,00,00,000/- (Rs. Ten (10) Crores only) divided into
1,00,00,000 (One Crore) equity shares of Rs. 10/- (Rs. Ten only)
each which can be increased or reduced subject to the provisions
of the Act.
Articles
revised in
order to give
the effect of
transfer by
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The paid up share capital of the Company shall at all times
be owned and maintained in the proportion mentioned in
Table I below.

Table I
Sr. No. Name of the entities
Percentage
of paid up
capital
1.
Group A- Central
Government 24.5%
2.
Group B- State Governments
and 24.5%
the EC collectively
3. Group C-
Non-
Government 51%
Institution collectively

The percentage of holdings mentioned against each Group
in Table I above shall not exceed the specific percentage
against their respective Group.

The paid up share capital of the Company shall at all times be
owned and maintained in the proportion mentioned in Table I
below.
Table I
Sr. No. Name of the entities
Percentage
of paid up
capital
1. Group A- Central Government 24.5%
2.
Group B- State Governments,
Union Territories and 24.5%
the EC collectively
3. Group C-
Non-
Government 51%
Institution collectively*

Consequent upon conversion of company into 100%
Government Company after the transfer of Group C
shareholding to Group A & Group B, the paid up share capital
of the Company shall at all times be owned and maintained in the
proportion mentioned in Table I below.

Sr. No. Name of the entities
Percentage
of paid up
capital
1.
Group A- Central
Government 50%
2.
Group B- State
Governments, Union
Territories and 50%
the EC collectively

In Group C in Table I above, no individual Non-Government
Institution shall hold more than 10% equity in the Company
except that one Non-Government Institution may hold a maximum
of 21% equity in the Company.
Non-
Government
Institutions.
ISSUE AND TRANSFER OF COMPANY’S SHARES
7 In addition to the procedure for transfer of any
Shares by any Member mentioned in Article 38 and
39, the consent of the Board shall also be taken.
No Change

7A Notwithstanding anything contained in these
Articles but subject to Article 6, no Shares
shall be issued or transferred by the Company
to any person or entity unless and until:

(a) such person or entity has duly executed the
Shareholders’ Agreement (or the deed of
adherence to the Shareholders’ Agreement);
and

(b) such person or entity submits a certified true
copy of the duly executed Shareholders’
Notwithstanding anything contained in
these Articles but subject to Article 6, no
Shares shall be issued or transferred by the
Company to any person or entity unless and
until:

(a) such person or entity has duly executed
the Shareholders’ Agreement (or the deed
of adherence to the Shareholders’
Agreement); and

(b) such person or entity submits a certified
Clause (c)
added as per
the provisions
of the
Companies
Act, 2013.
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Agreement to the Board.
true copy of the duly executed Shareholders’
Agreement to the Board.

(c) under the provisions of Sec 56 of the
Act, A proper instrument of transfer duly
stamped and executed by or on behalf of
the transferor and by or on behalf of the
transferee and specifying the name,
address and occupation, if any, of the
transferee has been delivered to the
Company along with the certificates
relating to the shares or debentures or if
no such certificate is in existence, along
with the letter of allotment of the shares
or debentures provided that the
transferor shall be deemed to remain the
holder of such share until the name of the
transferee is entered in the Register in
respect thereof.

SHARE CERTIFICATE
8
(a)
Every person whose name is entered as Member in
the Register of Members shall be entitled to receive
within three (3) months after allotment or within two
(2) months of application for registration of transfer
one certificate for all his Shares without payment or
several certificates for one or more of his Shares,
upon payment of the face value of the Share.
Every person whose name is entered as
Member in the Register of Members
shall be entitled to receive within two
(2) months after allotment or within
one (1) month of application for
registration of transfer one certificate
for all his Shares without payment or
several certificates for one or more of
his Shares, upon payment of the face
value of the Share.
As referred in
the Companies
Act, 2013.
8
(b)
Every certificate shall be under the Seal and shall
specify the number and distinctive number of Shares
to which it relates and amount paid up thereon.
No change

ISSUE OF NEW SHARE CERTIFICATE

9 If any certificate be worn out, defaced, mutilated, or
torn or if there be no further space on the back
thereof for endorsement of transfer, then upon
production and surrender thereof and if any
certificate lost or destroyed then upon proof thereof
to the satisfaction of the Company and the on
execution of such indemnity as the Company deem
adequate, being given, and in a lieu thereof shall be
given to the party entitled to such lost or destroyed
certificate. Every certificate under the Articles shall
be issued without payment of fees if the Board so
decide, or on payment of such fees (not exceeding
Rs. 2/- for each certificate) as the Board shall
prescribe. Provided that no fee shall be charged for
issue of new certificates in replacement of those
which are old, defaced or worn out or where there is
If any certificate be worn out, defaced,
mutilated, or torn or if there be no
further space on the back thereof for
endorsement of transfer, then upon
production and surrender thereof and if
any certificate lost or destroyed then
upon proof thereof to the satisfaction of
the Company and the on execution of
such indemnity as the Company deem
adequate, being given, and in a lieu
thereof shall be given to the party
entitled to such lost or destroyed
certificate. Every certificate under the
Articles shall be issued without
payment of fees if the Board so decide,
or on payment of such fees (not
As referred in
the Companies
Act, 2013.
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no further space on the back thereof for endorsement
of transfer.
exceeding Rs. 50/- for each certificate)
as the Board shall prescribe. Provided
that no fee shall be charged for issue of
new certificates in replacement of those
which are old, defaced or worn out or
where there is no further space on the
back thereof for endorsement of
transfer.

TRANSFER AND TRANSMISSION OF SHARES

10. The right of Members to transfer their Shares shall be restricted as follows:-
(a) Subject to Article 3, Article 6 and Article 7, the
Share(s) in the Company can be transferred only to
those entities approved by the Members in
accordance with Article 38 and Article 39 and by the
Board.
Subject to Article 3, Article 6, Article
7and Article 7A, the Share(s) in the
Company can be transferred only to
those entities approved by the Members
in accordance with Article 38 and
Article 39 and by the Board.

Inserted Article
7A in order to
give more
clarity on
transfer of
shares.
(b) Subject to Section 111 of the Act and these Articles,
no transfer of any Share in the Capital of the
Company shall be made or registered without the
previous sanction of the Board, who may without
assigning any reason thereof but in accordance with
these Articles, decline to give any such sanction. The
Board shall have power to decline transfer of any
Shares which would contravene Article 3, Article 6
and Article 7A hereto.
Subject to Section 58 of the Act and
these Articles, no transfer of any Share
in the Capital of the Company shall be
made or registered without the previous
sanction of the Board, who may without
assigning any reason thereof but in
accordance with these Articles, decline
to give any such sanction. The Board
shall have power to decline transfer of
any Shares which would contravene
Article 3, Article 6 and Article 7A
hereto.
Reference of
new Section
under the
Companies Act,
2013.
The registration of transfers may be suspended at
such times and for such periods as the Board may
from time to time determine not exceeding thirty
(30)days in any Year. The right of the Members to
transfer, sell or renounce all or any of their Shares
shall be restricted as follows:
No Change
i The Member desirous of transferring, selling or
renouncing Shares (“Selling Party”) shall give
notice in writing (“Transfer Notice”) to the other
Members (“Continuing Parties”) and the proposed
price (“Transfer Price”);
The Member desirous of
transferring, selling or renouncing
Shares (“Selling Party”) shall give
notice in writing (“Transfer Notice”)
to the prospective Buyer(s) and the
proposed price (“Transfer Price”);
Revised in order
to facilitate
transfer of
shares to the
State of
Telangana (Non
members) by
Non Govt.
Institutions.
ii Within thirty (30) days from the receipt of the
Transfer Notice, any one or more of the Continuing
Parties shall have the right by notice in writing
(“Purchase Notice”) to inform the Selling Party
whether it elects to purchase the Shares mentioned
in the Transfer Notice (“Sale Shares”) at Transfer
Within thirty (30) days from the
receipt of the Transfer Notice, any
one or more prospective Buyer(s)
shall have the right by notice in
writing (“Purchase Notice”) to
inform the Selling Party whether it
Revised in order
to facilitate
transfer of
shares to the
State of
Telangana (Non
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Price or not.
elects to purchase the Shares
mentioned in the Transfer Notice
(“Sale Shares”) at Transfer Price or
not.
members) by
Non Govt.
Institutions.
iii If any one (1) or more of the Continuing Parties
serve a Purchase Notice within thirty (30) days of
receipt of the Transfer Notice that it elects to
purchase the Sale Shares on the Transfer Price, then
pursuant to such offer, the transfer of the Sale Shares
shall be completed accordingly. However, in case no
Purchase Notice is received by the Selling Party
within the stipulated period of thirty (30) days, then,
the Selling Party shall be entitled to sell the Sale
Shares at not less than the Transfer Price to a third
party purchaser within a period of sixty (60) days
from the expiry of thirty (30) days within which
Continuing Parties had the right to purchase the Sale
Shares, but not otherwise. Such transfer should be
completed within a period of one hundred and
twenty (120) days from the exercise of the right
prescribed in this Article.

If any one (1) or more of prospective
Buyer(s) serve a Purchase Notice
within thirty (30) days of receipt of the
Transfer Notice that it elects to
purchase the Sale Shares on the
Transfer Price, then pursuant to such
offer, the transfer of the Sale Shares
shall be completed accordingly.
However, in case no Purchase Notice is
received by the Selling Party within the
stipulated period of thirty (30) days,
then, the Selling Party shall be entitled
to sell the Sale Shares at not less than
the Transfer Price to a third party
purchaser within a period of sixty (60)
days from the expiry of thirty (30) days
within which Continuing Parties had
the right to purchase the Sale Shares,
but not otherwise.Such transfer should
be completed within a period of one
hundred and twenty (120) days from the
exercise of the right prescribed in this
Article.
Revised in order
to facilitate
transfer of
shares to the
State of
Telangana (Non
members) by
Non Govt.
Institutions.
iv Notwithstanding the foregoing, a Selling Party can
transfer, sell or renounce the Shares in accordance
with these Articles only and within its respective
Group mentioned in Table I of Article 6 above and
without contravening the provisions of Article 3 and
6 above.
Notwithstanding the foregoing, a
Selling Party can transfer, sell or
renounce the Shares in accordance with
these Articles only and within its
respective Group mentioned in Table I
of Article 6 above and without
contravening the provisions of Article 3
and 6 above.
Revised in order
to facilitate
transfer of
shares by Non
Govt.
Institutions.
v No Member shall deal or attempt to deal with the
beneficial interest in any Share of the Company
except by transfer of its shareholding permitted in
accordance with this Article.
No change

POWER TO INCREASE CAPITAL
11 The Board may, in accordance with these Articles,
increase the Capital of the Company by such sum, to
be divided into Shares of such amount, as it may
deem fit, without affecting the percentage
shareholding as mentioned in Article 6 above.
No change

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CONDITIONS ON WHICH NEW SHARES MAY BE ISSUED
12 New Shares may be issued upon such terms and
conditions and with such rights and privileges
annexed thereto as in general meeting resolving
upon the creation thereof shall direct, and if no
direction is given, then as Board may determine.
No change

RANKING OF NEW SHARES WITH SHARES IN ORIGINAL CAPITAL
13 Except so far as provided by the conditions of issue, or by
these Articles, any capital raised by the creation of new share
shall be considered part of the original capital and shall be
subject to the provision herein contained with reference to the
payment of calls and installments, transfer and transmission,
lien, voting, surrender and otherwise.
No change
REDUCTION OF CAPITAL
14 Subject to the provisions of sections 100 to 104 of the
Act and Article 6 and Article 38 and Article 39, the
Company may, from time to time, reduce its Capital by
paying off Capital or cancelling Capital, which has been
lost or is unrepresentative by available assets, or is
superfluous, or by reducing the liability on the Shares or
otherwise as may seem expedient and Capital may be
paid off upon the footing that it may be called up again
or otherwise, and the Board may, subject to the
provisions of the Act and these Articles, accept
surrender of Shares. However, post reduction of the
Capital, the shareholding percentage mentioned in
Article 6 shall be maintained.

Subject to provisions of section 66 of
the Act and Article 6 and Article 38
and Article 39, the Company may, from
time to time, reduce its Capital by
paying off Capital or cancelling
Capital, which has been lost or is
unrepresentative by available assets, or
is superfluous, or by reducing the
liability on the Shares or otherwise as
may seem expedient and Capital may
be paid off upon the footing that it may
be called up again or otherwise, and the
Board may, subject to the provisions of
the Act and these Articles, accept
surrender of Shares. However, post
reduction of the Capital, the
shareholding percentage mentioned in
Article 6 shall be maintained.
Reference of
new Section
under the
Companies
Act, 2013.

SUB DIVISION AND CONSOLIDATION OF SHARES
15 The Company in general meeting may, from time to
time, sub-divide or consolidate its Shares or any of them
and exercise any of the other powers conferred by
section 94 of the Act and shall file with the Registrar of
Companies (as defined in the Act) such notice of
exercise of such power as required by the Act.

The Company in general meeting may,
from time to time, sub-divide or
consolidate its Shares or any of them
and exercise any of the other powers
conferred by Section 61 of the Act and
shall file with the Registrar of
Companies (as defined in the Act) such
notice of exercise of such power as
required by the Act.
Reference of
new Section
under the
Companies
Act, 2013.

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 254 of 309
BORROWING POWERS
16 Subject to the provisions of clause (1) of section
293 of the Act and these Articles, the Board may
from time to time at their discretion, raise or
borrow or secure the repayment of any sum or
sums of money for purposes of the Company
from such entities approved by the Board and
from Directors.

Subject to these Articles, the Board may raise
and secure the payments of such sum or sums in
such manner and upon such terms and conditions
in all respects as they think fit and in particular
by mortgage and charge upon the whole or any
part of the assets and property of the Company
(both present and future) including its uncalled
or un-issued Capital for the time being or by
issue of debentures or bonds of the Company or
by creation of debenture stock charged upon the
whole or any part of the assets and property of
the Company as aforesaid or not so charged.
Subject to the provisions of clause (1) of
section 180 of the Act and these Articles, the
Board may from time to time at their
discretion, raise or borrow or secure the
repayment of any sum or sums of money for
purposes of the Company from such entities
approved by the Board and from Directors.

Subject to these Articles, the Board may raise
and secure the payments of such sum or sums
in such manner and upon such terms and
conditions in all respects as they think fit and
in particular by mortgage and charge upon the
whole or any part of the assets and property of
the Company (both present and future)
including its uncalled or un-issued Capital for
the time being or by issue of debentures or
bonds of the Company or by creation of
debenture stock charged upon the whole or
any part of the assets and property of the
Company as aforesaid or not so charged.
Reference of
new Section
under the
Companies
Act, 2013.

ANNUAL GENERAL MEETINGS
17 The Company shall in each year hold, in addition to
any other meeting, a general meeting as its annual
general meeting and not more than fifteen (15) months
shall elapse between the two annual general meetings
of the Company.

The first annual general meeting of the Company shall
be held within eighteen (18) months from the date of
incorporation of the Company and thereafter, subject to
the provisions of section 166 of the Act read with
section 210 of the Act, the annual general meeting of
the Company shall be held within six (6) months after
the expiry of each Financial Year.

No Change

The first annual general meeting of the
Company shall be held within eighteen
(18) months from the date of
incorporation of the Company as per the
provisions of the Companies Act 1956
and thereafter, subject to the provisions
of Section 96 of the Act read with
Section 129 of the Act, the annual
general meeting of the Company shall be
held within six (6) months after the
expiry of each Financial Year.

Reference of
new Section
under the
Companies
Act, 2013.

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 255 of 309
EXTRAORDINARY GENERAL MEETING
18 All general meetings other than the annual general
meetings shall be called extra ordinary general
meetings.
No change

BOARD TO CALL EXTRAORDINARY GENERAL MEETING
19
The Board may, whenever it thinks fit, call an
extraordinary general meeting.
No change

EXTRAORDINARY GENERAL MEETING ON REQUISITION
20. The Board shall call an extraordinary general meeting
whenever a requisition in writing is received in
accordance with section 169 of the Act.
The Board shall call an extraordinary
general meeting whenever a requisition
in writing is received in accordance with
Section 100 of the Act.
Reference of
new Section
under the
Companies
Act, 2013.

WHEN REQUISITIONISTS CAN HOLD EXTRAORDINARY GENERAL MEETING
21. If the Board does not duly proceed to call a general
meeting on a date not later than forty five (45) days
from the date of such deposits, within twenty one (21)
days from date of requisition being so deposited, then
the Members who have requisitioned such meeting
(requisitionists) under Article 20 or the majority of
them, in value or as permitted by sub-clause (b) of sub-
section (6) of section 169 of the Act, may themselves
call the meeting, but any meeting so called shall not be
held after three (3) months from the date of such
requisition. Any meeting convened under this Article
by the requisitionists shall be convened in the same
manner as far as possible as that in which meetings are
to be convened by the Board.
If the Board does not duly proceed to call
a general meeting on a date not later than
forty five (45) days from the date of such
deposits, within twenty one (21) days
from the date of requisition being so
deposited, then the Members who have
requisitioned such meeting
(requisitionists) under Article 20 or the
majority of them, in value or as permitted
by sub-section (4) of Section 100 of the
Act, may themselves call the meeting, but
any meeting so called shall not be held
after three (3) months from the date of
such requisition. Any meeting convened
under this Article by the requisitionists
shall be convened in the same manner as
far as possible as that in which meetings
are to be convened by the Board.
Reference of
new Section
under the
Companies
Act, 2013.

PROCEEDING AT GENERAL MEETING

QUORUM
22
(a)

No business shall be transacted at any general
meeting unless a quorum of Members is present at
the time when the general meeting proceeds to
transact business.
No change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 256 of 309
22
(b)
Save as otherwise provided herein, the quorum for
the general meetings including the annual general
meetings shall be:

(i) One representative of the Members of Group A;

(ii) Such number of representatives of the Members
of Group B as constitute a majority of the total
shareholding assigned to Members of Group B
collectively; and

(iii) One representative of the Member of Group C.

Save as otherwise provided herein, the
quorum for the general meetings including
the annual general meetings shall be:

(i) One representative of the Members of
Group A;

(ii) Such number of representatives of the
Members of Group B as constitute a majority
of the total shareholding assigned to
Members of Group B collectively; and

(iii) One representative of the Member of
Group C.

Consequent upon conversion of company
into 100% Government Company after
the Group C shareholding will be
transferred to Group A & Group B, the
quorum for the general meetings including
the annual general meetings shall be:

(i) One representative of the Members of
Group A;

(ii) Such number of representatives of the
Members of Group B as constitute a majority
of the total shareholding assigned to
Members of Group B collectively; and
Since the
company will
become a
government
company
therefore
Group C to
be deleted.
22
(c)
A body corporate being a Member shall be deemed
to be personally present if it is represented in
accordance with Section 187 of the Act.
A body corporate being a Member shall be
deemed to be personally present if it is
represented in accordance with Section 113
of the Act.
Reference of
new Section
under the
Companies
Act, 2013.
22
(d)
(i) The Member of Group A, as long it is a
shareholder of the Company may, from time to
time, appoint one or more persons (who need not be
a Member or Members of the Company) as a
nominee to represent it at all or any general
meetings of the Company and such nominee shall
be deemed to represent the Member of Group A.

(ii) Only one of the persons appointed under sub –
clause (i) of this Article who is personally present
at the general meeting shall be deemed to be a
Member entitled to vote and be present and exercise
the same rights and powers (including the right to
vote by proxy) as he could exercise as a Member of
the Company.

(iii) The Member of Group A may, from time to
time, cancel any appointment made under sub –
clause (i) of this Article and make fresh
No Change

No Change

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 257 of 309
appointments.
22
(e)
The provisions of Article 22 (d) above shall mutatis
mutandis apply to the Members of Group B.
No Change

NOTICE OF GENERAL MEETING
23 Notice of the general meeting specifying the place, the
day and the hour of the meeting and in case of special
business, the general nature of the business
accompanied by an explanatory Statement under
section 173 of the Act, shall be given to all Members
at least fourteen (14) days prior to the appointed date
of the meeting. Notices to Members shall be sent by
mail or telefax or email, in the latter case a letter
confirming the notice in writing shall be sent to the
Members. Provided, however, that any general
meeting may be called by giving to the Members
notice of seven (7) days or a shorter notice if consent
thereto is given by at least three (3) Members or their
nominees including one (1) Member or its nominee
from each Group mentioned in Table I of Article 6.

Notice of the general meeting
specifying the place, the day and the
hour of the meeting and in case of
special business, the general nature of
the business accompanied by an
explanatory Statement under section
102 of the Act, shall be given to all
Members at least fourteen (14) days
prior to the appointed date of the
meeting. Notices to Members shall be
sent by mail or telefax or email, in the
latter case a letter confirming the notice
in writing shall be sent to the Members.
however, any Annual general meeting
may be called after giving shorter
notice if consent is attained in writing
or electronic mode by not less than
ninety five present of members entitled
to vote at such meeting.
Further, any General Meeting other
than Annual General Meeting may be
called after giving shorter notice if
consent is received from majority in
number of members entitled to vote
and who represent not less than 95%
of such part of paid up share capital of
the company as gives right to vote at
the company .
Reference of
new Section
under the
Companies
Act, 2013.And
this Article is
aligned as per
the new
Section
amended
under The
Companies
(Amendment)
Act, 2017
PROCEEDINGS OF GENERAL MEETING AND BUSINESS OF GENERAL MEETING
24 In case of an annual general meeting, all business to
be transacted at the meeting shall be deemed special,
with the exception of business relating to (i) receive
and consider the income and expenditure account, the
balance sheet and the report of the Board and of the
auditor and (ii) appointment of and fixing of
remuneration of the auditor and all business
transacted at an extraordinary general meetings shall
be deemed special.
No Change

CHAIRMAN OF GENERAL MEETING
25
(a)
The Chairman appointed as per the procedure mentioned in Article
42 shall, subject to this Article 25, preside as Chairman of every
general meeting of the Company.
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 258 of 309
25
(b)
If there is no such Chairman, or if he is not present within fifteen
minutes after the time appointed for holding the meeting or is
unwilling to act as Chairman of the meeting, any Director so
nominated by the Chairman referred in sub-clause (a) of this Article
25 shall preside as the Chairman of the meeting.
No Change
25
(c)
If there is no such Chairman as mentioned in sub-clause (a) and (b)
of this Article 25, or if such Chairman is not present within fifteen
(15) minutes after the time appointed for holding the meeting or is
unwilling to act as Chairman of the meeting, the Members or their
nominees present shall elect one of the Directors nominated by Group
A and Group B, to be the Chairman of the meeting.
No Change
25
(d)
If at any meeting, no Director as stated in sub-clause (a), (b) and (c)
of this Article 25 is willing to act as Chairman of the meeting or is not
present within fifteen (15) minutes after the time appointed for
holding the meeting, the Members or their nominees present at such
meeting shall choose one of the Members or their nominees present
in such meeting to be the Chairman only of such meeting.
No Change

WHEN IF QUORUM NOT PRESENT, MEETING TO BE ADJOURNED
26 If within half an hour from the time appointed for the general
meeting a quorum is not present, the meeting if convened upon such
requisition under Article 21 as aforesaid, shall stand dissolved but
in any other case it shall adjourn to the same day in the next week at
the same time and place or such other day and at such other time and
place as the Board may determine and, if at such adjournment
meeting, a quorum is not present, the meeting shall be adjourned
further following the same foregoing procedure till the time quorum
is complete.
No Change

POWER TO ADJOURN GENERAL MEETING
27
(a)
The Chairman in a general meeting may, with the consent of the
meeting at which quorum is present, and shall, if so directed by
the meeting, adjourn the meeting from time to time and from
place to place.
No Change
27
(b)
No business shall be transacted at any adjourned general meeting
other than the business left unfinished at the meeting from which
the adjournment took place.
No Change
27
©
When a general meeting is adjourned for thirty (30) days or more,
notice of the adjourned meeting shall be given as in the case of an
original meeting.
No Change
27
(d)
Save as aforesaid, it shall not be necessary to give any notice of
an adjournment or of the business to be transacted at an
adjourned meeting.
No Change
27
(e)
Any poll demanded on the election of the chairman of the general
meeting or any question of adjournment shall be taken at the
meeting forthwith and without adjournment.
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 259 of 309

HOW QUESTIONS TO BE DECIDED AT GENERAL MEETING
28 Every question submitted to the meeting shall be decided in the
first instance by raising of hands and in the case of an equality of
votes, the Chairman shall, both on a raising of hands and at a poll
(if any), in case the Chairman is a Member, have casting vote in
addition to the vote or votes to which he may be entitled to as a
Member. In case of voting by show of hands, every Member while
voting through raising of hands shall represent one vote for every
share held by him and every nominee or proxy of a Member while
voting by show of hands shall represent one vote for every share
held by the Member who has appointed such nominee or proxy
and their votes shall be counted accordingly.
No Change
29 Any business other than that on which a poll is demanded may be
proceeded with, pending the taking of the poll.
No Change
30 At any general meeting, a resolution put to vote of the meeting,
shall be decided on raising of hands, unless a poll is, before or on
the declaration of the result of raising of hands, demanded by a
Member present in person or by a proxy or by nominee, and unless
a poll is so demanded, a declaration by the Chairman that a
resolution has, on raising of hands, been carried unanimously or
by a particular majority, or lost, an entry to that effect in the book
of proceedings of the Company, shall be conclusive evidence of
the fact without proof of the number or proportion of the votes
recorded in favor or against that resolution.
No Change
31 If a poll is duly demanded, it shall be taken in such a manner and
at such time and place as the Chairman of the meeting directs,
either at once or after an interval or adjournment or otherwise and
the result of the poll shall be deemed to be the resolution of the
meeting at which poll was demanded. The demand of the poll may
be withdrawn.
No Change
32 The Chairman of any general meeting shall be the sole judge of
the validity of every vote tendered at such meeting. The Chairman
present at the taking of a poll shall be the sole judge of the validity
of every vote tendered at such poll.
No Change
VOTES OF MEMBERS
33 Only Members who have paid all sums for the time being due and payable
to the Company in respect of their shares shall be entitled to vote on any
question either personally or by proxy or nominee at any general meeting.
No Change
34 Upon the raising of hands or upon poll, every Member present in person
shall have one vote for every share held by him and every proxy or nominee
representing a Member shall have one vote for every share held by the
Member who has appointed such proxy or nominee.
No Change
35
(a)
A Member who is not personally present shall be entitled to vote on raising
of hands through proxy or nominee. On a Poll, votes may be given either
personally or by proxy or by nominee.
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 260 of 309
35
(b)
A Member may appoint another person (whether a Member or not) as his
proxy or nominee to attend a general meeting and vote on poll. No Member
shall appoint more than one (1) proxy or nominee to attend on the same
occasion. A proxy shall not be entitled to speak at such general meeting, but
shall be entitled to vote whether on raising of hands or on a poll. The
instrument appointing a proxy or a nominee shall be in writing and be signed
by the appointer or his attorney duly authorized in writing or if the appointer
is a body corporate, be under its seal or be signed by an attorney duly
authorized by it.
No Change
35
(c)
The instrument appointing a proxy or a nominee and the power of attorney
or other authority (if any) under which it is signed, or a notarially certified
copy of that power of authority, shall be deposited at the Office of the
Company not less than forty eight (48) hours before the time for holding the
meeting at which the person named in the instrument proposed to vote, and
in default, the instrument of proxy or nominee, shall not be treated as valid.
No Change
35
(d)
A vote given in accordance with the terms of an instrument of proxy shall
be valid notwithstanding the previous revocation of the proxy provided no
intimation in writing of the revocation shall have been received at the office
of the Company before the meeting.
No Change
36 Where there are joint registered Members of a Share, any one of them may
vote at any general meeting, either personally or by proxy, in respect of such
Share as if he were solely entitled thereto, and if more than one of the said
persons present, whose name stands first on the Register in respect of such
Share, shall alone be entitled to vote in respect thereof. Several executors or
administrators of deceased Member in whose name any Share stands, shall
for the purpose of this clause be deemed to be joint holder thereof.
No Change

TIME FOR OBJECTION OF VOTE
37 No objection shall be raised to the qualification of any voter except
at the general meeting or adjourned general meeting at which the
vote objected to is given or tendered, and every vote not
disallowed at such meeting shall be valid for all purposes. Any
such objection made in due time shall be referred to the Chairman
of the meeting whose decision shall be final and conclusive.
No Change

SPECIAL RESOLUTION
38 The matters specified below and any other matters
that are required to be decided through Special
Resolution by a public company under the Act,
shall be decided upon by the Company through a
Special Resolution:
(a) Rescinding of any contract,
memorandum of understanding,
agreement etc. entered into with the
Government;

The matters specified below and any other matters
that are required to be decided through Special
Resolution by a public company under the Act,
shall be decided upon by the Company through
a Special Resolution:

(a) Rescinding of any contract, memorandum of
understanding, agreement etc. entered into
with the Government;

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 261 of 309
(b) Formation of a policy for disclosure
of the confidential and sensitive
information to any person outside the
Company and Government;

(d) Any reorganization or change in the
nature of the business or scope of
business or the activities undertaken
pursuant to the Memorandum of
Association of the Company;

(e) Purchasing or taking on lease or
otherwise acquiring for the Company,
property right or privilege which the
Company is authorized to acquire in
excess of a sum to be previously
specified by the Ordinary Resolution;

(f) Appointment or change in the
auditors, except as contemplated by
these Articles;

(g) Formation of subsidiary companies;

(h) Any merger, restructuring, sale,
divestment, amalgamation, demerger,
reorganization or consolidation of the
Company or any of the subsidiaries;

(i) Any liquidation, winding up,
deregistration or dissolution;

(j) Change in name of the Company;

(k) Change in status of the Company
from private limited company to
public limited company or vice-versa
or from a company under Section 25
of the Act to a company not under
Section 25 of the Act;
(l) Redemption of capital and/or any buy
back of Shares;
(m) Change in capital structure,
ownership or debt structure of the
Company;
(n) Any transfer of Shares by any
shareholder of the Company;
(o) Divestment or sale of assets of the
(b) Formation of a policy for disclosure of the
confidential and sensitive information to any
person outside the Company and Government;

(d) Any reorganization or change in the nature of
the business or scope of business or the
activities undertaken pursuant to the
Memorandum of Association of the Company;

(e) Purchasing or taking on lease or otherwise
acquiring for the Company, property right or
privilege which the Company is authorized to
acquire in excess of a sum to be previously
specified by the Ordinary Resolution;

(f) Appointment or change in the auditors, except
as contemplated by these Articles;
(consequent upon the conversion of company into
Govt Company, the provisions mentioned in
Article No. 90 will be operative

(g) Formation of subsidiary companies;

(h) Any merger, restructuring, sale, divestment,
amalgamation, demerger, reorganization or
consolidation of the Company or any of the
subsidiaries;

(i) Any liquidation, winding up, deregistration or
dissolution;

(j) Change in name of the Company;

(k) Change in status of the Company from private
limited company to public limited company or
vice-versa or from a company under Section 8
of the Act to a company not under Section 8 of
the Act;
(l) Redemption of capital and/or any buy back of
Shares;
(m) Change in capital structure, ownership or debt
structure of the Company;
(n) Any transfer of Shares by any shareholder of
the Company;
(o) Divestment or sale of assets of the Company;
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 262 of 309
Company; and
(p) Any license, transfer, assignment,
sale or grant of all or any of the
intellectual property rights of the
Company.

and

(p) Any license, transfer, assignment, sale or grant
of all or any of the intellectual property rights
of the Company.

39 Notwithstanding the foregoing, if any matter(s)
mentioned in Article 38 above do not get passed in
accordance with the procedure mentioned in
Article 38 and the Members of Group A and
Group B, or their nominees, present in such
meeting, decide by majority, that such matter(s)
shall be decided upon through a resolution passed
by a majority of Members of Group A and Group
B (or their nominees) present in such meeting
along with an overall majority of Members (or
their nominees) present in such meeting, then such
matter(s) shall be decided upon accordingly.
No Change
EXCLUSION OF SECTION 171 TO SECTION
186 OF THE ACT
EXCLUSION OF SECTION
101 TO SECTION 107 & 109
OF THE ACT
Reference of new Section
under the Companies Act,
2013.
40 Except as otherwise provided in these Articles,
nothing contained in sections 171 to 186 of the Act
shall apply to the Company.
Except as otherwise provided
in these Articles, nothing
contained in sections 101 to
107& 109 of the Act shall apply
to the Company.
Reference of new Section
under the Companies Act,
2013.
DIRECTORS
41 The number of Directors on Board including any
additional or alternate Director for the time being,
shall not be less than two (2) and not more than
fourteen (14) at any time.
The number of Directors on Board
including any additional or alternate
Director, shall at all times be 11 (Eleven).

42 The Members of Group A and Group B shall be
entitled to appoint up to three (3) Directors each. In
addition, the Chairman shall be nominated through a
joint approval mechanism of Central Government
and State Governments. Subject to filling of the
positions of Directors during the initial period post
incorporation of the Company and subject to filling
of a casual vacancy in accordance with Article 52 (a)
and Article 52 (b), at any point of time, the Directors
(including the Chairman) on the Board appointed by
the Members of Group A and Group B, collectively,
shall not exceed fifty percent (50%) of the total
number of Directors present on the Board. The
Members of Group A and Group B shall have the
power to remove and replace the Directors appointed
by them. Subject to filling of a casual vacancy in
accordance with Article 52 (a) and Article 52 (b), the
number of Directors on the Board to be nominated by
Members of Group A and Group B shall always be
equal.
The Members of Group A and Group B
shall be entitled to appoint up to three (3)
Directors each. Further in case of casual
vacancy occurred, the same will be
nominated by the respective Group A and
B.

In addition, the Chairman shall be
nominated through a joint approval
mechanism of Central Government and
State Governments. Subject to filling of
the positions of Directors during a casual
vacancy in accordance with Article 52 (a)
and Article 52 (b), at any point of time,
the Directors (including the Chairman)
on the Board be appointed by the
Members of Group A and Group B
collectively. Also The Members of
Group A and Group B shall have the
power to remove and replace the
Directors appointed by them.

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 263 of 309

43 (a) The Members of the Group C shall be entitled to
appoint up to three (3) Directors on the Board. The
Non-Government Institution which holds maximum
equity amongst Member of Group C shall always
have the right to appoint one Director and if such
Non-Government Institution holds 21% equity in the
Company, the Director appointed by such Non-
Government Institution shall be a permanent Director
on the Board. Subject to the foregoing, the first two
Non-Government Institutions that become Members
of the Company shall have the right to appoint one
(1) Director each in the Company. The Members of
the Group C shall have the right to replace their
appointed Directors with any other person.

(b) In case any one or more of the first two Non-
Government Institutions that become Members of the
Company do not wish to appoint a Director, or fail to
appoint a Director, within fifteen (15) days of their
becoming a Member, then the Non-Government
Institution that subsequently becomes a Member shall
have the right to appoint one (1) Director. The
process shall be repeated till two (2) Directors are
appointed by the Members of the Group C.

© The Non-Government Institutions (Group C of
Table I in Article 6) that subsequently become
Members of the Company and have not got the right
to appoint a Director shall be authorized to appoint a
member each in the Advisory Committee or the IT
Advisory Committee, if any, constituted under these
Articles.

(d) The appointees of the Members from the Non-
Government Institutions (Group C of Table I in
Article 6) on the Board and in Committees, as stated
in the sub-clause (a) to (c) of this Article 43, may be
rotated inter-se the Board and said Committees if, and
in accordance with the terms and procedure, decided
by the Board.

No Change

Consequent upon conversion of
company into 100% Government
Company, this clause will become
redundant

44 The person who holds the position of Chief Executive
Officer of the Company shall be one of the Directors.
The Chief Executive Officer shall be selected through
an open selection process.
No Change

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 264 of 309
45 Notwithstanding the foregoing, the Directors in
Article 42 - 44 above may, by majority, nominate up
to three (3) persons of eminence having technical,
legal, accountancy or any other professional
qualification as Directors. Further, if any or all of the
Members of Group C fail to nominate a requisite
number of Directors as per the Articles above, the
Board shall have the power to appoint any person as
Director till the time such Director is appointed by
Member of Group C, provided such Directors do not
represent Members of Group A and Group B.
Notwithstanding the foregoing, the
Directors in Article 42 - 44 above may,
by majority, nominate up to three (3)
persons of eminence having technical,
legal, accountancy or any other
professional qualification as Directors.
Further, if any or all of the Members of
Group C fail to nominate a requisite
number of Directors as per the Articles
above, the Board shall have the power to
appoint any person as Director till the
time such Director is appointed by
Member of Group C, provided such
Directors do not represent Members of
Group A and Group B.

Consequent upon conversion of company
into 100% Government Company the
clause will be read as under
Notwithstanding the foregoing, the
Directors in Article 42 - 44 above may,
by majority, nominate up to three (3)
persons of eminence having technical,
legal, accountancy or any other
professional qualification as Directors.

46 If a Member who has nominated a Director as per
these Articles transfers its Shares, the Director so
appointed by such Member, shall cease to be a
Director on the Board from the effective date of such
transfer of Shares. If a Member of Group C transfers
its Shares, then the other Members of Group C shall
immediately nominate a person as the Director in his
stead. If a Member of Group C transfers its Shares,
the vacancy shall be immediately filled by the other
Members of Group C in consultation with the other
Directors on the Board.
If a Member who has nominated a
Director as per these Articles transfers its
Shares, the Director so appointed by such
Member, shall cease to be a Director on
the Board from the effective date of such
transfer of Shares. If a Member of Group
C transfers its Shares, then the other
Members of Group C shall immediately
nominate a person as the Director in his
stead. If a Member of Group C transfers
its Shares, the vacancy shall be
immediately filled by the other Members
of Group C in consultation with the other
Directors on the Board.
Consequent upon conversion of company
into 100% Government Company the
clause will be read as under.
If a Member who has nominated a
Director as per these Articles transfers its
Shares, the Director so appointed by such
Member, shall cease to be a Director on
the Board from the effective date of such
transfer of Shares.

47 One of the Directors to be appointed by the
Member(s) of Group A shall always be Ex-officio
Member, CBEC. The other Directors to be appointed
by the Member(s) of Group A shall as far as possible
be as under:
(a) Ex-officio Additional Secretary,
Department of Revenue, Ministry of
No Change

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 265 of 309
Finance; and
(b) Ex-officio Financial Advisor,
Department of Revenue, Ministry
of Finance

48 The Directors to be appointed by the Member(s) of
Group B shall as far as possible be as under:

(a) Ex-officio Member Secretary, EC;

(b) One person nominated by the Group B; and

(c) One person nominated by the Group B.
The Directors to be appointed by the
Member(s) of Group B shall be
nominated by the GST Council and
shall as far as possible be as under:

(a) Ex – Officio Additional Secretary,
GST Council; and

(b) One person nominated by the Group
B; and

(c) One person nominated by the Group
B.
Replacement
of EC by GST
Council and
GST Council
shall nominate
Directors for
Group B,
clarity
inserted.
49 The first Directors of the Company shall be:
1. Smt. Jane Mary Shanti Sundharam,
Member (Computerisation), CBEC

2. Rashmi Verma, Additional Secretary,
Department of Revenue, Ministry of
Finance

3. Shri. Satish Chandra, Member Secretary,
EC
4. Dr. Hasmukh Adhia, Principal Secretary
(Finance), Government of Gujarat

No Change
50 The Directors shall not be required to hold any
qualification shares in the Company.
No Change
51 The tenure of Directors appointed in accordance with
Article 45 shall be for such period as shall be
determined by the Board.
No Change
52 (a) If a Director (other than a Director appointed
according to Article 45) vacates office as a Director
before his term of office for any reasons whatsoever
or expires in the normal course, the resulting vacancy
shall be deemed to be a causal vacancy and shall be
filled immediately by the Board in the next Board
meeting, or as soon as possible from the date of
occasion of such casual vacancy. Such person so
appointed shall retain his office so long only as the
vacating director would have retained the same if the
vacancy had not occurred. The new Director shall be
the representative / nominee of the Member(s) of
Group A, Group B or Group C, whose Director has
(a) If a Director (other than a Director
appointed according to Article 45)
vacates office as a Director before his
term of office for any reasons whatsoever
or expires in the normal course, the
resulting vacancy shall be deemed to be a
causal vacancy and shall be filled
immediately by the Board in the next
Board meeting, or as soon as possible
from the date of occasion of such casual
vacancy. Such person so appointed shall
retain his office so long only as the
vacating director would have retained the

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 266 of 309
vacated such office and may be reappointed as a
Director.

(b) If a Director appointed according to Article 45
vacates office as a Director before his term of office
for any reasons whatsoever or expires in the normal
course, the resulting vacancy shall be deemed to be a
causal vacancy and shall be filled immediately by the
Board in the next Board meeting, or as soon as
possible from the date of occasion of such casual
vacancy, in the same manner as mentioned in Article
45 and the tenure of such new Director shall be the
full term commencing his appointment as determined
by Board under Article 51.
same if the vacancy had not occurred.
The new Director shall be the
representative / nominee of the
Member(s) of Group A, Group B or
Group C, whose Director has vacated
such office and may be reappointed as a
Director.

Consequent upon conversion of
company into 100% Government
Company, the directors will be
appointed by Group A & Group B only
and in case of vacation of directors, the
same will be replaced by the respective
Group A & Group B .

(b) If a Director appointed according to
Article 45 vacates office as a Director
before his term of office for any reasons
whatsoever or expires in the normal
course, the resulting vacancy shall be
deemed to be a causal vacancy and shall
be filled immediately by the Board in the
next Board meeting, or as soon as
possible from the date of occasion of
such casual vacancy, in the same manner
as mentioned in Article 45 and the tenure
of such new Director shall be the full
term commencing his appointment as
determined by Board under Article 51.

CHAIRMAN OF THE BOARD
53 After the finalization of the process of the nomination of
the Chairman through a joint approval mechanism of
Central Government and State Governments, the
Secretary in the Department of Revenue, Ministry of
Finance, Government of India, shall communicate the
name and other details of such nominated person to the
Company. On receipt of such communication by the
Company, the named functionary shall be deemed to be
the Chairman of the Board of Directors without any
further act or deed. The Company shall intimate about
such appointment to the Registrar of Companies. Till
such time, any communication is not received from the
Secretary in the Department of Revenue, Ministry of
Finance, Government of India, the Directors on the
Board shall choose one of the Directors nominated by
the Member of Group A or Group B to preside over each
meeting of the Board.
After the finalization of the process of the
nomination of the Chairman through a
joint approval mechanism of Central
Government and State Governments, the
Secretary in the Department of Revenue,
Ministry of Finance, Government of
India, shall communicate the name and
other details of such nominated person to
the Company. On receipt of such
communication by the Company, the
named functionary shall be deemed to be
the Chairman of the Board of Directors
without any further act or deed. The
Company shall intimate about such
appointment to the Registrar of
Companies. Till such time, any
communication is not received from the
Secretary in the Department of Revenue,
Ministry of Finance, Government of
India, the Directors on the Board shall
choose one of the Directors nominated by
Modified
for the
purpose of
clarity for
appointment
of Chairman
in future.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 267 of 309
the Member of Group A or Group B to
preside over each meeting of the Board.

The process of nomination of the
Chairman through a joint mechanism
of Central Government and State
Governments shall also be followed in
future.

FEES OF DIRECTORS
54
The fees of each Director shall be such fees for each
meeting of the Board or of a Committee thereof
attended by the Director as may be determined by the
Board. The Board may allow and pay to the Director
who has to travel on Company’s business or for the
purpose of attending a meeting in relation to the
business of the Company, such sums as the Board may
consider fair for travelling, boarding, lodging and other
expenses in addition to his fees for attending such
meeting as may be specified.
No Change

POWERS OF THE BOARD
55
(a)
Subject to the provisions of the Act and these Articles,
the Board shall be entitled to exercise all such powers
and to do all such acts and things as the Company is
authorized to exercise and do.
No Change
55
(b)
Provided that the Board shall not exercise any power or
do any act or thing which is required by the Act or by the
extant law of India or by the Memorandum or Articles
of Association of the Company or otherwise, to be
exercised or done by the Company in a general meeting.
No Change
55
(c)
Provided further, that while exercising any such power
or doing any such act or thing, the Board shall be subject
to the provisions contained in that behalf in the Act or
any other extant law in India, or in the Memorandum and
Articles of the Company or in the regulations of the
Company not inconsistent therewith and duly made
there under including regulations made by the Company
in general meeting.
No Change
55
(d)
No regulations made by the Company in general meeting
shall invalidate any prior act of the Board, which would
have been valid if those regulations had not been made.
No Change
55
(e)
The Board may pay all expenses incurred in setting up
and registering the Company.
No Change

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 268 of 309
SPECIFIC POWERS OF BOARD
56 Without prejudice to the powers conferred by preceding Article
55 and the other powers conferred by these Articles and subject
to the provisions of the Act, the Board shall have the following
powers:

(a) Authorize the undertaking of work of a capital nature.

(b) Pay for any property, right or privileges acquired by or
services rendered to the Company either wholly or partially in
cash or in bonds, debentures, or other securities (except Shares)
of the Company and any such bonds, debentures etc. may be
issued either as fully paid up or with such amount credited as
paid up, as may be agreed upon and any such bonds, debentures
or other securities (except Shares) may be either specifically
charged upon, or not so charged.

(c) Create posts of officers and staff for the Company from
time to time and take all necessary steps to induct officers from
Government on deputation in the Company. Appoint and remove
or suspend such officers and staff, permanent, temporary or
special services as it may from time to time think fit and to
determine its powers and duties. On this subject, fix salaries and
emoluments of employees and officers who are not on deputation
from Government and in case of officers on deputation, to fix
salaries and emoluments for employees and officers for such
employees and officers in accordance with the extant deputation
guidelines, and to require security in such instances and to such
amount as it thinks fit.

(d) Appoint any person or persons (whether incorporated or
not) to accept and hold in trust for the Company any property
belonging to the Company or in which it is interested or for any
other purpose and to execute and do all such deeds and other
things as may be requisite in relation to any such trust and to
provide for remuneration of such trustee or trustees.

(e) Institute, conduct, defend or abandon any legal
proceeding by or against the Company or its officers, or
otherwise concerning the affairs of the Company and also to
compound and allow time for payment or satisfaction of any
claims or demands by or against the Company.

(f) Refer any claim or demand by or against the Company
to arbitration and observe and perform awards.

(g) Make and give receipts, release and other discharges for
money payable to the Company and for the claims and demands
of the Company.

(h) Provide from time to time, for the management of the
affairs of the Company in such manner as it thinks fit, and in
particular to appoint any person to be an attorney or agent of the
Company (power to sub delegate) and upon such terms as they
No Change

No Change

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 269 of 309
think fit.

(i) Subject to the provisions of these Articles, invest money
that is not immediately required, subject to such general or
special directives, if any, given by appropriate governmental
authority in this behalf, in securities or in any scheduled bank or
banks or their subsidiaries and in government companies or
otherwise, to be decided by the Board and to deposit and open
saving/current accounts and deal with any of the money of the
Company upon such investment authorized by the Memorandum
of Association of the Company (not being Shares in this
company) and in such manner as it thinks fit, and from time to
time to vary or release such investment.

(j) To make, vary and repeal bye-laws for the regulation of
the business of the Company, of its officer and servants.

(k) Delegate to the Chief Executive Officer or other officers
of the Company, all or any of the powers, authorities and
discretion for the time being vested in it, subject, however, to the
ultimate control and authority being retained by it.

(l) Subject to Section 313 of the Act, the Board may appoint
an alternate Director recommended for such appointment by the
Director (OriginalDirector) in whose place such person is being
appointed during hisabsence for a period of not less than three
(3) months from the State (in the Union of India) in which the
meetings of the Boards are ordinarily held. An alternate Director
appointed under this Article shall not hold office for a period
longer than that permissible to the Original Director in whose
place he has been appointed and shall vacate office if and when
the Original Director returns to the State (in the Union of India).
Such appointment shall have effect and such appointee whilst he
holds office as an alternate Director, shall be entitled to notice of
meetings of the Board and to attend and vote thereat accordingly.
However, such person shall be the nominee of the entity which
was represented by the Original Director.

No Change

(I) Subject to Section 161(2)
of the Act, the Board may
appoint an alternate
Director recommended
for such appointment by
the Director (Original
Director) in whose place
such person is being
appointed during his
absence for a period of not
less than three (3) months
from India. An alternate
Director appointed under
this Article shall not hold
office for a period longer
than that permissible to
the Original Director in
whose place he has been
appointed and shall vacate
office if and when the
Original Director returns
to IndiaSuch
appointment shall have
effect and such appointee
whilst he holds office as
an alternate Director, shall
be entitled to notice of
meetings of the Board and
to attend and vote thereat
accordingly. However,
such person shall be the
nominee of the entity
which was represented by
the Original Director.

Reference
of new
Section
under the
Companies
Act, 2013.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 270 of 309

57 The Company may exercise the powers conferred by section 50
of the Act with regard to having an official seal for use abroad,
and such powers shall be vested in the Board.
The Company may exercise the
powers conferred by Section 22
of the Act with regard to having
an official seal for use abroad,
and such powers shall be vested
in the Board.
Reference
of new
Section
under the
Companies
Act, 2013.
58 All cheques, promissory notes, drafts, hundies, bill exchange and
other negotiable instrument, and all receipts for moneys paid to
the Company, shall be singed, drawn, accepted, endorsed, or
otherwise executed, as the case may be, by such person and in
such manner as the Board shall from time to time by resolution
determine.
No Change

APPOINTMENT OF CHIEF EXECUTIVE OFFICER
59 The Board shall appoint a Chief Executive Officer for such period and upon such
terms as it may think fit, for the conduct of management of the business of the
Company subject to the control and supervision of the Board. The Chief Executive
Officer so appointed may be authorized by the Board to exercise such powers and
discretion in relation to the affairs of the Company as are specifically delegated to him
by the Board provided such authorization shall be limited to those powers that are not
required by the Act or by the extant law of India or by the Memorandum or Articles
of Association of the Company or otherwise, to be exercised or done by the Company
in a general meeting. The Chief Executive Officer shall be paid such remuneration as
may be determined by the Board. The Chief Executive Officer shall be selected
through an open selection process.
No
Change

PROCEEDINGS OF THE BOARD
MEETINGS OF THE BOARD
60 (a) The Board may meet for the dispatch of business, adjourn and otherwise
regulate its meetings, as it thinks fit. A meeting of the Board of Directors
and/or Committee of the Company shall be held at least once in every three
(3) calendar months.

(b) A Director or Secretary on the requisition of a Director may, at any time,
summon a meeting of the Board.

NOTICE OF THE BOARD MEETING

61 The notice of the Board meeting shall be given in accordance
with the provisions of Section 286 of the Act.
The notice of the Board
meeting shall be given in
accordance with the provisions
of Section 173 of the Act.
Reference
of new
Section
under the
Companies
Act, 2013.
62 Every notice convening a meeting of the Board or Committee
shall set out the agenda of the business to be transacted thereat in
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 271 of 309
full and sufficient detail, provided that with the unanimous
consent of all the Directors present, any item of business not
included in the agenda can be transacted at the meeting.
QUORUM FOR BOARD MEETING
63 The quorum for a meeting of the Board shall be four (4)
Directors. Provided, the quorum for a meeting of the Board shall
not be complete unless one (1) Director nominated by the
Members of Group A, one (1) Director nominated by the
Members of Group B and one (1) Director other than the
Directors nominated by members of Group A and Group B, are
present. Provided further that the quorum for a meeting of the
Board shall not be complete unless fifty percent (50%) of the
Directors present in any meeting of the Board are Directors
nominated by the Members of Group A and Group B.
No Change

CHAIRMAN OF BOARD MEETING
64 When the Chairman referred in Article 53 is not present within
fifteen minutes after the time appointed for holding the meeting
of the Board, the Directors present at the meeting may choose
one of the Directors nominated by the Member of Group A or
Member of Group B as Chairman of its meeting only for
conducting the business for that meeting.
No change

HOW MATTERS TO BE DECIDED IN BOARD MEETING
65 Questions arising at any meeting of the Board shall be decided
by the majority of the votes. In case of equality of votes, the
Chairman shall have a second or casting vote.
No change

RESOLUTIONS
66 Resolution by Circulation: A resolution not
being a resolution required by theAct or by
these Articles to be passed only at a meeting of
the Board or a Committee of the Board, may be
passed without the meeting of the Board or the
Committee of the Board provided that the
resolution has been circulated in draft together
with necessary papers ( through any mode
including through electronic communication),
if any, to all the Directors or to all the members
of the Committee of the Board then in India
(not less than the quorum fixed for a meeting
of the Board or a Committee of the Board, as
in case may be) and to other Directors as then
Resolution by Circulation: A resolution not
being a resolution required by theAct or by
these Articles to be passed only at a meeting
of the Board or a Committee of the Board,
may be passed without the meeting of the
Board or the Committee of the Board
provided that the resolution has been
circulated in draft together with necessary
papers (through any mode including through
electronic communication), if any, to all the
Directors or to all the members of the
Committee of the Board then in India and has
been approved by a majority of the directors
or members, who are entitled to vote on the
resolution.
The
language
aligned as
per Section
175 of the
Companies
Act, 2013.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 272 of 309
in India or by a majority of such of time as are
entitled to resolution to vote on the resolution.
67 Meetings of the Board through Electronic
Communications: Subject to provisions of
section 285 & 287 of the Act and as and when
and in the manner permitted and prescribed by
the Act, a Director may participate in and vote
at a meeting of the Board or Committee of the
Board by means of telephone, video
conferencing or similar communications
equipment which allows all persons
participating in the meeting to hear each other
and record the deliberations. Where any
Director participates in a meeting of the Board
or Committee of the Board by any of the means
above, the Company shall ensure such Director
is provided with copy of all documents referred
to during such Board meeting at least two (2)
days prior to the commencement of this Board
meeting. The quorum requirements for meeting
of the Board as provided in these Articles shall
be applicable to any meeting of the Board in
terms of this Article 67.
Meetings of the Board through Electronic
Communications: Subject to provisions of
section 173, 174 read with Rule 3 & 4 of
Companies (Meetings of Board and its
powers) Rules, 2014 of the Act and as and when
and in the manner permitted and prescribed by
the Act, a Director may participate in and vote at
a meeting of the Board or Committee of the
Board by means of telephone, video
conferencing or similar communications
equipment which allows all persons
participating in the meeting to hear each other
and record the deliberations. Where any Director
participates in a meeting of the Board or
Committee of the Board by any of the means
above, the Company shall ensure such Director
is provided with copy of all documents referred
to during such Board meeting at least two (2)
days prior to the commencement of this Board
meeting. The quorum requirements for meeting
of the Board as provided in these Articles shall
be applicable to any meeting of the Board in
terms of this Article 67.
Reference of
new Section
under the
Companies
Act, 2013.

68 Upon the discussions being held by audio
conferencing, video conferencing, or net
conferencing, as the case may be, the Chairman
or the Secretary shall get recorded the
deliberations and get confirmed the view
expressed, pursuant to a circular regulation or
by a subsequent meeting of the Directors, to
reflect the decision of all the Directors
participating in such discussions.
No Change
69 Unless overridden by a resolution approved by
a majority of the total strength of the Board at
a subsequent meeting of the Board or by a
resolution by circulation, any decision taken by
a majority of the Directors participating in the
discussions held be audio conferencing, video
conferencing, or net conferencing, as the case
may be, shall not be reversed by the Board.
No Change
70 Save as otherwise expressly provided in the
Act, a resolution in writing, signed by all the
members of the Board or of a Committee
thereof, for the time being entitled to receive
notice of a meeting of the Board or a
Committee of the Board, shall be as valid and
effectual as if it had been passed at a meeting
of the Board or Committee, duly convened and
held.
No Change
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MINUTES
71 The Directors shall cause minutes to be made
in books in accordance with the provisions of
section 193 of the Act for:
(a) All appointments of officers
made by the Directors;
(b) The names of the Directors
present at each meeting of the
Directors and of any
Committee of the Board;
(c) All resolutions and
proceedings at the meetings of
the Company, and of the
Directors, and of the
Committee of Board and other
Committees.
The Directors shall cause minutes to be made in
books in accordance with the provisions of
Section 118 of the Act

No Change
Reference
of new
Section
under the
Companies
Act, 2013.
72 Any such minutes signed by the Chairman
shall be presumed correct evidence as to the
matters therein contained and all resolutions
and proceedings of which minutes have been
so made are presumed to have been duly
passed.

73 Every Director present at a meeting of the
Board or of a Committee thereof shall sign his
name in a book to be kept for that purpose.

COMMITTEE
74 The Board may, subject to the provisions of the Act,
delegate any of its power to Committee consisting of
such member or members of its body as it thinks fit.
No Change
75 Any Committee so formed shall, in the exercise of
powers delegated, conform to any regulations that
may be imposed on it by the Board.
No Change
76 Proceedings of Committees shall be placed before
the Board at the next meeting of the Board.
No Change
77 The Board shall, more soon as practically possible,
but no later than six (6) months from the date of
incorporation of the Company, constitute and be
assisted by an Advisory Committee. The Advisory
Committee shall constitute of one representative
from each Member of Group B who are willing to
appoint such representative and who are not at that
time represented on the Board, five (5)
To be deleted
The these
committees
have no
relevance
now.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 274 of 309
representatives nominated by the Member of Group
A and representatives appointed by Members of
Group C in accordance with Article 43. The
Advisory Committee may also agree to induct,
members from the trade, industry and professional
fields, with the consent of the Board. The terms of
reference of the Advisory Committee shall consist of
those strategic matters on which the Board may
require advice and shall include, without limitation,
matters pertaining to levels of service delivery
regarding the services to be provided by the
Company, the quantum of charges that could be
levied by the Company for the services it provides
and matters relating to procedures and processes
involving external stakeholders. The procedure for
conducting the business of the Advisory Committee
shall be decided by the Advisory Committee with
approval of the Board. The Advisory Committee
shall meet at least once every three (3) months. The
recommendations of the Advisory Committee
achieved unanimously would be taken into
consideration by the Board in deciding the respective
matter.

78 The Board shall, more soon as practically possible,
but no later than six (6) months from the date of
incorporation of the Company, constitute and be
assisted by an IT Advisory Committee. The
members on the IT Advisory Committee shall
consist of representatives nominated by the
Members of Group A and Group B, representatives
nominated by Members of Group C in accordance
with Article 43 and technical experts nominated by
the Board. The tenure of the members of the IT
Advisory Committee shall be decided by the Board.
The terms of reference of the IT Advisory
Committee shall consist of those strategic matters
pertaining to information technology on which the
Board may require advice. The procedure for
conducting the business of the IT Advisory
Committee shall be decided by the IT Advisory
Committee with approval of the Board. The IT
Advisory Committee shall meet at least once every
three (3) months. The recommendations of the IT
Advisory Committee achieved unanimously would
be taken into consideration by the Board in deciding
the respective matter.
To be deleted
The these
committees
have no
relevance
now.
79 (a) A Committee may elect a Chairman of its
meetings.

(b) If no such Chairman is elected, or if at any
meeting the Chairman is not present within five (5)
minutes after the time appointed for holding the
meeting, the members of the Committee present may
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 275 of 309
choose one of their members to be the Chairman of
the meeting.

© A Committee may meet and adjourn as it thinks
proper.
80 Questions arising at any meeting of a Committee
shall be determined by a majority of votes of the
members present, and in case of an equality of votes,
the Chairman of the respective Committee shall have
a second or casting vote.
No Change

WHEN ACTS OF DIRECTORS VALID
81 All acts done by any meeting of the Board, or of a
Committee thereof, or by any person acting as a
Director, shall, notwithstanding that it may be
afterwards discovered that there was some defect in
the appointment of any one or more such Directors or
of any person acting as aforesaid, or that they or any
of them were disqualified, be as valid as if such
Director or such person had been duly appointed and
was a qualified to be a Director.

Provided that nothing in this Article 81 shall be
deemed to give validity to acts done by a Director
after his appointment has been shown to the
Company to be invalid or to have been terminated.
No Change

RESERVE FUND
82 The Board may set aside, out of the income of the
Company or otherwise, such sums as they may think
proper as a reserve fund, to meet contingencies or for
repairing, improving and maintaining any of the
property of the Company and for such other purposes
as the Board shall in its absolute discretion think
conducive to the interest of the Company and may
invest the several sums so set aside in such
investments, deal with and vary such investments and
dispose of all or any part thereof in the business of
the Company and that without being bound to keep
the same separate from the other assets.
No Change

MANAGER OR SECRETARY
83 Subject to the provisions of the Act, a manager or
Secretary may be appointed by the Board for such
term, at such remuneration and upon such conditions
as it may think fit, and any manager or Secretary so
No Change
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Page 276 of 309
appointed may be removed by the Board.

INSPECTION OF ACCOUNTS
84 The Board shall cause proper books of accounts to be
maintained under section 209 of the Act.
The Board shall cause proper books of
accounts to be maintained under Section
128 of the Act.
Reference
of new
Section
under the
Companies
Act, 2013.
85 The Board shall from time to time determine whether
and to what extent and at what time and places and
under what conditions or regulations, the accounts
and books of accounts of the Company, or any of
them, shall be open to inspection of Members not
being Directors.
No Change
86 No Member (not being a Director) shall have any
right of inspecting any account or books of accounts
or document of the Company except as conferred by
law, authorized by the Board of the Company or
agreed by the Company in a general meeting.
No Change

BOOKS AND ACCOUNTS
87 The Company’s books of accounts and accounts
shall be kept in English and shall be maintained
according to generally accepted accounting
practices and procedures.
No Change
88 The Board shall cause a balance sheet to be made
at least once in every Year as of the end of the
Year of the Company. The balance sheet must
contain summary of the assets and liabilities of
the Company. Provided however, the balance
sheet will be made for a period beginning from
date of incorporation and up to end of the Year.
No Change
89 The Balance Sheet and Profit & Loss A/c of the
Company when audited and adopted by the
Company in General Meeting shall be
conclusive except as regards any errors
discovered therein within three (3) months next
after the approval thereof. Wherever any such
error is discovered within the period, the account
shall forthwith be corrected and henceforth shall
be conclusive.
No Change
90 (a) At least once in every Year, the accounts of
the Company shall be examined and the
correctness of the Profit & Loss A/c and Balance
Sheet be ascertained by the auditor or auditors of
the Company.
No Change

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 277 of 309

(b) The Company at each annual general
meeting shall appoint an auditor or auditors to
hold such office until the next annual general
meeting and their appointment, remuneration,
rights and duties shall be regulated by the Act.

(d) All notices or other communications relating
to any general meeting of the Company, which
any Member of the Company is entitled to have
sent to him shall also be forwarded to the
auditors of the Company and the auditors shall
also be entitled to attend any general meeting
and to be heard to any general meeting which he
attends on any part of the business which
concerns him as auditors.

(e) The auditor’s report shall be read before the
Company in general meeting and shall be open
to inspection by any Member of the Company.

(b) The statutory auditors’
appointment, remuneration, rights
and duties shall be regulated by the
provisions of Section 139, 142 and
143 of the Act.

(c)Where the Company has a branch
office the provisions of the Section 143
of the Act shall apply.

No Change

This Article is
aligned as per the
Section 139, 142
and 143 of the
Companies Act,
2013.

Reference of new
Section under the
Companies Act,
2013.

NOTICES
91 A notice may be given by the Company to any Member either
personally or by sending it by post to his registered address.
A notice may be given by the
Company to any Member
either personally or by
sending it by post to his
registered address or by
electronic mode.
This
Article is
aligned as
per the
Section of
the
Companies
Act, 2013.
92 Every Member shall notify its address to the Board. If there is any
change in the address of a Member, the Member shall notify the
new address to the Board. Where a Member fails to notify its new
address, the address in the roll of members shall be deemed to be
its correct address..
No Change
93 A notice may be given by Company to the joint holders of a
Share(s) by giving the notice to the joint holder whose name
appears first in the Register in respect of the Share(s).
No Change
94 The signature on any notice, to be given by the Company may be
written or printed.
No Change
95 Where a given number of days notice or notices extending over
any other period is required to be given, the day of service shall
unless it is otherwise provided, be counted in such number of days
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 278 of 309
or other period.

SECRECY
96 Every Director, general manager, auditor, trustee, member of a
Committee, officer, employee, servant, agent, accountant, lawyer or
other person or professional employed in the business of the Company
shall, before entering upon his duties, sign declaration in the format
approved by the Board, pledging himself or otherwise to observe strict
secrecy respecting all transactions of the Company with its customers
and the state of account with individuals and in matter relating thereto
and shall by such declaration, pledging himself or otherwise not to
reveal any of the matters which may come to his knowledge in the
discharge of his duties except when required to do so by the Directors
or by any general meeting or by the laws of country and except so far
as may be necessary in order to comply with any of the provision in
these Articles or the Memorandum of Association of the Company or
of the Act.

No Change
97 No Member shall be entitled to require discovery of any information in
respect of any details of the Company's activities which in the opinion
of the Board is inexpedient in the interest of the Company to
communicate.
No Change

THE SEAL
98 The Company shall have a common Seal and the Board shall provide
for the safe custody of the Seal.
No Change
99 The Seal shall not be affixed to any instrument except by the authority
of a resolution of the Board or of a Committee of the Board authorized
by it in that behalf, and except in the presence of at least one of the
Directors or such other person as the Board may appoint for the
purpose; and such Director or other person aforesaid shall sign every
instrument to which the Seal of the Company is so affixed in their
presence.
No Change

WINDING UP
100 (a) If the majority of Members of Group A and Group
B decide to wind up the Company and intimate the
decision regarding the same to the Board, then the
Company may be wound up by an Ordinary
Resolution at a General Meeting.

(b) If upon a winding up or dissolution of the
Company, there remains, after the satisfaction of all
the debts and liabilities, any property whatsoever, the
same shall not be distributed amongst the Members
If the majority of Members of Group A and
Group B decide to wind up the Company
and intimate the decision regarding the
same to the Board, then the Company may
be wound up by an Special resolution at a
General Meeting.

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 279 of 309
of the Company but shall be given or transferred to
such other company having objects similar to the
objects of this Company, to be determined by the
Members of the Company at or before the time of
dissolution or in default thereof, by the High Court
of Delhi.

ARBITRATION
101 Whenever any difference or dispute arises between
the Company on the one hand and any of the
Members or their heirs, executors, administrators,
nominees, or assignees on the other hand or between
the Members inter-se or their respective heirs,
executors, administrators, nominees or assignees
inter-se touching the intent construction or incidents
or consequences of these Articles or touching
anything done, executed, omitted or suffered in
pursuance thereof or to any affairs of the Company,
every such dispute or difference shall be referred to
the sole arbitration of the Chairman for the time
being of the Company or to some person appointed
by both parties and it will be no objection that he is
an officer of the Company or that he had to deal with
such disputes, or difference and it is only after an
award is given by such arbitrator shall be final and
binding on the parties. The arbitration shall be
conducted according to the provisions of the
Arbitration and Conciliation Act, 1996.
No Change

INDEMNITY
102 Subject to the provision of Section 201 of the Act
every Director, manager, auditor, Secretary and
other officer or servant of the Company shall be
indemnified by the Company and it shall be the duty
of the Directors out of the fund of the Company to
pay all costs losses and expenses which any such
officer of any contract entered into, or act or thing
done by him as such officer or servant, or in any way
in the bonafide discharge of his duties; and the
amount for which indemnity is provided shall
immediately attached as a lien of the property of the
Company and have priority as between the members
over all other claims.
Subject to the provision of the Act every
Director, manager, auditor, Secretary and
other officer or servant of the Company
shall be indemnified by the Company and it
shall be the duty of the Directors out of the
fund of the Company to pay all costs losses
and expenses which any such officer of any
contract entered into, or act or thing done
by him as such officer or servant, or in any
way in the bonafide discharge of his duties;
and the amount for which indemnity is
provided shall immediately attached as a
lien of the property of the Company and
have priority as between the members over
all other claims.
No specific
section
under
Companies
Act, 2013.

INDIVIDUAL RESPONSIBILITY OF DIRECTORS
103 No Director, or other officer shall be liable for the
acts, recipients, neglects or default of any other
Director or officer of the Company or for joining in
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 280 of 309
any receipt or other act for conformity, or for any loss
or expenses having to the Company through the
efficiency or deficiency of title to any property
acquired by the order of the Directors for and behalf
of the Company, or for the insufficiency or
deficiency of any security in or upon which any of
the moneys of the Company shall be invested, or for
any loss or damage arising from bankruptcy,
insolvency or tortuous act of any person with whom
any money, securities or effect shall be deposited or
for any loss occasioned by any error of judgment or
oversight on his part, or for any other loss, damage
or misfortune whatever which shall happen in the
execution of the duties of his officer or in relation
thereto unless the same happens through his
negligence or dishonesty.
104 Whatever in the terms of the Act, an authorization is
required in the Articles of Association of a Company
for taking any action, these Articles shall deem to
provide to the Company such authorization.
No Change
105 We, several persons whose names and addresses,
description and occupation are hereunto subscribed
are desirous of being formed into a Company, not for
profit in pursuance of this Article of Association.

Serial No Names, addresses, descriptions
and occupations of the
Subscribers
Signature of Subscribers Witness to all
subscribers
1 Jane Mary Shanti Sundharam
(on behalf of President of India)
D/o Kumarasamy Pal Maria
Sundharam
D – II, 229 Chanakyapuri, New
Delhi - 110021
(As an Authorized Signatory)

Occupation - Service

Sd/-

J.M. Shanti Sundharam
Special Secretary & Member
Central Board of Excise & Customs
Ministry of Finance (Deptt. of
Revenue)
Govt. of India, New Delhi

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2 Satish Chandra ( On behalf of
Empowered Committee of State
Finance Ministers)

S/o G. C. Aggarwal,
E – 20, East of Kailash , New Delhi
– 110065
(As an Authorized Signatory)

Occupation - Service

Sd/-

Satish Chandra
Member Secretary
Empowered Committee of State
Finance Ministers
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 281 of 309
3 Housing Development Finance
Corporation Limited
169, Backbay Reclamation, H.T.
Parekh Marg, Nariman Point,
Mumbai – 400020 (Through its
Authorized Signatory)

Ankur Gupta
S/o S.N. Gupta
R/o A – 1/113, Janakpuri, Delhi –
110058
Occupation - Service

For Housing Development Finance
Corporation Ltd.

Sd/-

Authorized Signatory
4 HDFC Bank Ltd
HDFC Bank House
SenapatiBapat Marg Lower Parel
(W)
Mumbai – 400013
(Through its Authorized Signatory)

Rajender Sehgal
S/o Late Sh. K.L Sehgal
R/o B 53 Belvedere Tower, DLF Ph.
– II, Gurgaon-122002

Occupation – Service

For HDFC Bank Ltd.

Sd/-

Authorized Signatory
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5 LIC Housing Finance Ltd.
R/o 2nd Floor, Bombay Life
Building, 45/47, Veer Nariman Road
Fort, Mumbai – 400001
(Through its Authorized Signatory)

Devinder Singh Rawat
S/o Late Sh. U S Rawat
R/o TF 30 Vardan Apartment
AbhayKhand III,
Indirapuram Ghaziabad –
201014(UP)

Occupation – Service

For LIC Housing Finance Ltd

Sd/-

Authorized Signatory

6 ICICI Bank Limited
Landmark Race Course Circle,
Vadodara 390007
(Through its Authorized Signatory)

Anuj Bhargava
S/o VV Bhargava,
M -116, 3rd Floor, GK – 1, New
Delhi
Occupation – Service
For ICICI Bank Limited

Sd/-

Authorized Signatory

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–
–
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 282 of 309
7 NSE Strategic Investment
Corporation Ltd.
Exchange Plaza, BandraKurla
Complex, Bandra East, Mumbai –
400051 (Through its Authorised
Signatory)

Ravi Varanasi S/o Satyanarayana
Murthy, A-1401, Mahindra
Splendour L.B.S Road Bhandup
(W), Mumbai – 400078
Occupation – Service
For NSE Strategic Investment
Corporation Ltd

Sd/-

Authorized Signatory

Date : 26th March 2013
Place : Delhi
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 283 of 309
Proposed changes in Memorandum of Association
of
Goods and Services Tax Network

Clause Existing Clause Proposed Clause Reason for Change
The Companies Act, 1956 The Companies Act, 2013 Replacement of
Companies Act, 1956
by Companies Act,
2013.

MEMORANDUM OF ASSOCIATION
OF
GOODS AND SERVICES TAX
NETWORK
(A COMPANY LIMITED BY
SHARES AND U/S 25 OF THE
COMPANIES ACT, 1956)

MEMORANDUM OF
ASSOCIATION
OF
GOODS AND SERVICES TAX
NETWORK
(A COMPANY LIMITED BY
SHARES AND U/S 8 OF THE
COMPANIES ACT, 2013)

Substitution of
Section 8 (in place of
Section 25) under
Companies Act,
2013.
I. NAME No Change
The name of the company is ‘GOODS
AND SERVICES TAX NETWORK’.
No Change
II. REGISTERED OFFICE
No Change
The registered office of the Company
will be in National Capital Territory of
Delhi.
No Change
III. OBJECTS No Change
(A) The main objects to be pursued by the
Company on its incorporation are:-
No Change
1. To promote trade and commerce by
providing easily accessible, quick
and efficient information
technology and communications
related services to the public and
Government;
No Change
2. To assist and engage with various
stakeholders in preparing
information technology and
communications related
infrastructure for smooth roll out of
any information technology driven
initiatives and other e-governance
initiatives of the Government or any
department or agency of the
Government, specifically for the roll
out of the GST;
No Change
3. To provide information technology
and communications related
infrastructure and services to
Government for smooth
transitioning of the current indirect
tax regime to the GST regime;
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 284 of 309
4. To provide information technology
and communications related
services to various stakeholders for
implementation and management of
various initiatives, including e-
governance initiatives like
implementation of GST, taken by
the Government or any department
or agency of the Government;
No Change
5. To provide information technology
and communications related
services to various stakeholders in
order to prepare them for aligning
their information technology and
communications infrastructure and
processes with those e-governance
initiatives undertaken by the
Government or any department or
agency of the Government;
No Change
6. To improve upon existing
technology and/or to develop new
and better technology to provide
information technology and
communications related services to
various stakeholders including
public and Government;
No Change
7. To develop, maintain and provide
public services’ related common
information technology and
communications infrastructure to
Government and other stakeholders;
No Change
8. To assist Government in enabling
and managing risk management and
business intelligence across various
departments including all Tax
Administrations and assist the
Government in enhancing the
capabilities of such departments;
No Change
9. To assist Government and other
organizations in managing the
information technology and
communications related
infrastructure and services by
providing services including
management of such infrastructure
and services;
No Change
10. To act as a catalyst for development
of technology appropriate for
public, by identifying, financing
and/or undertaking research and
development efforts and projects
with different agencies and
institutions;
No Change
11. To act as a conduit for transfer of
appropriate technology to
Government departments, public
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 285 of 309
sector undertaking, cooperative
societies, voluntary agencies and
members of public and other
organizations / entities and
encourage adoption of modern
techniques and appropriate
technology in matters related to
public services;
12. To liaise, cooperate or associate,
represent, collaborate, with various
organizations, Government
Departments etc. concerned with the
furtherance of technology and
management of trade and
commerce;
No Change
13. To provide data communication
services including value added
services to various stakeholders;
No Change
14. To provide quality research, advice,
consultancy and technology and
management related
services/support to Government and
with the approval of the Board of
Directors of the Company, to all
other stakeholders including
corporates, professionals, general
public, private entities,
organizations abroad etc., in order to
improve the information technology
service delivery;
No Change
15. To assist various stakeholders in
capacity building, including
attracting skilled technical/
managerial manpower and domain
experts, and in change management
associated with the implementation
of initiative of Government.
No Change
(B) The objects incidental or ancillary to
the attainment of the main objects
stated above are: -
Matters which are considered
necessary in furtherance of the
objects specified in clause
III(A)are: —
As provided in
Section 4 of the
Companies Act,
2013.
1. To establish and manage
information technology and
communications infrastructure for
implementation and management of
GST, including implementation and
management of Common Portal for
GST, upon rolling out of GST in the
country;
No Change
2. To provide information technology
and communications related
infrastructure and services to
Government and other stakeholders
for implementation and
management of GST in India;
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 286 of 309
3. To provide information technology
and communications related
infrastructure and services to
Government for smooth
transitioning of the current indirect
tax regime to the GST regime;
No Change
4. To provide information technology
and communications related
infrastructure and services to
Government to facilitate effective
and timely inter-State settlements
and monitoring of credit utilization;
No Change
5. To assist Government in building
adequate checks and balances,
through developing and
implementing business rules and
validations, in order to increase tax
payment compliance, reduce fraud
and act as revenue booster;
No Change
6. To assist the Government in the
activities such as policy building
and standardization of information
and communications systems
operations;
No Change
7. To promote process reengineering
and take other initiatives in order to
improve service delivery
efficiencies of the Government and
other stakeholders;
No Change
8. To assist the public, through
partnership/association/engagement
with Government, IT companies
and other entities, in conveniently
and effectively receiving the
services provided by the Company;
No Change
9. To undertake development and
implementation of electronic
operations, information and control
system for the Government and
assist in administration of tax and
other matter to promote the welfare
of the public and to serve the interest
of the nation by making public
administration related dealings of all
entities/persons with the
Government convenient and
transparent;
No Change
10. To identify major opportunity areas
in delivery of citizen services and
support mechanism;
No Change
11. To advice, provide consultancy,
technical and managerial support to
various stakeholders on various
matters including indirect tax and
information technology related
issues, through advisors drawn from
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 287 of 309
the industry, Government
departments and institutions of
excellence;
12. To undertake research assignments
in any field including the field of
information technology and indirect
tax, itself, or in alliance with the best
institutions in India or/and outside,
and make payment to any
University, college, association or
Institution to be used for research;
No Change
13. To award scholarships in India and
fellowships and grants by way of
loan or otherwise and on such terms
and conditions as the Company may
think fit for the purposes of
undertaking, prosecuting and
encouraging, research work
specifically in field of information
technology and indirect tax in its
widest and most comprehensive
sense;
No Change
14. To participate in national and
international events and programs,
awards, prizes, grants, scholarships
and stipends in furtherance of the
objects of the Company;
No Change
15. To design innovative financing and
implementation models for
applications regarding better
governance and effective service
delivery specifically in the domain
of indirect taxation and develop
prototypes to demonstrate the
feasibility of the same;
No Change
16. To incubate ideas and opportunities
for leveraging information
technology for overall economic
growth;
No Change
17. To document case studies of
successful projects and applications
already developed and functioning
in the field of e-service delivery by
the Government and facilitate their
adoption across the country;
No Change
18. To develop papers, reports, films,
videos and other multi-media
presentations and ensure effective
dissemination of the learning and
output of the Company;
No Change
19. To disseminate information and
educate the public, electronically or
otherwise, on the various aspects of
e-governance and taxation related
initiatives undertaken by the
Government;
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 288 of 309
20. To conduct conferences, retreats
and workshops to increase
awareness about the various
developments in the field of e-
service delivery and taxation among
the top policy makers in India and
abroad;
No Change
21. To organize seminars, conferences,
workshops, courses, studies,
training programs, exhibitions etc.
at such places and at such times as
may be required to promote the
objects of the Company;
No Change
22. To conduct and/or sponsor training
programs, conferences, lectures and
seminars on technology,
management, e-governance and
indirect tax related issues;
No Change
23. To organize exchange programs for
staff and people involved in
technology, management and
indirect tax related issues and to
provide training of work in India
and abroad;
No Change
24. To acquire, buy, sell, lease, take on
rent, market, distribute, exchange
and / or otherwise dispose of, store,
hold, package, transport, use,
experiment with, handle, in
equipment and products including
information technology and
communications equipment and
products, in order to achieve the
objects of the Company;
No Change
25. To sell, mortgage, give on lease,
exchange and otherwise transfer or
dispose off or deal with all or any
property, movable or immovable, of
the Company, for the furtherance of
the aims and objects of the
Company;
No Change
26. To purchase, take on lease, secure
by exchange or license, hire or
otherwise acquire or obtain any
moveable or immovable property
and any interest, easement rights,
other right and privilege from any
person, company, society,
foundation, trust, organization,
Government and / or institution as
may be necessary or convenient or
as may be deemed fit by the
Company, for the furtherance of the
aims and objects of the Company or;
No Change
27. To exercise and enforce all rights
and powers conferred by or
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 289 of 309
incidental to the ownership of any
investment of the Company and to
sell, manage, lease and dispose of
otherwise deal with all or any part of
the property of the Company;
28. To construct, maintain and alter any
building or erection and to provide,
endow, furnish and / or fit out any of
its property with all necessary
furniture, instruments, fittings,
appliances, conveniences and other
equipment and maintain and / or
manage offices, premises center,
institutions and other establishments
or institutions for the furtherance
and / or advancement of any one or
more of the objects of the Company;
No Change
29. To establish branch offices and
other facilitation centers etc. in
different parts of India and abroad;
No Change
30. To apply for, purchase or otherwise,
acquire any patent, patent right,
copyright, trademark, formula,
license, lease, concessions,
conferring any exclusive or limited
right to use, or any secret,
confidential or other information as
to any invention which may seem
capable of being used for any of the
purposes of the Company or the
acquisition of which may directly or
indirectly benefit the Company;
No Change
31. To make donations and / or give
grants to any persons, companies,
societies, foundations, institutions,
universities and / or trust who have
objects similar to any one or more of
the objects of the Company for the
purpose of promoting, assisting and
/ or encouraging the carrying and /
or achievement of such objects or
object;
No Change
32. To raise funds and accept donations
(in cash or kind) subscriptions,
grants of money, securities, and
property of any kind and / or to
undertake and accept the
management of transfership of any
endowment, trust fund or donation
not inconsistent with the objects of
the Company;
No Change
33. To accept donations, assistance and
funds on behalf of the implementing
agencies from the Government and /
or foreign donors subject to such
laws as may be applicable and to
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 290 of 309
obtain necessary accounts and
information regarding the physical
and financial progress from the
implementing agency / agencies,
provided no foreign donations shall
be accepted unless approved by the
Board;
34. Subject to approval of the Board of
Directors of the Company, to solicit
and receive funds and accept grants,
contributions, donations, demises
and bequests, in cash or kind,
securities, properties (movable or
immovable), any other assistance or
services from entities including
individuals, Governments, public
bodies, agencies, corporations,
firms, individuals, associations,
company, body corporate both at the
national and international level, for
pursuing the objects of the Company
and in receiving any of the above, to
take the same either unconditionally
or subject to such special conditions
which may be prescribed by the
donor in writing;
No Change
35. To raise necessary funds and collect
appropriate subscriptions, fees,
grants, corpus funds, donations,
commissions, royalties, cess in
respect of services rendered by the
Company;
No Change
36. Subject to provisions of Section
292, 293 and 58-A of the Companies
Act and the rules made there under,
to borrow or raise or secure the
payment of money or to receive
money or deposit at interest or
otherwise, and at such time or times
as the Company may deem fit by
promissory notes or by taking
credits in or opening current, loans
or overdraft accounts with any bank,
company, firm or person and
whether with or without any security
or by such other means;
36. Subject to provisions of
Section 179, 180 and 73 of
the Companies
Act,2013and the rules made
there under, to borrow or
raise or secure the payment
of money or to receive
money or deposit at interest
or otherwise, and at such
time or times as the
Company may deem fit by
promissory notes or by
taking credits in or opening
current, loans or overdraft
accounts with any bank,
company, firm or person and
whether with or without any
security or by such other
means;
Reference of new
Section under the
Companies Act,
2013.
37. To establish endowments fund to
finance the activities of the
Company including, where
necessary, to meet expenditure out
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 291 of 309
of the capital of such endowment
funds;
38. To invest the monies of the
Company, not immediately
required, in such manner as the
Company thinks fit;
No Change
39. To levy, collect, retain and
appropriate charges, fees,
commissions etc. for the services
provided by the Company;
No Change
40. To enter into any arrangements
with any Government and
authorities, municipal, local or
otherwise or any person or
Company, that may seem
conducive to the objects of the
Company or any of them and to
obtain from any such Government,
authority, person or company any
rights, privileges, charters,
contracts, licenses and concessions
which the Company may think it
desirable to obtain; and to carry out,
exercise and comply with such
rights, privileges, charters,
contracts, licenses and concessions;
No Change
41. To apply for, secure, acquire by
grant, legislative enactment,
assignment, transfer, purchase or
otherwise and to exercise, carry out
and enjoy any charter, license,
power, authority, franchise,
concession, right, or privilege,
which any Government or
authority, supreme, municipal,
local or otherwise in any
corporation or other public body
may be empowered to grant, and to
pay for, aid in and contribute
towards carrying the same into
effect, and to issue and / or
appropriate any debentures or other
securities and assets to defray the
necessary costs, charges and
expenses thereof;
No Change
42. To enter into partnerships or any
arrangement, whether in India or
elsewhere, for union of interest, co-
operation, reciprocal concession or
otherwise with any person or
company carrying on or engaged in
or about to carry on or engage in
any activities or transaction which
the Company is authorized to carry
on or engage in or any activities or
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 292 of 309
transaction capable of being
conducted;
43. To promote or assist in the
promotion of any company or
association having objects similar
to the objects of the Company;
No Change
44. To promote and / or become a
member of any company or
companies, (whether limited by
Shares or guarantee or both) body
or association (whether corporate or
not) for the purpose of acquiring all
or any of the property rights and
liabilities of the company, and / or
for the furtherance of the objects or
any of them in this Company;
No Change
45. To apply for and to obtain any
provisional rule, order, notification,
stature or other legislative provision
or enactment for enabling the
Company to carry any of its objects
into effect or for effecting any
modification of the constitution of
the Company or for any other
purpose which may be seen
expedient by the Company and to
oppose any proceedings or
applications which may seem
calculated directly or indirectly to
prejudice the Company’s interests;
No Change
46. To establish linkages with financial
institutions, urban and rural
communities and government
agencies (Central, State or Local)
for promotion of each and every
object of the Company;
No Change
47. To open and operate a banking
account or banking accounts
including current and savings
account, and to draw, make, accept,
endorse, discount, execute and
issue promissory notes, bills of
exchange, bills of lading, warrants,
drafts, cheques, bonds, debentures
and other negotiable or transferable
instruments;
No Change
48. To give guarantee or indemnify for
the payment of money or the
performance of contracts or
obligations by any person; to secure
or undertake in any way the
repayment of moneys lent or
advanced to, or the liabilities
incurred by any person, subject to
the provisions of the Companies
Act, 1956;
48. To give guarantee or indemnify
for the payment of money or the
performance of contracts or
obligations by any person; to secure
or undertake in any way the
repayment of moneys lent or
advanced to, or the liabilities
incurred by any person, subject to the
provisions of the Companies Act,
2013;
Replacement of
Companies Act, 1956
by Companies Act,
2013.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 293 of 309
49. To enter into contracts, novation
agreements, memorandum of
understanding and other
agreements with various
stakeholders including Government
departments, individuals, private
organizations etc. in order to
accomplish the aims and objects of
the Company and to enforce such
contracts etc.;
No Change
50. To pay all costs, charges and
expenses incurred or sustained in or
about the promotion and
establishment of the Company and
to remunerate any person or
persons for the services rendered in
the promotion and establishment of
the Company;
No Change
51. To employ and/or retain
professional or technical advisors,
consultants or experts to further the
aims and objects of the Company
and to pay them honorarium, fee, or
other remuneration;
No Change
52. To create administrative, technical,
ministerial and other posts under
the Society and to make
appointments thereto;
No Change
53. To establish, maintain and / or
procure the establishment and
maintenance of any contributory
provident, pension or
superannuation funds for the
benefit and to give or procure the
giving of donations, gratuities,
pensions who are or were at any
time, in the employment of the
company and the widows, families
and dependents of any such persons
and to make payments to or towards
the insurance of any such persons as
aforesaid;
No Change
54. To establish and support and / or aid
in the establishment and / or support
of associations, institutions, funds,
trusts etc. calculated to benefit
employees or past employees of the
Company or the dependents or
connections of any such employees,
and to grant pensions and
allowances and to make payments
towards insurance, and to subscribe
or guarantee money for any
charitable educational or other
benevolent object which may be
considered likely, directly or
No Change
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 294 of 309
indirectly to further any one or
more of the objects of the
Company;
55. To insure any of the properties,
undertakings, contracts, risk or
obligations of the Company in any
manner whatsoever;
No Change
56. To print and publish periodicals,
books, journals, booklets and / or
leaflets in furtherance of its objects;
No Change
57. To do, get done, all such other
lawful acts, deeds and things as are
incidental or conducive to the
attainment of the objects of the
Company or any of them;
No Change
Provided that the Company shall
not support with its funds, or
endeavor to impose on, or procure
to be observed by, its members or
others, any regulation or restriction
which would make it a Trade
Union.
No Change
(C) Other Objects:- NIL
Deleted Not provided in the
Companies Act,
2013.
IV. The objects of the Company
extend to whole of India.
No Change
V. (i) The income and property of the
Company, when so ever derived,
shall be applied solely for the
promotion of its objects as set forth
in this Memorandum.
(i) The profits, if any, or other
income and property of the
company, whensoever
derived, shall be applied,
solely for the promotion of its
objects as set forth in this
memorandum.
As referred in Rule
19(2) of The
Companies
(Incorporation)
Rules, 2014 that
MOA of a Section 8
company shall be in
Form No. INC-13.
(ii) No portion of the income or
property aforesaid shall be paid or
transferred, directly or indirectly,
by way of dividend, bonus or
otherwise by way of profit, to
persons who, at any time are, or
have been members of the company
or to any one or more of them or to
any person claiming through any
one or more of them.
(ii) No portion of the profits,
other income or property
aforesaid shall be paid or
transferred, directly or
indirectly, by way of dividend,
bonus or otherwise by way of
profit, to persons who, at any
time are, or have been,
members of the company or to
any one or more of them or to
any persons claiming through
any one or more of them.
As referred in Rule
19(2) of The
Companies
(Incorporation)
Rules, 2014 that
MOA of a Section 8
company shall be in
Form No. INC-13.
(iii) Except with the previous
approval of the Central
Government, no remuneration, or
other benefit in money or money’s
worth shall be given by the
company to any of its members,
whether officers or servants of the
company or not, except payment of
(iii) No remuneration or other
benefit in money or money’s
worth shall be given by the
company to any of its
members, whether officers or
members of the company or
not, except payment of out-of-
pocket expenses, reasonable
As referred in Rule
19(2) of The
Companies
(Incorporation)
Rules, 2014 that
MOA of a Section 8
company shall be in
Form No. INC-13.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 295 of 309
out of pocket expenses, reasonable
and proper interest on money lent,
or reasonable and proper rent on
premises let to the company.
and proper interest on money
lent, or reasonable and proper
rent on premises let to the
company.
(iv) Except with the previous
approval of the Central
Government, no member shall be
appointed to any office under the
company which is remunerated by
salary, fees, or in any other manner
not excepted by sub-clause (iii)
above.
(iv) Nothing in this clause shall
prevent the payment by the
company in good faith of
prudent remuneration to any
of its officers or servants (not
being members) or to any
other person (not being
member), in return for any
services actually rendered to
the company.
As referred in Rule
19(2) of The
Companies
(Incorporation)
Rules, 2014 that
MOA of a Section 8
company shall be in
Form No. INC-13.
(v) Nothing in this clause V shall
prevent the payment by the
company in good faith of
reasonable remuneration to any of
its officers or servants (not beings
members) or to any other person
(not being a member) in return for
any services actually rendered to
the company.
(v) Nothing in clauses (iii) and
(iv) shall prevent the payment
by the company in good faith
of prudent remuneration to
any of its members in return
for any services (not being
services of a kind which are
required to be rendered by a
member), actually rendered to
the company;
As referred in Rule
19(2) of The
Companies
(Incorporation)
Rules, 2014 that
MOA of a Section 8
company shall be in
Form No. INC-13.
VI. No alteration shall be made to this
Memorandum of Association or to
the Articles of Association of the
company which are for the time
being in force, unless the alteration
has been previously submitted to
and approved by the Registrar of
Companies (as defined in the
Companies Act, 1956) under whose
jurisdiction the Registered Office of
the Company is situated.
No alteration shall be made to
this memorandum of
association or to the articles of
association of the company
which are for the time being in
force, unless the alteration has
been previously submitted to
and approved by the
Registrar.
As referred in Rule
19(2) of The
Companies
(Incorporation)
Rules, 2014 that
MOA of a Section 8
company shall be in
Form No. INC-13.
VII. The liability of the members is
limited.
No Change
VIII. The authorized share capital of the
company will consist of Rs.
10,00,00,000 divided into
1,00,00,000 shares of Rs. 10 each.
No Change
X If upon a winding up or dissolution
of the company, there remains, after
the satisfaction of all the debts and
liabilities, any property whatsoever,
the same shall not be distributed
amongst the members of the
company but shall be given or
transferred to such other company
having objects similar to the objects
of this company, to be determined
by the members of the company at
or before the time of dissolution or
in default thereof, by the High
Court of Judicature that has or may
acquire jurisdiction in the matter.
If upon a winding up or
dissolution of the company,
there remains, after the
satisfaction of all the debts and
liabilities, any property
whatsoever, the same shall not
be distributed amongst the
members of the company but
shall be given or transferred to
such other company having
objects similar to the objects of
this company, subject to such
conditions as the Tribunal may
impose, or may be sold and
proceeds thereof credited to the
As referred in Rule
19(2) of The
Companies
(Incorporation)
Rules, 2014 that
MOA of a Section 8
company shall be in
Form No. INC-13.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 296 of 309
Rehabilitation and Insolvency
Fund formed under section 269
of the Act.
IX. True accounts shall be kept of all
sums of money received and
expended by the company and the
matters in respect of which such
receipts and expenditure take place,
and of the property, credits and
liabilities of the company; and,
subject to any reasonable
restrictions as to the time and
manner of inspecting the same that
may be imposed in accordance with
the regulations of the company for
the time being in force, the accounts
shall be open to the inspection of
the members. Once at least in every
year, the accounts of the company
shall be examined and the
correctness of the balance-sheet and
the income and expenditure account
ascertained by one or more properly
qualified auditor or auditors.
No Change
XI The company can be amalgamated
only with another company
registered under section 8 of the Act
having similar objects.
As referred in Rule
19(2) of The
Companies
(Incorporation)
Rules, 2014 that
MOA of a Section 8
company shall be in
Form No. INC-13.
(Point No.XI)
XII. We, the several persons whose
names, addresses, descriptions, and
occupations are hereunto
subscribed are desirous of being
formed into a company not for
profit, in pursuance of this
Memorandum of Association and
we respectively agree to take the
number of shares in the capital of
the Company set opposite our
respective names:-
No Change

Sl.
No.
Name/Description/Address
and Occupation of
Subscribers
Number of
Equity
Shares
taken by
each
Subscriber
Signature of
Subscribers
Name/Address/ Description and
Signature of witnesses
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 297 of 309
1. Jane Mary Shanti
Sundharam
(On behalf of President of
India)

D/o Kumarasamy Pal Maria
Sundharam
D – II, 229,Chanakyapuri,
New Delhi - 110021
(As an Authorized
Signatory)
Occupation - Service

79,625
Sd/-

J.M. Shanti
Sundharam
Special Secretary
& Member
Central Board of
Excise &
Customs
Ministry of
Finance (Deptt.of
Revenue)
Govt.of India,
New Delhi
I
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2. Satish Chandra ( On behalf
of Empowered Committee
of State Finance Ministers)

S/o G. C. Aggarwal,
E – 20, East of Kailash ,
New Delhi – 110065
(As an Authorized
Signatory)
Occupation - Service

79,625
Sd/-

Satish Chandra
Member Secretary
Empowered
Committee of
State Finance
Ministers
3. Housing Development
Finance Corporation
Limited
169, Backbay Reclamation,
H.T. Parekh Marg, Nariman
Point, Mumbai – 400020
(Through its Authorized
Signatory)

Ankur Gupta, S/o S.N.
Gupta
R/o A – 1/113, Janakpuri,
Delhi – 110058
Occupation - Service

32,500

For Housing
Development
Finance
Corporation Ltd.

Sd/-
Authorized
Signatory
4. HDFC Bank Ltd
HDFC Bank House
SenapatiBapat Marg Lower
Parel (W)
Mumbai – 400013
(Through its Authorized
Signatory)

RajenderSehgal
S/o Late Sh. K.L Sehgal
R/o B 53 Belvedere Tower,
DLF Ph. – II, Gurgaon-
122002
Occupation – Service

32,500

For HDFC Bank
Ltd.
Sd/-
Authorized
Signatory

5. LIC Housing Finance Ltd.
R/o 2nd Floor, Bombay Life
Building, 45/47, Veer
Nariman Road Fort,

For LIC Housing
Finance Ltd
I
W
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S
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– –
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 298 of 309
Mumbai – 400001
(Through its Authorized
Signatory)

Devinder Singh Rawat
S/o Late Sh. U S Rawat
R/o TF 30 Vardan
Apartment
AbhayKhand III,
Indirapuram Ghaziabad
(UP)
Occupation – Service
35,750
Sd/-
Authorized
Signatory

6. ICICI Bank Limited
Landmark Race Course
Circle,
Vadodara 390007
(Through its Authorized
Signatory)

Anuj Bhargava
S/o VV Bhargava,
M -116, 3rd Floor, GK – 1,
New Delhi
Occupation – Service

32,500

For ICICI Bank
Limited

Sd/-
Authorized
Signatory

7. NSE Strategic Investment
Corporation Ltd.
Exchange
Plaza,BandraKurla
Complex,BandraEast,
Mumbai – 400051 (Through
its Authorised Signatory)
Ravi Varanasi S/o
Satyanarayana Murthy, A-
1401, Mahindra Splendour
L.B.S Road Bhandup (W),
Mumbai – 400078
Occupation – Service

32,500

For NSE Strategic
Investment
Corporation Ltd.

Sd/-
Authorized
Signatory
3,25,000
Place:New Delhi
Date: 26th March 2013

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 299 of 309
Annexure-3

Serial
No.
Name of Shareholders
Number of Shares
held
%age
Post acquisition
shares
%age
1 Central Government 24,50,000 24.50 50,00,000 50.00
2 Government of Punjab 79,000 0.79 1,61,290 1.61
3 Government of Gujarat 79,000 0.79 1,61,290 1.61
4 Government of Odissa 79,000 0.79 1,61,290 1.61
5 Government of Tamil Nadu 79,000 0.79 1,61,290 1.61
6 Government of Jammu & Kashmir 79,000 0.79 1,61,290 1.61
7 Government of Maharashtra 79,000 0.79 1,61,290 1.61
8 Government of Rajasthan 79,000 0.79 1,61,290 1.61
9 Government of Sikkim 79,000 0.79 1,61,290 1.61
10 Government of Karnataka 79,000 0.79 1,61,290 1.61
11 Government of Andhra Pradesh 79,000 0.79 1,61,290 1.61
12 Government of Meghalaya 79,000 0.79 1,61,290 1.61
13 Government of Bihar 79,000 0.79 1,61,290 1.61
14 Government of Nagaland 79,000 0.79 1,61,290 1.61
15 Government of Himanchal Pradesh 79,000 0.79 1,61,290 1.61
16 Union Territory of Puducherry 79,000 0.79 1,61,290 1.61
17 Government of Mizoram 79,000 0.79 1,61,290 1.61
18 Government of Uttarakhand 79,000 0.79 1,61,290 1.61
19 Government of Haryana 79,000 0.79 1,61,290 1.61
20 Government of Assam 79,000 0.79 1,61,290 1.61
21 Government of Goa 79,000 0.79 1,61,290 1.61
22 Government of Kerala 79,000 0.79 1,61,290 1.61
23 Government of Manipur 79,000 0.79 1,61,290 1.61
24 Government of Tripura 79,000 0.79 1,61,290 1.61
25 Government of West Bengal 79,000 0.79 1,61,290 1.61
26 Government of Delhi 79,000 0.79 1,61,290 1.61
27 Government of Jharkhand 79,000 0.79 1,61,290 1.61
28 Government of Uttar Pradesh 79,000 0.79 1,61,290 1.61
29 Government of Chhattisgarh 79,000 0.79 1,61,290 1.61
30 Government of Madhya Pradesh 79,000 0.79 1,61,290 1.61
31 Government of Arunachal Pradesh 79,000 0.79 1,61,290 1.61
32 Government of Telangana 0 0.00 1,61,290 1.61
49,99,990 50.00
33 Empowered committee of State
Finance Ministers
80,000 0.80 0
-
34 LIC Housing Finance Limited 11,00,000 11.00 0 -
35 Housing Devlopment Finance
Corporation Ltd.
10,00,000 10.00 0
-
36 HDFC Bank limited 10,00,000 10.00 0 -
37 ICICI Bank Limited 10,00,000 10.00 0 -
38 NSE Strategic Investment
Corporation Limited
10,00,000 10.00 0
-
TOTAL 1,00,00,000 100.00 99,99,990 100.00
Post conversion shareholdingPre conversion shareholding
Shareholding Pattern of GSTN
Balance- 10 shares
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 300 of 309
Agenda Item 9: Status report of work of GoM on Revenue Mobilisation
Background:
The Department of Revenue had received proposal from the Hon’ble Finance Minister of Kerala
for levy of additional cess on State Goods & Service Tax (SGST) and other alternative measures like
hike in borrowing limit of the State for raising funds for flood rehabilitation activities. The State of
Kerala had specifically requested for levy of additional 10% cess on SGST in its State for flood relief.
Considering the overall facts and circumstances under GST regime with a view to provide additional
funds for flood rehabilitation to Kerala, this issue was discussed in the 30th GST Council meeting held
on 28th September, 2018. On the recommendation of the GST Council, a Group of Ministers (GoM) had
been constituted to examine modalities for revenue mobilisation in case of natural calamities and
disasters. Shri Sushil Kumar Modi, Hon’ble Deputy Chief Minister, Government of Bihar is the
Convenor and Finance Minister of States of Assam, Kerala, Maharashtra, Odisha, Punjab and
Uttarakhand are the Members of this GoM.
Terms of Reference
2. The terms of reference (TOR) for the ‘GoM on Revenue Mobilisation’ in a case of Natural
Calamities and Disasters shall be to examine the following:
i. Whether the mechanism of funding to the States through National Disaster Response Fund
(NDRF) is sufficient in case of natural calamities and disaster;
ii. Whether there should also be a supplementary mechanism for finding natural calamities and
disasters through GST, and if so, whether it should be through additional cess or tax, and
whether such levy should be State specific or across the country;
iii. The circumstances in which a State shall become entitled to get funding over and above the
funds obtained through NDRF mechanism;
iv. Whether it is permissible under the relevant provisions of Constitution and the GST law to
create an omnibus GST Disaster Relief Fund for natural calamities or whether resources can
be raised only for a specific event qualifying as natural calamity or disaster;
v. If a GST Disaster Relief Fund is created, what should be the mechanism for its collection,
accountal and disbursement, including whether such disbursement should only be for a major
natural calamity/disaster and the criteria thereof;
vi. What changes in law, if any, would be needed to create a GST Disaster Relief Fund.
Action Taken:
3. This issue was discussed in the GoM meeting held on 15.10.2018. As per deliberation/decision
of GoM vide minutes dated 18.10.2018 of the aforesaid GoM meeting, a set of questionnaire was
prepared and sent to all States seeking views/suggestions on the following points:
i. Which of the following would be better and convenient mechanism to support the State in case
of natural calamity or disaster:
(a) Increase in the borrowing limits of State
(b) Tweaking of NDRF Norms
(c) States specific disaster cess
ii. Whether increase in GST rate or levy of cess would be a better mechanism to raise resources
for supporting a State in case of natural calamities.
iii. Whether increase in GST rate or increase of tax on non-GST goods would be better for
mobilization of revenue in case of Natural Calamity.
Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM
Page 301 of 309
iv. In case of State Specific disaster cess, such cess should be levied on all items or only on luxury
goods over all GST (CGST/IGST/UTGST) or only on SGST.
v. What would be the amount of revenue mobilized due to increase of 0.25% or 0.5% in SGST
rate as suggested by Kerala Govt? Whether it would be sufficient for meeting the requirement
on account of relief and rehabilitation?
vi. Mechanism for raising of resources for disaster management within the framework of Disaster
Management Act, 2005 and how it should be dovetailed with the recommendations of the
Finance Commission.
4. The views of States received so far are as under:
A. Views of Gujarat
i. It has been suggested to ease NDRF norms looking into the gravity of natural disaster/calamity.
ii. As per provision in Section 12 of the Constitution Amendment Act, 2016 for levy of special
rate/rates for specified period to raised additional resources during natural calamities/disaster
on the basis of recommendation of GST Council, increasing GST rate and subsequently
reversing ITC (Input Tax Credit) to the extent of such increase in the rate in case of inter-State
transaction of such goods and services seems to be advisable, As it does not require enactment
of new law and there will be no extra compliance cost on tax payer.
iii. Resources may be mobilized by way of increasing GST rate as well as increasing tax on non-
GST goods leaving it to the concerned state to decide in case of natural calamities.
iv. There should not be limitation with respect to levying tax on specific items and State should
be allowed to generate resources by way of increasing rate on specific goods and services
depending upon the amount of revenue required for natural calamity/disaster fund.
v. The rate of tax will depend on extent of relief resources required which will vary from State
to State.
vi. Mechanism for raising of resources for disaster management within the framework of Disaster
Management Act, 2005 should be dovetailed with the recommendation of the Finance
Commission.
B. Views of Karnataka
i. As per provision in Article 279A (4) of the Constitution of India, GST Council is empowered
to make recommendation for levy of special rate/rates for specified period to raise additional
resources during natural calamities/disaster.
ii. Considering the fact that presently a cess is being levy for compensation to the state, it would
be better if rate of tax is increased by 0.25% on supplies of goods and services or both.
iii. Increase in GST rate is always a better option as it would result in mobilisation of a
considerable amount of additional revenue in comparison to non-GST goods.
iv. Any State specific cess should be levied on all supplies of goods or services or both. It should
also be levied on supplies attracting levy of both CGST and SGST or IGST to avoid distortion
in tax levy so that it would facilitate easy flow of input tax credit within a State or from one
State to another without any cascading effect. The ideal situation would be to levy such cess
in all States for creating a Natural Calamity Fund in each State and a Central Fund through
such cess on CGST.
v. The amount appears to be negligible considering the amount required for relief works of any
natural calamity or disaster.
vi. No comments.
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5. The status of the work done by GoM on Revenue Mobilisation is placed before the Council for
information. Further follow-up is being done to obtain inputs of the remaining States.

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Agenda Item 10: Status report of passage of SGST (Amendment) Bill, 2018 in various States and
Union Territories (UTs) with Legislatures
The GST Council in its 28th Meeting held on 21st July 2018 approved the proposals for
amendments in the CGST Act, 2017, IGST Act, 2017, UTGST Act, 2017 and GST (Compensation to
States) Act, 2017. The CGST (Amendment) Act, 2018, the IGST (Amendment) Act, 2018, the UTGST
(Amendment) Act, 2018 and the GST (Compensation to States) Amendment Act, 2018 received the
assent of the Hon’ble President of India on 29th August, 2018, and published in the Gazette of India,
Extraordinary, Part II on 30th August, 2018.
2. The GST Council Secretariat requested the States and the Union Territories with Legislatures
to expeditiously introduce and pass the corresponding SGST (Amendment) Bill, 2018 in their respective
Legislative Assemblies. A sample SGST (Amendment) Bill, 2018, Notes on clauses for the CGST
(Amendment) Bill, 2018, Statement of Objects and Reasons for the CGST (Amendment) Bill, 2018 was
also forwarded to the States for ready reference.
3. The GST Law amendments are proposed to be brought into force simultaneously under the
CGST Act, IGST Act, UTGST Act, GST (Compensation to States) Act and SGST Acts after all
States/UTs with Legislatures have passed their respective SGST (Amendment) Bill, 2018.
4. The status of passage of State GST Acts is at Annexure 1. It can be seen that the States/UTs of
Delhi, Meghalaya, Puducherry and Telangana are yet to pass/promulgate the SGST (Amendment) Bill,
2018.
5. The status of passage of SGST (Amendment) Bill, 2018 is placed before the Council for
information and deliberation regarding the proposed date of implementation of the GST Law
Amendments.

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Annexure 1
List of States which passed the SGST Amendment Bill
Sl.
No
Name of State
Dates on which SGST Amendment Act had been
published in the Gazette or promulgated
1 Andhra Pradesh 23rd October 2018
2 Arunachal Pradesh 03rd December 2018
3 Assam 24th October 2018
4 Bihar 5th October 2108
5 Chattisgarh 5th October 2108
6 Goa 23rd November 2018
7 Gujarat 8th October 2018
8 Haryana 28th September 2018
9 Himachal Pradesh 05th November 2018
10 Jammu & Kashmir 13th November 2018
11 Jharkhand 15th October 2018
12 Karnataka 29th September 2018
13 Kerala 15th October 2018
14 Madhya Pradesh 26th November 2018
15 Maharashtra 13th October 2018
16 Manipur 15th October 2018
17 Mizoram 29th October 2018
18 Nagaland 29th September 2018
19 Odisha 23rd October 2018
20 Punjab 23rd October 2018
21 Rajasthan 01st October 2018
22 Sikkim 29th September 2018
23 Tamil Nadu 14th November 2018
24 Tripura 12th October 2018
25 Uttar Pradesh 14th October 2018
26 Uttarakhand 16th October 2018
27 West Bengal 28th November 2018

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The list of States yet to pass the SGST (Amendment) Bill, 2018
Sl.
No
Name of
State
Tentative dates on which SGST
Amendment Bill would be
passed/promulgated
Status as ascertained by the
GST Council Secretariat
1 Delhi Not indicated
The Bill would be placed before
the Assembly in December
Session
2 Meghalaya 20th December 2018
Hon’ble Governor’s approval
awaited
3 Puducherry Not indicated
The Bill would be placed before
the Assembly in December
session
4 Telangana Not indicated Awaited

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Agenda Item 11: Reconstitution of membership of the Law Committee, Fitment Committee and
IT Committee for information of the Council
The GST Council in its 3rd Meeting held on 18th – 19th October 2016 delegated the powers to
the Chairperson, GST Council to constitute Technical Committees. In pursuance of the decision of the
GST Council in its 14th Meeting held on 18-19 May 2018, a three-tier-structure comprising of various
Committees was constituted which included the GST Implementation Committee, the Standing
Committees and the Sectoral Groups to ensure smooth roll-out of GST.
2. Taking into account transfer of some of the erstwhile members of the three Standing Committees
namely the Law Committee, Fitment Committee and IT Committee, these have been modified partially
with the approval of the Chairperson of the GST Council. Some of the Members of the aforementioned
Committees from the Central Government, GST Council Secretariat and the GSTN have now been made
by designation.
3. The Orders reconstituting the membership of the Law Committee, Fitment Committee and IT
Committee is placed at Annexure 1 for information of the Council.

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Annexure 1
Law Committee

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Fitment Committee

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IT Committee

Detailed Agenda Note-Volume 1 Agenda for 31st GSTCM

Confidential

Agenda for
31st GST Council Meeting

22nd December 2018

Volume – 2

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File No: 800/31st GSTCM/GSTC/2018
GST Council Secretariat

Room No.275, North Block, New Delhi
Dated: 06th December, 2018

-sd-
(Dr. Ajay Bhushan Pandey)
Secretary to the Govt. of India and ex-officio Secretary to the GST Council
Tel: 011 23092653

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Agenda Items for the 31st Meeting of the GST Council on 22nd December 2018
1. Confirmation of the Minutes of 30th GST Council Meeting held on 28 September, 2018
2. Deemed ratification by the GST Council of Notifications, Circulars and Orders issued by the
Central Government
3. Decisions of the GST Implementation Committee (GIC) for information of the Council
4. Decisions/recommendations of the IT Grievance Redressal Committee (ITGRC) for
information of the Council
5. Review of Revenue position
6. Issues recommended by the Fitment Committee for the consideration of the GST Council
7. Issues recommended by the Law Committee for the consideration of the GST Council
i. Extension of the due date for furnishing the statement in FORM GSTR-8 by electronic
commerce operator for the months of October, November and December, 2018
ii. Extension of last date for allowing migration of taxpayers who received Provisional
Identification Number (PID) till 31st December, 2017
iii. FAQ on Banking, Insurance and Stock Brokers Sector
iv. Amending SOP issued on TDS - Issues on furnishing of return in FORM GSTR-7 by
registered persons required to deduct tax at source under section 51 of the CGST Act for
period during which the deductor was not registered
v. Update on the implementation status of the issues referred to the Law Committee by the
GST Council
vi. Request for exemption from provisions relating to Tax Deduction at Source (TDS) in case
of taxable supplies between Government Authority to another Government Authority or to
PSU and vice versa
vii. Amendments to the CGST Rules, 2017
viii. IGST Rules for determination of Place of Supply
ix. Circular to clarify certain issues under GST
x. Circular to clarify denial of composition option by tax authorities and effective date thereof
xi. Clarification on refund related issues
xii. Clarification on export of services under GST
xiii. Requirement of submission of invoices for processing of refund claims of unutilised Input
Tax Credit (ITC) in FORM GST RFD-01A
xiv. Proposal for centralized Authority for Advance Ruling and centralized Appellate Authority
for Advance Ruling under GST
xv. Suggestions made for allowing quarterly payment by small taxpayers
xvi. Issuance of a Circular to clarify taxability of medicines and consumables supplied to in-
patients in hospitals during the course of treatment
xvii. Amendments to the CGST Rules, 2017, consequential to notifying the provisions of the
CGST (Amendment) Act, 2018, SGST (Amendment) Act, 2018 and IGST (Amendment)
Act, 2018
xviii. Proposal to extend the due date for availing ITC on the invoices or debit notes relating to
such invoices issued during the FY 2017-18 under section 16(4) of CGST Act, 2017 till the
due date for furnishing of return for the month upto March, 2019
xix. Extension of the due date for furnishing of annual returns in FORM GSTR-9, FORM
GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 –
2018
xx. Proposal for amendment of Section 50 of CGST Act, 2017 to allow payment of interest on
net cash liability
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xxi. Reduction in amount of late fees leviable on account of delayed furnishing of FORM
GSTR-1, FORM GSTR-3B and FORM GSTR-4 for the months/quarters from July, 2017
to September, 2018
xxii. Proposal to extend benefit of composition levy for small service providers
xxiii. Proposal to introduce the new return system on trial basis from 01.04.2019 and on
mandatory basis from 01.07.2019
xxiv. Single interface for disbursal of refund amounts
xxv. Rationalisation of cash ledgers in GST
8. Approval of modifications in Articles of Association (AOA) and Memorandum of Association
(MOA) of Goods and Services Tax Network (GSTN) based on decision of the GST Council to
convert it into a 100% Government-owned entity
9. Status report of work of GoM on Revenue Mobilisation
10. Status report of passage of SGST (Amendment) Bill, 2018 in various States and Union
Territories with Legislatures
11. Reconstitution of membership of the Law Committee, Fitment Committee and IT Committee
for information of the Council
12. Any other agenda item with the permission of the Chairperson
13. Date of the next meeting of the GST Council

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TABLE OF CONTENTS
Agenda
No.
Agenda Item Page
No.
6
Issues recommended by the Fitment Committee for the consideration of the GST
Council
7
12
Any other agenda item with the permission of the Chairperson
i. Notification to be issued to extend the due date for filing of returns in
FORM GST ITC-04 for the period July 2017 to December 2018
ii. Ad hoc Exemptions Order(s) issued under Section 25(2) of Customs Act,
1962 to be placed before the GST Council for information

88
89

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Discussion on Agenda Items
Agenda Item 6: Issues recommended by the Fitment Committee for the consideration of the GST
Council
This agenda item deals with changes in GST rate for supply of goods and services. The
proposed changes in GST rates emanate from the recommendations made by the Fitment Committee as
detailed below.
2. The Fitment Committee met on 14th and 15th December, 2018 and had detailed discussions on
requests/representations received from various stakes holders including VIPs, Ministries, trade
associations including the big four associations (FICCI, PHD Chamber of Commerce, ASSOCHAM,
CII), States, Industry / individuals, seeking changes in GST/IGST rates or seeking clarification on
supply of goods/services, and certain issues referred to Fitment Committee by The GST Council in the
previous meetings. The Fitment Committee had detailed deliberations on the issues and based on these
discussions, Fitment Committee has made certain recommendations for consideration of the GST
Council.
3. Further, Fitment Committee also reviewed the list of goods and services attracting 28% GST rate.
It has recommended reduction in GST on certain goods and services to 18%. These items include re-
treaded tyre; pulley, gear box, crank shaft, transmission shaft, flywheel etc. (agri auto and machinery
inputs falling under heading 8483); television and monitors upto 32 inches; digital and video cameras;
power bank (lithium ion accumulator); snooker, billiards, videogames and consoles, casino games; parts
and accessories for disabled carriage; movie tickets of value more than Rs 100 per ticket.
4. Fitment Committee’s recommendations are categorised in four categories, namely,
(i) Rate change recommended
(ii) Status quo in existing rates recommended
(iii) Issuance of clarification for imparting clarity to a issue is recommended.
(iv) Issue referred to GST Council for taking a decision.
5. Accordingly, Fitment Agenda for consideration of the GST Council is summarised as below:
a) Recommendations for making changes in GST rates or for issuance of clarification in relations
to goods- Annexure I
b) Recommendations for making changes in GST rates or for issuance of clarification in relations
to Services- Annexure II
c) Issues where no change has been proposed by the Fitment Committee in relation to goods -
Annexure III
d) Issues where no change has been proposed by the Fitment Committee in relation to services-
Annexure IV
e) Issues referred to GST Council for decisions in relation to services –Annexure V
6. Law Committee has given recommendations on two issues pertaining to taxability / applicable
GST rates on services. The same is placed at Annexure VI.

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Annexure I
LIST OF GOODS RECOMMENDED FOR CHANGE IN GST RATE/ISSUANCE OF
CLARIFICATION
S.
No.
Description HSN Present
GST
Rate
(%)
Requested GST
rate (%)
Comments
A Reduction in GST rate on goods
1 Pulleys
Transmission
Shafts and
cranks, gear
boxes etc.
8483 28% 18% 1. Goods covered under heading 8483 are:
“Transmission shafts (including cam shafts and
crank shafts) and cranks; bearing housings and
plain shaft bearings; gears and gearing; ball or
roller screws; gear boxes and other speed
changers, including torque converters; flywheels
and pulleys, including pulley blocks; clutches and
shaft couplings (including universal joints)”.
2. Initially all goods under Chapter heading 8483
attracted 28% GST rate.
3. In 16th GST Council Meeting held on 11th June
2017, the Council recommended reduction of GST
on Ball bearing, Roller Bearings, Parts & related
accessories covered under Chapter heading 8482
from 28% to 18%
4. GST Council in its 22nd Meeting held on 6th
October 2017 recommended reduction of GST rate
from 28% to 18% on Plain Shaft Bearing.
5. Further, GST Council in its 23rd Meeting
recommended, reduction in GST from 28% to
18% on Crank shaft for sewing machine, bearing
housings; gears and gearing; ball or roller screws
attracts GST rate of 18%.
6. A number of requests have been received
requesting a lower rate of 12% on items falling
under this heading.
7. Items like Pedestal blocks, bearing housings, Gear
boxes, Balance wheels, Transmission pulleys,
crank shaft etc. as are common to agricultural
machineries and other machineries.
8. Agricultural machinery is at 12%/5% and other
machinery is at 18%.
9. These items are mostly used as intermediate and
therefore most of the tax paid on these items is
passed on as ITC. However, certain quantity may
also be for final consumption. Lowering rate of tax
on these commodities below 18% will lead to
inversion.
10. Hence Fitment Committee recommends reducing
GST rate from 28% to 18% on all items under this
heading. This will give relief to agro machinery
sector.
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S.
No.
Description HSN Present
GST
Rate
(%)
Requested GST
rate (%)
Comments
2 Music Books
49 12% Nil 1. Music books falling under tariff heading 4904 00
00 attract 12 % GST.
2. All other printed books have been exempted from
GST based on pre-GST tax incidence and taking
into consideration that these are basic material for
education.
3. On the same rationale, Nil GST may be considered
for the Music Books.
4. It may however be noted that Nil GST may have
adverse impact on domestic seller. However, same
treatment needs to be given to all books.
5. Hence Fitment Committee recommends for
exemption from GST on musical books.
3 Fly Ash Block 6815 12% 5% 1. Fly ash brick and fly ash block attracted 12% GST
rate as per pre-GST tax incidence with effect from
1.07.2017 [ with inception of GST]
2. The GST Council in its 23rd Meeting, rationalised
GST rates on various goods, and recommended
reduction in GST rate from 12% to 5% on fly ash
brick also.
3. Hence Fitment recommends to reduce GST from
12% to 5% on fly ash block also, at par with fly ash
bricks
4 Walking stick 6601 12% 5% 1. Walking stick falls under heading 6601 and attracts
12% GST.
2. Goods of bamboo, rattan etc. falling under
headings 4601 and 4602 are already at 5%.
3. Hence Fitment Committee recommends for
reduction in GST from 12% to 5% on walking
stick.
5 Footwear Chapter
64
5%/
18%
12% on all
footwear or
remove the pre-
conditions
(indelibly mark
or emboss the
sale price) for
5%
1. The 28th GST Council reviewed the GST tax
structure on footwear and recommended to extend
concession GST rate on footwear up to Rs.1000
(which was Rs. 500 previously).
2. The concessional rate on footwear is based on sale
price indelibly marked or embossed on the
footwear itself.
3. The transaction value of the footwear may differ
according to discount offered.
4. However, the actual sale price after applicable
discount is not factored to arrive at applicable GST
rate.
5. Request merits consideration. GST rate should be
linked to supply value.
6. For garments, the GST rate is linked to the value of
supply. Similar change also made in respect of
hotel rooms by delinking GST rate from declared
prices.
7. Hence Fitment Committee recommends that rate of
5%/12% be applied based on transaction value as
is the case for garments and hotels, the two other
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S.
No.
Description HSN Present
GST
Rate
(%)
Requested GST
rate (%)
Comments
cases where differential rate exists based on the
value of supply.
6 Natural cork 4501 12% 5% 1. Goods manufactured out of vegetables like straws
etc. (Chapter 46) attract 5% GST.
2. Goods falling under Chapter 45 attract 12%/18%
GST.
3. These goods are also manufactured from agro
based raw material and the volume is negligible.
4. Cork is used in sports goods like shuttle cock and
balls etc. which are at 12%.
5. Hence Fitment Committee recommends reduction
in GST rates on goods falling under Chapter 45 as
under
a) Natural cork 12% to 5%
b) Cork roughly squared or debagged 18% to
12%
c) Articles of natural cork 18% to 12%
d) Agglomerated cork 18% to 12%
7 Cork roughly
squared or
debagged
4502 18% 12%
8 Articles of
natural cork
4503 18% 12%
9 Agglomerated
cork
4504 18% 12%
10 Marble
Rubbles/
Karezi
2515 11
00
18%

5% 1. The Marble Rubbles falling under Heading 2515 11
00 attracts 18% GST (as residuary entry).
2. Similar product of granite (granite crude or roughly
trimmed) falling under heading 25161100-S. No.
125 of notification No.01/2017- Central Tax (rate)
have been kept at 5% GST rate.
3. Fitment Committee recommends same treatment,
(on par with granite) to crude and roughly trimmed
marble and travertine falling under heading 2515
1100.
11 GST on auction
proceed of gifts
received by
President, PM,
Governor and
CM -proceed is
used for public
or charitable
cause
Any
chapter
Varied Nil 1. Fitment recommends for GST exemption of the
proceed realised in auction of such gift items
received by the President, Prime Minister,
Governor or Chief Minister- sale proceed is to be
used for public or charitable cause.
12 Supply of gold
by Nominated
Agencies to
exporters of
article of
Jewellery of
gold
7108 3% Nil 1. Import of Gold by specified banks and PSUs is
exempted from BCD. Also, exporters may import
gold at Nil BCD under advance license for the
purpose of exports.
2. However, IGST exemption is not allowed upfront
to exporter jewellers, for procuring gold from
nominated entities, causing hardship to the
exporters by way of cash flows.
3. The matter was discussed in the Fitment
Committee Meeting dated 10th January, 2018
where it recommended that possibility of
procurement of gold by jewellery manufacturers,
exclusively for export of jewellery, from specified
banks and PSUs may be explored in consultations
with the Director General of Foreign Trade.
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S.
No.
Description HSN Present
GST
Rate
(%)
Requested GST
rate (%)
Comments
4. This recommendation, which was also referred by
certain States, was again discussed in the Fitment
Committee meeting held on 9th and 10th of July,
2018.
5. DGFT has now specifically recommended
allowing this concession in the interest of exports.
6. Considering that bank would take the responsibility
of paying GST if gold is not exported in the form
of gold product, there may be merit in agreeing to
the request in the interest of the exports. In any case
GST paid on such gold by the exporter is required
to be refunded upon exports. Revenue’s interest is
fairly secured on account of bank acting as
collateral. This would help exporters (by
addressing the concern of cash flow).
7. Fitment recommends for exemption from GST on
supply of gold by Nominated Agencies to exporters
of article of Jewellery of gold.
13 Vegetables,
(uncooked or
cooked by
steaming or
boiling in
water and put
in a unit
container)
0710 5% Nil 1. Vegetables fresh, chilled, frozen (other than put in
unit container and branded), or dehydrated are
exempt from GST.
2. Fitment Committee observed that rationalisation of
rates may be merited for these vegetables.
3. Hence Fitment Committee recommends reduction
in GST rates on Vegetables, (uncooked or cooked
by steaming or boiling in water and put in a unit
container) from 5% to nil.
14 Vegetable
provisionally
preserved
0711 5% Nil 1. Same as above [S. No 13 refers].
2. Hence Fitment Committee recommends reduction
in GST rates on Vegetables, (uncooked or cooked
by steaming or boiling in water and put in a unit
container) from 5% to nil.
15 Monitors/ TVs 8528 51 28% 18% 1. The GST rate has already been reduced on
computer monitor having screen upto 20 inches
and TVs upto 68 cm to 18% GST. The monitor and
TVs above these sizes attract GST @28%.
2. Trade has represented that computer monitors are
important parts of personal computers and keeping
the rate as high as 28% on such products is not only
hampering the industry but also the aim of the
Government of digital India.
3. TVs upto 68 cm attract 18%. [The size of 68 cm
was taken on account of tariff line]. This has led to
disparity between TV and computer screen.
4. TVs upto 32 inches are commonly used items.
5. Fitment Committee recommends reduction in
GST from 28% to 18% on monitor and TVs of size
up to 32-inch size.
16 Power Banks
of lithium ion
battery
8507 28% 18% 1. GST on lithium ion battery falling under tariff line
8507 60 00 was reduced from 28% to 18% [with
effect from 27.07.2018] based on the
recommendation of 28th GST Council meeting.
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S.
No.
Description HSN Present
GST
Rate
(%)
Requested GST
rate (%)
Comments
When used for manufacture of mobile phones these
attract 12% GST rate.
2. Power banks consisting of lithium ion battery
however attract 28% GST.
3. Power bank supplier have represented that it should
be given the same tax treatment as given to lithium
ion battery.
4. To reduce dispute in assessment Fitment
Committee recommends reduction of GST from
28% to 18% on all kind of lithium ion
accumulators, including power bank.
17 Digital
cameras and
video camera
recorders
8525 28% 18% 1. The GST Council in its 23rd meeting has pruned the
list of goods attracting 28% GST rate and GST rate
was also reduced from 28% to 18% on all goods of
heading 8525 [except digital cameras and video
camera recorders (other than CCTV)] @8% list was
further pruned in the 28th Council Meeting.
2. Digital camera and video cameras recorders falling
under heading 8525 continue to attract 28% GST.
However, considering that mobile phone attracts
GST at the rate of 12% and most of the
electronic/white goods now attract 18%, there is a
case for rationalising rates of digital camera and
video camera recorder. This is no more a luxury item
and more of an item of hobby or professionals. When
used for professional purposes, ITC of tax paid is
available.
3. Hence Fitment Committee recommends for reduction
in GST from 28% to 18% on digital cameras and
video camera recorders
18 Re-treaded or
used pneumatic
tyres of rubber;
solid or
cushion tyres,
tyre treads and
tyre flaps, of
rubber.
4012 28% 18% 1. Re-treading is generally done by MSME sector.
2. The revenue implication is not significant
3. Considering the nature of goods, there is
justification for rate reduction keeping in view that
a large number of items have already been taken
out of 28% list to 18% list.
4. Fitment Committee recommends reduction of rate
from 28% to 18% on re-treaded tyres and tubes.
19 Flexible
Intermediate
Bulk Container
(FIBC)
6305 5%/
12%
dependi
ng on
the
value
12% 1. As per explanatory notes to HSN 2012 issued by
WCO it is clearly stated that heading 3923 excluded
Flexible Intermediate Bulk Containers and these are
classifiable under heading 6305. The eight digits
CTH for the same is 6305 32 00.
2. As per recommendation of the GST Council in its
15th meeting held on 3rd June 2017, the GST rate on
all made ups of chapters 61, 62 and 63 were fixed at
5% for articles with value of upto Rs. 1000 per piece
and 12% for those above Rs 1000 per piece.
3. Accordingly, Fitment Committee recommends:
a) That Flexible Intermediate Bulk containers
(FIBC) are classifiable under heading 6305.
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S.
No.
Description HSN Present
GST
Rate
(%)
Requested GST
rate (%)
Comments
b) Instead of two rates based on the sale value of
the product, a uniform rate of 12% may be
prescribed for the product as it is essentially an
item of intermediate use.
20 Objects used in
Billiards and
Snookers
9504 28% 18% 1. Heading 9504 covers video games consoles and
Machines, article and accessories for billiards [9504
20 00], other games operated by coins, banknotes,
i.e., casino games [9504 20 00] and others [other than
board games of 9504 90 90].
2. Chapter 94 covers sports goods and toys. All items
under this Chapter attract GST at the rate of 12% or
18% except the heading 9504.
3. While reviewing the 28% list, the rate was not
reduced on this heading on the ground that it also
covers casino games. However, it is felt that the
casino games falling under this heading are inputs for
the casinos and therefore tax paid on such goods
would be generally available Hence it is pass
through. With considerable pruning of 28% list, there
may not be justification to continue 28% rate on
articles for billiards and snooker and video game
consoles. Therefore, there is a justification to reduce
the GST rate on the entire heading. This would bring
entire chapter 95 under 12%/18%.
4. Hence Fitment recommends for reduction of GST
from 28% to 18% on all goods of heading 9504
21 Retrofit wheel
attachments
and other parts
/accessories for
the carriage of
physically
challenged
people
8714 28% 5% 1. Carriages for disabled persons, whether or not
motorised or otherwise mechanically propelled
falling under 8713 attract 5% GST rate
2. Parts (including retrofit wheel attachment) for such
carriage fall under sub-heading 8714 20 [specific
sub-heading] and attract GST rate of 28%.
3. Retrofit wheel attachments and parts and
accessories of carriage are specifically designed for
the use of physically challenged people with lower
limb/limbs disorder. These are bolt-on kits which
can be fitted to any two-wheeler scooter,
converting it into a four-wheeler, so that people
with lower limb/limbs disorder can use those.
4. Since the inception of GST, various assistive
devices, rehabilitation aids and other goods for
disabled such as crutches, wheel chairs, carriage for
disabled persons, whether or not motorized or
otherwise mechanically propelled etc. attract 5%
GST.
5. Hence, Firmament Committee recommends
reduction in GST from 28% to 5% on retrofit wheel
attachment and other items falling under sub-
heading 8714 20.
22 Temporary
importation of
Private Road
8703 Applica
ble GST
rate
Exemption
from IGST on
temporary
1. A Notification No. 296/76-Customs dated
2.08.1976 was issued exempting vehicles
imported from duties of Customs, in accordance
Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
Page 14 of 91
S.
No.
Description HSN Present
GST
Rate
(%)
Requested GST
rate (%)
Comments
Vehicles under
the convention
of carnet de
passage
importation of
private road
vehicles under
the convention
with the Convention on the Temporary
Importation of Private Road Vehicles.
2. The temporary duty-free import under a valid
carnet de passagesen-douane is allowed subject to
re-export within 6 months of import, which is
extendable by further 6 months by the
Commissioner of Customs.
3. However, such imports attract
IGST/Compensation Cess and request is for
exemption from payment of IGST and
compensation cess on vehicles imported for
temporary purposes under the Customs
Convention on the Temporary importation of
Private Road Vehicles (carnet de passages-en-
douane) [ also to be given retrospective effect from
01.07.2017 through Finance Fill).
4. Fitment Committee recommends exemption from
IGST/Compensation cess on vehicles imported for
temporary purposes under the Customs
Convention on the Temporary importation of
Private Road Vehicles (carnet de passages-en-
douane). The proposed exemption would be
subject to the existing conditions of Notification
No. 296/76-Customs dated 2.08.1976. Fitment
Committee also recommends retrospective
exemption from 01.07.2017 through Finance Bill.
23. Review of 28%
list
Rate reduction 1. Several requests/representations have been received
for reduction of GST rate on items covered under
28% List.
2. The Fitment Committee reviewed the List.
3. The Fitment Committee has recommended
reduction of GST rates on goods falling under this
List as mention at S. No. 1, 15, 16, 17, 18, 20, and
21 and in S.No. 2 in Annexure V on supply of
cinema exhibition service.
4. On other items in the List, Fitment Committee was
of the view that either the revenue implications are
too significant or items fall in the category of
luxury/sin goods. Hence at this stage, GST rate on
such items may not be reviewed.
5. This list may be further reviewed in future as and
when the GST Revenue stabilises
B. Clarification, Valuation proposals and proposals for consequential changes
1 Solar power
generating
System (SGPS)
and other
renewable
energy system-
supplied under
EPC
SGPS is at 5%.
Clarify the tax
rate on EPC
supply of SGPS
1. Vide S. No. 234 of Schedule I in notification No.
1/2017-Central Tax (Rates), 5% rate has been
prescribed on renewable energy devices & parts for
their manufacture (for bio gas plant/solar power-
based devices, solar power generating system
(SGPS), wind mill operated electric generator,
waste to energy plant devices etc) falling under
chapter 84, 85 or 94 of the Tariff.
Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
Page 15 of 91
S.
No.
Description HSN Present
GST
Rate
(%)
Requested GST
rate (%)
Comments
2. SGPS is either supplied under two or three separate
contracts of supply of parts, supply of services, or
combination thereof. The applicability of tax rate
of supplies of equipment and services supplied
under an EPC contract for supply of SGPs has led
to large number of disputes. This matter has been
aggravated due to different decisions on the matter
by the Advance Ruling of various states like
Rajasthan, Maharashtra, Karnataka and
Uttarakhand.
3. The fitment Committee has examined the matter.
After taking into account the pre-GST position as
well as the tax incidence on various input and input
services (specific inputs falling under Chapter 84,
85 and 94 being at 5% and rest of the goods and
services mostly being at 18%) the fitment
Committee felt that this issue could be resolved by
assigning value to the supplies falling under said
entry 234 when supplied along with other supplies
like services under EPC and goods not covered by
said entry. It would be appropriate to take the
deemed value of goods falling under entry no. 234
as 70% of the total amount charged. Remaining
30% value may be deemed as value of supply of
services. It is based on fair estimation from cost
breakup. The goods covered by said entry
constitute about 70% of the value the total amount
charged for solar power plant.
4. The above proposed valuation methodology will
apply to other renewable energy system of S.No
234 of notification No. 1/2017-Central Tax (Rates).
5. Exact formulation will be worked out in
consultation with Ministry of Law.
2. Sprinklers and
Drip irrigation
system used in
agriculture
sector
84 12% Clarifying that,
“in the entry
195B, covers
sprinkler
irrigation
system and
attracts 12%
GST
1. Doubts have arisen, as in certain cases a view has
been taken in the field that, 12% GST would not be
extended to “laterals of sprinklers” and “sprinklers
irrigation system”, while laterals of drip irrigations
are eligible for 12% GST.
2. 25th GST Council Meeting recommended
concessional 12% GST for micro irrigation
systems, namely, sprinklers, drip irrigation system,
including laterals. Accordingly, the entry No. 195B
was inserted vide notification No. 6/2018- Central
Tax (Rate), dated 25th January, 2018 which
provides 12% GST on “Sprinklers; drip irrigation
system including laterals”
3. The micro irrigation, sometimes called ‘ localised
irrigation’ , ‘low volume irrigation’ ,or ‘ trickle
irrigation’ is a system where water is distributed
ough piped network, in aunder low pressure thr
pre-determined nd applied as a smallpattern, a
discharge to each plant or adjacent to it.
Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
Page 16 of 91
S.
No.
Description HSN Present
GST
Rate
(%)
Requested GST
rate (%)
Comments
4. The traditional drip irrigation using individual
emmitters, subsurfaces drip irrigations (SDI) ,
and minisprinkler irrigation, -spray or micro-micro
ory ofbubbler irrigation all belong to the catge
micro irrigation method.
5. Therefore, t sprinkler“he term s”, in the said entry
195B, covers sprinkler irrigation system.
6. Therefore, sprinkler system consisting of nozzles,
lateral and other components would attract 12%
GST rate and thus accordingly a circular will be
issued.
3 Bagasse based
particle board
4410 12% Clarification of
12% GST Rate
for Bagasse
based particle
board whether
plain or pre-
laminated
1. The Bagasse Board has specific entry at S. No. 92
in Schedule II to the Notification 1/2017-Central
Tax (Rate)
2. The said entry covers Bagasse boards falling under
44 or any other chapter.
3. The goods with description Bagasse Board [
whether plain or laminated] falling under heading
4410 or 4411 or 4412 will attract concessional GST
rate of 12%
4. Fitment Committee recommends for issuance of
clarification stating that Bagasse Board [whether
plain or laminated] attracts 12% GST.
4 Rigs, tools &
Spares and all
goods on
wheels
Any
chapter
Clarification of
GST on such
goods moved
inter-State by
the service
provider for
providing
service
1. Any movement of goods for provision of service
where no transfer of title in goods or transfer of
goods to the distinct person is not involved does not
amount to supply of goods.
2. Hence, any such movement on own account (not
involving distinct person in terms of section 25),
where such movement is not intended for further
supply of such goods (it is not stock transfer or
supply to own unit-distinct person), does not
involve a supply (e.g., movement of testing
equipment etc.).
3. Hence the Fitment Committee recommends for
issuance of clarification on the above lines.
5 Liquefied
Petroleum Gas
for Domestic
Use
2711 5% Clarification
that GST rate
@5% on
domestic LPG
is applicable on
LPG supplied
by
refiners/fraction
ators (like
GAIL / ONGC)
to OMCs (like
IOCL/HPCL)
for ultimate
supply to
household
domestic
1. Clarification has been sought in the context of S.
No. 165A of notification No.1/2017-Central Tax
(Rate) dated 28.6.2017. On the recommendations
of the GST Council in its 25th Meeting, S. No. 165A
on notification No. 1/2017-Central Tax extending
5% GST rate for supply of LPG to household
domestic consumers
2. The Fitment Committee observed that the domestic
LPG is differentially priced and packed differently
from commercial LPG. The usage of LPG for
domestic supply is known at the time of supply
being made by refiner/fractioneers to OMCs.
3. Accordingly, the Fitment Committee recommends
for issuance of a clarification that said exemption
will equally apply to the LPG supplied in bulk to
Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
Page 17 of 91
S.
No.
Description HSN Present
GST
Rate
(%)
Requested GST
rate (%)
Comments
consumers in
terms of
MOPNG letter
an OMC for bottling and supply to household
domestic consumers.
6 Fish meal and
other raw
materials used
for making
cattle/poultry/a
quatic feed
2301 5% Clarification 1. Fish meal is an input used to manufacture aquatic
feed, cattle feed, poultry feed etc.
2. Fish meal under HS code 2301 attracts 5% GST
rate. Aquatic/cattle/poultry feed falling under 2309
or 2301 attracts nil GST rate. These products have
not been zero rated.
3. Requests for exemption from GST have been
received for large number of inputs going into
animal feed (items like oil cakes of various oil
seeds, soya seeds, meat bone meal, bran, sharps,
residue of starch and all other goods falling under
heading 2302, 2303, 2304)
4. Revenue implication of such exemption would be
quite significant.
5. Fitment Committee was of the view that zero rating
of animal feed may not be desirable and inputs may
attract nominal tax of 5%.
6. Fitment Committee recommended for issuance of
clarification that inputs for animal feed are not
covered by S. No. 102 of notification No. 2/2017
and would attract applicable GST (5% in most
cases).
7. Animal Feed
Supplements/
feed additives
from drugs
2309/
2936
Nil/18% Clarification 1. HSN 2309, inter alia, covers vitamins and
provitamins which improve digestion and, more
generally, ensure that the animal makes good use
of the feeds and safeguards its health
2. HS code 2936 coves vitamins and provitamins
which are medicinal in nature and have much
higher concentration of active substance. Vitamins
classifiable under HS code 2936 are generally of
higher cost/value.
3. This issue has earlier been clarified vide circular
No. 188/22/96-CX, dated 26.3.1996.
4. Fitment Committee recommended issuance of
circular on the same line.
8. Chhatua
(Known as
“Sattu” in
Hindi Belt)- It
is a mixture of
flour of ground
pulses and
cereals.
1106 Nil/5% Clarify the tax
rate on Chhatua
/Sattu
1. Mixture of floors of cereals and lentils fall under
Chapter 11 of Tariff (heading 1106 for flour of
lentil) attracts nil GST if unbranded and attracts 5%
GST when packed in a unit container and bears a
brand.
2. Fitment Committee recommends that clarification
may be issued accordingly.
9. Polypropylene
Woven and
Non-Woven
Bags and PP
Woven and
Non-Woven
3923 18% Clarification as
to classification
1. As per the explanatory notes to the HSN, all types
of Polypropylene woven and non-woven bags and
Polypropylene woven and non-woven bags
laminated with BOPP [except FIBC (Flexible
Intermediate Bulky Container)] are manufactured
by using plastic granules (Polypropylene) which is
Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
Page 18 of 91
S.
No.
Description HSN Present
GST
Rate
(%)
Requested GST
rate (%)
Comments
Bags laminated
with BOPP
a thermo plastic polymer and falls under HSN code
3923.
2. In Central Excise, the Central Government had
issued a circular No. 54/12/91 dated 24.09.1992 to
clarify that these items are classified under Chapter
39.
3. Fitment Committee recommends for issuance of
circular on similar lines.
10. Wood logs for
pulping
44 Clarification 1. Wood in rough falls under heading 4403 and
attracts 18%. The entire heading is covered under
18% rate.
2. As per HSN, heading 4401 covers:
“Wood in chips or particles, i.e., wood mechanically
reduced into small chips (flat, rigid and roughly
squared) or particles (thin and flexible) used for
producing cellulose pulp by mechanical means, by
chemical means or by combining mechanical and
chemical means or for the manufacture of
fibreboard or particle board. By virtue of Note 6 to
this Chapter, the heading also includes similar
products obtained, for example, from bamboo.
Pulpwood presented in the round or quarter-split
is excluded (heading 44.03)”.
3. Further as per HSN, heading 4403 covers
“The principal products classified here, when of the
above description, include: timber for sawing;
poles for telephone, telegraph or electrical power
transmission lines; unpointed and unsplit piles,
pickets, stakes, poles and props; round pit-props;
logs, whether or not quarter-split, for pulping;
round logs for the manufacture of veneer sheets,
etc.; logs for the manufacture of match sticks, wood
ware, etc.”.
4. Thus, there is 5% GST on wood chips [ 4401] and
18% GST on wood logs or any kind of wood in the
rough, including the wood in rough/log used for
pulping fall under heading 4403 and attract 18%
GST.
5. Fitment Committee recommends to issue
clarification accordingly.
11. Waste to
Energy (WTE)
Plant
84/85/
94
5% 1. Clarification
that all goods
used for
setting up of
the WTE
plant e.g.
collection,
transportation
, processing
etc. attracts
GST @ 5%.
1. Renewable energy projects including WTE plants
and devices and their parts attract GST at the rate
of 5% as per sr. no. 234 of notification No. 1/2017-
Integrated Tax (Rate) dated 28th June, 2018.
2. This provision provides the benefit of reduced GST
to all the goods falling under Chapter 84, 85 and 94
and used in the initial setting up of the plant.
3. However, the capital goods used for collection and
transportation of waste to site is not eligible to the
benefit of reduced rate.
Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
Page 19 of 91
S.
No.
Description HSN Present
GST
Rate
(%)
Requested GST
rate (%)
Comments
2. A separate
HSN be
allotted to the
WTE Plant
4. Fitment Committee recommends for issuance of
clarification stating that the capital goods used for
collection and transportation of waste to site is not
eligible to the benefit of reduced rate of 5% GST.
12. Turbo Charger 8414 18% Seeking
clarification as
regards
classification of
“Turbo
Charger” for
rail locomotives
1. The turbocharger is a turbine-driven forced
induction device that increases an internal
combustion engine's efficiency and power output
by forcing extra compressed air into the
combustion chamber. It has the compressor
powered by a turbine. The turbine is driven by the
exhaust gas from the engine.
2. Turbo charger is specifically classified under
chapter heading 8414 80 30, and attracts 18% GST
with Nil compensation cess.
3. Heading 8607 only covers parts of railways or
tramway locomotives or rolling stock such as
bogies, axles and wheels and parts thereof.
4. Fitment Committee recommends for issuance of
clarification that turbo charger is classified under
heading 8414 and attracts 18% GST and not 5%
GST.
13. Embroidered
fabric sold in
three piece for
lady suits
- Issue
clarification
regarding
applicable rate
1. Fabrics of all kind attract GST at the rate of 5%.
2. Garments and made up attract GST at the rate of
5% when value is less than Rs 1000 per piece and
12% when the value exceeds 12%.
3. Doubts have arisen as regards applicable rates
when the embroidered fabric with certain
embellishment like gota etc. are sold in three pieces
(suit salwar and dupatta fabric).
4. Earlier a clarification was issued to the effect that
fabrics cut to size for salwar suits etc. continue to
be fabric and attract GST at the rate of 5%
irrespective of price.
5. However, now doubt has been raised about three
piece fabric sold in a pack as ladies salwar suit,
when such fabric is embroidered would fall under
the category of made up or fabric.
6. Fitment Committee was of the view that even in
three pieces the items remain fabric. To be a
garment/made up, it has to be more than mere
fabric. Made up article in Chapter 63 covers pieces
which have undergone some working, such as
hemming or formation of necklines, intended for
the manufacture of garments but not yet
sufficiently completed to be identifiable as
garments or parts of garments. Thus, mere fabric,
even if embroidered or has stitching of lace and
tikki etc., and even if sold in three piece fabric as
ladies suit set, will continue to classifiable as fabric
(as essential character of fabrics is not altered) and
attract 5% GST.
Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
Page 20 of 91
S.
No.
Description HSN Present
GST
Rate
(%)
Requested GST
rate (%)
Comments
7. Fitment Committee recommended issuance of
clarification on the above lines.

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Page 21 of 91
Annexure II
Proposals recommended by Fitment Committee on 14th and 15th December – 2018
Sl.
No.
Proposal Comments
1. i. Request to exempt long duration
degree/ diploma programmes offered by
IIMs from service tax since 2003
through retrospective amendment in
Budget 2019
ii. Request to issue suitable clarification
that with effect from 31st January, 2018,
all degrees/ diploma awarded by IIMs
under IIM Act, 2017 will be exempt
from GST

Reference;
(i) Secretary, Ministry of Human
Resource Development
(ii) Director, IIM- Ahmedabad.
Recommendation:
It is proposed that,
1. For the periods from 1st July, 2018 to 30th January, 2018:
retrospective exemption to one- year executive
development program may not be granted. Refund situation
would arise because students pursuing long terms programs
(one year or more) other than 3 specified programs
mentioned at Sl. No. 67 of the notification No. 12/ 2017- CT
(R), should have paid GST to IIMs.
2. For the periods from 31st January, 2018, it is proposed to,
i. Issue a clarification that with effect from 31st
January, 2018 degrees/ diploma awarded by IIMs
under IIM Act, 2017 will be exempt from GST
ii. Delete the entry at Sl. No 67 of notification No.
12/2017- Central Tax (Rate), dated 28.06.2017 and
corresponding entries in notifications issued under
IGST, UTGST and SGST Act.
3. For the periods before 1st July, 2017 (pre-GST): the
proposal for granting retrospective exemption to exempt
long duration degree/ diploma programmes offered by IIMs
may be dealt on merits separately as part of annual regular
budget, 2019 of the Union Government.
Discussion:
With effect from 31st January, 2018, IIMs are empowered to (i)
grant degrees, diplomas, and other academic distinctions or titles,
(ii) specify the criteria and process for admission to courses or
programmes of study, and (iii) specify the academic content of
programmes under the Indian Institute of Management Act,
2017. Therefore, IIMs are educational institutions as per
definitions of “educational institution” as defined under
notification 12/2017- Central Tax (Rate) dated 28.06.201.
Therefore, IIMs can now enjoy exemption benefit from two
different Sl. Nos., i.e. vide Sl. No. 66, a generic exemption as
“educational institution” and vide Sl. No. 67, a specific
exemption to IIMs. As there is now no need to continue with
specific exemption granted to IIMs vide Sl. No. 67, which has
become redundant, it is therefore decided to be deleted.
2. Request to exempt levy of GST on
services offered by psychologists and
special/ remedial educators and all other
rehabilitation professionals as recognized
by the Rehabilitation Council of India
from GST.
Recommendation:
Agreed for exemption as no serious revenue implication. We
may exempt the services supplied by rehabilitation professionals
recognised under RCI Act, 1992 by way of
rehabilitation/therapy/counseling and such other activity as
covered by the RCI Act, 1992 at medical establishments,
educational institutions, rehabilitation centers established by
Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
Page 22 of 91
Sl.
No.
Proposal Comments
Reference: Bombay Psychological
Association Trust;
Ministry of Social Justice and
Empowerment, Govt. of India
Central Govt/ State Govt or Union Territories or entity registered
under section 12AA of the Income-tax Act.

Discussion:
1. Allied health professionals constitute an important and integral
force in the healthcare sector. They provide services at various
levels, such as at medical establishments, private nourishing
homes, various rehabilitation centers established by
governments, schools, private bodies, trusts, NGOs and
individual clinics. Since these professionals play a crucial role in
health sector, we may exempt the services of rehabilitation
professionals recognized under RCI Act, 1992 so as to make the
rehabilitation healthcare services affordable to needy sections of
society, such as students/ divyangjan and likes.

2. To restrict the misuse of this exemption, the exemption may
be restricted to medical establishments, educational institutions,
rehabilitation centers established by Central Govt/ State Govt or
Union Territories or entity registered under section 12AA of the
Income-tax Act. Most of these professionals are not collecting
GST, the revenue implication for the exemption proposal would
be minimal. Further, it will be a goodwill gesture to tax
rehabilitation professionals who are serving a large section of
disadvantaged, mentally and physically sick and unwell section
of society in the country.
3. The term “financial institutions” is not
defined under GST law. Moreover, the
terms “Banking and Financial
Institutions” is used separately in some
provisions of the GST law [such as Section
17(4)], giving impression that they are
entities varying from each other. Hence,
for the sake of uniformity and greater
clarity, the same may be used in the
notification.

Request:
(a) To add words “banking and …” before
the words “financial institutions” in entry
no. 34Ain Not. No. 12/2017- Central Tax
(Rate) inserted vide Not. No. 14/2018
Central Tax (Rate) dt. 26.7.2018.
Recommendation:
To amend notification to bring clarity.
The exemption may be extended to services supplied by Central
Government, State Government, Union territory to their
undertakings or PSUs by way of guaranteeing the loans taken by
such undertakings or PSUs from banks. Presently the exemption
is available only for financial institutions.
Further, the term Financial Institution may be defined in
Notification No. 12/2017-Central Tax (Rate) to have the same
meaning as given to it in the RBI Act, 1934.

Discussion:
1. Since the Government undertakings or PSUs may take loans
from Financial Institutions as well as Banks, it is proposed that
the exemption may be extended to Banking Companies as well.
2. Further, the term Financial Institution may be defined in
Notification No. 12/2017-Central Tax (Rate) to have the same
meaning as given to it in the RBI Act, 1934.
3. In the RBI Act, Financial Institution has been defined as an
institution other than a banking institution which carries on
activities including financing by way of giving loans and
advances, hire purchase of goods, insurance etc. Thus under the
RBI Act, banks and other financial institutions have been treated
as two distinct categories.
4. The term ‘banking company’ has been defined in the
Notification No. 12/2017-Central Tax (Rate) as under:
Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
Page 23 of 91
Sl.
No.
Proposal Comments
“banking company” has the same meaning as assigned to it in
clause (a) of section 45A of the Reserve Bank of India
Act,1934(2 of 1934).
(b)The scope of the term “Financial
institutions” may be defined in entry no.
34A in Not. No. 12/2017- Central Tax
(Rate) inserted vide Not. No. 14/2018
Central Tax (Rate) dt. 26.7.2018.
Agreed as above.

Recommendation:
The proposal may be accepted.
(c)Clarification as to whether the
exemption provided by entry no. 34A in
Not. No. 12/2017- Central Tax (Rate)
inserted vide Not. No. 14/2018 Central
Tax (Rate) is also applicable on issuance
of Debenture bonds.

Reference:
Secretary, Finance (Revenue), Rajasthan
Agreed to reply as below.

Recommendation:
It may be clarified to Secretary, Finance (Revenue), Rajasthan
that exemption provided by entry no. 34A of Not. No. 12/2017-
Central Tax (Rate) is not applicable in respect of guarantee
commission payable in case of issuance of bonds/debentures.
4. Exemption notification to be issued for
exempting GST on license fee charged for
liquor license w.e.f. 01.07.2017.

Reference:
1. GST Council Secretariat
2. DGCEI
3. Telangana
4. Sab-Miller
Recommendation:
1. Exemption notification may be issued. This issue has already
been decided in the GST Council.
However, the expression “GST was not leviable on license fee
and application fee by whatever name it is called, for alcoholic
liquor for human consumption” in the decision of the 26th GST
Council meeting can be implemented through issue of an
exemption notification and it would not be possible to issue a
circular in this regard as the Central Government’s position is
that it is taxable and SCNs have been issued on the issue.

2. The issue of prospective exemption on license fee or
application fee or by whatever name called charged for grant of
liquor license is recommended by FitCom and shall be issued.

3. So far as the retrospective exemption is concerned, tax paid
and not paid figures may be ascertained and same may be
resubmitted for examination to Fitment Committee.

Discussion:
1. The GST Council in its 26th meeting held on 10 March, 2018
approved that GST was not leviable on license fee and
application fee by whatever name it is called, for alcoholic liquor
for human consumption and that this would also apply mutatis
mutandis to the demand raised by Service Tax/ Excise authorities
on license fee for alcoholic liquor for human consumption in the
pre-GST era.
2. The decision of the 26th GST Council meeting held on
10.03.2018 did not envisage issuance of any exemption
notification or circular and neither were issued.
3. All services provided by Government, governmental authority
or local authority to business entities (subject to specific
exemptions so provided) became leviable to Service Tax with
effect from 1.4.2016. They are also taxable under GST and
therefore exemption needs to be issued.
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Proposal Comments
4. In order to clear the doubts on the issue and to safeguard
Government revenue on other Government services, a clear-cut
exemption notification needs to be issued exempting
GST/Service Tax on the liquor license fee.
5. Clarification regarding payment of GST
on Lease Rent of Private Entrepreneurs
Godowns (PEG)

Reference: Food Corporation of India
Recommendation:
Agreed for clarification.
A clarification may be issued to FCI that:
i. The services supplied by the private investor by way of
leasing of warehouse in lieu of agreed rent, without any
other services, shall be liable to tax under GST. Such
services are classifiable under heading 9972 and taxable
@18% under GST.
ii. The service provided by godown owner in case of lease
with services, where the godown owner, besides leasing
the warehouse, undertakes to carry out activities of storage
and preservation of stored food grains, is the service of
storage and warehousing of agricultural produce, which is
exempt from GST vide entry 54 of Notification no.
12/2017-Central Tax (Rate) dated 28.06.2017.

Discussion:
Under the Scheme for Construction of Godowns through Private
Enterpreneurs-2008, two types of lease agreements have been
entered into with private investors as under: -
• Lease without services, where preservation, maintenance
etc. of stored food grains is done by State Nodal Agency.
• Lease with services, where the private godown owner
apart from giving the godown on lease, is also under an
obligation to carry out activities of storage and preservation of
stored food grains, under the supervision of State Nodal Agency.

2. In case of lease without services, the private investor is
supplying services to Nodal Agency by way of leasing of
building of warehouse. Such services are classifiable under
heading 9972 and taxable @18% under GST.

3. In case of lease with services, the godown owner takes
complete responsibility of storage, warehousing,
loading/unloading, preservation of food grains. He is the overall
custodian of the warehoused goods and any storage losses are his
responsibility. A single consideration (quintal per month) is
charged for the said services. Accordingly, the service provided
by godown owner in such cases is the service of storage and
warehousing of agricultural produce, which is exempt from GST
vide entry 54 of Notification no. 12/2017-Central Tax (Rate)
dated 28.06.2017.
6. Clarification on applicability of GST on
Asian Development Bank’s On-shore
Indian Rupee Denominated Bond
Programme

Reference:
Agreed for clarification but request will be made to the line
ministry to amend the law to exclude pass through/ indirect taxes
from these two Acts, however, this reference would be made
after the clarification has been issued.
Recommendation:
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Proposal Comments
Joint Secretary (Fund Bank and ADB),
Dept. of Economic Affairs (DEA) A circular may be issued clarifying that the services provided by
IFC and ADB are exempt from GST in terms of provisions of
IFC Act, 1958 and ADB Act. The exemption will be available
only to the services provided by ADB and IFC and not to any
entity appointed by or working on behalf of ADB or IFC.
Discussion:
1. ADB Act, 1966 provides that notwithstanding anything to the
contrary contained in any other law, the Bank, its assets,
properties, income and its operations and transactions shall be
exempt from all the taxation and from all customs duties. The
Bank shall also be exempt from any obligation for payment,
withholding or collection of any tax or duty [Section 5 (1) of the
ADB Act, 1966 read with Article 56 (1) of the schedule thereto
refers].
2. IFC Act, 1958 contains identical provisions. [Section 3 (1) of
IFC Act, 1958 read with Article VI, Section 9 (a) of the Schedule
thereto refers].
3. CESTAT Mumbai vide final order dated 17-10-2016 in the
case of M/s Coastal Gujarat Power Ltd. has held that when the
enactments that honor international agreements specifically
immunize the operations of the service provider from taxability,
there is no need for a separate exemption.
4. The services provided by IFC and ADB are exempt from
service tax and GST in terms of provisions of IFC Act, 1958 and
ADB Act.
5. As suggested by CCT, Tamil Nadu, CBIC may issue
instructions regarding Service Tax separately.
7. Request for clarification on the
applicability of GST on the incentives paid
by RBI to Banks under “Currency
Distribution and Exchange Scheme
(CDES)”.

Reference: Chief General Manager, RBI
Agreed for clarification that GST is payable.

Recommendation:
It may be clarified to RBI that GST is payable on incentives paid
by RBI to banks for implementation of “Currency Distribution
and Exchange Scheme (CDES)”

Discussion:
1. Currency Management, viz., the issue of bank notes and
management of currency is one of the core functions of the RBI.
This is a statutory responsibility conferred on the central bank by
the Preamble of the Reserve Bank of India Act, 1934, which
mandates it “to regulate the issue of Bank notes and keeping of
reserves with a view to securing monetary stability in India and
generally to operate the currency and credit system of the country
to its advantage”. Section 22 of the Act also authorises the RBI
as the sole authority to issue notes, and in this capacity, the RBI,
along with the Government of India is responsible for the design,
production and overall management of the nation's currency.
Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
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Proposal Comments
2. Section 23 of the RBI Act, 1934, had mandated that the
function of issuance of bank notes is to be conducted by the RBI
through a separate department called the Issue Department.
Currency Distribution and Exchange Scheme (CDES) may be
considered as statutory responsibility of RBI, but not of banks.
Under CDES, banks are giving services to RBI. Banks receive
consideration in form of incentives from RBI, which is in the
nature of commission. Input services received by RBI under
Currency Distribution and Exchange Scheme (CDES) are
taxable under GST. However, the output services provided by the
RBI are exempt from the levy of GST vide S. No 26 of
Notification No. 12/2017 dated 28.06.2017
8. Request for
(1) levying security services under reverse
charge mechanism

(2) Levy GST of 18% on only the
commission/agency charge instead of
gross amount charged to client

(3) Levy GST of 5% on the gross amount
charged to client

Reference: ADG, DG GST, New Delhi
Agreed for RCM only for security services (supply of security
personnel).

Recommendations:
Security service (by way of supply of security personnel) to be
put under RCM when such service is received by a registered
person except government departments registered for TDS and
entities registered under composition scheme. Taxable value of
services shall be the full value of the consideration payable and
is not to be changed.

Discussion:
As per FICCI Report, nearly 60 per cent of the security service
providers still operate in un-organised manner, thereby keeping
the sector pricing oriented and amenable to unfriendly
employment practices and making it difficult to monitor quality
and compliance. Also, delayed payments from clients which is
forcing security industry to pay GST before the actual payment
receipt, thereby increasing working capital requirements in the
industry. This sector has many small service providers and is
prone to evasion. Therefore, like pre-GST era, it is prudent to
levy GST under reverse charge on security services as such
measure would increase compliance in the sector and increase
GST revenue collection.
9. 1. Request to clarify the base value on
which GST liability needs to be calculated
for the services of Business
Facilitator/Business Correspondent
(BF/BC) to a banking company.

2. Request to clarify the scope of services
by BF/BC to a banking company with
respect to accounts in rural areas

3. Request for reduction in GST rate and
for exemption of services by BF/BC to a
banking company in urban areas also

4. Request to allow corporate BF/BC to
deposit GST on reverse charge mechanism
for availing services from the unregistered
Agent BF/BC.
Agreed for RCM and clarification only. Request for exemption
not recommended. The banking company is liable to pay GST on
the entire value of service charge or fee charged to customers
whether or not received via business facilitator or the business
correspondent.

Recommendation:

1. The banking company is the service provider in the business
facilitator model or the business correspondent model as per RBI
guidelines. The banking company is liable to pay GST on the
entire value of service charge or fee charged to customers
whether or not received via business facilitator or the business
correspondent

2. It may be clarified that for the purpose of availing exemption
from GST under Sl. No. 39 of Notification No 12/2017-CT(R),
the conditions flowing from the language of the notification
Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
Page 27 of 91
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Proposal Comments

Reference: Business Correspondent
Federation of India (BCFI), Cabinet
Secretariat, PMO
should be satisfied. These conditions are that the services
provided by a BF/BC to a banking company in their respective
individual capacities should fall under the Heading 9971 and that
such services should be with respect to accounts in a branch
located in the rural area of the banking company.

3. In pre-GST era also exemption from Service Tax was available
to services of BF/BC to rural areas only as suggest by
Department of Financial Services and approved by FM. Hence,
status-quo may be maintained on the matter by restricting the
GST exemption to services of BF/BC to banking company w.r.t
accounts in rural areas to incentivise such intermediaries for
achieving financial inclusion in a meaningful way.

4. As per the data given by BCFI, there are 7,86,740 Agent BCs
who provide services to Corporate BCs. However, only 2009
BCs are registered under GST. In order decrease the compliance
burden and increase revenue, the services provided by Agent
BCs to Corporate BCs may be levied under reverse charge
mechanism.
10. ADG, Directorate General of Goods and
Services Tax has informed that the service
of “printing of pictures” covered under
service code 998386 “Photographic and
videographic processing services” is being
classified under service code 998912
“Printing and reproduction services of
recorded media, on a fee or contract
basis”. The two service codes attract
different GST rate of 18% and 12%
respectively.

Request:
To clarify classification of printing of
pictures/images

Reference:
Directorate General of GST
Agreed for clarification.

Recommendation:
(a) Circular may be issued clarifying that service of “printing of
pictures” falls under service code “998386: Photographic and
videographic processing services” of the scheme of
classification of service annexed to notification No. 11/2017-
Central Tax (Rate) dated 28.06.2018 and not under “998912:
Printing and reproduction services of recorded media, on a fee
or contract basis”;
(b) Error in the exclusion clause in the explanatory note to service
code 998912 may be removed by replacing the service code
998382 and 999612 appearing in the exclusion clause with the
service codes 998386 and 999613 respectively.

Discussion:
1. ADG, Directorate General of Goods and Services Tax has
informed that the service of “printing of pictures” covered under
service code 998386 “Photographic and videographic processing
services” is being classified under service code 998912 “Printing
and reproduction services of recorded media, on a fee or contract
basis”. The two service codes attract different GST rate of 18%
and 12% respectively.

2. According to Explanatory Notes to the scheme of
classification of services, the service code “998386
Photographic and videographic processing services, includes,
-
developing of negatives and the printing of pictures for others
according to customer specifications such as enlargement of
negatives or slides, black and white processing; colour printing
of images from film or digital media; slide and negative
duplicates, reprints, etc.; developing of film for both amateur
photographers and commercial clients; preparing of
Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
Page 28 of 91
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Proposal Comments
photographic slides; copying of films; converting of photographs
and films to other media”

3. Further, according to explanatory notes, the service code
998912 “Printing and reproduction services of recorded media,
on a fee or contract basis” clearly excludes, -
-colour printing of images from film or digital media, cf. 998382,
-audio and video production services, cf. 999612”

4. An associated issue is that in the explanatory note to
service code 998912, the service codes 998382 and 999612
appear in the exclusion clause instead of service code 998386 and
999613. The service code 998382 pertains to “advertising and
related photography services” and the service code 999612
pertains to “motion picture, videotape, television and radio
programme production services” which do not match with the
description of services in the exclusion clause. The error may be
rectified.
11. To clarify the applicable GST rate in
respect of license fee recovery (LFR)
charges by oil marketing companies
(OMC) from petrol pump dealers

Reference:
Ministry of Petroleum & Natural Gas
Agreed for clarification as per the Council decision.

Recommendation:
It may be clarified that leasing of pumps and reservoirs by the
OMCs to petrol pump dealers is a mixed supply and the LFR
charged for the same shall be leviable to GST @ 28%, the rate
applicable to pumps. Leasing of land and buildings along with
equipment shall fall under heading 9972 (real estate services) and
shall attract GST rate of 18%.

Discussion:
1. The above clarification was recommended by the Fitment
Committee in its meeting held on 18th Jan 2018. However,
before issuing clarification, the matter was again referred to
Ministry of Petroleum & Natural Gas for advising as to which is
the predominant element the LFR charged for leasing of pump
and storage reservoirs. MoPNG has advised vide letter dated
24.09.2018 that there is no principal supply and LFR cannot be
said to be a composite supply.
2. Therefore, the above clarification approved by Fitment
Committee in its meeting held on 18th January, 2018 may be
issued as no new facts have come to light.
12. Entry created for multimodal
transportation of goods at 12% may be
restricted only to domestic multimodal
transportation so as to restore status quo in
respect of international transport of goods
by vessel/air combined with inland
transport of goods by road or rail

Reference: Association of Multimodal
Transport Operators of India
Agreed for clarification as the entry was meant only for domestic
supplies.

Recommendation:
It may be clarified under section 11(3) of the CGST Act, 2017
that scope of entry for multi-modal transport with GST rate of
12% inserted w.e.f. date 26.07.2018, covers only transport of
goods from a place in India to another place in India, that is, only
multi-modal transport within India.

Discussion:
Separate entry for multi modal transport was created to address
the issue of domestic multi-modal transportation of goods by
vessel and road. The Coastal Container Transporters Association
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Proposal Comments
(CCTA), Gujarat and All India Motor Transport Congress
(AIMTC) had represented that in case of coastal transportation of
goods by vessel and road, two equally important segments of
combined transport service were subject to levy of GST on
reverse charge (without ITC) as well as forward charge (with
ITC) thereby posing serious issues relating to ITC availment and
GST payment & compliance.]
2. In the case of international transportation of goods by vessel or
aircraft the predominant mode of transportation is by
vessel/aircraft. It would not be reasonable to have a tax structure
for international multi-modal transport which is disadvantageous
as compared to that applicable on transport by vessel or aircraft.
3. Therefore, we may clarify that scope of entry for multi-modal
transport with GST rate of 12% inserted w.e.f. date 26.07.2018,
covers only transport of goods from a place in India to another
place in India, that is, only multi-modal transport within India.
This would restore the status quo for international import and
export transport by vessel and air as it existed prior to 26.07.2018.
The policy intention has always been to resolve the problem for
domestic multimodal transport.
4. We may do so by inserting an explanation in the entry to
this effect under section 11(3) of the CGST Act, 2017, so that it
comes into effect from 26.07.2018, that is the day when the
specific entry for multimodal transportation of goods was created.
13. i. To issue a clarification that all the
Councils/Boards of
Primary/Secondary/Higher Secondary
Education are covered under the
definition of “educational institution” in
the Explanation 2(y) of the GST
Notification No. 12/2017-Central/State
Tax (Rate) dt. 28.06.2018,

and

ii. The Board/Council level examinations
conducted by the Councils/Boards of
Primary/Secondary/Higher Secondary
Education may be exempted from GST

Reference:
CCT West Bengal
Agreed for clarification.

Recommendation:
It may be clarified to West Bengal that Central and State
Educational Boards are treated as Educational Institution for the
limited purpose of providing services by way of conduct of
examination to the students. Therefore, services provided by
Council/ Board of Primary/ Secondary/ Higher Secondary
Education for conduct of examination to its students are exempt.

Discussion:
Vide explanation 3 (iv) of notification No. 12/2017- Central Tax
(Rate), it has been clarified that the Central and State Educational
Boards shall be treated as Educational Institution for the limited
purpose of providing services by way of conduct of examination
to the students. [Inserted vide notification No. 14/2018 – Central
Tax (Rate) dt 26.07.2018]
14. To clarify the nature of supply and rate of
GST applicable on supply of food / pre-
cooked edible items in restaurant-cum-
sweet shop when purchased off the shelf

Reference:
AAR Uttarakhand’s ruling dated
22.10.2018 in case of M/s.
KundanMisthanBhandar, Nainital
Agreed. To issue instruction to Commissioner concerned to file
appeal against the AAR.
WB to examine the concept of “off the shelf sale” and suggest
amendment in notification if any so that in future such disputes
can be avoided.

Recommendation:
We may clarify to Commissioner concerned that the nature of
business establishment making supply of food, drinks and other
articles for human consumption will not determine whether same
is a supply of goods or services but will depend on the
constituents of each individual supply and whether same satisfies
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Proposal Comments
the conditions / ingredients of a ‘Composite supply’ or ‘Mixed
supply’ as defined under section 2(30) and 2(74) of the CGST
Act respectively and in view of the Fitment Committee decision
ask the jurisdictional authorities to file appeal against the ruling
before the Appellate Authority for Advance Ruling,
Uttarakhand.

Discussion:
1. AAR Uttarakhand has decided in the application under
reference that where sweetshop is running on the ground floor
and restaurant on the first floor, nature of restaurant services is
such that it is to be treated as the main supply and the other
supplies combined with such main supply are to be treated in the
nature of incidental or ancillary services. Thus, restaurant
services get the character of principal supply over other supplies.
Therefore, all combination of supply of goods and services, in
that case shall be treated as supply of service and the sweet shop
shall be treated as an extension of the restaurant in as much as
the supply is covered under para 6(b) of the Schedule II of the
CGST Act.

2. Decision and interpretation to treat combination of supply as
composite supply of service on the basis of nature of
establishment i.e. principal supply by a restaurant and incidental
or auxillary supply by the mithai shop is faulty and untenable as
supply whether composite or mixed will be determined on the
basis of satisfaction of conditions / ingredients in the definition
of ‘Composite supply’ and ‘Mixed supply’ under section 2(30)
and 2(74) of the CGST Act respectively. In these definitions, the
issue needs to be decided in terms of individual supply and its
constituents.
15. Request to clarify GST rate applicable on
supply of food by educational institutions
to its students.

Reference: Principal, Dhruva Advisors
LLP; Manager- Indirect Tax
Agreed to issue clarification as these supplies have always been
exempt.

Recommendation:
We may clarify by way of issue of a circular that GST is exempt
on supply of food and drinks by an educational institution when
provided by the institution itself to its students, faculty and staff
and is leviable to GST of 5% when provided by any other person
based on a contractual arrangement with such institutions. Also,
we may:

1. Modify Explanation 1 to entry 7(i) of notification No.
11/2017-CT(Rate) to omit words ‘school, college’ to read as
under:

“This entry includes such supply at a canteen, mess, cafeteria
or dining space of an institution such as a hospital, industrial
unit, office, by such institution or by any other person based
on a contractual arrangement with such institution for such
supply, provided that such a supply is not event based or
occasional.”
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Proposal Comments
2. In terms of the power vested under Section 11(3) of CGST
Act, amend Col. No. 2 of Sl. No. 66 of notification No.
12/2017-CT(Rate), to read as “Heading 9992 or Heading
9963”

Discussion:
With insertion of explanation 1 in entry 7 (i) of notification No.
11/2017-CT(R), and withdrawal of circular no. 28/02/2018-GST
dated 8.1.2018 as amended, confusion has arisen regarding rate
of GST applicable on supply of food in educational institutions.
Such supplies are exempted under notification No. 12/2017-
CT(R) whereas notification No. 13/2018-CT(R) dated 26.7.2018
prescribes GST rate of 5% on supply of food when provided by
schools, colleges etc. Therefore, there is an urgent need to issue
clarification for avoiding litigation on the matter.
16. Requesting for clarification on Service
Tax/GST liability on Basic Saving Bank
Deposit (BSBD) or Pradhan Mantri Jan
DhanYojana (PMJDY) Bank accounts.

Reference: Department of Financial
Services
Agreed. Exemption to be given without linking the provision of
service to the issue of payment of consideration.

Recommendation:
GST may be exempted on the supply of services by banks to
Basic Saving Bank Deposit (BSBD) account holders under
PradhanMantri Jan DhanYojana (PMJDY)

Discussion:
1. RBI vide DBOD.No. Leg. BC.35/ 09.07.005/ 20012-13 dated
August 10, 2012, advised banks to offer minimum common
facilities the existing 'no-frills' accounts’ by converting them into
'Basic Savings Bank Deposit Accounts'. Such account does not
have the requirement of any minimum balance.

2. Major services provided under PMJDY schemes are exempted
such as interest on deposit, accidental and life insurance. Further
it has been given to understand that the banks will not be
charging the customers for the incidental charges such as
processing fees, minimum balance charges etc. to BSBD account
holders under PMJDY. It is proposed to exempt GST on any
services of banks to BSBD account holders under PMJDY.
17. To exclude Government from liability to
pay GST on GTA service under reverse
charge

Reference: Appellate Authority for
Advance Ruling, Rajasthan
Notification No. 13/2017-CT(R) and 12/2017-CT(R) may be
amended accordingly and exemption provided to Government
from paying GST on GTA services.

Recommendation:
(i) Notification No. 13/2017 – Central Tax (Rate) dated
28-06-2017 Sl. No. 1 (d) of the table may be
amended so as to exclude from its purview (a) a
department or establishment of Central Government
or State Government; or (b) local authority; or (c)
Governmental agencies, which have taken
registration under the CGST Act only for the
purpose of deducting tax under Section 51 and not
for making a taxable supply of goods or services.

(ii) Services provided by GTA to (a) a department or
establishment of Central Government or State
Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
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Proposal Comments
Government; or (b) local authority; or (c)
Governmental agencies, which have taken
registration under the CGST Act only for the
purpose of deducting tax under Section 51 and not
for making a taxable supply of goods or services,
may be exempted. Notification No. 12/2017 –
Central Tax (Rate) dated 28-06-2017 may be
amended accordingly.

Discussion:
1. Appellate Authority for Advance Ruling, Rajasthan has
pointed out that services supplied by Goods Transport Agency
(GTA) to registered persons are under RCM [Notification No.
13/2017 – Central Tax (Rate) dated 28-06-2017, entry 1(d)].
Further, services provided by GTA to unregistered persons are
exempt from GST vide Notification No. 12/2017 – Central Tax
(Rate) dated 28-06-2017 Sl. No. 21A.

2. With the coming into force of Section 51 of the CGST
Act with effect from 01-10-2018, all the Government
Departments required to deduct tax at source are required to take
registration under section 24 (vi) of the CGST Act. As a result,
they shall be required to pay tax on GTA services under RCM.

3. Law Committee has recommended that persons liable to
registration by virtue of being tax deductor under section 51 or
tax collector under section 52 to be excluded from the purview
of entry 1(d) of the Notification No. 13/2017 Central tax- Rate
dated 28.06.2017.

4. Section 52 of the CGST Act pertains to collection of tax
at source by an electronic commerce operator who may continue
to pay tax on GTA services under RCM.

5. The proposed changes will ensure that compliance
burden to pay GST on GTA services do not fall on the
Government Departments and local authorities which have taken
registration only for deducting tax under Section 51 of the CGST
Act. At the same time GTAs will not be required to pay tax on
services provided to such entities under forward charge.
18. To clarify the GST rate applicable on right
to use Intellectual Property and similar
products other than IPR
Recommendation:
It is proposed that to bring clarity, the residuary rate entry for
Heading 9973 in notification No. 11/2017-CT (R) dated
28.06.2017 may be split in two parts as follows.
Existing Proposed
Description
of Services
Rate
(%)
Description of
Services
Rate
(%)
Sl. 17 Heading 9973 (Leasing or rental services, with or
without operator)
(viii)
Leasing or
rental
services,
with or
Same rate of
Central Tax
as on supply
of like goods
involving
(viia) Leasing
or renting of
goods
Same rate of
Central Tax
as on supply
of like goods
involving
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Proposal Comments

Discussion:
1. Heading 9973 of scheme of classification of services under
GST includes “Group 99733: the licensing services for the right
to use intellectual property and similar products”. However, the
rate notification No. 11/2017-CT (R) dated 28.06.2017,
prescribes rate only for transfer or permitting the use or
enjoyment of Intellectual Property Rights (IPR). No rate has been
prescribed for transfer of intellectual property and similar
products other than IPR. IPR, as held in several decisions of the
Tribunal and the Courts, refers to rights in intellectual property
protected by the relevant IPR law in force. Intellectual property
not protected by IPR law in force cannot be termed as IPR.

2. The residuary entry for the Heading 9973, i.e entry Sl.
No. 17(viii) prescribes GST rate as “same rate of Central Tax as
on supply of like goods involving transfer of title in goods”.
However, the intellectual property does not have underlying
goods and thus the prescribed rate does not apply to transfer of
intellectual property and similar products other than IPR.
without
operator,
other than
(i), (ii), (iii),
(iv), (v), (vi)
and (vii)
above
transfer of
title in goods
transfer of
title in goods
(viii) Leasing
or rental
services, with
or without
operator, other
than (i), (ii),
(iii), (iv), (v),
(vi), (vii) and
(viia) above
18
19. To exempt various services provided by
Lok Sabha Secretariat.

Reference: Lok Sabha Secretariat
Same treatment (for payment of tax under RCM) as available to
Government is recommended. Not agreed for exemption.

Recommendation:
The same treatment with regard to payment of tax under RCM as
available to Central and State Governments may be extended to
services provided by Parliament and State Legislatures.

Discussion:
1. Services provided by the by the Central Government, State
Government, Union territory or local authority to business
entities are taxable. However, the tax is payable under RCM with
a few exceptions. [S. No. 5 & 5A Notification No. 13/2017-
Central Tax (Rate) refer.]

2. It is proposed that, the same treatment (RCM) as available to
Central and State Governments may be extended to Parliament
and State Legislatures by inserting following explanation in
Notification No. 13/2017- Central Tax (Rate) and corresponding
IGST, SGST and UTGST notifications:
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Proposal Comments
“Provisions of this notification, in so far as they apply to Central
and State Governments, shall also apply to Parliament and State
Legislatures.”

Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
Page 35 of 91
ANNEXURE III
LIST OF GOODS NOT RECOMMENDED FOR CHANGE IN GST RATE
S.
No
Description HSN Present
GST
Rate
(%)
Requeste
d GST
Rate (%)
Comments
1. Butter and
Ghee
0405 12% 5% 1. The issue of GST rate reduction was discussed in the
Fitment Committee meeting held before the 28th GST
Council meeting. However, the same was not agreed.
2. Desi ghee is not only sold by the unorganized sector but
is also sold by the major companies such as Amul,
Mother Dairy etc.
3. This has significant revenue implications.
4. Small manufacturer could avail threshold exemption and
composition.
5. Hence, Fitment Committee does not recommend any
reduction in present GST rate
2. Dehydrated
Vegetables
0712 Nil Impose
some
GST (5%)
1. This request has been made by a section of the trade for
the reason that imposition of certain GST would allow
passing on of input stage tax.
2. However, as it is a conscious decision to keep vegetables
at nil rate, being essential item of mass consumption,
hence it may not be feasible to impose GST on these
items.
3. Almond
Kernels
080212
00
12% 5% 1. Dry fruits in general, including dates attract 12% GST
rate.
2. The GST rate of 5% on cashew nut and walnut is an
exception and was recommended by the Council keeping
in view their significance to local economy in certain
states.
3. 12% GST rate on almonds is same as the general GST
rate on medicines and medical devices and processed
foods.
4. There is not much justification for reduction in GST rate
on dry fruits as they are meant for consumers who could
afford the tax incidence.
5. Hence, Fitment Committee does not recommend any
reduction in present GST rate
4. Raw Mango
Slices
Sprinkled with
salt
081290
10
5% 0% 1. The Fitment Committee had recommended to GST
Council the rates after taking into account the previous
tax incidence on account of Central Excise, Service Tax
and VAT (including cascading on account of these taxes)
as well as embedded taxes and the incidence of CST,
Octroi, Entry Tax, etc.
2. Further, preparations of such sliced mango require inputs
and input services which attract GST. Hence certain rate
on such items helps in pass through of input credit.
3. Similar items like grapes dried and raisin, peel of citrus
fruits or melon frozen dried or provisionally preserved in
brine and tamarind dried etc attract 5%. Dry fruits
(except cashew and walnut) attract 12% GST.
4. Hence, Fitment Committee does not recommend any
reduction in present GST rate.
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Description HSN Present
GST
Rate
(%)
Requeste
d GST
Rate (%)
Comments
5. Cotton seed
oil cake
Chapte
r 15
5% Nil or 2% 1. Oilseeds are used to extract edible vegetable oils and oil
cakes are a residue of the process.
2. Granting exemption to cotton oil seeds or reducing rates
to 2% will have negative implications to revenue. It may
not be feasible to prescribe a new rate of 2%.
3. Hence, Fitment Committee does not recommend any
reduction in present GST rate
6. Palmolein oil
supplied to
NFS card
holders
15 5% 2% 1. GST is a multi-stage tax. It would not be possible to grant
exemption or reduce rate to 2% for selected Government
schemes and would lead to leakage. National food
Security (NFS) food items can be subsidized through
budgetary grants.
2. Hence, Fitment Committee does not recommend any
reduction in present GST rate
7. White Refined
sugar
170199
90
12% 5% on
import of
White
Refined
Sugar
(1701999
0)
1. The issue has already been clarified vide circular no.
52/26/2018 dated 9th August 2018.
2. Hence, Fitment Committee does not recommend any
reduction in present GST rate
8. 1. Chikki
2. Bicycle
parts
1702

8712
5%
(chikki)
12 %
(bicycle
parts)
5%/5% 1. Chikkis are already at 5% by virtue of S. No. 92 of
Schedule I of notification No. 1/2017- Central Tax
(Rate) dated 28.6.2018.
2. Bicycles and other non-motorised cycles falling under
Ch. Heading 8712, attract GST @12% with Nil
compensation cess.
3. Bicycle rims, spokes, hubs, free-wheels, saddles, chain,
wheels etc which form the major components used in the
manufacture of bicycles, all attract 12% GST rate.
4. Fasteners like nuts and bolts are a minor component, and
a higher GST rate on such items is unlikely to affect the
overall manufacturing cost of bicycle.
5. Hence, Fitment Committee does not recommend any
reduction in present GST rate
9. Breakfast
Cereals
1904 18% 12% 1. Processed food items, in general, are kept at 18% based
on their pre-GST tax incidence.
2. Inputs for making breakfast cereal such as Wheat, Maize,
and other cereals are generally at nil rate of duty.
3. There is a substantial value addition in value in making
breakfast cereals.
4. Hence, Fitment Committee does not recommend any
reduction in present GST rate
10. Biscuits
1905 18% 12% 1. The issue of reducing the GST rates on these products
was discussed in the 28th GST Council meeting on 21st
July 2018 and it was decided that the matter may be
examined by the fitment committee.
2. The GST Council had discussed the issue of GST rates
in detail and recommended 18% GST rates on them.
3. Unlike Central Excise where the duty was collected at
the place of removal usually factory gate, GST is a
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Rate (%)
Comments
multistage tax and such price-based values would be
difficult to administer.
4. Biscuits are manufactured in the organized sector as well
as by bakeries etc. Having two different slabs for biscuits
based on the selling price will be prone to evasion.
5. This has significant revenue implication. The industry
size is more than Rs 50000 crore a year.
6. Hence, Fitment Committee does not recommend any
reduction in present GST rate
11. Noodles, Pasta
and snack
food made out
of locally
cultivated
Tubers,
grains, millets
and fruits
1902 12% 5% 1. Pasta has been kept at 12% based on the pre-GST tax
incidence of 6% Central Excise duty and 5% VAT.
2. Granting exemption to a particular variety of pasta (made
from particular set of raw materials) would be difficult
to administer.
3. Hence, Fitment Committee does not recommend any
reduction in present GST rate.
12. Fruit &
vegetable
Pulps / Purees
for Industrial
Use
20 12% 0% or 5% 1. The Central Excise duty on these products was 6% and
the weighted average VAT was around 5% and hence
these goods have been kept at 12% GST rates.
2. Further, as fruits and vegetable pulp is taken as an input
by food processing industry to prepare processed goods
which are also sold by registered brands under unit
containers at significantly higher prices; the GST rate of
12% on this tariff item can be utilized as credit by such
industry.
3. Hence, Fitment Committee does not recommend any
reduction in present GST rate.
14. Fried Gram 2106 5%/
12%
nil 1. Fried gram is a ready to consume value added product
unlike pulses, which are used by common man as a staple
food item.
2. Fried gram is also being marketed as a namkin by major
brands.
3. There is a substantial value addition in making fried
gram by way of mechanical processes, which change the
physical character of the input.
4. Similar products like Namkeens, bhujia, mixture,
chabena and similar edible preparations in ready for
consumption form attract 12% GST when sold in a unit
container bearing a registered brand name and 5% GST
rate otherwise.
5. Fried gram cannot be equated with puffed rice or parched
rice.
6. Hence, Fitment Committee does not recommend any
reduction in present GST rate
15. Handmade
Baddi &
Mungodi
2106 12% Exempt 1. It is difficult to distinguish handmade products and mass-
produced products in this case.
2. It may not be feasible to pick only certain goods under a
heading for exemption under GST.
3. In any case, small manufacturers’ as well as small traders
are outside the tax net.
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Description HSN Present
GST
Rate
(%)
Requeste
d GST
Rate (%)
Comments
4. Hence, Fitment Committee does not recommend any
reduction in present GST rate
16. Non-Dairy
Whip Topping
and Vegetable
Cream
2106 18% Nil/5%. 1. The product is classified under HS code 21069099.
2. The Central Excise rate on such products was 12.5%
[when not cleared in unit containers] and VAT rate on
such products was around 5%.
3. The current GST rates are in accordance with the pre-
GST tax structure.
4. Hence, Fitment Committee does not recommend any
reduction in present GST rate.
17. Scented sweet
Supari
210690
30
18% 5% 1. Pre-GST supari attracted Central Excise duty at the rate
of 12.5%. The weighted average VAT rate was around
5%. Therefore, based on the pre-GST tax incidence the
rate for supari was kept at 18%.
2. Reducing the GST rates on betel nuts (supari) would
reduce protection to the domestic suppliers vis-à-vis the
imports.
3. Evasion of taxes by certain suppliers cannot be a basis
for granting exemption from duty.
4. Hence, Fitment Committee does not recommend any
reduction in present GST rate.
18. Flavoured
Milk
2202 12% Clarificati
on that it
is
classifiabl
e under
Chapter 4
1. The Explanatory Notes to HSN describe the goods
classifiable under the heading 0402 as under:
This heading covers milk (as defined in Note 1 to this
Chapter) and cream, whether or not pasteurised,
sterilised or otherwise preserved, homogenised or
peptonised; but it excludes milk and cream which have
been concentrated or which contain added sugar or
other sweetening matter (heading 04.02) and curdled,
fermented or acidified milk and cream (heading 04.03).
The products of this heading may be frozen and may
contain the additives referred to in the General
Explanatory Note to this Chapter. The heading also
covers reconstituted milk and cream having the same
qualitative and quantitative composition as the natural
products.
2. Flavoured milk is classifiable under HS code 2202.
3. Fitment Committee does not recommend issuance of
such clarification.
19. Exclusive Ice
block / Ice
Cubes used in
marine
industry
220190
10
5% Nil 1. The GST rates have been fixed on the basis of pre-GST
tax incidence. It attracted nil Central excise duty and 5%
VAT. Therefore, the GST rates have been fixed
accordingly.
2. Ice Cubes have other applications also and granting end
used based exemption for the marine industry would be
difficult to administer and may lead to evasion.
3. 5% rate is beneficial for the industry as they can pass
through the input taxes. Nil tax distorts tax structure.
4. Hence, Fitment Committee does not recommend any
reduction in present GST rate
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S.
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Description HSN Present
GST
Rate
(%)
Requeste
d GST
Rate (%)
Comments
20. Oil Seeds and
Oilcakes as
animal feed
[Chapter 23]
5% Exempt
feed
manufact
uring and
servicing.

Exempt
inputs of
feeds and
both oil
seeds and
oil meals
1. Poultry, cattle and aquatic feed have been exempted.
However, these have not been zero rated. Therefore,
there is no end use-based exemption for the inputs of
animal feed.
2. Oilseeds are used to extract edible vegetable oils and oil
cakes are a residue of the process.
3. Oilseeds attract 5% GST rate and are used and inputs to
extract edible vegetable oils.
4. Oil cake is a by-product of oil extraction and is generally
used as animal feed.
5. Further, granting exemption to only oil cakes used in the
poultry sector (end use-based exemption) would be very
difficult to administer
6. Hence, Fitment Committee does not recommend any
reduction in present GST rate.
21. Soya bean
seeds used as
animal feed
1201 0/5 Nil 1. Soya bean, whether or not broken other than of seed
quality in tariff item 1201 has always been at 5% rate
based on the recommendation of the fitment committee.
The GST Council recommended the rates after taking
into account the previous tax incidence on account of
Central Excise, Service Tax and VAT (including
cascading on account of these taxes) as well as
embedded taxes and the incidence of CST, Octroi, Entry
Tax, etc.
2. Further all similar items under chapter 12 (not of seed
quality) are taxed at 5% bracket.
3. Hence, Fitment Committee does not recommend any
reduction in present GST rate
22. Chewing
Tobacco
240399
10
28%
GST +
160%
compens
ation
cess
Request
classificat
ion at
[2403999
0]
Compens
ation cess
at 96%)
1. Chewing Tobacco (without lime tube) comes under HSN
code [2403 99 10]. The GST rate on this product is 28%
vide notification No. 01/2017-Central Tax (Rate) dated
28th June 2017. Further vide notification No.1/2017-
Compensation Cess (Rate) dated 28th June 2017,
compensation cess on aforementioned HSN code is
160%.
2. As per explanatory notes for HSN classification [2403
91] refers to "Homogenised" and [2403 99]
"reconstituted” tobacco. Explanatory notes further
describe [2403 99] “Other” to include Chewing tobacco,
usually highly fermented and liquored under tariff line
[2403 99 10].
3. In GST chewing tobacco (without lime tube) [2403 99
10] is at SL. No 26 and chewing tobacco (with lime tube)
[2403 99 10] is at SL. No. 27 of notification No. 1/2017-
Compensation Cess (Rate) dated 28th June 2017 with
160% and 142% of compensation cess levy respectively.
4. Thus, all chewing tobacco is classified under tariff line
[2403 99 10].
5. Hence, Fitment Committee does not recommend any
reduction in present GST rate
23. Tobacco
Leaves
240110 28% 5% 1. Explanatory notes to HSN state that tariff Head 2401
covers unmanufactured tobacco in the form of whole
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Description HSN Present
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Rate
(%)
Requeste
d GST
Rate (%)
Comments
plants or leaves in the natural state as well as tobacco
leaves that have been subjected to the process of
fermentation, curing, stemming, stripping, trimming,
cutting etc. Further tariff head 2401 also includes
tobacco leaves, blended, stemmed/stripped and cased
(“sauced” or “liquored”) with a liquid of appropriate
composition. But the heading excludes tobacco which is
ready for smoking.
2. As earlier approved by Fitment committee, clarification
has already been issued that tobacco leaves means leaves
of tobacco as such or broken tobacco leaves or tobacco
leaves stems. However, now doubts have been raised as
to what constitutes as such. This dispute has arisen on
account of Advance Rulings.
3. Fitment Committee felt that the issue needs further
examination in the light of Advance Rulings. UP,
Maharashtra and Gujarat to provide additional
information/inputs in the matter for issuance of
clarification/ amendment.
4. Accordingly, the Fitment Committee took a view that
clarification may not be issued at this stage.
24. Sand Stone
and
Marble Stone
2516
and
2515
5%/
12%
Exempt 1. Presently sandstone is at lowest rate of 5% as all other
stones.
2. No further concession is feasible
3. Hence, Fitment Committee does not recommend any
reduction in present GST rate.
25. Marble
&
Granite
2515
and
2516
18% 5%
1. The rates on marble and granites have been
comprehensively reviewed and GST rates on slabs and
tiles of marble and granites have been reduced from 28%
to 18%.
2. Hence, Fitment Committee does not recommend any
reduction in present GST rate
26. MSME
Cement
Manufacturing
Sector
25 28% A
separate
slab for
GST on
Cement
for
MSME
Sector
1. Creating a differential rate structure for a commodity,
based on its manufacturing process or the kind of
manufacturer may not be feasible in a multi stage levy.
2. Any such exemption is not only prone to misuse.
3. Lower GST rates on slag were intended to benefit this
segment of the industry. However, it appears the slag
producer corner the benefit. This is an unintentional fall
out of rate reduction.
4. Hence, Fitment Committee does not recommend
creation of separate slab.
27. Guar Gum
powder
130232
30
18% 5% 1. Guar gum powder mixed with Tamarind Kernel Powder
as a binder is classified under CTH 13023230 as guar
gum treated and pulverized. The GST rate on the same is
18%.
2. The present GST rate of 18% is as per pre-GST tax
incidence.
3. As stated, 99% of guar gum is exported. Therefore, 18%
rate may not have any severe complication.
4. The issue has been discussed earlier and the Fitment
Committee in its meeting held before the 28th GST
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Description HSN Present
GST
Rate
(%)
Requeste
d GST
Rate (%)
Comments
Council meeting, did not recommend any change in GST
rates.
5. Hence, Fitment Committee does not recommend any
reduction in present GST rate
28. Furnace Oil
380 CST
2710 5% Exempt
supply to
Foreign
going
Vessels
1. This items already attracts a low rate of 5%. This rate
2. Hence, Fitment Committee does not recommend any
reduction in present GST rate
29. Vacuum Gas
Oil (VGO)/
Reformates
transferred
from one
refinery to
another
27 18% Exempt 1. This issue has arisen because the final products (petrol
and diesel) are not covered under the GST regime and
therefore the ITC of input would become part of the cost
of the final product.
2. However, Fitment Committee felt that it may not be
feasible to resolve the issue at this moment. No change
recommended.
30. E and P
equipment
5% Difficulties
being
faced by
E&P
Sector in
availing
the
benefit of
concessio
nal rate of
GST on
procurem
ent of
goods
under
GST
regime.
1. As per condition 1 of notification 2/2017-IGST dated
28.6.2017, the concessional rate of 5% would be
applicable if the recipient of the specified goods is a
licensee, and that he produces to the jurisdictional tax
authorities, at the time of outward supply of goods, a
certificate from a duly authorised officer of the
Directorate General of Hydro Carbons in the Ministry of
Petroleum and Natural Gas, Government of India, to the
effect that the goods are required for petroleum
operations.
2. Under GST, IGST is payable on inter-State supply of
goods. Therefore, at each movement of goods the
supplier has to obtain the certificate from DGH.
3. Fitment Committee decided to take the view of DGH
before issuance of clarification.
31. Naphtha 270750
00
18% 5% 1. Fuel and feedstock used in industries, in general have
been prescribed GST rate of 18%.
2. Hence, Fitment Committee does not recommend any
reduction in present GST rate
32. Liquid
Nitrogen
280430
00
18% Exempt or
5%
1. Liquid Nitrogen is used in industrial applications and in
cryo preservation also. Any end use base
exemption/concession is not feasible for such item.
2. Hence, Fitment Committee does not recommend any
reduction in present GST rate
33. Disinfectant
Fluid (Phenol
etc)
3808 18% 12% 1. All the organic chemicals are prescribed at GST rate of
18%. End used based exemptions is not feasible.
2. Hence, Fitment Committee does not recommend any
reduction in present GST rate
34. Measles-
Rubella
Vaccine
30 12%
(actual
rate is
5%)
Exemption
1. Almost all vaccines, including MMR are at 5%. Critical
drugs/pharma are also at 5%. This categorisation is as per
the recommendations of Health Ministry.
2. Nil GST put domestic drugs at a dis-advantage vis-à-vis
imports.
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Rate
(%)
Requeste
d GST
Rate (%)
Comments
3. It may not be feasible to make exception only for one
vaccine. Issue need to be considered holistically for all
the vaccines after thorough consideration of implication.
Fitment Committee does not recommend any change for
present.
35. Patented
medicinal
Products
5%/
12%
Exemption
for certain
period to
encourage
innovatio
n. [
Exemptio
n was
available
in Central
Excise
regime]
1. No such exemption has been granted in GST.
2. In a multi-point taxation regime, granting exemption at
the manufacturing level would not serve much purpose.
Further, such exemptions are difficult to monitor and
prone to misuse.
3. Incentive may be given from budgetary support.
4. Fitment Committee does not recommend any change.
36. Plasma as
component of
Human Blood
3002 5% Nil 1. All pharma products/medicine/drugs are at 5%/12%.
Hence, separate dispensation for certain items is not
feasible.
2. Hence, Fitment Committee does not recommend change
in present GST rate.
37. Imports of
drugs and test
kits used in
research
activities in
India with
collaboration
with US
agencies.
12% Exempt 1. 5% GST has been prescribed on specified live saving
drugs or medicines including their salts and esters and
diagnostic test kits.
2. IGST has been exempted on imports of
Medicines/drugs/vaccines supplied free by United
Nations International Children's Emergency Fund
(UNICEF), Red Cross or an International Organisation
subject to specified conditions.
3. IGST has been also exempted on imported Lifesaving
Medicines for personal use supplied free of cost by
overseas supplier, subject to specified conditions.
4. Further deepening of exemptions may not be desirable as
exemptions distort GST structure. Hence, Fitment
Committee does not recommend any reduction in present
GST rate
38. Nicotine
Polacrilex
Gum
300490
99
18% NIL 1. Nicotine Replacement Therapy products are just a
mechanism to deliver the requirement of nicotine
without the tar, orally. Thus, addiction to Nicotine
remains.
2. It is pertinent to note that ENDS (Electronic Nicotine
Delivery System) has been recommended for prohibition
by Health Ministry. This suggests that Nicotine delivery
(even without tar) is harmful.
3. It is not desirable to promote nicotine (in whatever form)
by way of tax reduction.
4. Hence, Fitment Committee does not recommend any
reduction in present GST rate
39. All Fertilizers,
Pesticides,
Fungicides,
31/38 5%/
12%/
18%
5% for All
Agricultur
al Inputs
1. Pesticides and micronutrients in general attract 18%
GST, which is as per pre-GST tax incidence [12.5%
Central Excise duty + 5% VAT +other taxes].
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Description HSN Present
GST
Rate
(%)
Requeste
d GST
Rate (%)
Comments
Micronutrient
Fertilizers,
Organic
Fertilizers,
Plant Growth
Regulators
2. Specified bio-pesticides attract concessional 12% GST.
3. Fertilizers are at concession rate of 5%
4. Input chemicals for pesticides/herbicides and weedicides
are at 18%. Hence, reducing the GST rates would distort
ITC chain, will lead to inversion, with no significant
gains.
5. Such rate structure put domestic manufacturers at
disadvantage.
6. Hence, Fitment Committee does not recommend change
40. Henna based
powder hair
colour
3305 18% 5% 1. All cosmetic and similar products are at 18%. Initially
these were at 28%. Rates have already been rationalised.
2. Hence, Fitment Committee does not recommend any
reduction in present GST rate
41. Matches
3605 5%/
18%
5% 1. This issue has been examined in past on several times.
Not acceded to.
2. No change recommended by Fitment.
42. Phosphogypsu
m and Natural
gypsum
plaster
3824 18% 5% on par
with
natural
phosphor
gypsum
1. Pre GST-tax incidence on phosphogypsum was more
than 18%.
2. Phosphogypsum is an industrial product and has
industrial applications.
3. Natural ores are at concessional rates. Industrial products
and natural ores cannot be equated even if some
applications may be common.
4. No change recommended.
43. Molasses used
for production
of Ethanol
which in turn
is supplied for
Ethanol
Blending
Programme
(EBP)
1703 28% 12% 1. The issue of keeping molasses at 28% slab had been
discussed earlier in the GST Council. Pre GSt tax
incidence on Molasses was significantly higher.
2. Set off of tax paid on molasses used for ethanol is
available. In case of inversion, refund of input tax is
available. However, conversion of molasses to ethanol
entails significant value addition. Hence manufacturer
could avail and utilise ITC.
3. No change recommended
44. Biodiesel 3826 12% 5% with
ITC
1. The GST rate on biodiesel has already been reduced to
12%. Further reduction will lead to deepening of
inversion.
2. The entire tax burden of GST on biodiesel gets passed on
to the customer.
3. Fitment Committee does not recommend any change
45. Resin Bonded
bamboo mat
board, with or
without
veneer in
between.
44 18% 12% 1. Final consumption item of bamboo (furniture, flooring,
basket etc) are at 12%/5%.
2. Resin bonded bamboo mat board, with or without veneer
in between is distinct item than the bamboo flooring,
though classifiable under same chapter, i.e. Chapter 44
and essentially an intermediate).
3. All wooden boards including veneer, boards and sheets
irrespective of constituent wood, attract GST rate of
18%. Separate dispensation for resin bonded bamboo
mat board, with or without veneer in between may lead
to disputes and competing demands
4. Hence, Fitment Committee does not recommend any
change.
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GST
Rate
(%)
Requeste
d GST
Rate (%)
Comments
46. Photo/
Picture Frame
4411,
8306
12%/
18%
Nil 1. Exempting frame may not be desirable. Small
manufacturers/ suppler are entitled to
threshold/composition.
2. Hence no change recommended
47. Cylinder
Mould Vat
Made
Watermarked
Bank Note
(CWBN)
4802 12% Nil 1. Paper is already at 12%. No further reduction is desirable
based on end use and segmentation.
2. The Fitment Committee does not recommend any
reduction in present GST rate
48. 1. Paper
Cups
(4823)
2. Poly
Coated
Paper
(4811)
4823/
4811
18% 12% 1. The pre-GST tax incidence on cup, trays, plates, dishes
and like of paper or paper boards [falling under tariff item
4823 61 00, 4823 69 00] was @12.5% Central Excise
duty and 5% VAT
2. In the GST regime, these goods attract 18% GST.
3. Small suppliers are entitled to threshold and composition.
With composition limit increasing significantly with
simple compliance, there should not be much hardship to
supplier of such goods. Hence, Fitment Committee does
not recommend any reduction in present GST rate
49. Handmade
paper
480210
10
12% /
18%
Nil/5% 1. Most of the papers falling under chapter 48 attract 12%
GST.
2. Handmade paper is not an item of mass consumption. It
is generally meant for use by affluent consumers.
3. Hence, Fitment Committee does not recommend any
reduction in present GST rate
50. Print Media &
Newspaper
Industry
4801 5% Nil 1. The newsprint falls under heading 4801 and attracts 5%
GST rate
2. Exemption to paper of any kind will make the imports of
such goods cheaper and would adversely impact the
domestic product/Industry.
3. No change recommended.
51. Hank yarn and
Khadi
products sold
through
different
sources other
than KVIC
5% nil 1. Cotton yarn attracts the lowest GST rate of 5%.
2. There is no specific tariff line for hank yarn.
3. Differential treatment to hank yarn vis a vis other yarn
would lead to distortion for the manufacturers of yarn. It
would entail break of ITC chain, and reversal of ITC etc.
Further any such exemption is prone to misuse.
4. To promote handlooms khadi yarn khadi fabrics sold
through KVIC certified outlets, amber charkha have
already been exempted under GST.
5. Hence, Fitment Committee felt that present rate structure
may continue.
52. Refund of
accumulated
ITC on Textile
fabric
- - ITC on
fabrics
remaining
unutilized
up to 31st
day of
July 2018
may not
1. The restriction on refund of accumulated ITC on fabrics
was recommended by the GST Council after detailed
deliberations in its 15th meeting held on 3rd June, 2017 as
it would have led to huge amount of refunds being
generated.
2. In the 28th Meeting of the GST Council held on 21st
July,2018 the problems faced by weavers due to
blocking of refunds on accumulated ITC was raised and
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be made
to lapse
after discussions the Council recommended to allow
refund of accumulated ITC on fabrics with prospective
effect and lasing of unutilised ITC.
3. Fitment does not recommend any change.
53. Fishing line
Lead weights
5608,
5404,
3916
12% 5% 1. Fishing hooks, fishing rods, fishing ropes, fishing twines,
fishing tackles are considered as fishing gear accessories,
which are essential for fishing industries. These items
attract duty of 5%/12%
2. The fishing line is a long thread of nylon attached to a
baited hook, with a sinker or float, and used for catching
fish and are made of synthetic monofilament.
3. Reducing GST from 12% to 5% on fish line would bring
in inversion as Nylon yarn attracts 12% GST. This is not
desirable
4. Hence, no change recommended.
54. Fishing Nets 5608 5% Nil 1. The GST rate on fishing nets under tariff heading 5608
was initially recommended at 12% by the GST Council
on the basis of pre-GST incidence of taxes. However, to
support the fishing industry, the GST Council in its
meeting held on 10th November, 2018 recommended
reduction of GST rate to 5%.
2. Exempting fishing nets would disturb the tax structure
and place domestic manufacturers at a disadvantage.
3. Hence, Fitment Committee does not recommend any
reduction in present GST rate.
55. Narrow
Fabrics Items
falling under
58 &
60
12% Bring
Entire
chapter 58
and 60 in
5%.
1. Headings 5806 and 5801 have already been brought into
the 5% GST rate as per recommendations of the GST
Council as these 2 headings include narrow woven
fabrics which are similar to knitted and crocheted fabrics
of chapter 60 and used for items like Niwar.
2. However, all other tariff headings under chapter 58
include specialised fabrics like tulles, quilted fabrics,
braids, tapestries, trimmings, embroidered fabrics etc.
The GST rate on these articles was recommended by the
GST Council in its 15th meeting based on the pre-GST
incidence of taxes on these articles.
3. Has been examined earlier and not acceded to.
4. Hence, Fitment Committee does not recommend any
reduction in present GST rate
56. Khadi /
Garments /
Goods and
Made-up
63 5%/
12%
Exempt 1. To promote khadi goods, khadi yarn and khadi fabrics
sold through KVIC certified outlets, amber charkha have
already been exempted under GST.
2. The GST rate on Khadi garments and made ups has been
recommended by GST Council on the basis of pre-GST
tax incidence on readymade garments and made up
articles which was as under: -
(i) 2% without ITC or 12.5% with ITC for garments and
made ups with retail sale price (RSP) of such
garments or articles is Rs.1000 and above.
(ii) Nil without ITC or Nil without ITC or 12.5% with
ITC for garments and made ups of retail sale price
(RSP) below Rs.1000.
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3. Exempting khadi garments would invite request to
exempt other garments, particularly garments of local
importance and items like saree and would be difficult to
implement.
4. Incentivising Khadi garments through non-tax means (as
is being done presently) appears a better option.
5. Hence, Fitment Committee does not recommend any
reduction in present GST rate
57. Khadi Village
Industry
Stores
(assorted
items)
- Exempt 1. It would be difficult to identify and administer products
based on their mode of manufacture viz. handmade,
machine made or both. These products are also being
made and marketed by companies in the organized sector.
2. Hence, Fitment Committee does not recommend any
reduction in present GST rate
58. Leather and
Footwear
components
6406 18% 12% 1. The GST duty structure was considered in the 28th GST
Council meeting in 21st July 2018 and discussed at
length.
2. The credit of duty paid can be utilised towards payment
of duty on finished goods. In case of inversion, refund is
also admissible.
3. No change recommended.
59. Clay Bricks Prescribe
capacity-
based
levy for
simplifica
tion
1. There is no provision in law to levy GST on the basis of
capacity. This is against the basic tenets of GST which is
a tax on value addition at each stage of the supply chain.
2. Hence, Fitment Committee does not recommend any
reduction in present GST rate
60. Biomass
Briquettes
Any
chapter
5% Nil 1. Biomass briquettes are already placed at a concessional
rate of 5%. Small scale suppliers can take the benefit of
threshold exemption.
2. Hence, Fitment Committee does not recommend any
reduction in present GST rate
61. Salt Glazed
Stone ware
pipes
6906 18% 5% 1. Prior to 16.11.2017, SGSW pipes falling under 6906
attracted 28%. GST rate has already been reduced on
these to 18%
2. All type of pipes & fitting attracts 18% GST. Carving
out lower rate for SGSW pipes & fitting may not be
desirable.
3. No change recommended.
62. Bangles

7117,
7018,
3926
0%/
3%
Nil 1. Bangles of base metal, whether or not plated with
precious metals already attract concessional rates.
2. The issue was examined by the Fitment Committee held
for 28th GST Council meeting and did not recommend
any reduction in present GST rate.
3. No change recommended.
63. Gold 7108 3% 1% 1. In the 4th Meeting of the GST Council held on 3rd/4th
November 2016, it was decided that the rate of tax on
Gold shall be decided by the Council itself. The Council
in its 15th Meeting held on 3rd June, 2017 elaborately
discussed the issue and placed Gold at 3% rate.
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2. Fitment Committee does not recommend any reduction
in present GST rate.
64. Cut and
Polished semi-
precious
Stones
710399 3% 0.25% 1. These are generally used in jewellery and jewellery
articles which attract 3% rate. Tax paid on these stones
is available as ITC. Special rate of 0.25% on diamonds
and precious stone was prescribed for the reason that
most of such stones are imported in rough and after
finishing most of it is exported as such.
2. On import side semi-precious stones have been kept at
lower rate than precious stones (diamonds) [ 5% and
7.5% respectively].
3. Therefore, this requires further deliberation if any
change is to be made in tax structure.
4. No change recommended at this stage.
65. Brass, Steel &
Aluminium
made pots
12%/
18%
5% 1. GST rate on utensils made of iron and steel, copper, brass
and aluminum are all at 12%. GST rate on cutlery has
also been reduced to 12%. Inputs are all at 18%
2. 5% GST on manufactured goods results in negative
protection for the domestic goods, and thus goes against
‘Make in India’ policy.
3. Hence, Fitment Committee does not recommend any
reduction in present GST rate.
66. Hard wares
and building
materials
items i.e. Bolt
Nuts, Screws,
Brushes, Door
Fitting etc
82 18% 5% 1. These are final consumption goods and GST rates have
been prescribed, as per pre – tax incidence. Pre-GST tax
incidence was more than 28%.
2. GST rate on these items was reduced to 18% in the 23rd
GST council meeting.
3. Fitment Committee does not recommend any reduction
in present GST rate
67. Brass
kerosene
pressure stove
parts
74 18% 12% 1. GST rate on Brass Kerosene Pressure Stove has already
been rationalised @ 12%, based on the recommendations
of the GST Council in its’ 28th meeting held on
21.07.2018.
2. Reducing GST rate on parts would lead to deepening of
inversion. In any case manufacturer is entitled to refund
in case of inversion.
3. No change is recommended in GSt rates.
68. Calling
Tablets
(Computer
Tablets) of 7”
size and some
of the other
components of
tablets like
chargers, back
covers
8471 18% /
28%
5%
below
Rs. 5000/
12% upto
Rs 10,000
/
18%
above Rs
10000.
1. 12% GST has been provided on mobile and parts of
mobile so as to incentivise domestic manufacturing.
Tablet and their parts attract 18% GST
2. Multiplicity of rate on the same item based on value is
not desirable.
3. Fitment Committee does not recommend any reduction
in present GST rate
69. Electronic
Calculator
8470 18% 5% 1. Calculators are imported at Nil BCD and only IGST at
18% is protecting domestic manufacturers. If GST rate
will be reduced to 5%, the domestic Industry will face
stiff competition.
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2. Hence, Fitment Committee does not recommend any
reduction in present GST rate
70. Hybrid Solar
Thermal Air
Conditioners
8415 28% 5% 1. Making such exception will lead to assessment disputes
and not desirable.
2. May be incentivise through other means such as subsidy.
3. No change recommended.
71. 1. Cottage
Industry
machinery
namely:

2. Sugarcane
Juicer
Working
on .5 hp
or 1 hp
motor

3. Oil Ghani
working
on 2 hp
motor

4. Groundnu
t
decorticat
or
working
on 2 hp
motor

Rice huller
working on 5
hp motor
18% 5%
All
cottage
industries
machiner
y which
can work
on 2 hp
power
should be
exempted
from
GST.
1. Machinery for the extraction or preparation of animal or
vegetable fats or oils are classifiable under heading 8437
(milling) and attract 5% rate. Rice huller and groundnut
decorticator also fall under this heading and attract 5%
GST. Exemption for these items is not desirable as it
would lead to significant distortion for the manufacturer.
2. Other agricultural/horticultural machineries are at 12%.
3. Hence, Fitment Committee does not recommend any
reduction in present GST rate
72. Submersible
pump for
irrigation and
insulated
aluminium
and copper
wire used in
submersible
pump
8413 18% 12% 1. Rate reduction will lead to duty inversion as the raw
material i.e. brass, Steel and Aluminium attracting 18%
GST which will result in refund of ITC. Already GST
rate has been reduced from 28% to 18%
2. End use-based exemption are difficult to administer.
3. Fitment Committee does not recommend any change.
73. Parts of pump
for handling
water
18% 12% 1. On the same reasoning as above, Fitment Committee
does not recommend any change.
74. Solar Batteries
& Power
Back-up
Batteries
28% 12% 1. All the devices and equipment falling under Chapter 84,
85 and 94 and used for solar power generation plant
attracts a concessional duty at 5%.
2. GST rate on lithium ion battery has also been separately
reduced to 18%.
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[Chapters 84,
85 and 94]
3. Hence no further change is recommended.
75. Batteries and
battery parts
8506,
8507
28% 5% 1. GST rate on Primary cells and primary batteries was
reduced from 28% to 18% w.e.f 15.11.2017.
2. GST rate on lithium ion battery which is environment
friendly was reduced from 28% to 18% w.e.f
27.07.2018.
3. Battery parts, including cell, are generally at 18%.
4. Has significant revenue implication.
5. No change recommended at this stage.
76. Railways
spare parts
8607 5% 18%./
12%/ or
allow
input
refund.

1. Fitment examined the issue twice earlier. Once in January,
2018 and again in July, 2018. Increase GST would
burden Indian Railway.
2. Railways has argued that present GST rate be maintained
or to allow refund to manufacturers of parts. Increase in
GST rates on such part has not been contested by
Railways. Allowing refund to manufacturers of such
parts, without increasing the rates, has significant
revenue implication.
3. As stated by Railways, cost is passed on by these
manufacturers to railways.
4. No change recommended at this stage.
77. Bicycle,
Rickshaw &
their parts
8712,
8714
12% 5% 1. Bicycles and other non-motorised cycles falling under
Heading 8712, and rickshaws (and other hand-propelled
vehicles) falling under Heading 8716 already attract 12%
GST.
2. Certain segment of this industry have requested not to
make any change in rates as any further reduction will
lead to distortion.
3. Hence, Fitment Committee does not recommend change
in present GST rate
78. Motor
Vehicles Parts
and forged
Components
18% / 28%
28% 18% 1. The total tax incidence under the GST regime on these
items is less than the pre-GST incidence.
2. Rate of GST on many tractor parts was reduced from
28% to 18% based on the decisions taken in the 20th
meeting of the GST Council on 05.08.2017.
3. The Fitment Committee felt that the issue of reduction in
the rate of GST may be taken up when the rationalisation
of the 28% GST slab takes place once revenue stabilizes.
79. Cars /
Vehicles
28%+1
% to
22%
1.Exempt
compensa
tion cess
2.Allow
payment
of CC
through
ITC of
GST.
1. The exporter has option to export without payment of tax
and claim refund on inputs or to export on payment of
tax (and on zero rated transactions) and claim refund of
tax so paid.
2. It may not be feasible to charge IGST and exempt
compensation cess on exports or allow cross-utilization
of Input Tax Credit. This would make the business
process complex.
3. Hence, Fitment Committee does not recommend any
change.
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80. CV Body
Building
8706 28% 18% on
goods OR
increase
in GST
rates on
services
from 18%
to 28%.
1. A circular has been issued to clarify the situation in
which body building activity amounts to service and
there is no ambiguity in the application of the circular
2. The request of the manufacturer is essential to bring
parity in rate of vehicle and bodybuilding service.
However, this kind of differential exists in other cases
also.
3. Hence, Fitment Committee does not recommend any
change.
81. Goods
consumed on
board a cruise
ship
18% on
ticket
and on-
board
consump
tion
Exemptio
n for an
initial
period of
3-5 years.
1. The consumables like stores etc. are presently being taxed
at the merit rate of 18% GST.
2. Alcohol is outside the purview of GST, and states like
Maharashtra are charging VAT on supply of liquor to
foreign going vessels.
3. The Ministry’s argument is that in view of high taxes in
India, the cruise tourism is not growing despite significant
spending in the creation of infrastructure.
4. Cruise travel is a luxury accommodation on ship,
combined with leisure and entertainment and the person
going for cruise travel would be able to afford the tax also.
5. No change recommended by the Fitment at this stage.
82. Sailing /
Yachting
Equipment
8903 28% +
3% Cess
Sailing
equipmen
t used for
games be
placed in
a separate
Category
(delinked
from
Luxury /
Pleasure
Yachts)
For sports persons:
Exemption from IGST has been granted vide Notification
No.86/2017-Cus dated 14.11.2017 to import of specified
sports goods when imported by eminent sportsperson.
Others
1. The GST rate of 28% was prescribed for Yachts and other
vessels for pleasure and sports, including rowing boats and
canoes, with additional 3% compensation cess, as it was
felt that such goods are purely for recreational activities
and are generally not consumed by the public.
2. Hence, Fitment Committee does not recommend any
change.
83. Ships under
8901 (with
>6500 DWT)
& under 8905
1000 i.e.
Dredgers
5% Nil
[5% IGST
on Ships
(with
>6500
DWT)
and
Dredgers
may be
removed.
1. The GST rate structure for ships and vessels and other
floating structures was examined by the GST Council
during its 14th meeting held on 18-19 May 2017, and a
concessional 5% GST rate was approved.
2. The Ministry of Shipping had stated that the shipping
industry would not be in a position to utilize the ITC of
IGST for a long period of time and that the new GST
regime would put the Indian Shipping Industry at a
disadvantageous position as foreign owners who brought
ships to India were not burdened with the tax.
3. The reference was examined in 17th meeting held on
18.06.2017. Exemption was not agreed to.
4. This issue has been discussed in several rounds of
meetings with the Ministry and DG Shipping. In this
context, the Shipping Ministry has now recommended
GST exemption to (i) Ships >6500 DWT (Dead Weight
Tonnage) [falling under HS 8901] and (ii) Dredgers,
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(falling under HS 89051000). It is stated that such ships
and dredgers are not manufactured in India.
5. Fitment Committee felt that exemption on the ground
that utilisation of ITC would take long years may not be
desirable. Similar issues exist in civil aviation and other
sectors.
6. No change recommended by Fitment.
84. Radiology
Equipment/
X-ray Tubes /
Other medical
equipment and
devices
90 12% 5% 1. The present GST rate of 12% is revenue neutral rate
considering 6% Excise Duty and 5-12% VAT in pre-
GST era.
2. Hence, Fitment Committee does not recommend any
change.
85. Cochlear
Implants
(Hearing
Aids) and its
Accessories
[Chapt
er 90]
5% Exempt 1. GST at concessional rate of 5% has been prescribed on
cochlear implants including various assistive devices,
other rehabilitation aids while their parts and raw material
attracts 18% GST.
2. If this devices/equipment are exempted from GST, then
while imports of such devices/equipment would be zero
rated, domestically manufactured such devices/equipment
will continue to bear the burden of input taxes, increasing
their cost and resulting in negative protection for the
domestic value addition.
3. In this year budget, parts of Cochlear Implants have been
exempted from BCD.
4. Hence, Fitment Committee does not recommend any
change.
86. Dental
Implants
9021 12% 0% 1. Lower GST @ 12% has been prescribed on dental
implants.
2. Most of the inputs and raw materials for manufacture of
these assistive devices/equipment attract 18% GST.
3. In case of exemption, then while imports of these items
would be zero rated, domestically manufactured such
items will continue to bear the burden of input taxes,
increasing their cost.
4. Hence, Fitment Committee does not recommend any
change.
87. Musical
Instrument,
their Parts

92 18% 5%
1. All musical instruments (other than handmade), their parts
and accessories are classified under Ch 92 and attract the
18% GST rate.
2. In pre-GST regime the tax incidence was much higher
(excise 12.5%, VAT 14-15%).
3. Hence, Fitment Committee does not recommend any
change.
88. Cane
Furniture/other
cane articles
46/94 12%/
5%
Exempt 4. Already a significant concession has been provided to cane
and bamboo article/furniture. Further reduction may not be
desirable
5. Hence, Fitment Committee does not recommend any
change.
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89. Handmade
Furniture
9403 18% 5% 1. This issue has been discussed in details in Fitment
Committee and Handicraft Committee. No special
dispensation for handmade furniture found feasible.
2. Hence, Fitment Committee does not recommend any
change.
90. Coir
Mattresses
9404 18% 5% 1. The Coir products are classified under Chapter heading
9404 and attract GST @ 18%. Coir mattresses
specifically fall under tariff item 9404 29 90 attracting
the merit rate of 18% GST.
2. The GST rates on mattresses were earlier 25% and
reduced to 18% on comprehensive review of rates
3. Fitment Committee does not recommend any change.
91. Furniture

9403 18% 12% 1. Initially, all furniture items other than bamboo furniture
was subjected to the highest rate of 28% GST. Bamboo
furniture was initially placed at 18% GST.
2. But with general rationalisation of the 28% and 18% slabs,
the general rate of GST on furniture was reduced from
28% to 18%. On bamboo furniture, rate was reduced from
18% to12%.
3. Fitment Committee does not recommend any change.
92. Zipper parts 9607 18% 12% 1. The request of the Zipper industry to reduce the GST
rates on the Zippers/ Zip Fasteners was considered by the
GST Council in its 28th meeting held on the 21.07.2018
and had recommended for reduction in the GST rates on
Zip and Slide fasteners falling under heading 9607 from
18% to 12%.
2. Accordingly, the GST rate on these goods was reduced
from 18% to 12% vide notification No.18/2018-Central
Tax (Rate) dated 26.07.2018.
3. However, GST rate on Zipper parts, like zipper roll,
stopper and puller, falling under same heading was not
reduced. They attract 18% GST. Industry has represented
that domestic manufacturers are making parts of zipper
and benefit of reduced rate is not available to them.
Zipper are manufactured by big units. The benefit of
reduction of rate has gone to them.
4. Fitment Committee examined the request. While it was
felt that there may be some merit in the argument, it was
also felt that zipper parts are essentially intermediate
products for zipper or the fabric/garment/bag industry.
Hence ITC of tax paid on them would be available.
Further reducing the GST rate on zipper parts deepens
the inversion further as some of the parts and raw
material for parts of zipper may be at 18%.
5. There were divergence of views. Hence Fitment
Committee could not arrive at consensus, This issue
requires further deliberations.
93. Floor
Cleaning
Cotton Mop
9603 18% NIL or
5%
1. In the pre-GST period, mops, feather dusters and brooms
etc [classified under heading 9603] attracted 12.5%
Central excise duty in addition to 5% VAT.
2. Accordingly, such mops were kept under the 18% GST
slab.
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3. It is pertinent that brooms were exempted from GST
considering the essential nature, and the fact that they are
commonly used by the vulnerable sections of the
population for cleaning purposes.
4. No change recommended.
94. Writing
Instrument
Industry
(9608) and
Drawing/Sket
ch pen Inks
9608 18% 1.Exempt
Fibre tip
pens/
Drawing/
Sketch/
colouring
pens / 5%
on all
other
kinds of
Pens and
parts
1. Fountain pens and stylograph pens attract GST @18 %
which is based on pre-GST tax incidence [12.5% GST +
4%-5% VAT] whereas all other Pens falling under
Heading 9608 are subject to a concessional GST @12%.
2. These rates are based on pre-GST incidence.
3. Fitment Committee does not recommend any change.
95. Rubber
Stamps &
Rubber Stamp
materials
[96110000]
18% 5% 1. In the pre-GST regime, such items were subjected to
12.5% central excise duty + VAT ranging from 5% - 12%
2. These were kept under initially in 28% GST slab. Since
then GST rates have been rationalised to 18%.
3. Small manufacturers are entitled to threshold/composition.
4. No change recommended.
96. Sanitary
Napkins
96190010
961900
20.
Nil To allow
ITC and
refund
under
section
54(3)
1. GST rate on sanitary napkins has been reduced on the
basis of several request. However, this has resulted in
denial of ITC. Imposition of tax is not feasible at this
stage. Further refunding ITC on exempted goods is also
not feasible.
2. No change recommended.
97. Exemption
from IGST for
goods
imported for
the purpose of
re-export after
job work
Applica
ble rate
Nil 1. As such refund of GST paid is available on exports.
2. Therefore, this is essentially an issue of cash flow.
3. It was observed that issues relating to such job work and
GST treatment are also under examination in the Law
Committee where inputs have been sought from Customs
Wing as the issue has wider ramification.
4. Hence Fitment Committee felt that the issue requires
further examination before taking a final view.

98. Area based
exemption to
certain forest-
based
industries in
certain
districts of
Maharashtra
0/5 nil 1. GST is a multi-stage value added tax and as such an area-
based exemption limited to few districts in a state would
be difficult to administer.
2. The State Government may incentivise the same through
budgetary support.
3. Fitment Committee does not recommend any change.
99. Tags used for
certification of
seeds
Any
Chapter
18% 5% 1. In so far as tags (as goods) are concerned are inputs to
the service of certification of seeds. The value
attributable to the goods is not significant.
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2. As regards the service involved in certification of seed,
the issue could be further examined after receipt of
detailed information. Tamil Nadu has been requested to
provide further information as regards the issue
involved.
3. Fitment Committee does not recommend any change.
100. Sago 1106 5% 0% 1. All food items at 5% GST
2. Hence Fitment Committee does not recommend any
change in present GST
101. Tapioca starch 12% 5% 1. Tapioca starch is a prepared product from Sago.
2. It is placed at 12% along with other Starches.
3. Fitment Committee does not recommend any change in
GST rate
102. Agricultural
Machinery
8432-
8436
18% 12% 1. Already for agricultural machinery falling under these
headings 8432, GST rate is 12%. The goods falling under
heading 8435 [ presses, crushers used in manufacture of
wine, cider and juices] are at 18%, as these are
essentially industrial capital goods.
2. Certain items like pulley, flywheel, gearing housing,
transmission shaft which attracted 28% have already
been recommended for reduction to 18%
3. No further change recommended
103. Chips,
Mixture,
Murukku
(unbranded)
2106 12% 5% 1. Mixture and murukku already at 5%
2. Chips is high value commercial finished goods
3. Hence Fitment Committee does not recommend any
change in present GST.
104. Different
types of vathal
5% 0% 1. Unbranded edible preparation, in general, attract 5%
GST
2. Vathal already attract concessional GST rate of 5%
3. Hence, Fitment Committee did not recommend any
change in GST rate.
105. Goods used by
differently
abled persons
(Cars)
8703 18% 5% 1. All vehicles attract 28% GST+ applicable cess.
2. The items such as cars for differently abled already
attract GST at the rate of 18% while motor vehicles
attract GST at the rate of 28% plus cess ranging from 1%
to 22%.
3. Hence, Fitment Committee did not accept the proposal
106. Beverages
(un-branded)
2202 28% +
Cess
12% 1. Small dealers can avail benefit of threshold/composition
scheme.
2. Hence, Fitment Committee did not accept the proposal.
107. Rusk 1905 5% 0% 1. Rusk is a value-added product and attracts 5% GST.
2. The Council has already increased in composition
scheme turnover limit.
3. Hence Fitment Committee does not recommend any
change in present GST
108. Textile
Machinery
parts
8448 18% 5% 1. Textile machinery and parts attracts 18% GST
2. Reduction in GST will cause duty inversion for machine
manufacturer putting domestic manufacturers of
machine at disadvantage.
3. Hence Fitment Committee does not recommend any
change in present GST
109. Coriander 0909 5% 0%
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Description HSN Present
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Rate
(%)
Requeste
d GST
Rate (%)
Comments
110. Dry chillies 5% 0% 1. GST rate on fresh Coriander, Tamarind, chilli, cumin,
anise, Fenugreek and mustard is Nil.
2. Dry Coriander, Tamarind, chilli, cumin, anise,
Fenugreek and mustard attract 5% GST, at par with other
spices and in line with pre-GST tax incidence on them
3. Small supplier is entitled to threshold
exemption/composition.
4. Hence Fitment Committee does not recommend any
change in present GST
111. Anise, Chilli,
Cumin,
Mustard,
Fnugreek,
Dried Ginger,
Turmeric and
Pepper and
their masala
powders
0909 5% 0%
112. Envelopes,
letters and
cards /
registers,
business
forms and
diaries / paper
or paper board
labels,
files,Exercise
book.note
book and
account book
4817 18% 12% 1. Lower GST rate has been provided on goods normally
used in education
2. Printed books including Braille books, Children’s
picture, drawing or colouring books, Maps and
hydrographic or similar charts of all kinds, including
atlases, wall maps, topographical plans and globes,
printed, Newspapers, journals and periodicals, whether
or not illustrated or containing advertising material, Slate
pencils and chalk sticks, Slates attract NIL GST rate
3. Exercise book, graph book, & laboratory note book and
notebooks. Pens [other than Fountain pens, stylograph
pens], Pencils (including propelling or sliding pencils),
crayons, pastels, drawing charcoals etc. attract 12% GST
rate
4. Items like Envelopes, Diaries etc. attract standard rate of
18% based on pre-GST tax incidence
5. Hence Fitment Committee does not recommend any
change in present GST
113. Cheroot 2402 28%+
Cess
28% 1. It is a tobacco product. GST rates has been prescribed on
the basis of pre-GST incidence, where they attracted
central excise duty on par with Cigarettes.
2. This is product injurious to health.
3. Hence Fitment Committee does not recommend any
change in present GST
114. Non- woven
bags made
from polyester
/ fibre
3926 18% 5% 1. In general goods falling under chapter 39 attract 18%
GST.
2. Reduction in rates will lead to duty inversion
3. Hence Fitment Committee does not recommend any
change in present GST
115. Bleach liquid 28 18% 5% 1. Bleach is an inorganic chemical
2. All chemicals attract 18% GST
3. Separate dispensation for few goods will lead to
distortions
4. Hence Fitment Committee does not recommend any
change in present GST
116. Copper
sulphate
28 18% 5% 1. Concession has been sought on the ground that it is used
as pesticides,
2. Copper sulphate is an industrial produced product. Its
inputs are all at 18%.
3. Therefore, rate reduction causes inversion As such all
pesticides, weedicides are at 18%.
4. Fitment Committee recommended no change.
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Description HSN Present
GST
Rate
(%)
Requeste
d GST
Rate (%)
Comments
117. Neem cake 5% 0% 1. MSME can avail threshold/composition scheme.
2. Nil GST will break the ITC chain and increase costs
3. No change recommended
118. Rice Bran 2302 5% 0% 1. Nil GST will break the ITC chain and increase costs
2. No change recommended at this stage.
119. Silver anklet,
silver toe ring
and silver
waist cord
Mangalsutra
and similar
items of
wedlock
7113 3% 0% 1. GST does not envisage end use-based exemption which
are difficult to administer, result in increased interface
between tax administration and tax payers and prone to
misuse, particularly in a multistage tax.
2. 3% rate is the one of the lowest rates.
3. No change recommended.
120. Silk yarn and
Silk Fabric
5004-
5006
5% 0% 1. GST rate on real jari and silk yarn is 5%.
2. Nil rate will break ITC chain, increase cost of domestic
goods and put them to disadvantage vis-a-vis imports
3. No change recommended.
121. Chewing
Tobacco
2403 28%+Ce
ss
28% 1. Falls in category of sin goods
2. No change recommended.
122. Mosquito Kill
(Moskill)
based on LED
8516 28% 18% 1. These products would be covered in the general review
of 28% items list.
2. No change recommended.
123. Beverages
(aerated
water)
2202 28% 0% 1. It is good of conspicuous consumption
2. Small dealers can avail benefit of threshold/composition
scheme.
3. No change recommended

124. Candied
Papaya (Tutti
Frutti)
18% 5% 1. Other bakery and sugar confectioneries attract 18% GST
2. No change recommended
125. Palmyrah
Sugar
1702 or
1704
5% 0% 1. Similar goods attract 5% GST. Exemption creates
distortion.
2. No change recommended
126. Korai Mat 4602 5% 0% 1. These products are already at a concessional 5% GST
rate. Entire Chapter is at 5%. Reduction of GST rate on
this entry would lead to similar requests from other
entries in the Chapter.
2. Small dealers can avail benefit of threshold/composition
scheme.
3. Hence Fitment Committee does not recommend any
change in present GST
127. Products from
the leaves of
Palm tree,
Coconut tree,
Dates tree,
Areca tree,
Mandari tree,
Banyan tree
and Banana
tree
(cups, mats,
4601 18% 5% 1. The Fitment Committee observed that the goods were
already at 5%.
2. Hence Fitment Committee does not recommend any
change in present GST
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Description HSN Present
GST
Rate
(%)
Requeste
d GST
Rate (%)
Comments
pots, thonnai,
plates etc.)
128. Handmade
Locks
8301 18% 0% 1. Locks and safe falling under heading 8301 and 8303
respectively have already been reduced to standard rate.
2. The inputs like metals are at 18% and reduction in GST
will lead to duty inversion.
3. Distinction of handmade and machine made not desirable.
4. Hence Fitment Committee does not recommend any
change in present GST
129. Camphor 2914 18% 5% 1. Camphor (Cinnamomumcamphora) is a terpene (organic
compound) that’s commonly used in creams, ointments,
and lotions. Camphor oil is the oil extracted from the
wood of camphor trees and processed by steam
distillation. It can be used topically to relieve pain,
irritation, and itching. Camphor is also used to relieve
chest congestion and inflammatory conditions.
2. It has a strong odour and taste and is easily absorbed
through the skin. Camphor is currently made out of
turpentine.
3. It has multiple industrial and pharmaceutical uses.
Therefore, end use of camphor will be difficult to
administer and prone to misuse, more so in a multistage
tax like GST.
4. Most of the chemicals attract 18% GST as per the pre-
GST tax incidence.
5. Hence Fitment Committee does not recommend any
change in present GST
130. Gauze and
bandage
3005 12% 5% 1. Medicines in general are at 12% GST rate.
2. Hence Fitment Committee does not recommend any
change in present GST
131. Articles made
of Natural
seeds or beads
5% 0% 1. Already at 5% GST rate.
2. Small scale dealers/ manufacturers can avail benefit of
threshold exemption.
3. Hence Fitment Committee does not recommend any
change in present GST l
132. Articles used
for temples
like
vahaganam,
temple car,
tiruvatchi
(decorative
arch)
Applica
ble rates
0% 1. End used based exemptions are generally not granted
under GST.
2. Granting exemption to construction material used in
temples, cars etc would be difficult to administer.
3. Hence Fitment Committee does not recommend any
change in present GST
133. Other
Handicrafts
18%
/12%
5% 1. Rate structure on Handicraft goods already examined by
28th GST Council.
2. Handicraft items have been placed at 5%/12%. Any
further reduction will distort the rate structure, will bring
in distortion in tax rates.
3. Hence Fitment Committee does not recommend any
change in present GST
134. Bronze &
Brass deities,
12% 0% 1. Deities/Idol of marble/stone/wood/metal at NIL GST
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Rate
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Requeste
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Rate (%)
Comments
pooja art
wares and
lamps,
Tanjore
Paintings,
Silver shield
deities and
Colonial style
wooden
furniture
2. Paintings and other items are at 12%. These issues were
examined and rates were prescribed by the Council on
the recommendation of the Handicraft Committee. These
items have significant inputs which attract 18% rate.
Hence exempting these items would break ITC chain and
create distortion.
3. No change recommended.
135. Handmade
Iron Safe
8303 18% 0%/5% 1. Inputs at 18% GST
2. Reduction will cause duty inversion
3. It is not desirable to create difference based on the
process of manufacture as any such concession will lead
to assessment disputes
4. Hence Fitment Committee does not recommend any
change in present GST
136. Ultra-high
temperature
milk
0401 5% 0% 1. There is a substantial value addition in manufacturing
UHT milk and is sold at a price that is 150% of the
normal milk. For example: Amul Toned milk (fresh) is
priced at Rs. 41 per litre whereas Amul Taaza toned milk
(UHT milk) in tetra pack is priced at Rs. 60 per litre.
2. Only dairy products consumed by common man such as
fresh milk, curd or lassi are kept at nil GST rates and all
value-added products which are sold at a premium such
as UHT milk, butter, condensed milk etc. attract higher
GST rates.
3. No change recommended.
137. Pulp of
Vegetables,
fruits, nuts or
other parts of
plants
2001 –
2006
12% 5% 1. The Central Excise duty on these products was 6% and
the weighted average VAT was around 5% and hence
these goods have been kept at 12% GST rates.
2. Further, as fruits and vegetable pulp is taken as an input
by food processing industry to prepare processed goods
which are also sold by registered brands under unit
containers at significantly higher prices; the GST rate of
12% on this tariff item can be utilized as credit by such
industry.
4. No change recommended
138. Fruit based
sauces, fruit
syrups
2103 12% 5% 1. Processed foods in general attract 12% GST rate.
2. The rates were fixed based on the pre-GST tax
incidence on these articles.
3. All goods under the said Chapter have been placed at a
uniform rate of 12%. Further, reduction will result in
request for other goods also.
4. These fall under High Fat, Salt and Sugar (HFSS)
category for which a reference has been received from
the Ministry of Health for increase in GST rates.
5. Moreover, many multinational companies are also
involved in manufacturing and marketing these
products and reduction in GST rates would adversely
affect revenue.
6. No change recommended.
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Rate
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Comments
139. Fruit
beverages
2103 12% 5% 1. Processed foods in general attract 12% GST rate.
2. The rates were fixed based on the pre-GST tax incidence
on these articles.
3. All goods under the said Chapter have been placed at a
uniform rate of 12%.
4. These fall under High Fat, Salt and Sugar (HFSS)
category for which a reference has been received from
the Ministry of Health for increase in GST rates.
5. No change recommended
140. Coconut water
put up in unit
container
2202
99 90
12% 5% 1. Coconut water not in Unit container at nil GST
2. Otherwise it attracts a concessional GST rate of 12%
3. Hence Fitment Committee does not recommend any
change in present GST
141. School bags 4202 18% 12% 1. Cotton and jute bag attract 12%. All other bags falling
under heading 4202 attract 18%.
2. Distinction between bags may not be feasible.
3. Distinctly identifiable items for education like exercise
book, graph book, & laboratory note book and
notebooks. Pens [other than Fountain pens, stylograph
pens], Pencils (including propelling or sliding pencils),
crayons, pastels, drawing charcoals etc. attract 12% GST
rate
4. No change recommended.
142. Electronic
weighing
scale
8423 18% 5% 1. All electronic items are at 28%/18% GST rates.
2. It is a finished good and extending concessional rate not
feasible
3. Hence Fitment Committee does not recommend any
change in present GST
143. Tamarind 0813 5% 0% 1. GST on dry tamarind has been re-examined by the GST
Council and it recommended 5% GST on it.
2. 5% GST is also at par with many ingredients, like spices,
used in making of food.
3. Threshold exemption and composition scheme should
help small dealers.
4. No change recommended.
144. Pantile 6905
10 00
5% 0% 1. Earthen or roofing tiles
2. Items like Building bricks also at 5%
3. Already at lowest GST rate of 5%
4. Hence Fitment Committee does not recommend any
change in present GST rates.
145. Fixed speed
engine above
15HP
8408 28% 18% 1. Fixed speed engine upto 15HP considered to be
generally used for agricultural purposes and attract 12%
concessional GST
2. Other engines are for commercial and industrial purpose,
3. 28% rate is reviewed continuously. May be considered
as and when revenue stabilizes.
146. Input
materials like
blood bags,
test tube, net
testing kit, lab
12% 0% 1. Inputs used to manufacture these products are at 18%
GST
2. Reduction in GST rate will lead deepen the duty
inversion
3. Hence Fitment Committee does not recommend any
change in present GST
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Description HSN Present
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Rate
(%)
Requeste
d GST
Rate (%)
Comments
instrument for
blood bank
147. Used Cars 8703 18%/
12%
Reduction
of GST
on used
cars
1. There is a margin scheme in GST for valuation of
second-hand goods which provides for GST only on the
profit margin of the person dealing with buying and
selling of second-hand goods.
2. Further second-hand car sold by an unregistered person
is outside the purview of GST.
3. Hence, Fitment Committee does not recommend any
reduction in present GST rate
148. Cigarettes 2402 28% +
other
duties
and cess
New slab
of ‘less
than
60mm’
length to
counter
growth of
low-
priced
illegal
Cigarettes
1. Creating a new HSN code is not desirable because it will
be prone to mis-use. Further, [prescribing a different rate
for the Cigarette less than 60 CM has already been tried
in Excise regime and it had to discontinued because of
evasion.
2. Hence, Fitment Committee does not recommend any
reduction in present GST rate
149. Washing Soap
& Toilet Soap
made from
non-edible
oils
3401 18% Create
separate
entry and
prescribe
lower
rate.
1. Creating a new HSN for soaps made from non-edible oils
is not feasible as the HSN code based on international
convention is used in India.
2. Further, prescribing rate based on the oils used for the
manufacturing will lead to mis declaration and tax
evasion.
3. Hence, Fitment Committee does not recommend any
reduction in present GST rate
150. Mirror
polished stone
6802 - Clarificati
on
regarding
scope be
issued
1. The issue has been settled by the entry inserted on the
recommendation of the GST Council during its 28th
meeting
2. Hence Fitment Committee does not recommend any
change in present GST
151. Bakers' Yeast 2102
1020
12% 5% 1. The GST rate has been fixed on the pre-GST tax
incidence on these goods.
2. All such goods are at 12%
3. No change recommended
152. Petrol/Kerosene
Engine
below 15 HP
8408 18% 12% 1. Matter has already been discussed in the 28th GST
Council meeting and Council has not accepted the
request.
2. Hence Fitment Committee does not recommend any
change in present GST
153. LWC Paper
upto 70 GSM
4810 12% Nil 1. All types of Paper are kept at a uniform rate of 12%.
2. Granting exemption to a particular type of Paper would
lead to similar requests from other types of Paper and
would be difficult to administer.
3. Hence, Fitment Committee does not recommend any
change in present GST rate
154. Coal 2701 Single
stage levy
be there
1. GST is a multistage tax and cannot be levied at single
point. If the request is accepted it would lead to
cascading.
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Requeste
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Comments
2. Hence, Fitment Committee does not recommend any
change in present GST rate
155. Fire Safety
Products
8424 18% Nil 1. Inputs like chemicals and iron and steel at 18%
2. Reduction in GST will cause duty inversion
3. Fitment Committee does not recommend any change in
present GST rate
156. Handicap's
Products -
Wheelchair,
Brake
Typewriter,
Ear Machine,
Surgical Belt
8469
9021
5% Nil 1. Already at concessional rate of 5%.
2. Further reduction in GST rates will create hardship for the
domestic manufacturer.
3. No change recommended.
157. Kolhapuri
Chappal
6403 18%/5% Nil 1. The GST Council in in its 28th meeting discussed rate
structure of footwear in detail.
2. Fitment Committee has recommended GST rate on
footwear based on transaction value rather than based on
RSP. This gives significant relief to the footwear industry.
158. Non-ferrous
metal
Products
7325 18% 12% 1. GST rate is based on pre-GST tax incidence
2. The goods are industrial inputs, all of which attract 18%
GST.
3. Any reduction in GST will cause distortion in rate
structure.
4. No change recommended.
159. Switch Gears
and its parts
8536 18% 5% 1. These are intermediate products. ITC thereof is
available as pass through.
2. No change recommended.
160. Electric
Vehicles
87 12% Nil 3. Already lower GST of 12% with Nil Compensation
Cess has been provided as compared to normal motor
vehicles which attracts 28% GST and Compensation
cess.
4. Nil GSt would put domestic manufacturers in
disadvantage vis-à-vis imports.
5. Fitment Committee does not recommend any change in
present GST rate
161. Spare parts of
Tractor
84/87 18% 12% 1. Generally, all auto parts attract 28% GST rate.
2. However, to secure the interest of farmers in the
distressed agriculture sector, the rate of GST on many
tractor parts was reduced from 28% to 18% [ with effect
from 18.08.2017] based on the decisions taken in the
20th meeting of the GST Council on 05.08.2017.
3. Agricultural Tractors (except road tractors for semi-
trailers of engine capacity more than 1800 cc) attract
12% GST.
4. Reducing the tax rates on these parts below 18% would
deepen the inversion for parts manufacturer, which is not
desirable.
5. Further, a vide gap of 28% on general auto parts and 12%
on tractor parts would be prone to misuse, by
misclassification.
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Comments
6. Tractor manufacturers in any case can claim refund on
account of inversion, if they are not able to utilize the
ITC.
7. No change recommended

162. Recycled
Plastic
39 18% 5% 1. All type of plastics items is at 18%. Their raw materials,
bulk plastics are also at 18%.
2. On plastic scrap, GST rate has already been reduced
from 18% to 5% to promote re-cycling.
3. It is not desirable to have differential tax rates on virgin
plastic and recycled plastic products as it would be prone
to misuse and lead to litigation.
4. Further, these items are intermediate goods and industry
can claim ITC.
5. No change recommended.
163. Bidi 24 28% 18% 1. GST Rate on Bidi has been discussed at length in the 15th
GST Council meeting wherein after much deliberation,
the Hon’ble Chairperson suggested that tendu leaves
could be taxed at the rate of 18% under reverse charge
and bidi could be taxed at the rate of 28%. The Council
agreed to this suggestion.
2. 28% with no cess is the lowest rate for any tobacco
product.
3. Considering the nature of the product there may not be
much justification to reduce it below 28%.
4. Hence, Fitment Committee does not recommend any
change of GST rate.
164. Wet Grinder 85 12% 5% 1. The GST rate recommended initially by the GST Council
on wet grinder with stone was 28% as per the pre-GST
incidence of taxes on it.
2. During the review of 28% goods list in the 23rd GST
Council GST rates on around 170 items were reduced to
18%.
3. However, as a special case on the request of the state of
Tamil Nadu regarding the extensive use of wet grinder
in their state, the GST Council made an exception and
reduced the rate of wet grinder with stone from 28% to
12%.
4. Hence, Fitment Committee does not recommend any
further change of GST rate.
165. Scrap 72/74/7
6
18% 5% 1. The Fitment Committee in its meeting held on 2.10.2017
had recommended to reduce the GST rate to 5% on
Plastic scrap, Paper scrap (Waste paper), Rubber scrap
and Glass scrap.
2. The above recommendations of the Fitment Committee
were considered by the GST Council in its 22nd Meeting
held on 6.10.2017.
3. GST on e-waste has also been reduced from 18% to 5%
to encourage recycling and further disposal of e-waste.
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Comments
4. However, metal scrap continues to attract 18% GST.
Metal scrap stands on a different footing than plastic or
paper scrap.
5. Metal scrap is fully recyclable and easily available in
national/international market. It is preferred input in the
metal industry, particularly Aluminium and Iron and
Steel.
6. Hence, Fitment Committee does not recommend any
further change of GST rate.
166. Fisherman
boats
89 5% Nil 1. Fishing boat falling under chapter 89 attracts 5%
2. The raw materials for fishing boat attract 18% GST (in
general)
3. Full exemption from GST will bring in distortion
4. Hence, Fitment Committee does not recommend any
further change of GST rate.
167. Cricket Bat 9506
99 20
12% Nil 1. The cricket bats are classified under Tariff item 9506 99
20 and attract 12% GST with Nil compensation cess.
2. Thus bats are already at a concessional rate of 12 % along
with other sports goods.
3. Carving out a separate category for exemption/ further
reduction of rates would not be desirable.
4. A rate lower than 12% on manufactured goods would
create hardship to domestic manufacturers considering
willow/wood attracts 18% GST.
5. Hence, Fitment Committee does not recommend any
further change of GST rate.
168. Roasted
Groundnut
12% 5% 1. Present GST rate on Roasted groundnut is as per pre-
GST tax incidence. MSME can avail composition
scheme.
2. No change recommended.
169. Pickle 20 12% Nil 1. In the 14th GST Council Meeting held on 18th – 19th
May, 2017, it was decided to levy 18% GST rate on
pickles.
2. Thereafter the GST Council again discussed the matter
of GST rates on pickles in 16th GST Council Meeting
held on 11 June 2017 and recommended 12% GST on
pickle along with other goods.
3. Following is the details of the GST rate:
Heading Description of Goods GST Rate
2001 Vegetables, fruit, nuts and
other edible parts of plants,
prepared or preserved by
vinegar or acetic acid
12%
2002 Tomatoes prepared or
preserved otherwise than
by vinegar or acetic acid
12%
2003 Mushrooms and truffles,
prepared or preserved
12%
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Rate (%)
Comments
otherwise than by vinegar
or acetic acid
2004 Other vegetables prepared
or preserved otherwise than
by vinegar or acetic acid,
frozen, other than products
of heading 2006
12%
2005 Other vegetables prepared
or preserved otherwise than
by vinegar or acetic acid,
not frozen, other than
products of heading 2006
12%
4. Pickle industry is also dominated by organised players in
urban areas.
5. It has significant revenue implication.
6. No change recommended.
170. Hybrid Cars 1. Pre-GST, Hybrid vehicles [irrespective of size and
capacity of engine] attracted 12.5% central excise duty
and 1% NCCD and VAT at standard rate that is 14.5%
or 15% or 20%.
2. GST Council, in its meeting on 18th May, 2017, had
recommended that: -
a) That there may be no Compensation cess on small
hybrid petrol cars [of engine capacity upto 1200 cc]
and small diesel hybrid cars [of engine capacity upto
1500cc]
b) Impose 15% Compensation cess [at par with same
capacity normal cars] on other hybrid cars.
3. After imposition of Compensation cess on Hybrid cars,
the matter was re-examined and inter-alia it was found
that the manufacturer was not passing on the benefit of
lower central excise duty to end customers.
4. The present GST rate structure on hybrid cars is:

Segment
Head
ing
GST
rate
CC
rate
Hybrid small Cars (length < 4 m;
Petrol<1200 cc
8703 28% Nil
Hybrid small Cars (length < 4 m;
Diesel < 1500 cc)
8703 28% Nil
Hybrid Cars/ Sports Utility
Vehicles (other small hybrid cars)
8703

28% 15%
5. Therefore, in general even with the above revised rates
of Compensation cess plus 28% GST, the total GST on
hybrid vehicles is lower than the corresponding pre-GST
tax incidence. Further, in the last revision of
Compensation cess rate:
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Requeste
d GST
Rate (%)
Comments
a) There has been no increase in the Compensation cess
rate on small petrol and diesel cars, and the total GST
incidence on them is lower by about 3 % than the
pre-GST tax incidence on them.
b) There has been no increase in the Compensation cess
on mid segment and large segment hybrid cars.
Small hybrid cars in any case were exempt from
Compensation cess right from the beginning. As a
result, hybrid cars have an advantage over similar
engine capacity IC engine cars.
c) The hybrid cars made are generally in the large
segment, and they have a tax advantage of 5% over
similar normal IC engine cars
d) In any case, with increase in Compensation Cess by
5% to 7% on similar IC engine cars, large hybrid cars
have a tax advantage of 5% in general.
6. In addition to lower duty on hybrid vehicles, full
exemption from basic customs duty [BCD] has also been
provided on the many specified parts for manufacture of
hybrid motor vehicles.
7. Hence, Fitment Committee does not recommend any
change of GST rate.
171. Branded
/Unbranded
Food Grain
- 5%/Nil 1. The GST Council discussed rate on food grains put up in
unit container and bearing a brand name in great detail
and recommended 5% GST rate on the same.
2. Subsequently, to check tax avoidance certain changes
were made in the provision, including that if a dealer
foregoes an actionable claim against his brand name, no
GST will apply.
3. The small supplier can opt for the composition scheme
and pay tax at the rate of 1% of the turnover. Further this
limit for the composition scheme is proposed to be
increased to R. 1.5 Crore.
4. Presently, due to the rate differential between branded
and unbranded food items, the small and medium
enterprises have an advantage over the large companies
selling branded food items.
5. Further branded food items are not for mass consumption
as they are sold at a premium over the unbranded food
items.
6. No change is recommended.
172. Animal Food
(Cat and Dog
Feed)
2309
10 00
18% 5% 1. Animal and dog feeds are generally imported
2. These are used by affluent class who can afford the tax
incidence.
3. Therefore, there may not be a justification to reduce GST
rate on these goods.
4. No Change recommended

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Page 66 of 91
Annexure IV
Issues where no change has been proposed by Fitment Committee on 14th and 15th December- 2018
Sl.
No.
Proposal Comments
1. Request for seeking GST exemption on the
services provided to students in India
relating to admission to foreign universities.

Reference:
Association of Australian Education
Representative in India (AAERI)
Not agreed
Recommendation:
This request is for a new exemption which did not exist in pre-
GST regime. Therefore, the request for the exemption may not
be acceded to.

Discussion:
Placement and recruitment related services provided by AAERI
to prospective Indian students for the overseas university are
performed in India, it would not be prudent to exempt the same
from the GST. Further, as AAERI acts as an intermediary
between the prospective student and the university, in
accordance to section 13(8)(b) of IGST Act, 2017 the place of
supply of intermediary service shall be the location of the
supplier of services, i.e. location of AAERI. Although, the
service recipient is outside India and the payment for the service
is received in convertible foreign exchange, the service
provided by AAERI can’t be qualified as export of services
because of the place of supply of service is in India. Hence it
would be taxable under GST. To exempt such intermediary
service would require changes in IGST Act.
2. Request to grant refund of GST paid by
Indian Red Cross Society on all inward
supplies used for blood service activities.

Reference: Red Cross Society
Not agreed
Recommendation:
There is no practice of zero rating of domestic supplies. This is
a request for zero rating and may not be acceded to.

Discussion:
Supply of Human Blood and its components are exempt from
GST vide Notification No. 2/2017-Central Tax (Rate), [Sl. No.
106 refers]. The exemption as existed in Service Tax regime
has been carried forward to GST. The input goods and services
used for supply of blood are taxable. The request for grant
refund of GST paid by IRCS on all inward supplies (inputs and
other materials) would mean zero rating. Under GST regime,
zero rating is done for only physical exports and supply of
goods or services or both to a Special Economic Zone developer
or a Special Economic Zone unit.
3. Seeking clarification about applicability of
GST on License fees collected from the
residents of working women hostel, and
applicability of GST on Mess fee collected
from the inmates of Working Women
Hostels run by SamajKalyanSamiti, NDMC

Reference: NDMC
Not agreed, assessment issue.

Discussion:
In the self-assessment era NDMC should know that the
guideline issued by Govt. of NCT Delhi is generic in nature.
More specific entry, namely Sl. No. 12 and Sl. No. 14 of the
notification would be applicable for accommodation service
provided in working women hostels. Similarly, with regards to
mess fee collected from the inmates of the hostel, same is
taxable to GST @ 5% without ITC vide Sl. No. 7 (i) of
notification No. 11/2017- Central Tax (Rate) dated 28th June,
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Page 67 of 91
Sl.
No.
Proposal Comments
2017. Fitment committee cannot do the assessment work for
every issue referred to it.
4. Request for GST exemption on services
relating to drilling of bore-wells

Reference:
Dr. ThambiDurai, Dy. Speaker, Lok Sabha;
Karnataka
Not agreed
Recommendation:
May not be considered

Discussion:
1. The issue was earlier discussed in the Fitment Committee
meeting held on 9th and 10th July, 2018. In the FC meeting it
was decided that the issue has to be examined by State of Tamil
Nadu since a large number of the bore-well drilling operators
are from the state and it has a revenue implication for the state.
The matter was accordingly deferred.

2. Tamil Nadu vide its DO letter No. 7738/B1/2018, dated
24.07.2018 has stated that bore-well drilling activity is carried
out using drilling equipment mounted on lorry for the purpose
of agriculture and drinking water. Besides, industries are main
consumers who drill large numbers of bore-wells. It would not
be possible to identify whether the driller is exclusively
undertaking agriculture drilling or for any other purpose and it
may lead to evasion of tax. Moreover, the owner of the drilling
machines would have paid GST on the purchase of the vehicles,
drilling machines, compressors, rigs etc., and if any exemption
is granted on the supply of drilling of bore-well service, the
same would disentitle them from claiming input tax paid on the
purchase of above equipment.

3. Tamil Nadu has further stated that out of the total cost of
digging a bore-well, about 37% of the cost is towards the cost
of drilling, rest is the cost of submersible pumps, pipes etc.
Hence the exemption may not mitigate the burden of tax on the
landowners and farmers and it would break the ITC chain,
resulting in embedded tax which will have to be borne by the
landowners and farmers and not by the drillers. Tamil Nadu has
recommended that as the claim of exemption could lead to
evasion of tax and may not benefit farmers, the proposal
seeking exemption on the services rendered by way of drilling
of bore wells for agricultural use may not be considered.
5. Request to address the issue of Government
companies having Government equity less
than 90%, which are not considered as
government entity.

Reference: Chairman, Railway Board
Not agreed
Recommendation:
The request of Railway Chairman amounts to demand for a new
concession which would have wide ramification on revenue.
Therefore, at present no change may be made in the definition
of ‘Government Entity’.

Discussion:
It was a conscious and deliberate policy decision of GST
Council not to dilute the Government’s equity or control less
than 90%. The present decision of the Council as reflected in
notification Nos. 11 and 12/2017- Central Tax (Rate) means
that, for concessional rate or exemption to be available, the
Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
Page 68 of 91
Sl.
No.
Proposal Comments
Government’s participation should by way of equity or control
be greater than 90%.
6. It has been requested to exempt the sublease
of land to a company entirely owned by
Project Affected People on account of R&R
for acquisition of land by Government or its
undertakings

Reference: Sh. Raju Shetti, MP, Lok Sabha
Not agreed, Maharashtra may communicate once company
consisting entirely of Project Affected Persons (PAPs) forms.
Recommendation:
Examining the GST exemption request at this stage would be
premature. The request for GST exemption on grant of sub-
lease of industrial plots or plots for development of
infrastructure for financial business, provided by a developer to
a private limited company comprising entirely of Project
Affected Persons (PAPs) may be put on hold till the time M/s
KDL become a private limited company comprising entirely of
Project Affected Persons (PAPs).

Discussion:
From the report submitted by Maharashtra it emerges that the
proposal made by the VIP to exempt the upfront premium
payable in respect of sub- lease of land in respect of de-notified
SEZ, from M/s KEIPL (a private company) to M/s KDL (a
farmer owned company consisting entirely owned by PAPs) is
pre-mature as because M/s KDL is yet to become a 100%
farmer’s owned (PAPs) company. Even if we decide to propose
an exemption, such exemption benefit would not be applicable
to M/s KDL. Therefore, it is proposed that the request for GST
exemption on grant of sub-lease of industrial plots or plots for
development of infrastructure for financial business, provided
by a developer to a private limited company comprising entirely
of Project Affected Persons (PAPs) may be put on hold till the
time M/s KDL become a private limited company comprising
entirely of Project Affected Persons (PAPs).
7. Request for providing GST exemption to
community led water supply schemes, and
Alternatively, to clarify the rate of tax
applicable to works undertaken through
Jalanidhi scheme, if exemption is not
acceptable

Reference: Government of Kerala; Referred
by Law Committee
Exemption and rate reduction not agreed.

Recommendations:
(i) request for GST exemption to community led
water supply schemes of Kerala may not be
acceded to.
(ii) since KRWSA is a Governmental Entity, therefore,
works contract service supplied to it by
vendors/contractors/ community contracts for the
implementation of Jalanidhi Scheme would attract
concessional rate of GST of 12% or 5%, depending
upon the value of earth work (that is, value of earth
work constituting more than 75per cent. of the
value of the works contract). [Sl. No. Sl. No 3(iii)
and Sl. No 3(vii) of notification No. 11/2017-
Central Tax (Rate), dated 28.06.2017 refers]
Discussion:
1. It may be recalled that in past works contract service
provided to Government has been discussed in length and data
submitted by the Government of Telangana was also analyzed,
which revealed that even in canal works, incidence of GST is
less as compared to pre- GST regime. In some roads, building
and bridge works, even 12% GST rate merited refund.
Detailed Agenda Note-Volume 2 Agenda for 31st GSTCM
Page 69 of 91
Sl.
No.
Proposal Comments
2. It may also be recalled that prior to 1st July, 2017, in the
service tax era the service component of works contract service
provided to Government and Governmental authority was
exempted from service tax. However, there were embedded
taxes on inputs, input services and capital goods (such as
service tax, excise duty and VAT). Furthermore, most of the
states levied VAT under composition scheme ranging from 1 to
5%. As the works contracts were in composition scheme, Credit
of VAT paid on goods was not allowed.
3. Therefore, it is not justified to provide GST exemption to
community led water supply schemes. Further it may be noted
that most of the States of India have different models of
community led schemes for water supply, sanitation etc.
Specific exemption to Jalanidhi scheme of Kerala government
does not justify its merit.
8. Request to exempt services of Chhattisgarh
Professional Examination Board (CPEB)
provided to unemployed youths in relation
to conduct of entrance test for employment
purpose from GST

Reference: Chief Secretary, Chhattisgarh
Government
Not agreed
Chhattisgarh Government may consider notifying CPEB as a
Government body or entity.

Recommendation:
Chhattisgarh Professional Examination Board is neither a
government nor Government Entity. Specific exemption if
granted to a professional body like CPEB, in future similar
request would arise from many other professional bodies who
are conducting recruitment and admission related examination.
Exemption may not be granted.
9. Request to reduce or exempt GST on
captive mining services.

Reference:
Shri. Saurabh Patel, Minister of Energy,
Gujarat
Not agreed

Recommendation:
The request for the exemption/reduction of rate of GST may not
be acceded to.

Discussion:
1. The basic price of G-13 coal (excluding regulatory
levies and taxes) offered by Coal India as indicated by GSECL
is Rs. 817/MT. As against this, the price proposed to be paid by
GSECL to MDO for only mining of raw coal is Rs. 1295/MT.
2. Even if the rate of GST on mining service is reduced
from 18% to 5%, the cost of coal from captive mine of GSECL
shall be reduced to Rs.2077/MT, which would still be Rs.
410/MT more than the price of coal purchased from CIL.
3. The cost of captive coal mined by NTPC, as per the
Balance Sheet of NTPC for the FY 2017-18, was Rs. 1187/MT.
4. The high cost of captive coal estimated by GSECL is
due to high cost of mining.
5. Service Tax collected on mining service during FY
2016-17 was Rs. 4600 crores. Reducing the GST rate on mining
services to 5% will have revenue implication of Rs. 4000 crores
annually.
6. The cost of inputs and inputs services in mining sector
is quite high and any exemption from GST on mining will lead
to blockage of input tax for the MDO and reducing the rate to
5% will result in ITC overflow.
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Sl.
No.
Proposal Comments
10. Modification in Notification No. 12/2017 -
Central Tax (Rate) dated 28.06.2017, entry
65B

Reference: Additional Chief Secretary,
Finance, Rajasthan
Not agreed.

State Govt. may consider issuing internal instruction for flow
of required information from miners to mining department and
ERCC.

Recommendation:
The proposal to amend the condition of exemption may not be
considered.
11. Whether to grant retrospective exemption
from GST on Government’s share of Profit
Petroleum for the period from 1.7.2017 to
24.01.2018.
Not agreed to take up the issue for retrospective exemption. As
a matter of principle, retrospective exemption should be
avoided as they are required to be given effect through finance
bills of center and all the states.

Discussion:
Government’s share of Profit petroleum has been exempted
from GST w.e.f. 25.01.2018 vide Notification No. 5/2018-
Central Tax (Rate) dated 25th January, 2018.
2. Retrospective exemption from service tax for the period from
01.04.2016 to 30.06.2017 has been granted in the Budget, 2018.

3. In view of the above exemption, following situation has
emerged:
(i) Government’s share of Profit petroleum is exempt from
Service Tax for Pre- GST period i.e period before 01.07.2017.
(ii) Government’s share of Profit petroleum is exempt from
GST from 25.01.2018.
(iii) Government’s share of Profit petroleum is taxable under
GST for the period from 01.07.2017 to 24.01.2018.
12. Requesting to exempt services of
Insolvency and Bankruptcy Board of India
(IBBI) from GST keeping in view the
regulatory nature of work done by IBBI.

Reference: IBBI
Not agreed

Recommendation:
Request to exempt GST on the services rendered by IBBI may
not be accepted

Discussion:
1. From the data provided by IBBI, it is seen that there is
significant amount of input credit available to IBBI owing to
high cost of inputs and input services. Input credit on inward
supplies would not be available to IBBI due to GST exemption
and GST paid on inward supplies would stick as cost to IBBI.

2. Request for GST exemption on the grounds of compliance
burden on part of IBBI is not on sound logic. A statutory body
regulating the activities of large number professionals is
expected to pay tax as MCI and Bar Council are doing for their
services.
13. Request to reduce GST on Online Delivery
Services of Food from 18% to 12% with
ITC

Reference: Bundl Technologies Private Ltd
Not agreed.

Recommendation:
Request to reduce GST from 18% to 12% or 5% with input tax
credit on a specific input service of restaurants i.e. online food
delivery may not be considered.
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Page 71 of 91
Sl.
No.
Proposal Comments
Discussion:
Restaurants are paying GST on various inputs and inputs
services which would stick as cost due to lower rate of tax i.e
5% without input tax credit on output service. This is a
concomitant effect of such lower rate of GST without input
credit. In the present case, restaurants are paying 18% GST on
commission paid for online food delivery service. The industry
can bear such additional costs on inputs as same is passed on to
the customers. Earlier, the benefit of ITC was not being passed
onto the customers. Any reduction on GST rate from the current
18% would result into revenue loss in future as the online food
service sector is rapidly growing in India. Reducing GST rate
on a specific input service i.e online food delivery service, may
result into similar demands for rate reduction from supplier of
other inputs/input services to restaurant industry.
14. (i) Request to reduce the GST on cruise
tourism to 5%

(ii)To exempt the supplies of goods (which
are then supplied onboard) to a cruise lines
at home ports from GST

Reference:Sh. K. J. Alphons, Minister of
State (IC) for Tourism, GOI
Not agreed as it is a luxury consumption.

Recommendation:
Not agreed. Maharashtra raised the argument of nascent
industry but this has not been agreed for any other industry.

Discussion:
The proposals were examined in the Fitment Committee
meeting held on 9th and 10th July, 2018 and in the 28th GST
Council meeting held on 21.07.2018. The proposals were not
acceded to.
15. Request for retrospective Service Tax
exemption and GST exemption to long term
lease of plots by entities having 50% or
more ownership of Central Government,
State Government or Union Territory in an
industrial or financial bus

Detailed Agenda Note - 31st GSTCM - Volume - 3 (2024)