News Update

Linking of Aadhaar with PAN - About 40% linkage done so farNew Reward Scheme calls for grant of reward not in routine mannerGST - Revision of TRAN-1 last chance to correct wrong claim for transitional credit: GovtCX - Since principal manufacturer did not pay duty and did not follow procedure and conditions of notification 214/86-CE, job worker as manufacturer is liable to duty on job worked goods: LB CESTATSC asks Centre to explore connecting live videos of court proceedings with Judicial Data GridDoPT trying hard to clear backlog of promotions: Dr Jitendra SinghNovember records 10 lakh foreign tourist arrivals with over 14% growthBoard clarifies that since CVD leviable u/s 9 of the CTA is not taken into consideration while fixing AIR of Duty drawback, the drawback of such duty can be claimed under an application for Brand Rate under Drawback RulesCRS Disclosure - OECD seeks inputs on Model Disclosure RulesIT Sector urges FM to lower GST on telecom services to 12%NIC CERT launched to predict cyber attacksConnectivity with ASEAN is India's priority: GovtTreading GST Path - XXXIX - Tribunal at crossroadsST - Denial of CENVAT credit on ground of failure to deposit tax by service provider is not correct in equity when there is no express condition to that effect in CCR, 2004: CESTATI-T - Reopening of concluded assessment by invoking provision of section 147 will not fall under ambit of change of opinion where AO formed an opinion contrary to binding decision of Apex Court: ITATCus - A court is expected to make an overall assessment of fact situation and test same on touchstone of law to reach to its conclusion: CESTATVice President calls for ranking of legislatures & notifying disruptors on daily basisOnline exam portal of IAF launchedPre-Budget Meet - Economists ask FM to lower MAT & spell out roadmap for tax reformsNadda launches Operational Guidelines for HDUs & ICUsRahul Gandhi formally elected unopposed Congress President; PM congratulates him on his elevationCBDT Task Force for reviewing Income Tax Law to hold its first meeting on Dec 14, 2017Real Estate- ITC a double edged sword under GSTST - Service of taking repossession of vehicle from borrower is a part of 'security' service which is specifically included in definition of input service: CESTAT



Deemed Export

in terms of the Notification no. 48/2017,Central Tax. dated 18/10/2017, the supplies to EOU's would be treated as deemed export. A procedure has also been prescribed separately that the recipient shall have to submit intimation in Form 'A' to the jurisdictional GST authorities and copies to be sent to the jurisdictional GST authority of supplier and to supplier. The refund of GST can be claimed either by supplier or recipient on fulfilling the requirements.

The provision seems to be similar to the earlier provision like CT-3 certificate etc. However, in GST regime tax is necessarily to be paid and later refund could be claimed.
This current provision would increase unnecessary compliance which is futile and unwarranted. Instead, it could be better that the Form 'A' could could be treated similar to earlier CT-3 and the supplies to EOU's should be ZERO rated supplies provided the supplier submits the proof of delivery to recipient by way of submitting the copy of Invoice duly endorsed by the GST authorities of recipient Unit.

Bipin Pradhan

bipin pradhan 13/11/2017