} 2 ull ed GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI DEPARTMENT OF TRADE AND TAXES POLICY (GST) Branch VYAPAR BHAVAN:LP.ESTATE:NEW DELHL-02 F. No. 3(66)/Policy-GST/2017/ 424-33 Dated: Ze 01/2018 Circular No. 08/2018-GST (Ref: Central Circular No. 03/2018-GST) 24\03|2018 Subject: Clarification regarding applicability of GST on Polybutylene feedstock and Liquefied Petroleum Gas retained for the manufacture of Poly Iso Butylene and Propylene or Di-butyl para Cresol — Regarding.
tt References have been received related to the applicability of GST on the Polybutylene k and L fied Petrol Gas retained for the of Poly Iso Butylene and Propylene or Di-butyl para Cresol.
Zi In this context, manufacturers of Propylene or Di-butyl para Cresol and Poly Iso Butylene have stated that the principal raw materials for manufacture of such goods are Liquefied Petroleum Gas and Poly butylene feed stock respectively, which are supplied by oil refineries to them on a continuous basis through dedicated pipelines while a portion of the raw material is retained by these manufacturers, the remaining quantity is returned to the oil refineries. In this regard an issue has arisen as to whether in this transaction GST would be leviable on the whole quantity of the principal raw materials supplied by the oil refinery or on the net quantity retained by the manufacturers of Propylene or Di-butyl para Cresol and Poly Iso Butylene.
2s The GST Council in its 25” meeting held on 18.1.2018 discussed this issue and recommended for issuance of a clarification stating that in such transactions, GST will be payable by the refinery on the value of net quantity of polybutylene feedstock and liquefied petroleum gas retained for the manufacture of Poly Iso Butylene and Propylene or Di-butyl Para Cresol,
4. Accordingly, it is hereby clarified that, in the aforesaid cases, GST will be payable by the refinery only on the net quantity of Polybutylene feedstock and Liquefied Petroleum Gas retained by the manufacturer for the manufacture of Poly Iso Butylene and Propylene or Dibutyl para Cresol . Though, the refinery would be liable to pay GST on such returned quantity of Polybutylene feedstock and Liquefied Petroleum Gas, when the same is supplied by it to any other person.
5. This clarification is issued in the context of the Goods and Service Tax (GST) law a only and past issues, if any, will be dealt in accordance with the law prevailing at the materi:
otieionie aul Commissioner (GST) time.
No. 3(66)/Policy-GST/2017) M24- 32 Copy forwarded for information and necessary action to: 1) All Spl./Addl. Joint Commissioners, of Delhi, Vyapar Bhawan, LP. Estate, New Dethi-02, 2) Special Commissioner (PR), Department of Trade and Dated; Bei01/ 2018 Department of Trade and Taxes, GNCT Taxes, GNCT of Delhi, Vyapar Bhawan, L.P.Estate, New Delhi-02 for wide publicity of the contents of this circular, 3) Joint Director (IT), Department of Trade and Taxes, GNCT of Dethi, Vyapar Bhawan, LP, Estate, New Delhi-02 for uploading the circular on the website of the Department, 4) Vyapar Bhawan, ILP. Estate, New Delhi, The President/General Secretary, Sales Tax Bar Association (Regd.), 5) All Assistant Commissioners/GSTOs, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, LP, Estate, New Delhi-02.
6) PS to the Commissioner, GST, Department of Trade and Taxes, GNCT of Delhi Vyapar Bhawan, 1.P. Estate, New Delhi-02.
7) Guard File, 101} 2018 (Sadanand Sah) Assistant Commissioner (Policy)-V pore GOVERNMENT OF Na: TIONAL Cap; DEPARTMENT oF COE AND TORY FR POLICY (G VYAPAR BHAWAN: LeesraNce NojF.(66)/Policy-GST/2017/ ATE: NEW DELIHI-02, 1348 -sy Circular n0.04/2018-(GST) entral Circular No 23/23/2017-GST) Dated sh (01/2018 (Ref: C Subject: Issues in respect of maintenance of books of accounts additional place of business by a princi relating to Purpose of auction of tea, coffee, rubber " pal or an auctioneer for th ete,- regarding e As per the first proviso of section 35(1) of the Delhi Goods and Services Tax Act, 2017 (hereinafter referred to as ‘the DGST Act’) both the principal and the auctioneer are required to maintain the books of accounts relating to their additional Place(s) of business in such places. It has been represented that both the principal as well as the auctioneer may be allowed to maintain the books of accounts relating to the additional place(s) of business at their principal place of business itself.
2, After the consideration, by the central Government/(GST Implementation Ci i of various ications received regarding the difficulti being faced by a principal and an auctioneer in relation to maintaining books of accounts at ¢ach and every additional place of business related to stock of goods like tea, coffee, rubber, etc. meant for supply through an auction, in exercise of the powers conferred under section 168 (1) of the Delhi Goods and Services Tax Act, 2017, for the purpose of uniformity in the implementation of the Act, the matter is hereby clarified as under:
(a) The principal and the auctioneer of tea, coffee, rubber etc. are required to declare warehouses where such goods are stored as their additional place of business. The buyer is also required to disclose such warehouse as his additional place of business if he wants to store the goods purchased through auction in such warehouses, pl such additional Place(s),
(c) Such Principal Or aucti Lucti i i i Mem ee shall intimate their jurisdictional Proper officer 8 about the maintenance of books of accounts relating to additional Place(s) of business at their principal place of business.
(d) Further, the Principal or the auctioneer shall be eligible to avail input tax credit (ITC) subject to the fulfilment of other provisions of the Act and the rules made there under, Ss It is further clarified that this Circular is applicable to the supply of tea, coffee, rubber, etc. where the auctioneer claims ITC in respect of the supply made to him by the principal before the auction of such goods and the said goods are supplied only through auction.
4. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
= Difficulty, if any, in implementation of the above instructions may please be an ———S (H Rajesh Prasad) Commissioner (GST) No.F{66)/Policy-GST/2017/ 184-54 Dated: I(-}-4 brought to the notice of the Policy Branch.
Copy forwarded for information and necessary action to:
1, All Spl./Addl./Joint Commissioners, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan 1.P Estate, New Delhi-02. we
2. Spl. Commissioner (PR) for wide publicity to the contents of this circular.
unl » Joint Director (IT), Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan LP Estate, New Delhi © circular on the website of the department, sociation (Regd.), Vyapar Bhawan - All Assistant Commissi 5 Delhi, Vyapar Bhawan LP Estate, New Dethi-02 through Zonal Inc! . PS tothe Commissioner, GST, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan |.P Estate, New Dethi-02 . Guard File.
(LS Yadav) Assistant Commissioner (policy)-IV No.F$66)/Policy-GST/201 WAZ 41-4 1 Circular no,03/201 8(GST) (Ref: Centra} Circular No 22/22/2017-GST) Subject: Clarification on iss States and supply easoad bee ce of supply by an artist in various ‘ha a When the same is given to the art gallery or at the time of actual supply by the gal ery, if the at work is selected by the buyer, when the supplier issues a tax invoice at the time oh Supply, it is clarified in exercise of the powers conferred under section 168(1) of the Dethi Goods and Services Tax Act, 2017, for the purpose of uniformity in the implementation of the Act as under:
2, Clause (c) of sub-rule (1) of rule $5 of the Delhi Goods and Services Tax Rules, 2017 (hereafter referred as “the said Rules”) provides that the supplier shall issue a delivery challan for the initial transportation of goods where such transportation is for reasons other than by way of supply. Further, sub-rule (3) of the said rule provides that the said delivery challan shall be declared as specified in rule 138 of the said Rules. It is also seen that subrule (4) of rule 55 of the said Rules provides that where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply, the supplier shall issue a tax invoice after delivery of goods.
3. A combined reading of the above provisions indicates that the art work for supply on approval basis can be moved from the place of business of the registered person (artist) to another place within the same State or to a place outside the State on a delivery challan along with the e-way bill wherever applicable and the invoice may be issued at the time of actual supply of art work.
4. It is also clarified that the supplies of the art work from one State to another State will be inter-State supplies and attract integrated tax in terms of section 5 of the Integrated Goods and Services Tax Act, 2017.
.
5. It is further clarified that in i case of suppl through leries, consideration flowing from the gallery to the eee works . ous ate sent to the gallery for exhibition and therefore, the : . » Me same is not a supply, It j when selects particular art work displayed at the gallery, that the the ae ae tk GST would be payable at the time of such supply. ree
6. It is requested that sui circular, at Suitable trade notices may be issued to publicize the contents of this
7. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Policy Branch, Gly (H Rajesh Prasad) - Commissioner (GST) No.F466)/Policy-GST/2017/ 13 \-44 Dated: \1-|-7g Copy forwarded for information and necessary action to:
1. All Spl/Addi./Joint Commissioners, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan I.P Estate, New Delhi-02.
2. Spl. C issi (PR) for wide icity to the of this circular.
3. Joint Director (IT), Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan IP Estate, New Delhi-02. to upload the circular on the website of the department.
4. The President/General Secretary, Sales Tax Bar Association (Regd.), Vyapar Bhawan LP Estate, New Delhi.
5. All Assistant Commissioners/GSTOs Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan I.P Estate, New Delhi-02 through Zonal Incharges.
6. PS to the Commissioner, GST, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan I.P Estate, New Delhi-02
7. Guard File.
(LS Yadav) Assistant Commissioner (policy)-IV ©D No. 10;
SOVT. oF Net o¢ a SEPARTENT OF TRADE & TAXES ~POLicy t VYAPAR BHAWan, VPaeSrAneN H, Sub; Circular No, . 87/41/2048, Modification to the Suldelines fo, Si and po iiot8 TDS by th Under GsT 8S Clarifieg in Gi Mie e.
65/39/2018-DoR dated 14.09.2018 ~teg TaN aa May like to per ircular Reven;
Ministry Of Finance Vide which Modificati "th ghee for luctions and Of TD: by Under GST as Clarified in Circular No. 65/39/2018.D0R dated 14 09,2018 has been If approved we may Circulate Departments/auton the above Circular to all OMOus bodies/local bodies of the Govt, of NCT of Delhi for @ppropriate and Necessary : Forwarding letter in this fegardis place ©pposite for @pproval/signature Please. 6 a mero eat Se ih Ae(rolay.)
J # a ty atid re ;
asleke GOVERNMENT OF ATIONAL CAPITA, T DEPARTMENT OF A ERRITORy OF TRADE TAXES Paka VYAPAR BHAWAN, LP.ESTATE NEW DELHI-4 10002 No.F.3(204 reer 5 To Dated : 2S-b-4¢ All Pr. Secretaries; Secretaries/Hops Department “Auton lOmous Bodies/_ogaj Bodies, Ovt. of NCT of Deihi, Sub :. Modification to DO under Gs
14.09.20 18-reg, the Guidelines for Deductions nd Deposits of TOS y the T as Clarified in Circular No. 55/39/2018.DoR dated Sir/Madam, Please fj 28.09.2018 Nd encloseq herewith Cireul; the subject lar No, 57/41/2018-DoR dated:
of Department of Revenue, Ministry of Finance, Government Of India on Cited above for compliance, Yours faithfully, Enel: As above \3 (RAJESH GOYAL) ADDL, COMMISSIONER, GST (STATE TAX) Circular No, 67/412018-DOR -S,31011/11/2018-ST-I-DoR Government of India Ministry of Finance Department of Reyenue ie New Delhi, Dated the 28" September, 2018 To, Ay Secretaries of the Central Ministries as pe list enclosed.
Zz Chief Secretaries of all States/UTs with legislature/ UTs without Legislature, Ss All Finance Secretaries/ CCTs of the States’ UTs with Legislature/UTs without Legislature, 4, Chairman CBIC /All Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners’ Commissioners of Central Tax (through Member, GST, CBIC) 5, Pr.Chief Controller of Accounts, CBIC.
Madany/Sir, Subject: Modification to the Guidelines for Deductions and Deposits of TDS by the DDO under GST as clarified in Circular No. 65/39/2018-DOR dated14.09.2018 - reg Circular No. 65/39/2018-DOR dated 14/09/2018, vide which Guidelines for Deductions and Deposits of TDS by the DDO under GST had been issued by the Department of Revenue.
On the recommendation of the Controller General of Accounts, the Department of aa uss Revenue, hereby issues the following modifications to the said Circular:- “a — GA sot |e [Fete Para 9 (iv) should read as: To enable the DDOs to account for the TDS bunched together {in terms of Option II), following sub-head related to the GST-TDS below the Head
8658.00.101-PAO Suspense has been opened.
$. | Major Head Sub Head Major Head Serial SCCD Code No. Deseription Code (8-digit reduced accounting code) 8658-00-101 | 08-GST TDS 86580 344 367 Difficulty, if'any, in implementation of this circular may please be brought to the notice of 3.
ie}e ) : Department of Revenue.
* is an r on 4 \\s Digaw - (Rit nid y wees. wr Joint Secretary to the Gov tof Ipdia BLA.
Cireular No, 65/39/2018-DOR F.No.S.31011/] 12018-ST-LDop Government of India Ministry of Finance as\\' Department of Revenue \ a\ A sie ¥ New Dethi, Dated the 14th September, / fh 2018 WY 95, . / eb e D902 dh. ecretaries of the Central Ministries as pe list enclosed. a 2. Chief Secretaries of all States/UTs with legislature/ UTs without Legislature.
All Finance Secretaries’ CCTs of the States’ UTs with Legislature/UTs without Legislature, { -XP” Chairman CBIC /All Principal Chief Commissioners/ Chief Commissioners/ Principal Commissione: Ls (through Member, GST, CBIC) Q 5 Pr.Chief Controller of Accounts, CBIC, rs/ Commissioners of Central Tax c(lasT)LP) Madam/sir, Subject: Guidelines for Deductions and Deposits of TDS by the DDO > under GST Section 51 of the CGST Act 2017 provides for deduction of tax by the 444 ust Government Agencies (Deductor) or any other person to be notified in this regard, from the payment made or credited to the supplier (Deductee) of taxable goods ie} i Or services or both, where the total v alue of such supply, under a contract, exceeds nenfer)P two lakh and fifty thousand Tupees. The amount deducted as tax under this section } shall be paid to the Government by deductor within ten days after the end of the Teepe month in which such deduction is made alongwith a return in FORM GSTR-7 giving the details of deductions and deductees. Further, the deductor has to issue @ certificate to the deductee Mentioning therein the contract value, rate of deduction, amount deducted etc.
2. As per the Act, every deductor shall deduct the tax amount from the D payment made to the supplier of goods or services or both and deposit the tax ii of amount so deducted with the Government account through NEFT to RBI or a olP cheque to be deposited in one of the authorized banks, using challan on the common portal. In addition, the deductors are entrusted the responsibility of filing retum in FORM GSTR-7 on the common portal for every month in which 1 G deduction has been made based on which the benefit of deduction shaty i Aailable to the deductee, A) the DDOs in the Government, Who are per I dentification Number (GSTIN),
3. The Subject section Which provides for tax deduction ay Source Was not NOtified to Come into force With effect from 1" July, 2017, the date from Which GST was introduced, Government has recently notified that these Provisions shal} Come into force With effecy from 1 #* October, 2018, vide Notification No. 50/2018 ~ Centra} Tax dated 13th September, 2018, 4. For Payment Process of Tax Deduction at Source under GST. ‘Wo options can be followed, Which are as tinder: Option 1: Generation of challan for Very payment made during the Month Option 11: Bunching of TDS deducted from the bills on Weekly. Monthly or any Periodic manner of deduction and deposit of TDS by the DDOs has been finalised in Consultation With CGA for Ruidance and implementation by. Centra} and State Governmen Authorities, The Process flow for Option T and Option Tl are described AS under:
3. In Order t0 give effect to the above 9ptions from 91.10.20) 8. a process flow Option 1 - Individuay Bill-wise Deduction 4nd its Deposit by the DDO » In this ption, the DDO Will have fo deduct as Well as deposit the GsT TDs for each bill individually by Senerating aCPIN ( Challan) and Mentioning it in the Bill itseig Pe Following Process shall pe followeg by the DDO in this regard:
@. The DboO Shall Prepare the Bill based on the Expenditure Sanction, The Expenditure Sanction Shall Contain the (g amount Payable to the ContactorSupptieyvena 4nd (c) the 2% T. Gi) ‘The DDO shal login into the GsTy Portal (using his GSTIN) ani lan). In the CPIy he shall have to fill in the desired amount of Payment 4gaingr oné/many Major Heads) nde SStUTaSTAESTy and the relevant component (eg. Tax) under each of the Major Head, 2
(ili)
(iv)
(v)
(vi)
(vii)
(viii)
(ix) While generating the CPIN, the DDO will have to select mode of payment as either (a) NEFT/RTGS or (b) OTC, In the OTC mode, the DDO will have to select the Bank Where the payment will be deposited through OTC mode.
The DDO shall prepare the bill on PFMS (in case of Central Civil Ministries of Gol), similar Payment portals of other Ministries/Departments of Gol or of State Governments for submission to the respective payment authorities, In the Bill,
(a) the net amount payable to the Contractor; and
(b) 2% as TDS will be specified In case of NEFT/RTGS mode, the DDO will have to mention the CPIN Number (as beneficiary's account number), RBI (as beneficiary) and the IFSC Code of RBI with the request to payment authority to make payment in favour of RBI with these credentials.
In case of the OTC mode, the DDO will have to request the payment authority to issue ‘A’ Category Government Cheque in favour of one of the 25 authorized Banks. The Cheque may then be deposited along with the CPIN with any of branch of the authorized Bank so selected by the DDO.
Upon successful payment, a CIN will be generated by the RBl/Authorized Bank and will be shared electronically with the GSTN Portal. This will get credited in the electronic Cash Ledger of the concemed DDO in the GSTN Portal. This can be viewed and the details of CIN can be noted by the DDO anytime on GSTN portal using his Login credentials.
The DDO should maintain a Register as per proforma given in Annexure ‘A’ to keep record of all TDS deductions made by him during the month. This Record will be helpful at the time of filing Monthly Retum (FORM GSTR-7) by the DDO, The DDO may also make use of the offline utility available on the GSTN Portal for this purpose.
(x) The DDO shall generate TDS Certificate through the GST Por FORM GSTR-7A after filing of Monthly Return.
Option 11 - Bunching of deductions and its deposit by the DDO
8. Option-I_ may not be suitable for DDOs who make large number of Payments in a month as it would require them to make large number of challans during the month. Such DDOs may exercise this option wherein the DDO will have to deduct the TDS from each bill, for keeping it under the Suspense Head. However, deposit of this bunched amount from the Suspense Head can be made ona weekly, monthly or any other periodic basis.
9. Following Process shall be followed by the DDO in this regard:
() The DDO shall prepare the Bill based on the Expenditure Sanction. The Expenditure Sanction shall contain the (a) Total amount, (b) net amount payable to the Contractor/Supplier/Vendor and (c) the 2% TDS amount of GST.
(ii) The DDO shat prepare the bill on PFMS (in case of Central Civil Ministries of Gol), similar Payment portals of other Ministries/Departments of Gol or of State Governments for submission to the Tespective payment authorities, (iii) Inthe Bill, it will be Specified
(a) the net amount payable to the Contractor; and (b) 2% as TDS
(iv) The TDS amount shall be Mentioned in the Bill for booking in the Suspense Head (8658 - Suspense: 00, 101-PAQ Suspense; xx — GST TDS)
(vy) The DDO will Tequire to maintain the Record of the TDS so being booked under the Suspense Head So that at the time of Preparing the CPIN for making payment on Weekly/monthly or any other periodic basis, the total amount could be easily worked out, (vi) At any Petiodie interval, when DDO needs to deposit the TDS amount, he will Prepare the CPIN on the GSTN Portal for the amount (already booked under the Suspense Head). (vii) While generating the CPIN, the DDO will have to select mode of payment as either (a) NEFT/RTGS or (b) OTC. In the OTC mode, a
(viii)
(x)
(x)
(xi)
(xii) the DDO will have to select the Bank where the payment will be deposited through OTC mode.
The DDO shall prepare the bill for the bunched TDS amount for payment through the concerned payment authority. In the Bill, the DDO will give reference of all the earlier paid bills from which 2% TDS was deducted and kept in the Suspense head. The DDO may also attach a certified copy of the record maintained by him in this regard.
The payment authority will pass the bill by clearing the Suspense Head operated against that particular DDO after exercising necessary checks, In case of NEFT/RTGS mode, the DDO will have to mention the CPIN Number (as beneficiary’s account number), RBI (as beneficiary) and the IFSC Code of RBI with the request to payment authority to make payment in favour of RBI with these credentials.
In case of the OTC mode, the DDO will have to request the payment authority to issue “A’ Category Government C heque in favour of one of the 25 authorized Banks. The Cheque may then be deposited along with the CPIN with any of branch of the authorized Bank so selected by the DDO, Upon successful payment, a CIN will be generated by the RBI/Authorized Bank and will be shared electronically with the GSTN Portal. This will get credited in the electronic Cash Ledger of the concemed DDO in the GSTN Portal. This can be viewed and the details of CIN can be noted by the DDO anytime on GSTN portal using his Login credentials.
(xili) The DDO should maintain a Register as per proforma given in Annexure ‘A’ to keep record of all TDS deductions made by him during the month. This Record will be helpful at the time of filing Monthly Return (FORM GSTR-7) by the DDO. The DDO may also make use of the offline utility available on the GSTN Portal for this purpose,
(xiv) The DDO shall file the Return in FORM GSTR-7 by 10® of the following month
(xv) The DDO shall generate TDS Certificate through the GSTN | in FORM GSTR-7A i
10. Departments in Central Government should instruct all its DDOs unde them to follow the above procedure for payment of GST TDS amount deducted from payments to be made to suppliers.
1. Difficulty, ifany, in implementation of this circular may please be brought to the notice of Department of Revenue.
Joint Secretary to the Government of India GOVERNMENT OF NATIONAL CAPITAL T! ELHI ERRIT!
5 DEPARTMENT OF TRADE & Taxes rene No.F.3(201)/Policy-GST/2018/45-4 Dated:2% |e9f ; Im To All Pr. Secretaries/Secreta ries/HoDs, Departments/Autonomous Bodies/Local Bodies, Govt. of NCT of Delhi.
Sub: Guidelines for deduction and deposit of TDS by the DDOs under GST Law.
Sir/Madam, Please find enclosed herewith Circular No.65/39/2018-DOR dated
14.09.2018 of Department of Revenue, Ministry of Finance, Government of India on the subject cited above for compliance.
Yours faithfully, Sls (RAJESH GOYAL) ADDL. COMMISSIONER, GST (STATE TAX) Encl: As above