Goods and Services Tax

service tax 1.5%on Import material value(IGST ON OCEAN FREIGHT) AND Service tax credit on outwards transportation.

Service Tax – Started By: – BHAKTIKANT BHATT – Dated:- 17-2-2018 Last Replied Date:- 20-5-2018 – SIR, we are a packaging material manufacture unit.We have import our Raw Material (Plastic Granual) Now Excise EA-2000 Auditor raise a question on import Raw Material and ask us to Pay Service Tax 1.5%on Import Material CIF Value From April-2017 to June-2017 IGST ON OCEAN FREIGHT IN RESPECT OF IMPORT MATERIAL. AS PER CIRCULAR NO.206/4/2017- Service Tax Dt.13/4/2017. Kindly give us your valuable suggestion with cited any case whether we need to PAY 1.5% Service tax on import material value and after it allowable to take credit then in GST Rule How can we take credit ? 2. query. We have paid service tax on our outwards transportation of goods from our factory to customer premises.Also we have paid Excise duty on transportation charge from our factory to customer premises and freight amount separate mention in our sale invoice. Now Excise Auditor say your are not avail cenvat credit of servic

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earance in India as specified in the negative list which thereby, exempted service from Service Tax U/s 66 D(p)(ii). The said entry under the Negative list as omitted with effect from 1.6.2016 and a provision was incorporated in the Mega Exemption Notification No.25/2012-ST, dtd 20.6.2012 vide Entry 53 continuing the exemption. Service Tax (Post-2017) 22.1.2017 – 01.07.2017 The Mega Exemption Notification was amended vide Notification No. 1/2017-ST, dtd. 12.1.2017 and a proviso was inserted excluding from the ambit of the exemption services by way of transportation of goods by a vessel from a place outside India upto the Customs station of clearance in India received by a person located in a non-taxable territory. Further Notification No. 2/2017-ST & 3/2017-ST dtd. 12.1.2017 were introduced and the same entrusted the liability to pay tax on the person in India who complied with Section 29, 30 or by their agent U/s 148 of the Customs Act, 1962 i.e., the foreign shipping liner. Notif

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by a vessel from a place outside India upto the customs station of clearance in India would vest on the importer, located in India. This is a double taxation issue where IGST is leviable on the CIF value of the goods and also separately on the Freight amount. Input Tax Credit is available on the IGST paid under RCM. Refer a recent case where the clarification from the Revenue is awaited for further proceedings against a the said issue. 2018 (2) TMI 770 – GUJARAT HIGH COURT Mohit Minerals Pvt Ltd Versus Union of India Dated:- 9-2-2018 In: GST Special Civil Application No. 726 of 2018 Levy GST on ocean freight whereas the value of import goods includes Ocean Freight. – Vires of N/N. 8/2017-Integrated Tax [Rate] dated 28th June 2017 and Entry 10 of the N/N. 10/2017-Integrated Tax [Rate] also dated 28th June 2017 – petitioner's grievance is that under the impugned Notifications, the petitioner is asked to pay tax at the prescribed rate all over again on the ocean freight – Counsel for

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and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto place of removal (C) place of removal means – a factory or any other place or premises of production or manufacture of the excisable goods ; a warehouse or any other place or premises wherein the excisable goods have been permitted to be deposited without payment of duty; a depot, premises of consignment agent or any other place or premises from where the excisable goods are to be sold after their clearance from the factory; It is clear from the above definition of place of removal can be factory or any other place or depot, premises of consignment agent or any other place or premises from where the goods are to be sold which clearly includes customers premises or depot from where the goods are sold. As the place of removal is not defined in CENVAT Credit Rules, 20

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r of the goods till the delivery of the goods in acceptable condition to the purchaser at his door step; the seller bore the risk of loss of or damage to the goods during transit to the destination; and the freight charges were an integral part of the price of goods. In such cases, the credit of the service tax paid on the transportation up to such place of sale would be admissible if it can be established by the claimant of such credit that the sale and the transfer of property in goods (in terms of the definition as under section 2 of the Central Excise Act, 1944 as also in terms of the provisions under the Sale of Goods Act, 1930) occurred at the said place. Trust the above explanation helps! – Reply By RamKumar Lakkoju – The Reply = Thank you Mr Praveen Nair for sharing facts of important judgement yet to come. – Reply By YAGAY and SUN – The Reply = In our view, the rationale behind the afore-noted entries against Sl. No 9(ii) of notification No. 8/2017-IT(R) and Sl. No. 10 of Noti

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