VYAPAR a ai’ T BRANCH! BHAWAN, L.P.ESTATE, NEW DELHI-110 00:
No.F.3 (68)//Policy-GsT/2017/ 52 ° i I-30 Dated: Zager CIRCULAR No. R ._ 15/2018-GST ‘ef .Circular No. 53/2712018-GST of Central Tax} Subject: Clarification re; i u garding applicabili ’ P ility of GST , . for the manufacture of petrochemical and slieanal ys gc Pvitig \References have bi i i aa as es ina — © been received regarding the applicability of GST oh the petroleui Tr g ¢ manufacture of petrochemical and chemical products during th - ° ig the cour:
of continuous supply, such as Methyl Ethyl Ketone (MEK) feedstock, petroleum gases etc “ > S etc.
2s In thi i b in this context, it may be recalled that clarifications on similar issues for specific . products have already been issued vide Circular numbé er 12/12/2017-GST dated 26" eet baat eae Rinness — of India sir circular No. 08/2018-GST - ‘irculars apply mutatis mutandis to other cases involving same manner of supply as mentioned in these circulars. However, references have again been received from some of the manufacturers of other petrochemical ind chemical products for issue of clarification on ‘applicability of GST on petroleum gases, 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 (recipient of supply), and the remaining quantity is returned to the oil refineries. In this regard, an issue has arjsen 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 petrochemical and chernical products.
3. The GST Council in its 28" meeting held on 21.7.2018 discussed this issue and recommended for issuance of a general clarification for petroleum sector that in such transactions, GST will be payable. by the refinery on the value of net quantity of petroleum gases retained for the manufacture of petrochemical and chemical products.
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4. Accordingly, it is hereby clarified that, in the aforesaid cases, GST will be payable by antity of petroleum gases retained by the’ recipient petrochemical and chemical products. Though, the gases, when the the refinery only on the net qui manufacturer for the manufacture of refinery would be liable to pay GST on such returned quantity of petroleum . + wletfinal ald. be same i8 supplied by it to any other person. It is reiterated that this clarification Wo!
_— Go VERNMENT OF NATIONAL CAPITA DEPARTMENT OF TRADI VYAPAR BHAW, L TERRITORY : OF DELHI EA ¥ (POLIcy BRANCH). TAXES Al N, LP.ESTATE, NEW DELHI-110 002 No.F.3 (66)//Policy-GS1/2017/ 531-36 Dated: 2/-g-ip CIRCULAR No. 16/2018-Gs' Circular No Rajon pe ee (Ref .Circular No. 54/28/2048-GST of Central Tax) Subject: Classificati ili ppli ar . 2 ion of fertilizers supplied for use in the manuf:
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nufacture of other fertilizers References have been received i e regarding a clarification as t her si /hether le fertili ee 1 wi simple fertilizers, : OP (Murate of Potash) classified under Chapter 31 and supplied. for use i manufacturing of a complex fertilizer, are entitled to the concessional GST rate’ of 5% , as applicable in general to fertilizers (i.e. fertilizers which are cleared to be used as fertilizers). ° rs).
2.1 The-matter has been examined. Chapter C ii Fertilizers. The fertilizers are mostly used ees "i minditne, = nh es fertility, either directly, or by use in manufacturing of complex fertilizers. However, certain fertilizers and similar goods falling under this Chapter may be used for individual purposes like use of molten urea for manufacture of melamine and urea used in manufacturing of urea-formaldehyde resins ‘or organic synthesis.
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2.2 In the pre-GST regime, the concessional duty rate was prescribed for fertilizers falling _ under Chapter 31 of the Tariff (notification No. 12/2012-Central Excise).This concessional rate was applied to goods falling under Chapter 31 which are clearly to be useddirectly as fertilizers or in the manufacture of other fertilizers, whether directly or through the stage of an intermediate product.
3. In the GST regime, tax structure on fertilizers has been prescribed on the lines of pre- GST tax incidence. The wording of the GST notification except certain changes to meet the requirem licable ‘on the supply of goods whil fertilizers falling unde notification ‘is similar to the central excise ents of GST. These changes were le central excise duty was + heading 3102, 3103, CL .
- necessitated as GST is appl applicable on. manufacture of goods. Accordingly, net billing is done on the amount retained by the recipi 5s nS UACk tO the supplier. lhe ent, This clarification is issued in the context of the Goods and Service ‘Tax (GST) law only and past issues, if any, will be dealt in accordance with the law prevailing at the material time.
_ (H.Rajesh Prasad) : Commissi No.F.3 (66)//Policy-GST/2017/ S2S-3p Baa ee Dated: Beg Copy forwarded for information and necessaiy action'to:
. All Spl./Addl./Joint Commissioners, Department of v Trade and Taxes, GNCT of Delhi, Vyapar Bhawan |.P.Estate, New Delhi-02.
. Joint Director (IT), Department of: Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, |.P.Estate, New Delhi-02 for uploading the circular on the website of the department.
. The President/General Secretary, Sales Tax Bar-Association (Regd.), Vyapar’ Bhawan, |.P.Estate, New Delhi.
. All Assistant Commissioners/GSTOs Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, I.P.Estate, New Delhi-02.
. PS to the Commissioner, GST(State Tax), Department of Trade and Taxes, GNCT of Delhi Vyapar Bhawan, I.P.Estate, New Delhi-02.
Guard File.
ae , (Sad: 2/419, Assistant Commissioner (Policy-!)
3104 and 3105, oth , .
[S. No. 182A to oan ‘hose which are clearly not to be used as fertilizers me of the First schedule to the notification No.1/2017. ;
30.06.2017]. However, the fertilizers items falling under the abo :
are clearly not to be used as JSertilizer attract 18% ove menti notification‘No. 1/2017 State Tax (Rate)]. The inte:
GST to the fertilizers which are used directl attract 5% GST State Tax (Rate) dated ionedheadifhgs, which GST[S.No. 42 to 45 of the III schedule to the ntion has been to provide concessional rate of ly as fertilizers or which sed i " : ‘ are used in th manufacturing of complex fertilizers which are further used as soil or cr : ‘op fertilizers. The phi “other than clearly t ilizers” a ‘oth ly to be used as fertilizers” would not cover such fertilizers that are used for making complex fertilizers for use as soil or crop fertilizers, :
4. : ‘etce ae ae the fertilizers supplied for direct use as fertilizers, or supplied for use ii uring of other complex fertilizers for agricultural use(soil or crop fertilizers), will attract 5% IGST, - (H. Rajesh Prasady Commissioner, GST(State Tax) Dated: BI-B19.s Copy forwarded for information and necessary action to:
No.F.3 (66)//Policy-GST/2017/ § 3/-34 . All Spl./Addl./Joint Commissioners, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan |.P.Estate, New Delhi-02. .
. Joint Director (IT), Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, |.P.Estate, New Delhi-02 for uploading the circular on the website- of the department.
. The President/General Secretary, Sales Tax Bar Association (Regd.), Vyapar * Bhawan, I.P.Estate, New Delhi. Fi _ All Assistant Commissioners/GSTOs Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, I.P.Estate, New Delhi-02. i :
PS to the Commissioner, GST(State Tax) Department of Trade and Taxes, GNCT of Delhi Vyapar Bhawan, |.P.Estate, New Delhi-02.
Guard File.
N oe Onpg e a Nahe (Sadanand Sah ) Assistant Commissioner (Policy-1) Subject:
GOVERNMENT oF NATION DEPARTMEN VYAPAR BHAW.
recove’ AL CAPITAL TI T OF TRADE AND TAXES (POLICY BRANCH) AN, LP.ESTATE, NEW DELHI-110 002 No.F.3 (201)/Policy-Gsti2018/ BS U-sq ERRITORY OF DELHI Dated: Neg ce RCULAR, No. 17 12018-GST ircular No. 71/45/2014 8-GST of Central | Tax) - Clarifications of issues under GST related to casual taxable person and of excess Input Tax Credit distributed by an Input Service FecoverY of excess Input Tax Credit distributed by an Input Service distributor-Reg.
Representations have been received seeking clerification on certain issues under the GST laws. The same have been examined and the ef. fications on the same are as below: :
“Issue ification ——_ Whether the amount required to be deposited as advance tax while taking registration as a casual taxable person (CTP) should be 100% of the estimated gross tax liability or the estimated tax liability payable in cash should be calculated after deducting the due eligible ITC which might be available to CTP?
1, It has been noted that while applying for registration as a casual taxable person, the FORM GST REG-1 (S.
No. i1) seeks information regarding the “estimated net tax liability” only and not the gross tax liability.
2. It is accordingly clarified that the amount of advance tax which a casual taxable person is required to deposit while obtaining registration should be calculated after considering the due eligible ITC which might-be available to such taxable person.
AS per section 27 of the Delhi Goods and Services Tax Act, 2017 (hereinafter referred to as the said Act), period of operation by causal taxable person is ninety days with provision for extension of same by the proper officer for a| ri. it is Clarified that in case of long running exhibitions (for a period more than 180 days), the taxable person cannot be treated as a CTP and thus such person would be required to obtain registration as a normal taxable . De further” period not exceeding ninety days, Vari i ‘Ns 10US Yepresentations have been While applying for normal received for i =e ae extension of the | registration the said person should Oc Peyond the period of 180 upload a days, as mandated in law.
is miei we pe person, 2, granting him permission to use the Premises for the exhibition and the allotment letter/consent letter shall be treated as the proper document as a proof for his place of business,
3. In such cases he would not be required to pay advance tax for the purpose of registration,
4. Hes¢an surrender such registration ibition is over.
3, | Representations have been ording to Section 21 of the regarding the manner of recovery of |DGST Act where the ISD distributes excess credit distributed by an Input|the credit in contravention of the Service Distributor (ISD) in| provisions contained in section 20 of provisions | the DGST Act resulting in excess contained in section 20 of the DGST Act.
contravention of the distribution of credit to one or more recipients of credit, the excess credit so distributed shall be recovered from such recipients along with interest and penalty if any.
2. The recipient unit(s) who have received excess credit from ISD may deposit the said excess amount voluntarily along with interest if any by using FORM GST DRC-03.
3. If the said recipient unit(s) does not come forward voluntarily, necessary proceedings may be initiated against the said unit(s) und Section 3 oF 4 of the DGST Aa a) the case may be, FORM GST DRC-07 can b © used by the tax authorities in Such cases,
4. It is further Clarified that the IsD would also be liable to a general Penalty under the Provisions contained in section 122(1)(ix) of the DGST Act.
2, Difficulty, if any, in the implementation of this Circular should be br Branch, Trade & Taxes Department, Govt, of NCT of Delhi (H.Rajesh Prasady~ Commissioner, GST(State Tax) No.F.3 (204)//Policy-GST/2018/° 354-59 Dated: 24), 8 Copy forwarded for information and necessary action to:
a All Spl./Addl./Joint Commissioners, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan _1.P.Estate, New Delhi-02. - i 2, Joint Director (IT), Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, |.P.Estate, New Delhi-02 for uploading the circular on the website of 7 the department.
The President/General Secretary, Sales Tax Bar Association (Regd.), Vyapar Q Bhawan, I.P.Estate, New Delhi.
4, All Assistant Commissioners/GSTOs Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, I.P.Estate, New Delhi-02.
5, PS to the Commissioner, GST(State Tax) Department of Trade and Taxes, GNCT of Delhi Vyapar Bhawan, I.P.Estate, New Delhi-02.
6. Guard File.
ale ( Sadahand Sah ) Assistant Commissioner (Policy) i.
GOVERNMENT OF NATIONAL Cap} DEPARTMENT oF Th TAL TERRITORY OF DELHI ‘ADE AND T, (POLICY BRANCH) AXES AN, LP.ESTATE, NEW DELHI-110 002 No.F,3 (201)//Policy-GST/2018/ Sbo-Gs VYAPAR BHAW, Dated: 2-1\- 4g CIRCULAR NO/3/204 Frei NOES 12018-GST Ref :Circular No. 72146/2018-GST of Central Tax) Subject: Circular to clarify the procedure in respect of ret . ‘turn of time expired medicines-Reg. : pired drugs or Various representations have been received seeking clarification on the procedure to be followed in respect of return of time expired drugs or medicines under the GST laws. The issues raised in the said representations have been examined and to ensure uniformity in the implementation of the law across the field formations,:the Commissioner, powers conferred under section 168(1) of the Delhi'Goi (hereinafter referred to as the in exercise of its Is and Services Tax Act, 2017 “DGST Act”) hereby Clarifies the issue in succeeding paragraphs, 2, The common trade practice in the pharmaceutical sector is that the drugs or medicines (hereinafter referred to as “goods”) are sold by the manufacturer to the wholesaler and by the wholesaler to the retailer on the basis of an invoice/bill of supply as case may be. It issignificant to mention here that such goods have a defined life term which is normally referred to as the date of expiry, Such goods which have crossed their date of expiry are colloquially referred to as time expired goods and are returned back to the manufacturer, on account of expiry, through the supply chain,
3. It is clarified that the retailer/ wholesaler can follow either of the below mentioned procedures for the return of the time expired goods:
(A) Return of time expired goods to be treated as fresh supply:
a) In case the person returning the time expired goods is a registered person (other than a fo : g it is as a fresh composition taxpayer), he may, at his option, return the said goods by treat ferred to as the, “return.
s of which the goods The wholesaler or shall be eligible supply and thereby issuing an invoice for the same (hereinafter re!
supply”). The value of the said goods as shown in the invoice on the basi:
ier may be taken as the value of such return supply.
who is the recipient of such return supply, OD — were supplied earli manufacturer, as the case may be, a © Sk STedit supply subject to the fulg b) ere; (hereinafter Teferred to as “ITC”) of the tax levied on the said retumn ecified'in Section 16 of the DGST Act, d goods is a Composition taxpayer, he may y and pay tax at the tate applicable to a mt ere will not bi abil} recipient of return supply, © any availability of ITC to the iment of the Conditions sp, °) In case the person returnin i i ig the time expi i i expired goods is an ‘unregistered person, he may le said goods by issuing any commercial document swithout charging any tax on the Act. It is pertinent to mention here that the ITC whi scenario is the ITC availed on the return supply andi manufacture of such time expired goods.
required to be reversed in such the ITC that is attributable to the Mlustration: Supposedly, manufacturer has availed ITC of Rs. 10/- at the time of manufacture of medicines valued at Rs, 100/-, At the time of return of such medicine on the account of expiry, the ITC available to the manufacturer on the basis of fresh invoice issued by wholesaler is Rs. 15/-. So, when the time expired goods are destroyed by the manufacturer he would be required to reverse ITC of Rs. 15/- and not of Rs, 10/-, (B) Return of time expired goods by issuing Credit Note:
a) As per sub-section (1) of Section 34 of the DGST Act the supplier can issue a credit note where the goods are returned back by the recipient. Thus, the manufacturer or the wholesaler who has supplied the goods to the wholesaler or retailer, as the case may be, has the option to issue a credit note in relation to the time expired goods returned by the wholesaler or retailer, as the case may be. In such a scenario, the retailer or wholesaler may return the time expired goods by issuing a delivery challan. It may be noted that there is no time limit for the issuance of a credit note in the law except with regard to the adjustment of the tax liability in case of the credit notes issued prior to the month of September following the end of the financial year and those issued after it, b) It may further be noted that if the credit note is issued within the time limit specified in sub-section (2) of section 34 of the DGST Act, the tax liability may be adjusted by the cL if availed has reversed the ones Dat the person returniy urning the time expired goods has either ITC so availed against the goods being expired goods are i i pired g are returned beyond the time period specified in the sub-section (2) of section, 34 of the DGST Act and a credit note is issued consequently, declare such credit note on the common portal by the supplier issued the credit note) as tax liability cannot be adjusted in this case.
d) Further, where the time expired goods, retailer/wholesaler, are destroyed by the manufacturer, attributable to the manufacture of such goods, ' there is no requirement to (i.e. by the person who has which have been returned by the he/she is required to reverse the ITC in terms of the rovisions of clause (h) of subsection (5) of section 17 of the DGST Act, This has been iffustrated in table below:
Date of Supply | Date of return - of goods from Treatment in terms of tax liability & credit of time expired note manufacturer/ goods from wholesaler to retailer / wholesaler/ wholesaler retailer to wholesaler / manufacturer “Easel | 1" uly, 2017 | 20" September, | Credit note will be issued by the supplier 2018 (manufacturer / wholesaler) and the same to be uploaded by him on the common portal.
Subsequently, tax liability can be adjusted by provided the recipient such supplier (wholesaler / retailer) has either not availed the ITC or if availed has reversed the IT¢. | el.
Credit note will be issued by the supplier | (manufacturer / wholesaler) but there is no requirement to upload the same on the common portal, Subsequently tax liability cannot be adjusted by such supplier.
. It may be noted that th is ci i 3, It may at though this circular discusses the scenarios in relation to return of ds on account of expi i goods on account oF expiry of the same, it may be applicable to such other scenarios where the goods are returned on account of reasons other than the one detailed above.
4.Difficulty, if any, in the implementation of this circular should it to the Policy Branch, Trade & Taxes Department, Govt. of NCT of Delhi.
(Rajesh Praony Com sioner, GST(State Tax) Dated: Q-}\-) eS No.F.3 (201)//Policy-GSt/2018/ G60 -65- Copy forwarded for information and necessary action to:
. All Spl/Addl/Jeint Commissioners, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan |.P.Estate, New Delhi-02. " i 2, Joint Director (IT), Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, |.P.Estate, New Delhi-02 for uploading the circular on the website of the partment.
The President/General. Secretary, Sales Tax Bar Association (Regd.), Vyapar \“ Bhawan, |.P.Estate, New Delhi.
4, All Assistant Commissioners/GSTOs, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, |.P.Estate, New Delhi-02.
5, PS to the Commissioner, GST(State Tax), Department of Trade and Taxes, GNCT of Delhi Vyapar Bhawan, |.P.Estate, New Delhi-02.
6, Guard File.
ms ( Sadanand Sah) Assistant Commissioner (Policy) ( dle NAL PARTMENT OF APITAL NERRITORY OF DELHI VYAPAR BHADuICY (GsT) Branch : ‘AN: *LP.ESTATE:NEW DELHI-02 IN34-Yo F.No. 3(66)/Policy-GST/2017/ Dated: 30/01/2018 Circular No, 09/2018-GST Central Circular No, 72018-GST) 30 )04-J2018 (Ref:
Subject: Clarification on supplies made to the I indian Railways classifiable under any chapter, other than Chapter 86 — regarding.
Representations have been received that certain suppliers are making supplies to the railways of items classifiable under any chapter other than chapt. ‘er 86, charging the GST rate of 5%. ‘ The matter has been examined. Vide State Notification No. 1/2017 -State Tax (Rate) dated 30" June, 2017, read with State Notification No. 5/2017- State Tax (Rate) dated 30" June, 2017, goods classifiable under Chapter 86 are subjected to 5% GST rate with no refund of unutilised input tax credit (ITC). Goods classifiable in any other chapter attract the applicable GST, as specified under state notification No. 1/2017 State Tax (Rate) dated 30" June, 2017 or state notification No. 2/2017-State Tax (Rate) dated 30™ June, 2017.
The GST Council during its 25" meeting held on 18" January, 2018, discussed this issue and recorded that a clarification regarding applicable GST rates on various supplies made to the Indian Railways may be issued.
Accordingly, it is hereby clarified that e only the goods classified under Chapter 86, supplied to the railways attract 5% GST rate with no refund of unutilised input tax credit and e other goods [falling in any other chapter], would attract the general applicable GST rates to such goods, under the aforesaid notifications, even if supplied to ade Commissioner (GST) the railways.
f No. 3(66)/Policy-GST/2017 \MZ4-Uy Copy forwarded for inform:
1) 2) 3) 4) 5) 6) 72) Dated: 3e/01/ 2018 ‘ation and neces ‘i . All Spl/Addl/Jo ; ‘sary action to: y int Commissioners, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, LP Estate, New Delhi-02, Special Commissi ~ Oner (PR), Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, IP Est. ‘ate, New Delhi-02 for wide publicity of the contents of this circular.
Joint Director (IT), Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, LP. Estate, New Delhi-02 fo r uploading the circular on the website of the Department.
The President/Gener: al Secretary, Sales Tax Bar Association (Regd.), ‘Vyapar Bhawan, LP. Estate, New Delhi. All Assistant Commissioners/GSTOs, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, LP. Estate, New Delhi-02.
PS to the Commissioner, GST, Department of Trade and Taxes, GNCT of Delhi Vyapar Bhawan, LP. Estate, New Delhi-02.
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Aafel)po/8 (Sadqnand Sah) Assistant Commissioner (Policy)-V el -