e way applicability on Cold Storage, VAT + CST

[Devendra Dahiya]

Sir

One of my client is engaged in cold storage services in Haryana. Now GST Notice ASMT-10 issued in the name of firm that there is difference between e way bill liability and GSTR-3B liability. As per my client, firm is not engaged in supply of goods hence E way bill is responsibility of only supplier sending goods through delivery challan. firm income is from cold storage rental receipt. please suggest.

Posts / Replies

[Amit Agrawal]

Please check if any e-way bill/s were furnished by the said firm showing outward supply? It appears to be the reason before Dept's notice in Form ASMT-10.

And if yes, one needs to check reasons behind why such e-way bill/s were furnished.

If required, please also check accuracy of E-way furnished by the 'Client of Cold Storage Unit' towards movement of goods from / to such cold storage unit and then, take appropriate call for replying of such notice from Dept.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[KASTURI SETHI]

E-way bill is for movement of goods and NOT meant for services. The value of services cannot be equated with the value of the goods mentioned in e-way bills for the transportation of goods which were kept in warehouse for the purpose of cold storage purpose.

It appears that ASMT-10 was meant for consignor of goods kept in warehouse (cold storage).

In my view, ASMT-10 has addressed wrongly.

Disclaimer : These are my personal views for education purpose only and not meant for any court proceedings.

[KASTURI SETHI]

(i) State GST Officers are experts in VAT/Sales Tax and CST.

(ii) To be well conversant in GST knowledge of Central Excise law, Service Tax law, Customs laws/import & exports procedures, drawback claims etc.is requisite. Such knowledge is very very plus point for all.

[Sadanand Bulbule]

Dear querist

I fully endorse the second view of Sri. Sethi Sir.

Great power brings great responsibility.

Interpretation of the provisions of the GST Act should not be a product of imagination but time-tested eternal facts. Normally this happens in the absence of a judicial atmosphere, lack of thorough, truthful, flawless knowledge of allied Acts like the Customs Act, the Service Tax Act, the Central Excise Act, the IBC, NCLT FEMA , the SEZ Act etc., and importantly peaceful moments. Before this, the authority must understand the the business module of every tax payer before pushing him in the toxic gas chamber. If this is manifested in discharging the statutory duties, even a cripple can easily climb mountain. The authority should not allow the truth to remain veiled for the reasons not decipherable.

The authority who maintains the befitting adage "water-lotus relationships" is justifiably called the true adjudicator. And he who can keep in constant touch with the ideologies of fair taxation becomes a priceless jewel. Otherwise beating the bush is the routine job!

[Padmanathan Kollengode]

Dear Querist,

Most ASMT-10 are system generated within little/no intervention by officers. Therefore, the parameters set of trading/manufacture of goods etc.. are not distinguished for service sector by Department leading to such ASMT-10s.

Kindly examine the factual aspects relating to the e-way bill issued by clients of cold storage, both to and from the cold storage. As mentioned by Experts, value of goods in e-way bill will not co-relate with taxable value of service in GSTR-3B.

That being said, one practical approach would be to prepare a reconciliation between each consignment stored in the cold storage during FY (along with to-and-from e-way bill details) and the corresponding service invoice issued for the cold storage. This will help you to convince the officer about the actual factual aspects.

Practically, if some vague reply is given to ASMT-10/ officer is not convinced, it will result in SCN proceedings. Though the SCN may be easily defendable, it is always better to close the proceedings as early as possible.

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji,

Sir, It is w.r.t. your views expressed at serial no. 4 above.

(i) I am highly grateful to you for RATIFICATION of my views on the issue.

(ii) Your views are an eye opener. I am dead sure that if your views come to the notice of the concerned Proper Officer, your reply will be helpful to the querist in getting natural justice.

(iii) We can make sincere and honest efforts only which all of us are doing.

[Sadanand Bulbule]

Dear Sh. Sethi Sir

Thank you so much for acknowledging the intrinsic value of my views.

After completing six and half years of struggle in the GST roller coaster, now the SGST Adjudicating Authorities and their many higher-ups are forcing tax payers to walk on water! In this backdrop, I shared my bitter experience. And I am not afraid to say this here.

I am aware that such authorities would not relish my soury expressions. But this is high time for them to transform and upgrade at least on par with their counterparts in the CGST administration, many of whom are also not infallible.

There is an end for every dark night. Let us hope for the GST lamp to shine like starlight.

[Shilpi Jain]

Many of these ASMT-10s are issued automatically by the system. You could reply to it stating that you have not caused any movement of goods and thereby EWB not issued.