Monday, 14 August 2017

Help the mankind

Recent natural calamity by way of floods in NE due to Brahmaputra river is known to evrybody. 21 districts of Assam hv been affected. There is also flood situation in other parts of the country like Punjab where 10000 acres of crop has been submerged in water and the situation in North Bihar is also alarming.
We al should contribute our best for the cause.
Inundated regions of West Bengal may also be included too. People are suffering there also very badly because of extensive flooding ......

It is accordingly proposed to contribute one day salary to the PM relief fund. The units of AIACEGEO may pl do needful in time bound manner, say within this month.

All members are, therefore, requested to at least donate 1day salary for the cause.

Sunday, 13 August 2017



Monday, 7 August 2017

Stagnation Committee Report

The Constitution of the Committee is as under:- 1. Sh. Balesh Kumar, ADG(HRM-I) Chairman 2. Sh. Sanjeev Kumar Singh, Additional Director, DGHRD Member 3. Sh. M.L. Meena, Deputy Secretary, Ad.II Member 4. Sh. Sanjai Kumar Srivastava, Asst. Commissioner , Ahmedabad GST- North (then Assistant Director ( HRM-II) Member 5. Sh. D.K Sharma, AAD(RR), HRM-I Member- Convener A preliminary meeting to discuss the issues was held on 25.07.16 by the Committee and following terms of reference were chalked out for consideration of the Committee:- i) To look into the possibilities and modalities for expediting the promotion of Superintendent (CE) Group-‘B’ to Group-‘A’ posts. ii) To examine the demand of Indian Revenue Service (Indirect Taxes) Officers Association for counting of their service rendered against Assistant Commissioner (Temporary) for further promotions. iii) To examine the removal of inter cadre disparities among the Cadre of Inspector(Central Excise) / Preventive Officer/ Inspector(Examiner) for promotion to I 4 Superintendent (Central Excise)/ Superintendent (Customs Preventive)/ Appraiser- as suggested by the Association. Subsequent meetings were held on 29.08.16, 15.09.16 & 16.11.16 wherein Representatives of the Associations were called for discussing their points in detail with all the Members of the Committee. During the course of meeting held on 29.08.16(M-1), the Chairman of the Committee raised following issues:- a) Whether the All India IRS(Indirect Taxes) Officers Association represents all the three streams i.e. Superintendent(Central Excise),Superintendent(Custom Preventive) and Appraiser from whom promotions to the 2118 posts of Assistant Commissioner (Temporary) were made; b) Whether the Association claims to be representing the interests of Superintendent(Central Excise),Superintendent (Custom Preventive) and Appraiser; c) Suggest solutions within the existing rules, regulations and procedures and; d) If such measures are not adequate, then what rules and regulations need to be changed and in what manner. Response of the representatives of the Association were as under: a) Association represents officers promoted from the feeder cadres of Superintendent (Central Excise) and Superintendent (Customs Preventive) and the Association does not represent Appraisers promoted to the post of Assistant Commissioner (Temporary). The Association believes that the cadre of Appraiser has not stagnated in the Department and hence they are not representing the Appraisers promoted as Assistant Commissioner (Temporary). b) While they do not directly represent the 3 feeder cadres which are promoted to the post of AC(Temporary), however, to the extent that improvement of prospects in promotion to the promotee Assistant Commissioner from feeder cadres of 5 Superintendent (Central Excise) and Superintendent (Customs Preventive) occur, the 2 feeder cadres will benefit, hence they indirectly represent Superintendent (Central Excise) and Superintendent (Customs Preventive). c) All out efforts will be made to explore the avenues for improving promotional prospects within the existing rules. It appears that due to historical reasons, the Committee may be required to look for solutions beyond the existing rules. d) Yes, the solution needs to be looked at by relaxing /changing the existing Rules particularly in view of past precedents within the CBEC.
The Association also submitted written submissions vide their letter dated 23.08.16 (R-2) and also on 29.08.16 (R-3) which were taken on record. Further, during the course of meeting held on 15.09.16 (M-2), the Representatives of the Association submitted further written submissions in continuation to their earlier submissions dated 23.08.16 (R-2) which are as under:- 1. Non review of Recruitment Rules S/Shri B.A Chakravarthi and S.K Patil submitted that the Recruitment Rules (RRs) of IRS Group-‘A’ were not reviewed every 5 years as per the DOPT instructions which has led to substantial injury to the career progression of Central Excise officers vis-à- vis the undue and unfair progression of the cadre of Examiner/Appraiser due to the ratio of sanctioned strength of the feeder cadres not getting applied for promotion from Group-B to Group- A. 2. Discriminatory Eligibility criteria for the Examiners/ Appraisers They submitted that it cannot be denied that the difference in eligibility criteria for Examiner for promotion as Appraiser has been a contributory factor for their quicker 6 promotion to Group-‘A’ which is evident from the fact of regularization in Junior Time Scale post. 3. Discrimination in reckoning of Retired Officers They submitted that while for regularization of Ad-hoc promotions for vacancy years 1997-1998 onwards, the Board correctly deleted the retired Appraisers but inexplicably did not delete the Retired Superintendent of Central Excise and Superintendent of Customs. Therefore, only serving and eligible officers as on the date of review DPC should have been considered from all three Group-B cadres. 4. On weightage of service rendered as Superintendent Central Excise while making promotion to the post of Assistant Commissioner(JTS) They submitted that weightage of service rendered in the feeder cadres needs to be reckoned withwhilepromoting as is done in the case of All India Services like IAS, IPS & IFS. Since three members of the Committee were not present so the meeting could not discuss the points raised by the Association. The concluding meeting with the Association in the presence of all Committee Members was conducted on 16.11.16 (M-3) wherein all the written submissions given during the course of meetings were elaborately discussed among the Members and the points raised by the Association as well as clarifications sought by the Committee are briefly mentioned as under:- The representatives of the Association narrated the historical background of stagnation of Superintendent, Central Excise in comparison to the cadre of Appraisers. They, inter-alia, emphasized the following suggestions for consideration by the Committee, so that stagnation in the grade of Superintendent, Central Excise can be reduced:- 7 a. Parity with the Examiners/ Appraisers in promotion to Group-A posts. b. Consideration of combined length of service in Group-‘B’ Gazetted and Non Gazetted grade as the criteria for promotions to Group-A posts. c. Introduction of the concept of weightage of service in the feeder Group ‘B’ Gazetted grade for seniority in Group A Grade on promotion. d. Total length of service in Group ‘B’ Non-gazetted and Gazetted grades should be taken into account for fixing seniority in Superintendent Grade. e. Superintendents of Central Excise, who are getting pre-revised PB-3 GP Rs. 6600 as part of MACP Scheme, should be directly promoted to Senior Time Scale grade posts. f. Seek ‘One-time Relaxation’ to promote only the stagnated Superintendents of Central Excise against the 2118 temporary posts until parity with Examiners/ Appraisers is obtained. g. Direct recruitment percentage should be reduced from existing 50% of annual vacancies in Junior Time Scale (JTS). It may be 66.33% by promotion and 33.33% by direct recruitment. 3.1 Elaborate discussions were made on all the above points by the Representatives of the Association as well as by other Members of the Committee. All the points relating to reduction in stagnation of promotion of Superintendent of Central Excise were discussed in detail by the Members. Certain clarifications were asked for from the representatives of the Association. 3.2 On being asked if the Association had any supporting DoP&T guidelines to consider combined length of service in Inspector + Superintendent Grade for fixing seniority in Superintendent Grade, the Association representatives informed that no such 8 guidelines are readily available with them. But, they will find out the same and provide to the Committee. 3.3 During the course of discussion, it was pointed out that prior to fixation of ratio of 3 feeder cadres i.e. Superintendents Central Excise (CE), Superintendents Customs Preventive, Appraiser (6:1:2) in the year 1996, the eligibility for promotion from Group-B Gazetted to JTS in Group ‘A’ was being made on the basis of length of service rendered in Group-B Gazetted grades. However, Association of Superintendents of Central Excise filed a case in 1988 for fixation of ratio, in place of the length of service for promotion from Group-B Gazetted to JTS in Group ‘A’, which finally resulted in the judgment by the Hon’ble Supreme Court in the year 1996 fixing ratio of 6 (Supdt. Central Excise): 1 (Supdt. Custom Preventive) : 2 (Appraiser). 3.4 Association requested that the existing promotion quota of 13 (Supdt. Central Excise) : 2 (Supdt. Custom Preventive) : 1 (Appraiser) should be implemented with retrospective effect. The Committee stated that it might not be possible, as the Hon’ble Supreme Court had not given any such directions. It was also noted that the 1996 judgment of the Hon’ble Supreme Court was implemented w.e.f. 1980, because there was a clear direction of the Hon’ble Supreme Court. Shri Ansari, US (Ad.II), a special invitee to the meeting, informed that in its order in a SLP, the Hon’ble Supreme Court has already stated that the ratio cannot be implemented with retrospective effect. 3.5 Chairman of the Committee also informed the Association that lowering of direct recruitment quota from existing 50% of annual vacancies in JTS may not be acceptable to DoP&T, as it will alter the attributes of IRS (C&CE), as an organised Central Group ‘A’ Service.
3.6 Sh. Ravi Malik, Secretary General of All India Association of Central Excise Gazetted Executive Officers also met the Committee members on 03-05-2017 and discussed certain issues relating to stagnation in promotion of Group-B Superintendent Central Excise. The Chairman of the Committee informed Sh. Ravi Malik to submit detailed 9 representation on all the issues along with supporting documents for further examination by the Committee. Subsequently, the All India Association of Central Excise Gazetted Executive Officers submitted representation dated 8.05.17 (R-4) wherein they pointed out the following issues:- (i) The acute stagnation and the financial losses being faced by Group-B officers in Central Excise and Customs compared to their counterparts in CBDT and CSS. Though they are recruited through a common competitive examination conducted by SSC, the promotional avenues of the aforesaid Departments differ vastly. However, 2118 temporary posts in Junior Time Scale were recommended in CR 2013 (in CBEC) but it could not provide a permanent solution to the problem of stagnation in Group-B as no real financial or pension benefit is provided to them after superannuation and hence, it has been suggested to introduce departmental examination for promotion to higher grade and undertaking periodic cadre reviews. (ii) The erstwhile ACP Scheme of 1999 and MACP of 2008 are also inadequate to meet the legitimate aspirations of Inspector grade officers in CBEC. As per ACP Scheme, the direct recruit Inspectors of CBEC get pay scale of the post of Assistant Commissioner (Grade Pay of Rs.5400 in PB-3) as second financial upgradation after 24 years of service whereas in MACP, these Inspectors reach this pay scale only after 30 years of service. Therefore, they have suggested replacing the MACP scheme with the NFU scheme so that Inspectors of CBEC may be granted batch wise non-functional pay scale parity with Assistants of CSS based on the precedent of the grant of non-functional upgradation to Group-‘A’ officers vide OM No. AB-14017/64/2008-Estt.(RR) dated 24- 04-2009 to remove the issue of stagnation in Group-A Services wherein it has been stated that: “Whenever an IAS officer is posted at the Centre to a particular grade carrying a specific grade pay in PB 3 or PB 4, the officers belonging to batches of Organized Group A Services that are senior by 2 years or more and have not been promoted to 10 that particular grade would be granted the same grade on non functional basis from the date of posting of the IAS Officer in that particular grade at the Centre”. Hence, a similar provision should be adopted in CBEC to solve the problem of acute stagnation in CBEC in the cadre of Inspectors and Superintendents.
4.0 The Chairman of the Committee after discussion made out following points relating to stagnation, which could be examined while preparing recommendation to the Board:- (i) It is an accepted fact that there is stagnation in the cadre of Superintendent, Central Excise. (ii) Suggestions to remove stagnation provided by the representatives of the Association will be examined in detail by the Committee. (iii) The Association was informed that it may not be possible to accede to all the points, but the points which are workable / viable can be examined as per the guidelines / instructions issued by the DOPT from time to time on the subject issue and the recommendations accordingly made in the report. (iv) Solutions suggested by the Committee and accepted by the competent Authority shall apply prospectively and not retrospectively. The Association vide their letter stated 18.12.16 (R-5) and 19.12.16 (R-6) submitted a copy of the judgement dated 18.2.14 of the Honourable Supreme Court in the case of State of Sikkim vs AdupTsheringBhutia and others (Civil Appeal No.2446/2014) in support of Para 3.2 of the minutes of the meeting held on 16.11.16 which has already been reproduced in Para 3.2 of the first section (Background) of this Report. The Association have submitted certain other points for consideration before finalisation of the recommendations of the Committee and they have also requested that they may also be invited while finalising the recommendations.

 11 OBSERVATIONS OF THE COMMITTEE: Reasons for Stagnation in promotion of Group B Executive Gazetted cadre and in particular in the cadre of Superintendent Central Excise has been looked into. It is observed that while there is stagnation in the Central Excise Group B Executive Gazetted Cadre, it is also noted that there is relative stagnation of Superintendent Central Excise and Superintendent Customs Preventive Cadre vis-à- vis the cadre of Appraisers in promotion to Group-A post. Recruitment to the posts of Inspector Central Excise, Preventive Officer & Examiner is made through a common Competitive Examination conducted by the Staff Selection Commission. However, there is disparity in promotion from the grades of Inspector to the next higher post i.e. Superintendent Central Excise, Superintendent Customs Preventive & Appraiser due to different provisions of RRs. The qualifying service required for promotion to the posts of Superintendent Central Excise& Superintendent Custom Preventive is 8 years whereas for Appraisers it is 3 years. This difference in qualifying service in turn caused disparity in promotion to the next higher grade of Assistant Commissioner (Gr-A) post. Following promotion orders issued in the grade of Assistant Commissioner clearly shows the relative stagnation of Superintendent Central Excise as compared to the post of Appraiser:- (a) Analysis of Promotion Order of Assistant Commissioner issued in October- 2014 from the cadre of Superintendent Central Excise and Superintendent Customs Preventive (Promotion order of June-2015 from the post of Appraiser) shows that they were recruited in the following year as Inspector (CE), Customs Preventive Officer & Examiner. Inspector ( CE) of Year (1977, 1978,1980,1982,1983 & 1984) Preventive Officer (PO) of Year (1980, 1986 & 1988) Examiner of Year (1995 & 1996) R 12 (b) Similar analysis from Promotion Order issued in March-2017 for promotion as Assistant Commissioner, reveals that the position is as under:- Inspector (CE) of Year (1983, 1984 & 1985) Preventive Officer of Year (1992 & 1993) Examiner of Year (1998 & 1999) It is obvious that the Superintendent of Central Excise are lagging behind in promotion as compared to the cadre of Appraisers, which has led to a situation whereby the Examiners of the same SSC exam become the reporting officers of the Inspectors and Preventive Officers (POs) selected from the same exam. While the Inspector of Central Excise gets only one promotion and at the most two promotions in their careers, Examiners get three to four promotions. The Association has submitted that while regularization of Ad-hoc promotions for the vacancy years 1997-98 onwards, Board rightly deleted the Retired Appraisers but inexplicably did not delete the Retired Superintendent of Central Excise and Superintendent of Customs. The matter has been examined in details and it is found that the contention of the Association on the above point is not correct. The Association failed to submit DoP&T guidelines in support of the contention made by them as quoted in Para 3.2 of the first section of this Report. However, it is submitted that judgement dated 18.02.2014 of the Hon’ble Supreme Court in the case of STATE OF SIKKIM AND OTHERS Vs ADUP TSHERING BHUTIA AND OTHERS relates to the validity of the action taken by the State for fixation of seniority and the integration of the Services. 13 REASONS FOR STAGNATION he major factors responsible for stagnation in the cadre of Group B Executive Gazetted & relative stagnation of Superintendent Central Excise and Superintendent Customs (Preventive) are as follows: 1. Discrimination in Recruitment Rules of Superintendent Central Excise (CE), Superintendent Customs Preventive (CP) and Customs Appraisers The main reason for relative stagnation in promotion of Superintendent (Central Excise) to Group-A post as compared to Appraisers is on account of differentiation in qualifying service for promotion to Group B Gazetted posts from Group ‘B’ Nongazetted posts.. The Recruitment Rules (RR) of Superintendent (CE) notified by GSR No.1111 dated 27.12.1986, and of Superintendent (CP) notified vide GSR No.468 dated 8.06.93 provide for promotion from the grade of Inspector/Preventive Officer to the grade of Superintendent(Central Excise)/Superintendent(Customs Preventive) on having 8 years of regular service in the grade of Inspector Central Excise/ Inspector (Preventive Officers) whereas for promotion to the grade of Appraisers Customs, the Examiners are required to have 3 years of regular service. 2. Zonal Cadre Controlling Authority disparity in promotion from the grade of Inspector (Central Excise) to the grade of Superintendent (Central Excise) There are 15 Cadre Controlling Authorities (CCAs) for Inspector in Central Excise, 5 for Preventive Officer and 3 for Examiners all over India to which direct recruit Inspectors CE/ Preventive Officer / Examiner are allocated on the basis of competitive examination conducted by the Staff Selection Commission. All CCAs have been allocated sanctioned strength based on the workload. Promotions to the post of Inspector (CE)/ Preventive Officer/ Examiner are also made by the concerned CCAs from the feeder cadres prescribed in the Recruitment Rules. The variation in the promotional prospects to the rank of the Superintendent Central Excise, Superintendent Customs Preventive and Customs Appraiser can be seen from T 14 the tables given below. The table clearly depicts that there is disparity in promotion among the Cadre Controlling Authorities. However, such Inter CCA disparities are maximum for the stream of Inspector Central Excise and minimum for the stream of Examiner. INSPECTOR CENTRAL EXCISE S.NO. NAME OF THE CCA SUPERINTENDENT (CE) SANCTIONED STRENGTH INSPECTOR SANCTIONED STRENGTH Last batch of Inspector promoted as Supdt. 1 LUCKNOW 936 1286 2001 2 RANCHI 490 604 2002 3 MUMBAI 2470 2901 2002 4 BANGALORE 1118 1380 2007 5 COCHIN 439 687 2002 6 DELHI 1815 2235 2006 7 CHANDIGARH 565 689 2007 8 CHENNAI 1474 2066 2005 9 JAIPUR 417 552 2002 10 BHOPAL 718 968 2002 11 HYDERABAD 1023 1352 2002 12 KOLKATA 1221 2124 2001 13 SHILLONG 372 658 1997 14 BHUBANESHWAR 338 337 2008 15 VADODARA 1722 2160 2009 15 PREVENTIVE OFFICER NAME OF THE CCA SUPDT. (P)SANCTION ED STRENGTH PO SANCTIONED STRENGTH LAST BATCH OF PO PROMOTED AS SUPDT.(P) CHENNAI 565 688 2009 VIZAG 72 112 2005 COCHIN 135 181 2008 Part MUMBAI 1410 1587 2008 Part KOLKATA 206 402 2006 Part TOTAL 2388 2970 EXAMINER NAME OF THE CCA APPRAISERSANCTIONED STRENGTH EXAMINER SANCTIONED STRENGTH LAST BATCH OF EXAMINER PROMOTED AS APPRAISER CHENNAI 383 434 2012 MUMBAI 622 951 2009 (PR 2012 Part) KOLKATA 189 210 2013 TOTAL 1194 1595 The following inferences can be drawn from the above tables: (a) There is difference in promotional prospects among the three Cadres of Inspector Central Excise, Preventive Officer and Examiner. (b) There is difference in promotional prospects of officers of the same stream viz. Inspector Central Excise, Preventive Officer and Examiner depending upon to which Cadre Control Authority he belongs. 16 (c) The Inter CCA difference in promotional prospects is the most among Inspector Central Excise followed by Customs Preventive Officers and the least among the Examiners. From these inferences, it is observed that promotion to the grade of Superintendent (Central Excise)/ Superintendent (Customs Preventive)/Appraiser in all the CCAs are not on uniform basis. The variation is more distinct in the case of Inspector to Superintendent Central Excise promotionin as much as in few of the CCAs, the Inspector CE of the Batch 2005 (Delhi) has been promoted to the post of Superintendent CE whereas in other CCAs, the Inspector CE of Batch 1994 (Shillong) is yet to get promoted to the grade of Superintendent CE. Further, the Inspector of Shillong CCA who will be promoted later on will be placed much below the officers of Delhi CCA in the integrated all India Seniority list of Superintendents. Such officers may not get further promotion to the grade of Assistant Commissioner. 3. Litigation Another important reason for stagnation of Superintendent Central Excise for promotion to Group-A post is related to litigation. An important milestone in this regard was the Judgement dated 22.11.1996 by the Hon’ble Supreme Court in the year 1996 (All India Federation of Central Excise etc. Vs Union of India and Ors W.P. (Civil 306/1988 [1997(1)SCC 520]when the ratio for promotion of the three feeder Cadres i.e. Superintendent Central Excise: Superintendent Customs Preventive: Appraiser was fixed at 6:1:2 respectively. The IRS Recruitment Rules for the year 1987 were amended incorporating the above Court fixed ratio for the three feeder cadres. This ratio has further been amended in the year 2012 to 13:2:1 for Superintendent Central Excise: Superintendent Customs Preventive: Appraiser, after another judgment dated 03.08.2011 of the Hon’ble Supreme Court (SP Dudeja and Ors Vs Union of India and Ors C.A. No. 1198/2005). The Appraisers Association have also been involved in multiple litigations, which also led to slowing down of promotion from Group-B to Group-A. 17 3.1. Litigation on account of Reservation A large no. of cases have been filed by various Association/Individuals of SC/ST and General category persons relating to reservation in promotions. On the issue of reservation, the Constitution Bench of the Hon’ble Supreme Court issued judgement dated 19.10.06 in the matter of M. Nagaraj and others vs Union of India and others (AIR SC 71 W.P. [CIVIL] 61/2002). The Constitution Bench of the Hon’ble Supreme Court in the said judgement stated that the constitutional amendments Articles 16(4A) and 16(4B) do not alter the structure of Article 16(4) of the Constitution. These amended Articles 16(4A) and 16(4B) retain the controlling factors or the compelling reasons, namely, backwardness and inadequacy of representation which enables the States to provide for reservation keeping in mind the overall efficiency of the State Administration under Article 335 of the Constitution. A number of Applications have been filed before the Hon’ble Central Administrative Tribunal (CAT). The OAs were filed by both the Associations viz. General Category Officers’ Associations as well as Reserved Category Officers’ Association for/against the implementation of the above judgement. While promoting Officers from Group B to Group-A in the Department for Vacancy year 2014-15 onwards further O.As were filed before various Benches of the Hon’ble Tribunal. The Department took a decision to request for transfer of 14 OAs filed before various Benches of CAT to the Principal Bench, CAT, New Delhi and tag 7 OAs filed in the Principal Bench, CAT, Delhi, for uniformity in decision.The order dated 03.06.16 of Principal Bench, CAT, New Delhi has laid down certain principles for promotions. 3.2. N.R. Parmar Case regarding fixation of seniority of direct recruit and promotee officers Another series of cases arising out of implementation of the judgement dated 27.11.2012 of the Hon’ble Supreme Court in N.R. Parmar Vs. Union of India (C.A. No. 7514/15 of 2005) relates to dispute in fixation of seniority between Direct Recruited 18 and Promotee officers. These cases before the Hon’ble Tribunal/Courts have had impact in promotion from Group B to Group A. 19 RECOMMENDATIONS n view of the aforementioned issues the following suggestions are being given for ameliorating the stagnation in the Group B Executive Gazetted cadre.

1. Continuation of 2118 temporary posts of Assistant Commissioner: In the Cadre Restructuring (CR) of the CBEC done on 18.12.13 (O-1), 2118 temporary posts of Assistant Commissionerwere created with a view to mitigate the stagnation in the Group ‘B’ Gazetted Executive grades. Resultantly a number of Group ‘B’ Gazetted Executive Officers (Superintendent(C.E)/ Supdt. Cus. (P)/ Appraiser) have been promoted to the post of Assistant Commissioner in the years 2014, 2015, and 2017. This has resulted in mitigation of stagnation to some extent. However,these posts were created in December 2013 for a period of 5 years only from the date of creation and will cease to exist in December 2018. Since these posts were created to mitigate the stagnation of Group-B officers as well as for the purpose of realisation of additional revenue to the Government Exchequer, continuation of 2118 Assistant Commissioner (Temporary Posts) for further period of 5 years may be considered keeping in view the functional requirements of the Department, particularly due to the introduction of Goods and Services Tax with effect from 01.07.2017.

2. Removal of disparity in qualifying service from Inspector to Superintendent: The existing Recruitment Rules for the post of Supdt Central Excise and Supdt Customs (Preventive) provide 8 years of qualifying service in the grade of Inspector Central Excise/Preventive Officer, whereas for promotion to the post of Appraiser the qualifying service is 3 years in the grade of Examiner. To remove this disparity in qualifying service, while drafting RRs for the posts of Supdt CE, Supdt CP and Appraisers, the qualifying service for the feeder cadres i.e. Inspector CE, PO and Examiner has been proposedas the same for all the feeder cadres. I 20

3. Promotion prospects to the Group B Executive Gazetted cadre across the CCAs need to be equalized: While, on the one hand, Inspector(CE) of certain CCAs are becoming Superintendent (CE) in 8-9 years, on the other hand for other CCAs promotions are taking 15-20 years. This needs to be corrected. While the situation across the CCAs is better for promotion to Superintendent Customs Preventive, attempt should be made to equalize the opportunity here as well. With respect to promotion to Appraiser the prospect across the CCAs is more or less equal. It may therefore be necessary to consider moving the vacant posts from one CCA to other. This point may also be taken care of in the ensuing Cadre Re-structuring.

4. Merger of the three cadres of Inspector (CE), Inspector (PO), Inspector (Examiner) into one common cadre of Inspector (Indirect Taxes& Customs): The introduction of Goods and Services Tax (GST) w.e.f. 1 st July 2017 has caused the nomenclature of Central Excise / Service Tax Department to be changed. At present, the posts of Inspector (CE), Inspector(PO),Inspector( Examiner) are being filled up through the same examination conducted by the Staff Selection Commission(SSC) andthrough promotion.The Central Board of Excise & Customs vide B.M.B. No. 72/95 dated 16.01.1996 (BMB-1) had decided to merge the three cadres. It is again proposed that prospectively recruitment should be made for the single cadre at the level of Inspector to be renamed as Inspector (Indirect Tax & Customs). The same officer will be exposed to functioning in the different wings of the Department viz. Customs, GST and Central Excise. Such merger will completely eliminate the possibility of Inter-stream disparities, will provide for single feeder cadre for promotion into Group A obviating the necessity of having ratios for promotion and will streamline cadre management. On promotion to Group A, the exposure of the officer to various wings of the Department at the level of Inspector and Superintendent, will enhance his efficiency as Group A officer.

 5. Weightage in seniority to the officers appointed to Assistant Commissioner level on promotion from Executive Gazetted Group- ‘B’: Recruitment Rules (RR) of other Ministries for organised Group- ‘A’ Service have also been examined for the purpose of giving benefit to stagnating cadre of Executive Gazetted Group- ‘B’. In this regard, it has been noticed that the Indian Civil Account Service provides for weightage in determination of seniority to the officers promoted from Group B under certain conditions. As per Rule-11 (2) of the Indian Civil Accounts Service Group- ‘A’ Rules notified by GSR No. 694(E) dated 6/11/2006 (RR-1) and draft Amendment Rules put on the website of Ministry of Finance, Dept. Of Expenditure, Comptroller General of Accounts vide letter dated 6/7/2016 (RR-2), provides that ‘Senior Accounts Officer on their promotion to JTS of the service will be given 2 years weightage in seniority and placed en-block below the junior most Direct Recruits of that year’.The provision is: SCHEDULE-II [See Rule 5(1) & (2) and Rule 10(1)] S. No Name of the Post/Grade/Time Scale Method of Recruitment Field of Selection and the minimum qualifying service for promotion. 1. Junior Time Scale Pay Band-3 of Rs15600- 39100 with Grade Pay of Rs 5400/- (i) (i) By direct recruitment on the basis of Civil Service Examination-as per rule 5(1)(i). (ii) (ii) By promotion in consultation with UPSC by selection-as per Rule 5(1)(ii). Senior Accounts officers, Group B of the Central Civil Accounts Service with 5 years combined regular service as Senior Accounts officer in Pay Band-3 of Rs 15600-39100 with Grade Pay of Rs 5400/- (Group B) and Pay & Accounts officer in Pay Band-2 Rs 9300- 34800 with Grade Pay of Rs 5400 (Group B) as on 1st April of the Year. 22 Similar provision can also be considered in respect of the Group ‘B’ Gazetted Executive grades, while fixing seniority after promotion to the grade of Assistant Commissioner.

6. Deputation of Superintendent Central Excise in State Governments for GST work: Goods and Services Tax (GST) has been implemented with effect from 1st July 2017. The officers of Central Excise (Supdt. Central Excise) have experience in the field of Service Tax. Deputation to the State Governments can be considered from the Cadre of Superintendent Central Excise. Such deputation should be considered on the basis of one grade higher than the existing grade in the parent Department. Vacancies arising from deputation will create more avenues for promotion to the level of Superintendent Central Excise in the Department.

7. Grant of Non Functional Upgradation for Executive Gazetted Group B: The Recruitment to the Inspector grade posts, viz. Inspector/Preventive officer / Examiner in CBEC, Inspector of Income Tax in CBDT and Assistant of CSS is made through common examination viz. all India Combined Graduate Level Competitive Examination conducted by the Staff Selection Commission. These posts are in the Grade Pay of Rs 4600 in Pay Band-2 (Level-7 in the Pay Matrix in 7th CPC) and are analogous posts. Therefore, it is recommended that NFU can be considered for delay in promotion from Inspector/Preventive Officer/Examiner to Superintendent Central Excise/Superintendent Customs (P)/Appraiser. A similar provision can be made for delay in promotion from Executive Gazetted Group B to Group A. Such delay may be computed in relation to grant of promotion at the comparable level in Central Secretariat Service (CSS) level. In this regard, a proposal vide CBEC F.No. A- 26017/84/2014-Ad.IIA has been made and considered in 2014, which is again being proposed for reconsideration. ***************

Suggestions/feedback/comments on above report may kindly be sent to ravimalik_sweet@yahoo.com.

Ravi Malik,
Secretary General.

Friday, 4 August 2017

Career progression

President:                                          Address for communication:                                       Secretary General:
A. Venkatesh                             240, Razapur, Ghaziabad-201001 (U.P.)                                              Ravi Malik
Mob.7780255361       mail Id:ravimalik_sweet@yahoo.com, Site: cengoindia.blogspot.in      Mob.9868816290
Vice Presidents: Apurba Roy, P. C. Jha (East); A. K. Meena, Somnath Chakrabarty (west); Ashish Vajpayee, Ravi Joshi (North); B. Pavan K. Reddy (South); K.V. Sriniwas, T. J. Manojuman (Central) Joint Secretaries: Ajay Kumar, R. N. Mahapatra (East); B. S. Meena, Sanjeev Sahai (West); Harpal Singh, Sanjay Srivastava (North); M. Nagraju, P. Sravan Kumar (South); Anand Kishore, Ashutosh Nivsarkar (Central)
(Recognised by G.O.I., Min. of Fin. vide letter F.No. B. 12017/10/2006-Ad.IV A Dt.21.01.08)
Ref. No. 69/AIB/C/17                                                                          Dt. 04.08.17
Ms. Vanaja Sarna,
Chairperson, CBEC/CBIC,
North Block, New Delhi.
Sub: Constitution of a Task Force for improving career progression of recent batches of IRS (C&CE) officers-reg.
Kindly refer to the Office Order No. 134 / 2017 issued vide F. No. A-12025/01/2017-Ad.II Dt. 03.08.17 on the above subject.
            2. Your kind attention is invited with due regards to the discussions held with your goodself during the very first meeting after becoming yourself the Chairperson of the CBEC. During the discussions, you were pleased to assure the Association bringing a scheme regarding career prospects of the officers of Central Excise joining as Inspector saying that this scheme would equally benefit the existing officers as well as the new entrants. Accordingly, the Association was very hopeful and all officers joining as Central Excise Inspector were looking towards you. It is also worth to mention that the Cabinet also recommended to bring a scheme to remove the stagnation of these officers independent of cadre restructuring.
3. But nothing has happened till date for these poor officers. On the other side, a task force has been formed to look into the career progression of direct recruit group ‘A’ IRS officers who are already having excellent career prospects. No need to say that it is a matter to be more delighted for already delighted direct recruit IRS officers. The Association was also expecting such a step from CBEC/CBIC under your worthy Chairpersonship for the officers working as Central Excise/CGST Inspectors, Superintendents and promotee group ‘A’ officers.   
4. All Inspectors, Superintendents and promotee group ‘A’ officers under CBEC/CBIC expect that the impression about our Board to be “only for, by and of direct recruit IRS officers” would be washed out under the Chairpersonship of your goodself and these poor officers would not only be able to get parity with their counterparts but also start again to reach the highest levels under CBEC/CBIC like remote past. No need to say that these officers have not only attained the level of Commissioner in the remote past but one rare case also reached the level of Member. But very unfortunately, the most of these poor officers are forced to retire merely after one promotion in the present era whereas their counterparts are easily enjoying the levels of Additional Commissioner & Director and also Commissioner & Join Secretary in many cases.
5. In view of the above, it is very much requested to seriously look into the matter bringing the scheme as per your kind assurance enabling the officers joining as Inspector (old and new both) to reach the Level-13/14 and above whether functionally or non-functionally. No need to say that the said scheme would boost the morale of these officers resulting into multifold results under GST.
Thanking you,
Yours faithfully,

Secretary General.
Copy with the request for necessary action to:
1) The Revenue Secretary, North Block, New Delhi.

2) The Cabinet Secretary, President House, New Delhi.

Tuesday, 25 July 2017


President:                                          Address for communication:                                       Secretary General:
A. Venkatesh                             240, Razapur, Ghaziabad-201001 (U.P.)                                              Ravi Malik
Mob.7780255361       mail Id:ravimalik_sweet@yahoo.com, Site: cengoindia.blogspot.in      Mob.9868816290
Vice Presidents: Apurba Roy, P. C. Jha (East); A. K. Meena, Somnath Chakrabarty (west); Ashish Vajpayee, Ravi Joshi (North); B. Pavan K. Reddy (South); K.V. Sriniwas, T. J. Manojuman (Central) Joint Secretaries: Ajay Kumar, R. N. Mahapatra (East); B. S. Meena, Sanjeev Sahai (West); Harpal Singh, Sanjay Srivastava (North); N. Nagraj, P. Sravan Kumar (South); Anand Kishore, Ashutosh Nivsarkar (Central)
(Recognised by G.O.I., Min. of Fin. vide letter F.No. B. 12017/10/2006-Ad.IV A Dt.21.01.08)
Ref. No. 48/AIB/U/17                                                                          Dt. 26.07.17
Ms. Vanaja N. Sarna,
Chairperson, CBIC,
North Block, New Delhi.
Sub: Guidelines for Uniform for various Group ‘A’, ‘B’ & ‘C’ grades-regarding.
Your kind attention is invited to the letter F. No. 8 / B/90/ HRD (HRM) / 2011 (Part-I) /4853 Dt. 21.10.14 on the above subject.
            2. It is submitted with due regards that the subject matter was initiated in DG of HRD on the request of the Association made to the CBEC. The Association requested to formulate the statuary provisions to wear the uniform, if its wearing is necessary in consonance of the nature of the job. If it happens, it was requested to make it compulsory for all “from top to bottom” and also treat it in a graceful & respectful manner granting all the required facilities & amenities to the officers. It is a matter of great concern that the uniform is being imposed on our officers only for decoration purpose particularly for protocol duties which no way seems to be graceful and respectful either for the department or officers. However, the CBEC/CBIC replied to the Central Information Commission in r/o some RTI application that there exist no statutory provisions in the CBEC to wear the uniform.
            3. It was mentioned in the draft provided by HRD wing that the uniformed officer has to salute in Naval and Military type. No need to submit that all of the officers from “top to bottom” wear the uniform in Navy and Military. It is also mentioned somewhere in the draft that the officer is not to travel in the public transport when in uniform. In such case, the CBIC will have to provide the official vehicle to all of the officers as per the entitlement as being provided in the Navy and Military. They wear the uniform with complete respect and grace at every level. Not only it, they are also provided with the best pay packages, career prospects and other various facilities & amenities. The Association expects that the same would also be provided to our officers.
            4. No doubt that the wearing of uniform is a matter of pride in the above organizations and also in police organizations. Uniform is also given tremendous social respect everywhere. But side by side, it is also true that it is worn in the above organizations from top to bottom without any discrimination or exception to perform uniform-related duties and also with complete respect and due facilities. Whereas in our organization, the officers are forced to wear the uniform even at the places where it serves no purpose.
            5. As far as GST regime is concerned, the officers are not aware whether uniform is to be worn or not because there is no prescription of uniform under GST. Even if it is to be worn, there is no prescription for badges and other standards for uniform under GST. Accordingly, proper uniform is to be notified in GST regime for all officers alongwith all facilities and amenities including vehicles.  
6. In view of the above, it is requested to-
            i) Issue the statutory guidelines for wearing of uniform from top to bottom in GST regime making due prescription of uniform as well as badges and other standards etc.
            ii)  Officers should be asked to wear the uniform only for the purpose of disposal of the official duties.
          iii) Make the wearing of uniform compulsory from top to bottom for all like in Navy & Military under statutory provisions with all facilities and amenities including vehicles, best pay packages and career prospects, if the wearing of uniform is made mandatory.
            Thanking you,
Yours faithfully,


Secretary General.

Monday, 24 July 2017

Promotee Group 'A' officers and AIACEGEO

Daman General Body Meeting and Convention of AIACEGEO was held on 01.11.14 & 02.11.14 where it was decided that the promotee Central Excise Group ‘A’ officers would also be member of AIACEGEO like Income Tax Gazetted Officers Association (Promotee group A gazetted officers are also member of ITGOA alongwith ITOs). Sh. R. Chandramouli was also party to this decision alongwith others. 
            Last Associate Executive Committee meeting of AIACEGEO was held on 04.02.17 at Delhi presided by Sh. R. Chandramouli himself. He himself declared this meeting as pre-convention meeting of AIACEGEO. 
            In accordance of pre-convention meeting, the Secretary General issued the letter on 17.03.17 for General Body Meeting & Convention to be held at Gandhidham on 27.05.17 & 28.05.17. 
            But due to the reasons known only to him, Sh. R. Chandramouli wrote another letter Dt. 29.04.17 of Convention of AIACEGEO to be held at Chennai on 27.05.17 & 28.05.17. This letter was written unilaterally by him without calling any meeting of the units of AIACEGEO.
          More than ¾th units of AIACEGEO attended/supported General Body Meeting and Convention at Gandhidham on 27.05.17 & 28.05.17 whereas a few units particularly from Chennai Zone and a few splinters attended Chennai meeting on the same dates. 
            At Chennai, these were the same splinters who not only divided once Inspectors Association in the past but were also instrumental in supporting, advocating & filing the Bhartan Case on Parmar issue in Chennai/Madras CAT as well as High Court opposing the move of CBEC to conduct the DPC for the post of Asstt. Commissioner. 
            These splinters gathered in Chennai and nominated so called office bearers of AIACEGEO in their own style instead of participating in the authorized & valid General Body Meeting and Convention held at Gandhidham where the actual and authorised office bearers of AIACEGEO were elected in the democratic manner. 
          In our own CBEC/CBIC-
(i) The Association representing direct recruit IRS officers includes all cadres from Asstt. Commissioner to Chairman. As on date, the President of this Association is a Commissioner and Secretary General is Deputy/Joint Commissioner. Other office bearers also belong to different Group ‘A’ cadres. 
(ii) The Association representing direct recruit Appraising Officers includes all cadres from Appraisers to promotee Addl. Commissioners/ Commissioners. Their Secretary General, President and other office bearers also belong to Group ‘A’.
(iii) The Association representing Customs Preventive Service Officers includes all cadres from Preventive Officers to Asstt. Commissioners. It is also possible that they may include higher cadres too. As on date, the Secretary General and President of this Association are also Asstt. Commissioners.
(iv) The Association representing promotee Appraising Officers includes Examiners & Appraisers and may be having higher cadres also.
Income Tax Gazetted Officers Association in CBDT includes ITOs & promotee Group ‘A’ cadres of Income Tax in our own Department of Revenue. As on date, the President of this Association is an Asstt. Commissioner himself. In recent past, their Secretary General was also an Asstt. Commissioner. Once upon a time, their President was even an Addl. Commissioner.
          The AIACEGEO is not “Superintendent Association merely representing Superintendents” but it is “All India Association of Central Excise Gazetted Executive Officers representing all Central Excise Gazetted Executive Officers including Assistant Commissioners” as resolved in Daman General Body Meeting and Convention like Income Tax Gazetted Officers Association duly recognized under CCS (RSA) Rules.
            Sh. Ravi Malik has been duly elected by the member units as Secretary General of the Association with overwhelming response with the margin of 117/29 at Gandhidham. Not only Sh. Ravi Malik but many other Asstt. Commissioners are also the member as well as office bearers of the Association duly subscribing for it.
           Accordingly, Central Excise Group 'A' officers are the members of AIACEGEO. 

Sunday, 23 July 2017

FAQs on GST registration

1. If I buy raw material from a supplier unregistered under GST, do I have to pay GST in RCM and can I avail ITC of the same?

Reply :- Yes, you have to pay GST via Reverse Charge Mechanism (RCM). You can avail ITC of the GST so paid if you are otherwise eligible.

2. Can an unregistered dealer supply goods to other States if his turnover is below Rs. 20 lakh?

Reply :- No. The supplier would be liable to obtain registration in case of Inter-State supplies irrespective of his turnover

3. Existing taxpayer registering a branch office in another state comes under fresh registration or under existing tax payer registration?

Reply :- For every State, a fresh registration is needed.

4. Is registration necessary if only Inter-State supply of Nil rated goods is being made?

Reply :- If exclusively making supplies of Nil rated goods, registration is not compulsory. Kindly refer Section 23 of CGST Act.

5. Whether franchisor company will have to take registration in each State where outlets are located?

Reply :- No, a franchisor company need not take registration in state where only its franchisee is located

6. If I’m starting a new business today, do I still need to get TIN and then apply for GST? Or can I directly register with GST?

Reply :- You may directly take GST registration on www.gst.gov.in

7. A firm dealing exclusively in exempted products has GST registration. Does it need to file return?

Reply :- If registered, then you need to file returns. You may choose to cancel your registration since you are dealing only in exempted products.

8. My all outward supplies are export services. In such case is it compulsory to register under GST?

Reply :- Yes. Since exports are zero-rate, One needs to register under GST to claim refunds.

9. Can a person operating two different companies with different names but with same PAN get two GST registrations?

Reply :- One PAN holder gets one registration in every State, but he has the option of getting different registration for different business verticals

10. Is a job-worker required to register? Whether composition scheme is available to a job-worker?

Reply :- Job-workers making taxable supplies above the threshold aggregate turnover need to register. Composition scheme is not available to job-workers. They can, however, avail benefit of the CGSTAct.

11. I am a service provider with turnover of Rs. 50 lakh in one State only. Am I eligible for the composition scheme?

Reply :- Service providers, except restaurants/caterers, are not eligible for composition scheme.

12. I am an ice-cream manufacturer with sales in one State only. Can I avail the option of composition?

Reply :- No. The manufacturers of following goods, namely-
• Ice-cream and other edible ice, whether or not containing cocoa,
• Pan-masala,
• Tobacco and manufactured tobacco substitutes,
are not eligible for benefit of composition scheme.

13. If I register under the composition scheme, can I opt out of it later? What happens to my stock if I do so?

Reply :- Those availing composition can exit and opt for normal tax scheme anytime. They would be eligible for ITC on stocks available on the date of switch over in terms of Section 18(1)(c ) of CGST Act, 2017.

14. Can I register as a normal taxable person now and avail of the composition scheme later?

Reply :- You can opt for composition scheme from the beginning of the next financial year on submitting the option to avail composition scheme before beginning of the financial year. It may please be noted that composition scheme cannot be availed from the middle of a financial year.

15. I have registered as a composition dealer. If my turnover crosses Rs. 75 lakh, can I continue in the scheme for the remaining part of the financial year?

Reply :- No, a taxpayer becomes ineligible for composition scheme on the day his turnover crosses Rs. 75 Iakh.

16. If I was registered earlier but not required to register under GST, what to do about provisional ID and accumulated ITC?

Reply :- Please apply for cancellation of registration under Section 29(1) of the CGST Act, 2017 read with Rule 24(4) of CGST Rules, 2017. You will be required to calculate and pay ITC availed on goods held in stock on the date of cancellation of registration.

17. I was registered under Central Excise or Service Tax, but could not migrate and therefore have taken a new registration. Will I be eligible for transitional credit?

Reply :- In your new registration application, if you have referred to your past registration no. Of Central Excise or Service Tax, you will be eligible for transitional credit under Section 140 of CGST Act, 2017 read with Rule 117 of CGST Rules, 2017

18. I have migrated and received provisional ID but not GSTIN, how do I supply goods or services or both?

Reply :- Provisional ID (PID) will be your GSTIN. You can supply goods or services or both specifying PID as your GSTIN on Invoice.

19. I have not received ARN or have received ARN but not GSTIN, how do I supply goods or services or both?

Reply :- You can supply goods or services or both on bill of supply without mentioning GSTIN and/or ARN. On receipt of GSTIN, you will need to issue revised invoice mentioning GSTIN. You are required to reflect this supply in your return and also pay tax thereon.

20. I am a supplier of exempted goods based out of Delhi and procure raw material from Kerala. My supplier from Kerala insists that I have to be registered in Delhi for procurement of Inter-State goods. Is he right?

Reply :- No, if you are dealing in 100% exempted supplies, you are not liable to be registered under GST. There is no requirement of registration for making Inter-State purchases.

21. Is GST registration mandatory for small retailers to buy from dealers/wholesalers?

Reply :- There is no such requirement under GST law.

22. After implementation of GST, will EOU scheme continue or not?

Reply :- GST has no special dispensation for EOUs. As to whether they exist for any other purpose may be seen from the FTP.

23. I was unregistered in excise before and now in 18% slab? Can I take credit of stock if I don’t have invoices?

Reply :- Deemed credit will be available to you for stock as duty paying documents are not available, subject to provisions of Section 140 (3) of the CGST Act, 2017 read with Rule 117(4) of CGST Rules, 2017.

24 I was not required to register earlier, as I was availing SSI Exemption in Excise and did not register; how do I now take credit of stock lying with me?

Reply :- Credit may be availed on the basis of document evidencing payment of duty on inputs as per Section 140(3) of the CGST Act, 2017 read with Rule 117(4) of CGST Rules, 2017.

25. As textile traders or manufacturers, with input stock without payment of excise duty but GST being charged on final sale, will we get credit on such stock?

Reply :- Credit on stock which was unconditionally exempt from excise duty or was NIL rated shall not be available. Please see Rule 117(4) of the CGST Rules, 2017.

26. Can a spice manufacturer take ITC of Central Excise paid on packing material lying in stock as on 30′ June, 2017?

Reply :- If he has duty paying documents, then he will get full credit of Central Excise duty paid on stock held by him.

27. I made booking for hotel for a trip in October, for which Invoice has already been raised. Would I need to pay GST if payment will be done on 21st July?

Reply :- If the invoice has been raised and payment made before the 1 July, 2017 then GST will not be applicable.

28. If rent was received in advance before the appointed day and person was not liable to Service Tax then does RCM liability arise?

Reply :- The liability of RCM under GST will arise only after 1st July, 2017.

29. Is there any format for invoice under GST? If yes, please provide the link of the same.

Reply :- No, there is no particular format. Rule 46 of the CGST Rules, 2017 prescribes the particulars that a tax invoice should contain.

30. Whether from 1st July sequence of invoice no. will change? Or can we follow the same sequence?

Reply :- Same sequence can be followed provided conditions laid down in Section 31 of the CGST Act, 2017 read with Rule 46 of CGST Rules, 2017 are met.

31. Whether existing UT-1, Bond will suffice? Whether existing ARE-1 form will exist?

Reply :- Circular No. 4/4/2017-GST dated 07.07.2017 has clarified that the existing Bonds/LUTs shall be valid till 31.07.2017 after which the Bonds/LUTs shall have to be executed in the newly prescribed formats. New formats of bond and LUT have been prescribed under Rule 96A of CGST Rules, 2017.
ARE-1 procedure is being dispensed with, except with reference to commodities which continue to attract Central Excise duty.

32. Can we get ITC for capital expenditures like vehicles, solar panels, etc. for company use?

Reply :- ITC on capital goods is generally available if they are used in the course or furtherance of business. However, credit is not available on cars, unless you are in the business of imparting driving training, or supplying such cars. A list of item on which ITC is not available is provided in Section 17 of the CGST Act, 2017.

33. If my turnover is less than Rs.1.5 crore, do I need to mention HSN code in my invoice?

Reply :- Specifying HSN code on invoice is optional for taxpayers having turnover upto Rs.1,5 crore.

34. We are Excise registered dealers and have stock older than 1 year on which Excise is paid. Will we get Input Tax Credit?

Reply :- You will be entitled to carry forward closing balance of CENVAT credit shown in your last return filed under the Central Excise Act.

35. I was unregistered earlier. Now I want to register under composition scheme. Can I take ITC of my duty paid stock?

Reply :- No, a person registering under the composition scheme cannot take ITC on inputs.

36. I have Excise registration. I now want to migrate using composition scheme. What is to be the treatment of ITC?

Reply :- ITC is not allowed under composition scheme. Your ITC lying in balance will lapse.

37. i paid for a service in June 2017 but am likely to receive the service in August 2017. Can i avail ITC for the same?

Reply :- Credit on such inputs services will be allowed subject to satisfaction of conditions prescribed in Section 140 (5) of the CGST Act.

38. For taxpayers with centralized registration under Excise/ST, what will be treatment of CENVAT after migration?

Reply :- CENVAT credit lying in balance in the return filed for period upto 30th June, 2017 is to be allowed as CGST credit as per Section 140(8) of the CGST Act, 2017 read with Rule 117(2) of CGST Rules, 2017.

39. Which documents should be used in case of Inter-State supply of goods until e-way bill rules are notified?

Reply :- The documents specified under Rule 48 of the CGST Rules, 2017 may please be referred. Triplicate copy of invoices for supply of goods and duplicate copy of invoice for supply of services may be used.

40. If I use my credit card to pay utility bills, will I end up paying GST twice: once for the service and second time for the credit card bill?

Reply :- No, GST is not leviable on the entire credit card bill; it is charged only on the fee/commission charged by the credit card company.

41. We currently transport material on delivery challan and make a single bill at the end of the month. Can the same be done under GST?

Reply :- If in every instance you are making a supply then an invoice needs to be issued. For any other movement of goods other than supply (as specified in Rule 55 of CGST Rules, 2017), a delivery challan may be issued.

42. Will service charge. as charged by some restaurants, be treated as consideration for a supply and hence considered liable for tax?

Reply :- There is no distinction between goods or services under GST. Service charge like any other consideration for supply will be leviable to GST. It is also clarified that service charge is not a statutory levy. It is not levied by the Government.

43. What to do with stock lying with me on 1.07.2017? Do I need to charge GST?

Reply :- Yes, you need to charge GST on supplies of such stock, but you can use transition credit. if available on the said goods.

44. I am a small manufacturer who supplies cycle parts to two manufacturing units in the same area. For every supply, I generate an invoice and take 500 Rs. flat for cartage and loading charges. What tax rate is to be charged on the cartage and loading expenses?

Reply :- This is a composite supply where the principal supply (the goods) cannot be supplied without the cartage / unloading / transportation expenses. Therefore, the GST rate applicable will be the same as that of the principal supply, i.e, cycle parts, as provided under Section 8 of the CGSTAct, 2017.

45. I run a restaurant where I serve alcohol and provide food etc. How do I generate my invoices? What will attract GST and what will attract VAT?

Reply :- In this case, you are providing both taxable and non-taxable supplies. You will charge VAT on the non-taxable supply (which is alcohol for human consumption) and GST on all other taxable supplies.

46. In a shop, I purchase some vegetables and one bottle of coke where one of them is exempt and the other is to be charged with 40% GST. Will I be charged 40% on the whole amount?

Reply :- No, these are two independent supplies at two different prices, they will be charged at the GST rate applicable to them even if they are purchased on the same invoice.

47. I am going to a jewelry shop and selling 10 gm gold and purchasing a 20 gm set in return. GST will be charged on 10 gm or 20 gm ?

Reply :- The value to be charged on such transaction will be the open market value of the entire transaction as per Rule 27(a) of the CGST Rules. 2017. Therefore, GST should be charged on the entire 20 gm.

48. As a composition dealer, will I have to issue a self invoice if I purchase goods from an unregistered person?

Reply :- Yes. a composition dealer will issue a self invoice as he is required to pay GST. He will not be eligible for ITC also.

49. Can I use my CGST/SGST credit to set off my IGST liability?

Reply :- CGST credit can be first used to set off CGST liability. Whatever is left can be used to set off IGST liability. It cannot be used to set off SGST liability. Similarly, SGST credit can be used to set off SGST and IGST liability, in that order. It cannot be used to set off CGST liability. Please see Section 49 of the CGST Act, 2017.

50. Can tax paid in one State be used as ITC by the same firm in another State?

Reply :- No, if a firm is registered in more than one State, then each such registration will be treated as a separate registered person. Cross-utilization of credit available with two different registered persons is not allowed.