TMI Blog2019 (4) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... ct and therefore we find that the provisions of RCM u/s.9(4) of the CGST Act are applicable, irrespective of any threshold limit, right from 01.07.2017. Thus the benefit of exemption from payment of tax on RCM as provided u/s. 9(4) of the GST Act is not applicable from 01.07.2017 as claimed by the applicant - thus, the RCM is applicable on the transactions effected from 1.7.2017 to 12.10.2017. The issues, interest on the delayed payment of CGST / SGST and effect of taxation of circular dated 2nd May 2018, are not answered since the question has been withdrawn by the applicant. - GST-ARA-73/2018-19/B-166 - - - Dated:- 21-12-2018 - SHRI B. TIMOTHY, AND SHRI B.V. BORHADE, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act ] by M/s. FAMOUS STUDIOS LTD, seeking an advance ruling in respect of the following questions. 1. Whether the exemption from payment of GST on rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplies from an unregistered person provided such supplies is within the limit of ₹ 5,000.00 per day as per the Proviso to first para of the said notification. The said proviso is reproduced as below: Provided that the said exemption shall not be applicable where the aggregate value of such supplies of goods or services or both received by a registered person from any or all the supplies, who is or are not registered, exceeds five thousand rupees in a day. The said Proviso in the aforesaid notification dated 28-06-2017 (cited supra) has been omitted vide Notification No. 38/2017 CT (Rate) dated 13-10-2017, with the result all supplies from unregistered person are exempted without any threshold limit. The subsequent notifications resting with Notification No. 22/2018-Central Tax (Rate) dated 06-08-2018 has extended the exemption from tax liable under the reverse charge basis under section 9(4) till 30-09 2019. A copy of the notifications attached. The effect of the above notification dated 13-10-2017 may therefore be mis understood that the GST on reverse charge basis on intra-state supply is applicable from 1-07-2017 to 12-10-2017 if the aggregate amount of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2017-TRU dated 02-05-2018 on taxability of tenancy rights' under GST The Government of India issued a circular dated 2nd May, 2018 (cited above) stating that the transfer of tenancy rights is a taxable service under the GST law. In a transaction of transfer of tenancy rights from the applicant's tenant, who is a partnership firm, ws Movieman transferred his tenancy rights in favour of the applicant on 31 August, 2017 for The aforesaid circular dated 2nd May, 2018 States that the Tenancy rights is a service taxable under GST law. The aforesaid tenant is not a registered person under GST law and hence the liability to pay tax stands on the applicant under section 9(4) of the Act as being a registered taxable person under GST. Written Submission on behalf of the Applicant on 03.10.2018 1. The Applicant submits that the present application seeking Advance Ruling on the questions raised is not pending or decided in any of the proceedings in the case of applicant under any of the provisions of this Act and hence is eligible to decide under the section 97(2) of the CGST Act, 2017. 2. Applicant Company is a registered taxable person under the GST Act carrying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplies is within the limit of ₹ 5,000.00 per day as per the Proviso to first para of the said Notification. Relevant extract is reproduced below : Provided that the said exemption shall not be applicable where the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, exceeds five thousand rupees in a day. 2. This Notification shall come into force with effect from the 1st day of July, 2017. 7. The aforesaid Notification dated 28.06.2017 (cited supra) has been omitted vide Notification No. 38/2017-CT (Rate) dated 13.10.2017, with the result all the supplies from unregistered person are exempted without any threshold limit. The relevant part of the Notification is reproduced as below: In the said Notification, the proviso under Paragraph I shall be omitted , 2. The exemption contained in the Notification No. 8/2017-CentraI Tax (Rate) dated the 28th June, 2017 as amended by this Notification shall apply to all. registered persons till the 31 st day of March, 2018, 8. It would be seen that unlike referring the effective date of 1st July, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sence of a saving clause with regard to effective date. 12. The applicant further submits that in order to remove doubts, it would be necessary to refer section 6 of the General Clauses Act, 1897 deals with Effect of Repeal . The said Section 6 is analysed as under : Effect of repeal - Where this Act, or any (Central Act) or Regulation made after the commencement of this Act repeals any enactment hitherto made or hereafter to be made, then, unless a different intention appears, the repeal shall not (a) revive anything not in force or existing at the tune at which the repeal takes effect; or (b) affect the previous operation of any enactment so repealed or anything duly done or suffered thereunder; or (c) affect any right, privilege, obligation or liability acquired, accrued or incurred under any enactment so repealed; or (d) affect any penalty, forfeiture or punishment incurred in respect of any offence. committed against any enactment so repealed; or (e) affect any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability penalty, forfeiture or punishment as aforesaid; and any such investigat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ier decisions in Rayala Corporation Pvt. Ltd. (Supra) and Kolhapur Canesugar Works Ltd. (supra), the principle underlying section 6 of the General Clauses Act as saving the right to initiate proceedings for liabilities incurred during the currency of the Act will not apply to omission of a provision in an Act but only to repeal , omission being different from repeal as held in the said decisions. The observations of the court reproduced below: Though we find the submissions of the learned counsel to be forceful; we are constrained to follow the two decisions of the Constitution Benches of this Court in Messrs Rayala Corporation (P) Ltd. case (supra) and Kolhapur Canesugar Works Ltd. case (supra). This view has held the field for over three decades and reiterated even as late as two years ago. (Para 3 - page 3) 15. It would be clear from the aforesaid detailed discussions with regard to omission of any provision, unless any qualifying reference with regard to the effective date is referred, the said omission is effective from the date of original enactment / Notification from where the provision is omitted. 16. Without prejudice to the aforesaid cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... limit right from 01/07/2017 vide notification No. 8/2017 dated 28.06.2017 read with Notification 38/2017 dated 13/10/2017. Contention :- As per notification No. 08/2017 of CGST intra-state supplies of goods or services or both received by a registered person from any suppliers, who is not registered from the whole of the central tax leviable thereon under sub-section (4) of section 9 of the Central goods and Services Tax Act, 2017 (12 of 2017) are exempted. Provided that the said exemption shall not be applicable where the aggregate value of such supplies of goods or service or both received by registered person from any or all the suppliers, who are not registered, exceeds five thousand rupees in a day. As per notification No. 38 of 2017. The proviso under paragraph I of notification No. 8/17 dt. 20.06.2017 shall be omitted. The exemption contained in the notification No. 8/2017- Central Tax (Rate) dated the 28 June, 2017 as amended by this notification shall apply to all registered persons till the 3 1st day of March, 2018. Hence it is clear that the exemption is applicable only from 13.10.2017. Question 2: Whether any action for recovery of Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Advocate along with Ms. Prajkta Dhuri, Practioner appeared and made oral and written submissions. They have agreed with this authority that only question no 1 of the ARA is relevant for the purpose of Advance Ruling and not question Nos. 2,3, and 4 as per the provisions of Section 97 of GST Act, 2017. The Jurisdictional Officer Sh. Ganesh Tade, Sales Tax Officer (C-862), Nodal Division -III, Mumbai appeared and made written submissions. We had heard from both the parties. 05. OBSERVATIONS We have gone through the facts of the case. The issue put before us is in respect of a applicability of notification to the transactions effected during the course of business which would be on the lines thus - We find the applicant Company is a registered taxable person under the GST Act carrying on the business of Studio services such as Production of advertisement films and Post Production services as Video Editing, Sound recording, Animation, VFX, etc. and also renting out some of the premises to his tenants. One of the tenants has surrendered his Tenancy Rights in favor of the applicant vide agreement dated 31.08.2017 for a consideration of (Rupees fifty four lakhs o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts intra-State supplies of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the central tax leviable thereon under sub-section (4) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of2017): Provided that the said exemption shall not be applicable where the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, exceeds five thousand rupees in a day. 2. This notification shall come into force with effect from the 1st day of July, 2017. Notification No. 38/2017-Central Tax (Rate) New Delhi, the 13th October, 2017 G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r obligations or to impose new duties in respect of transactions already accomplished. (v) A statute which not only changes the procedure but also creates new rights and liabilities shall be construed to be prospective in operation, unless otherwise provided, either expressly or by necessary implication. Applying the Golden rule of construction and the principles laid down by the Apex Court as above to the facts of the present case we find no difficulty in arriving at the conclusion that there is nothing to show that the amendment notification No.38/2017 would have retrospective effect and therefore we find that the provisions of RCM u/s.9(4) of the CGST Act are applicable, irrespective of any threshold limit, right from 01.07.2017. Thus the benefit of exemption from payment of tax on RCM as provided u/s. 9(4) of the GST Act is not applicable from 01.07.2017 as claimed by the applicant. 05. In view of the extensive deliberations as held hereinabove, we pass an order as follows: ORDER (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-73/2018-19/B-166 Mumbai, dt.21-12- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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