Vasai Branch of WIRC of ICAI

Transcription

1 Vasai Branch of WIRC of ICAI Event : Two Days Mega Members Conference on GST Date & Day : 16 th October,2016 (Sunday) Subject : Job-work and E-commerce under GST Venue : Green Court Club (GCC), GCC International School Auditorium, Mira Road (east), Thane Presented by : CA Naresh Sheth October 16, 2016 CA Naresh Sheth 1

2 Preamble GST law is in draft form yet to prescribe important provisions and hence presentation needs to be revisited on enactment of GST law Legal provisions relating to Job work and E-commerce.: Section 43 A of CGST/SGST Act Section150, 151 and 152 of CGST/ SGST Act Job-work Section 43 B of CGST/SGST Act Section 43 C of CGST/SGST Act E-commerce Purpose of this presentation is to apprise participants of: Provisions relating to job work and e-commerce under GST its impact on trade and business Professional and legal challenges October 16, 2016 CA Naresh Sheth 2

3 Job Work October 16, 2016 CA Naresh Sheth 3

4 Job Work and Job worker [section 2(62)] job work means: undertaking any treatment or process by a person on goods belonging to another registered taxable person Term job worker shall be construed accordingly October 16, 2016 CA Naresh Sheth 4

5 Job work - Broad Scheme of taxation Job work U/s 43 A of CGST/SGST Act Other than u/s 43A No GST on: o Supply of raw material / semi-finished goods from principal to job worker o Supply of semi / finished goods from job worker to manufacturer GST on job work charges only GST on: o Supply of raw material / semi-finished goods from principal to job worker o Supply of semi / finished goods from job worker to manufacturer No GST on job work charges Valuation?? Transitional issues?? October 16, 2016 CA Naresh Sheth 5

6 Job work other than u/s 43A Tax Implications Factory / Warehouse (Gujarat) Raw Material CGST + SGST* FG / Semi FG CGST + SGST* Job-worker (Gujarat) FG IGST* * ITC allowable ** ITC not allowable Stockist (Maharashtra) *CGST + SGST Retailer (Maharashtra) **CGST + SGST End Customer (Maharashtra) Entry 5 of Schedule I [Section 3(c)] Supply of goods by taxable person to another taxable person or non taxable person in course or furtherance of business without consideration is also a taxable supply October 16, 2016 CA Naresh Sheth 6

7 Job work u/s 43A of CGST/SGST Act Commissioner may by special order and subject to conditions as may be specified allow Registered Taxable person (Principal) To send taxable goods without payment of tax To bring back goods - without payment of tax Job worker 1 To send taxable goods without payment of tax To bring back goods - without payment of tax Job worker 2 Customer October 16, 2016 Export No Tax Other than export Payment of Tax by Principal Export No Tax Other than export Payment of Tax by Principal Is sec 43 A order is a general permission (qua-assesse) or consignment specific? CA Naresh Sheth Customer 7

8 Job work u/s 43A of CGST/SGST Act Supply of goods by a principal to a job-worker u/s 43A not to be treated as supply of goods [Proviso to Schedule I] Supply of goods (after completion of job work) by registered job-worker [Explanation 2 to Schedule III]: shall be treated as the supply of goods by the principal (referred in section 43A); and value of such goods shall not be included in the aggregate turnover of the registered job worker Principal is responsible for accountability of goods including payment of tax thereon Goods are permitted to be supplied from place of business of job worker provided: Principal declares the place of business of job worker as his additional place of business October 16, 2016 CA Naresh Sheth 8

9 Supply Chain Job Work (LL) Current scenario: Raw material vendor (M.P.)- Bill to ship basis Principal manufacturer (Maharashtra) Supplies R.M. Job worker (Gujarat) Billing for Processing charges no service tax - Excise on MRP basis - Cenvat of excise duty on R.M. supply Principal (Maharashtra) GST scenario other than u/s 43A: Raw material vendor (M.P.) R.M. IGST IGST Principal manufacturer (Maharashtra) R.M. R.M. IGST Job worker (Gujarat) Billing for Processing charges no IGST - IGST on supply - ITC of IGST on R.M. supply Principal (Maharashtra) October 16, 2016 CA Naresh Sheth 9

10 Supply Chain Job Work done (LL) Current scenario: Principal Manufacturer (Gujarat) R.M. vendor Bill to ship basis (Gujarat) R.M No duty (214/86 - CE) GST scenario (u/s 43A): Job worker (Gujarat) R.M - IGST Semifinished goods -No duty (214/86 - CE) - No service tax Principal Manufacturer (Gujarat) finished goods - Excise duty on MRP basis - No VAT (form F) Agent/ stockist (Maharashtra) VAT Retailer (Maharashtra) Ram material vendor (MP) October 16, 2016 R.M IGST Principal Manufacturer (Gujarat) R.M No GST Job worker (Gujarat) Invoice for FG - IGST finished goods Agent/ stockist (Maharashtra) CGST + SGST Retailer (Maharashtra) CA Naresh Sheth 10

11 Job Work charges u/s 43A -Time of Supply General provision [Section 13 (2)] - Service Earliest of: a) Date of issue of invoice (if invoice issued within prescribed period) b) Date of completion of service (if invoice not issued within prescribed period) c) Date of receipt of payment (earlier of date when entered in books of account or credit in bank account) d) Date on which receipt of services is shown by recipient in his books (where above clauses are not applicable) Job work charges Date of issue of invoice Rs. 1,00,000 01/10/ /09/2016 Date of completion of job-work Date of payment Payment amount Time of Supply 10/09/2016 Rs. 40,000 10/09/ /10/2016 Rs. 60,000 01/10/2016 October 16, 2016 CA Naresh Sheth 11

12 Job Work other than 43A - Time of Supply General provision [Section 12 (2)] - Goods Earliest of following dates of/on: a) Removal of goods (where goods required to be removed); or b) Issue of invoice c) Receipt of payment (earlier of date when entered in books of account or credit in bank) d) Receipt of goods shown by recipient in his books Date of Goods made Issue of Receipt of Receipt of goods in Time of Supply removal by available to job invoice payment (job worker s) Principal worker (recipient) recipient s books 29/09/ /10/ /09/2016 NA 10/10/ /09/2016 October 16, 2016 CA Naresh Sheth 12

13 Job work supply- valuation Job work u/s 43A: No issue of valuation as there is no tax leviable on: Supply of RM/ semi-finished goods by Principal to Job worker Supply of semi-finished/ finished goods by Job worker to Principal If job worker is not related party, Tax will be leviable on Job-work charges on Transaction value If job worker is related party, valuation of job work charges would be under GST Valuation Rules Job work other than u/s 43 A: Supplied by Supplied to Particulars of supply Valuation Principal Job worker Raw Material/ semifinished goods Job-worker Principal Semi-finished/ finished goods No transaction value as no monetary consideration Rule 4: Value by comparison (cost of RM) No transaction value as no monetary consideration Rule 5: Computed value method: Value of RM taken by Principal + processing charges + any other incidental charges incurred by Job worker October 16, 2016 CA Naresh Sheth 13

14 Job Work Place of Supply Relevant provisions: Section 5(2) Where supply involves movement of goods, location of supply is place where movement of goods terminate for delivery to recipient Section 6(2) and 6(3) for cases not falling under section 6(4) to 6(15) place of supply is as under: Made to registered person location of such person Made to any other person location of recipient where record exists and location of supplier in other cases Service Section Location of Supplier Location of Receiver Place of supply Job work (u/s 43A) job work charges 6(2) Gujarat Maharashtra Maharashtra IGST Job work (other than 43A) From Principal to Job worker From Job worker to principal (supply of goods plus job work charges) 5(2) 5(2) Maharashtra Gujarat Gujarat Maharashtra Gujarat Maharashtra Tax IGST IGST October 16, 2016 CA Naresh Sheth 14

15 ITC Inputs sent by Principal for job work u/s 43A [Section 16 A(1)] Principal can avail ITC on inputs to the job worker after receiving in its premises Supplier Goods GST Principal Principal sends inputs to job worker Inputs Job worker Job worker completes the work FG/SFG Principal Finished/ Semi finished goods received back by Principal within 180 days from the date of their being sent out If not received back within 180 days, an equivalent amount of ITC availed to be paid along with interest specified u/s 36 ITC and interest can be reclaimed when received back after prescribed period What about of ITC of input services availed by job-worker? October 16, 2016 CA Naresh Sheth 15

16 ITC Inputs sent directly from supplier s place for job work u/s 43A [Proviso to Section 16 A(1)] Principal can avail ITC of inputs sent to the job worker directly from the place of supplier Supplier Supplier sends inputs directly to job worker (Bill to Ship to basis) Inputs Job worker Job worker completes the work FG/SFG Principal Finished/ Semi finished goods received back by Principal within 180 days from the date of receipt of inputs by job worker If not received back within 180 days, an equivalent amount to be paid along with interest specified u/s 36 ITC and interest can be reclaimed when received back after prescribed period October 16, 2016 CA Naresh Sheth 16

17 ITC Capital goods sent by Principal for job work u/s 43A [Section 16 A(2)] Principal can avail ITC on capital goods ( CG ) to the job worker after receiving in its premises Supplier CG GST Principal Principal sends CG to job worker CG Job worker Job worker completes the work CG Principal CG received back by principal within 2 years from the date of CG being sent out If not received back within 2 years, an equivalent amount of ITC availed to be paid along with interest specified u/s 36 ITC and interest can be reclaimed when received back after prescribed period October 16, 2016 CA Naresh Sheth 17

18 ITC Capital goods sent directly from supplier s place for job work u/s 43A [Proviso to Section 16 A(2)] Principal can avail ITC of capital goods ( CG ) to the job worker directly from the place of supplier Supplier Supplier sends CG directly to job worker (Bill to Ship to basis) CG Job worker Job worker completes the work CG Principal CG received back by principal within 2 years from date of receipt of CG by job worker If not received back within prescribed period, an equivalent amount to be paid along with interest specified u/s 36 ITC and interest can be reclaimed when received back after prescribed period October 16, 2016 CA Naresh Sheth 18

19 Job Work - Transitional Provisions October 16, 2016 CA Naresh Sheth 19

20 Transitional Provisions Inputs sent to job worker and processed goods removed [Section 150] Inputs (duly processed) received in factory/place of business of principal after appointed day Which were sent to job-worker in accordance with earlier law prior to appointed day Returned to said factory/place of business within 6 months/ permitted extended period (not exceeding 2 months) from appointed day No tax payable Provided October 16, 2016 Not Returned to said factory/place of business within 6 months/ permitted extended period of appointed day Tax payable by manufacturer if inputs liable to tax under CGST/SGST Act ITC? Manufacturer and Job-worker declare details of inputs held in stock by job-worker on behalf of manufacturer on appointed day in such form/manner/time as may be prescribed CA Naresh Sheth Returned to said factory/place of business after 6 months/ permitted extended period from appointed day Tax payable by job worker if inputs liable to tax under CGST/SGST Act This also applies to goods removed for testing, repairs, restoration etc. 20

21 Transitional Provisions Semi Finished goods sent and processed / finished goods returned [Section 151] Semi finished goods removed/despatched by principal to job worker for further processing in accordance with earlier law prior to appointed day Processed goods returned within 6 months/ permitted extended period (not exceeding 2 months) from appointed day No tax payable provided Manufacturer and Job-worker declare details of inputs held in stock by job-worker on behalf of manufacturer on appointed day in such form/manner/time as may be prescribed October 16, 2016 Manufacturer may transfer such goods to any registered taxable person within 6 months of appointed day as per earlier law Such transfer can be made by manufacturer: on payment of tax in India; or without payment of tax in case of exports CA Naresh Sheth Processed goods Not Returned within 6 months/ permitted extended period of appointed day Tax payable by manufacturer if said goods liable to tax under CGST/SGST Act ITC? Processed goods returned after 6 months/ permitted extended period of appointed day Tax payable by person returning said goods if inputs liable to tax under CGST/SGST Act 21

22 Transitional Provisions Finished goods [Section 152] Finished goods removed from factory/place of business for carrying out test or certain processes not amounting to manufacture prior to appointed day and such goods (after test or process) are returned/ received on or after appointed day Such goods returned to factory within 6 months/ permitted extended period from appointed day Such goods returned to factory after 6 months / permitted extended period of appointed day Such goods are transferred by manufacturer directly from job-workers premises within 6 months of appointed day October 16, 2016 No Tax Payable Tax Payable by person returning goods if such goods are liable to tax under CGST/SGST Act CA Naresh Sheth Such transfer can be made by manufacturer: on payment of tax where taxed in India; or without payment of tax in case of exports 22

23 Electronic commerce [Section 43 B & 43 C] October 16, 2016 CA Naresh Sheth 23

24 E-Commerce Definitions and other provisions Electronic commerce means [Section 43B(d)]: Supply or receipt of goods and/or services, or transmitting of funds or data Over an electronic network, primarily the internet, by using any of the applications that rely on internet, like but not limited to: o o Instant messaging o Shopping carts o Web services o Universal Description Discovery and Integration (UDDI) o File Transfer Protocol o Electronic Data Interchange (EDI) Whether or not the payment is conducted online; or Whether or not ultimate delivery of the goods and/or services is done by the operator October 16, 2016 CA Naresh Sheth 24

25 E-Commerce Definitions and other provisions Electronic commerce operator [Section 43B(e)]: Shall include every person who directly or indirectly owns, operates or manages an electronic platform that is engaged in: o That is engaged in facilitating the supply of any goods and/or services; or o In providing any information or any other services incidental to or in connection there with But shall not include persons engaged in supply of such goods and/or services on their own behalf Required to be registered irrespective of threshold [Clause 5 (viii) & (ix) of Schedule III]: Every electronic commerce operator Persons who supply goods and / or services, other than branded services, through electronic commerce operator October 16, 2016 CA Naresh Sheth 25

26 E-Commerce - Goods October 16, 2016 CA Naresh Sheth 26

27 E-commerce for goods Broad Scheme of taxation E-platform (market place) E-commerce - Goods Supplier trading through own website E-commerce operator as defined u/s 43B(e) of CGST/SGST Act Amazon, Flipkart, Snapdeal, etc Not an E-commerce operator as defined u/s 43B(e) of CGST/SGST Act Titan, Puma, Lakme etc Supplier (not E-platform) is a taxable person liable to GST on sale of goods Supplier obliged to register without threshold E-platform to collect TCS on sales proceeds collected on behalf of suppliers and to deposit with Government E-Platform to pay GST on platform /other charges October 16, 2016 CA Naresh Sheth Supplier (himself) is a taxable person liable to GST on sale of goods done through its own website Supplier obliged to register if exceeds threshold No TCS 27

28 E-platform Basic Model E-commerce Operator ( EO ) Supplier / Vendor Invoices goods at Rs.100 Sells and delivers goods to customer Customers *Platform Charges include: Listing fees Refund processing fees Payment handling fees October 16, 2016 CA Naresh Sheth 28

29 Basic Model Taxability under present regime Present regime: Transaction Person liable to pay Nature of Tax Tax on Sale of goods by vendor to consumer through EO Vendor VAT Rs. 100 E-platform charges (including warehouse charges) charged by EO to vendor Ecommerce platform Service Tax Rs. 20 October 16, 2016 CA Naresh Sheth 29

30 Basic Model Time of Supply under GST Transaction Sale of goods by vendor to consumer through EO E-platform charges charged by EO to vendor (cases where it is not continuous service) E-platform charges charged by EO to vendor (cases where it is Continuous service) TCS on amount received from customer towards supplies made by vendor Time of supply Earliest date of [section 12(2)]: Removal of goods issue of invoice Receipt of payment by supplier Recipient shows the receipt of goods in his books of accounts Earlier date of [section 13(3)]: Issue of invoice Receipt of payment When due date is ascertainable from contract: Due date of payment irrespective of invoice or payment date When due date not ascertainable from contract: Earlier of invoice date or payment date To collect at earlier of: Credit of amount to the account of supplier; or Payment of amount in cash or by any other mode October 16, 2016 CA Naresh Sheth 30

31 Basic Model Place of Supply Issue: Whether place of supply in respect of goods sold by vendor to customer through EO to be determined as per section 5(2) or 5(2A) of IGST Act? Scenario: Supplier is located in Maharashtra EO located in Karnataka Customer in Maharashtra Section Situation Location of Supply 5(2) Supply involves movement of goods by supplier or recipient or any other person 5(2A) Where goods are delivered by supplier (before or during their movement): by way of transfer of documents of title to the goods or other wise to a recipient or any other person on direction of third person (whether acting as an agent or otherwise) Location at which movement of goods terminates for delivery to recipient Maharashtra CGST & SGST to be levied Principal place of business of third person Karnataka IGST to be levied October 16, 2016 CA Naresh Sheth 31

32 Warehouse Model Place of supply u/s 5(2) of IGST Act Rule 5(2) Place where movement of goods terminates for delivery Customer in Maharashtra Supplier in Rajasthan IGST EO in Karnataka and have allotted warehousing space to Supplier IGST IGST CGST + SGST Customer in Rajasthan Customer in Karnataka Supplier may have to take registration in Karnataka Supplier will raise invoice on Warehouse in Karnataka under its own name and pay IGST October 16, 2016 On selling of goods to customers from warehouse, supplier to raise invoice on customers in Maharashtra and Rajasthan levying IGST and on customer in Karnataka levying CGST+SGST Supplier will be eligible to claim ITC of GST paid on supply to warehouse CA Naresh Sheth 32

33 Warehouse Model Place of supply u/s 5(2A) of IGST Act Rule 5(2A) Principal place of business of person under whose instructions goods are delivered by supplier Customer in Maharashtra Supplier in Rajasthan Supplier may have to take registration in Karnataka IGST Supplier will raise invoice on Warehouse in Karnataka under its own name and pay IGST EO in Karnataka and have allotted warehousing space to Supplier CGST + SGST Customer in Rajasthan Customer in Karnataka u/s 5(2A) Place of supply will be principal place of EO (Karnataka) Supplier is also having registration in Karnataka On selling of goods to customers from warehouse in Karnataka, supplier to raise invoice on customers in Maharashtra, Rajasthan and Karnataka levying CGST+SGST Supplier will be eligible to claim ITC of GST paid on supply to warehouse October 16, 2016 CA Naresh Sheth Is this a legislative intent????? 33

34 E-Commerce - Services October 16, 2016 CA Naresh Sheth 34

35 E-commerce for services Broad Scheme of taxation Service through own website E-Platform (other than aggregator) E-platform (aggregator model) Not an E-commerce operator as defined u/s 43B(e) of CGST/SGST Act TIOL, Taxsutra, Bharat Matrimony, IRCTC, airlines, etc Supplier (himself) is a taxable person liable to GST on services provided Supplier obliged to register if exceeds threshold No TCS October 16, 2016 E-commerce operator as defined u/s 43B(e) of CGST/SGST Act Book my show Supplier of main service is a taxable person liable to GST Supplier is obliged to register without threshold E-platform to collect TCS on sales proceeds collected on behalf of suppliers and to deposit with Government E-Platform to pay GST on platform /other charges CA Naresh Sheth E-commerce operator u/s 43B(e) Uber, Ola, etc providing service under their brand name Aggregator is a taxable person liable to register under GST irrespective of threshold Aggregator is liable to GST on main service (cab hire) Actual service provider (cab operators) not obliged to register and pay tax on cab hire 35

36 Aggregator Aggregator means [section 43B(a)]: A person who owns and manages an electronic platform; and By means of the application and a communication device Enables a potential customer to connect with the persons providing service of a particular kind Under the brand name or trade name of the said aggregator Brand name or trade name means [Section 43B(b)]: Brand name or trade name whether registered or not, i.e. to say, a name or a mark, such as: o an invented word or writing o Symbol, monogram, logo, label, signature Which is used for the purpose of indicating, or so as to indicate a connection, in course of trade, between: o A service and o Some other person using the name or mark with or without any indication of the identity of that person October 16, 2016 CA Naresh Sheth 36

37 Aggregator Branded services means [Section 43B(c)]: Services which are supplied by an electronic commerce operator Under its own brand name or trade name whether registered or not Aggregator shall be deemed to be supplier of branded services provided by him under his brand or trade name [Section 3(1)(4)] Aggregator is required to be registered irrespective of threshold [Clause 5 (x) of Schedule III] October 16, 2016 CA Naresh Sheth 37

38 Aggregator model OLA / UBER Pays tax Government Notifies nearest cab driver through Driver App. Retains its commission and tax collected and passes on balance fare Fare + tax Places request to ride with User App. Cab Driver Provides the cab services Customer October 16, 2016 CA Naresh Sheth 38

39 Aggregator Taxability under service tax regime Particulars Amount Fare paid by customer to OLA/Uber 100 Add: Toll Charges paid by OLA / Uber 60 Add : Service Tax (ST) charged by OLA/ Uber (15% on 40% of Rs. 160)* 9.60 Total amount paid by customer to OLA / Uber Less : Commission retained by OLA/Uber** (20) Less : ST collected from the customer paid to government (9.60) Balance paid to cab driver*** 140 * To be paid by OLA/Uber under reverse charge ** On commission of Rs. 20 retained by OLA/Uber, service tax will be paid by OLA/Uber at full rate i.e. 15% *** Cab operator not to discharge service tax on amount received October 16, 2016 CA Naresh Sheth 39

40 Aggregator Taxability under GST regime Particulars Amount Fare paid by customer to OLA/Uber 100 Add: Toll Charges paid by OLA / Uber 60 Transaction value u/s 15(1) and 15(2)(d) 160 Add : CGST & SGST charged by OLA/ Uber to customer (20% on Rs. 160) 32 Total amount paid by customer to OLA / Uber 192 Less : service charges retained by OLA/Uber (20) Less : GST collected from the customer paid to government (32) Balance paid to cab driver* 140 Aggregator deemed to be provider of cab services and hence liable to GST on gross amount on invoice date No abatement prescribed till date on cab operating services Cab operators are not cab service provider and hence not liable to GST on Rs. 140* October 16, 2016 CA Naresh Sheth 40

41 Aggregator model - Place of supply under GST Relevant Provisions: Section Situation Location of supply 6(10)(a) Passenger Transportation to registered person 6(10)(b) Passenger Transportation to other person Location of such person Location where passenger embarks on the conveyance for a continuous journey Issue: If partner of a firm or director of a company travels by OLA or Uber, who is the person receiving the service? Is it a business entity or an individual commuting in the cab? What evidence OLA/Uber need to obtain if it wants to take a position that service recipient is a ultimate entity bearing the expenses? October 16, 2016 CA Naresh Sheth 41

42 Aggregator model - Place of supply under GST Place of supply for Rent a cab service provided by cab operator to customer in following situations: OLA Director of Delhi He books a cab through Place of supply will OLA will have to registered registered company OLA and embarks cab be Delhi charge IGST on fare in Mumbai visiting Mumbai for business meeting at Mumbai airport for Nariman point [section 6(10)(a)] collected from him OLA Above director visiting He books a cab through Place of supply will OLA will have to registered Mumbai for relative s OLA and embarks cab be Mumbai charge CGST+SGST on in Mumbai marriage function at Mumbai airport for [section 6(10)(b)] fare collected from Oberoi Hotel, Nariman him point October 16, 2016 CA Naresh Sheth 42

43 Tax Collection at Source ( TCS ) October 16, 2016 CA Naresh Sheth 43

44 E-Commerce Tax collection at source (TCS) Section Particulars Obligations 43(C)(1) E-commerce operator to collect TCS from consideration for supply of goods/services at prescribed rate (except aggregator) 43(C)(3) Payment of TCS by e- commerce operator 43 (C)(4) Furnishing of statement of electronically by e- commerce operator To collect at earlier of: Credit of amount to the account of supplier; or Payment of amount in cash or by any other mode To pay to appropriate Government within 10 days after the end of month in which tax collected Statement to be furnish within 10 days from end of the calendar month giving details of : o supplies and amounts collected towards outward supplies effected through e-commerce operator for each supplier 43 (C)(5) Credit to supplier TCS paid deemed to be tax paid on behalf of supplier and such supplier eligible to claim credit thereof in his electronic cash ledger October 16, 2016 CA Naresh Sheth 44

45 E-Commerce Tax collection at source (TCS) Section Particulars Obligations 43(C)(6) Matching of details Following details to be matched (in manner and time prescribed) for the same or any preceding calendar month: Details furnished in the statement filed by operator 43(C)(7) 43(C)(8) 43(C)(9) Mismatch in aforesaid details Failure to rectify discrepancy Obligation of supplier in whose output tax liability amount is added Corresponding details of outward supplies furnished by the concerned supplier in his valid return Discrepancy to be communicated to both persons in the manner and time prescribed It shall be added to the output liability of the supplier for calendar month in which discrepancy is communicated Payment of tax and interest at rate prescribed on the amount so added from the date such tax was due till the date of its payment October 16, 2016 CA Naresh Sheth 45

46 E-Commerce Tax collection at source (TCS) Section Particulars Obligations 43(C)(10) and (11) Furnishing details to Joint Commissioner ( JC ) JC may by notice require operator to furnish following details within 5 working days of the date of service of such notice: Supplies effected through such operator during any period Stock of goods held by suppliers in godowns/warehouses managed by operators and declared as additional places of business by such suppliers 43(C)(12) Failure to furnish above information Operator liable to pay penalty of Rs. 25,000/- in addition action to be taken u/s 66 October 16, 2016 CA Naresh Sheth 46

47 Words of Caution Views expressed are the personal views of faculty based on his interpretation of model draft law Presentation is based on draft law (Model GST Law) Presentation needs to be revised and revisited on enactment of GST Law This educational meeting is arranged with a clear understanding that neither the Faculties nor Branch will be responsible for any error, omission, commission and result of any action taken by a member or anyone on the basis of this presentation. October 16, 2016 CA Naresh Sheth 47

48 THANK YOU October 16, 2016 CA Naresh Sheth 48