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    Brief Introduction

    GST, Entire India is eagerly waiting for its implementation. In Indirect Taxes, rolling out of GST is a major reform. Globally, most of the countries are under GST regime and now India is also going to step in to GST Net. The idea of national GST was first put forward by Kelkar Committee in 2004. Sri Chidambaram was announced the introduction of GST in his budget speech in 2006, however due to political issues, the dream to roll out GST got delayed for a decade. 

    Through implementation of GST, Consumers shall be benefitted through the reduction of cascading effect and tax burden. Further, for the administrators, it would be easier to collect the taxes and also our Indian products would become competitive in the global markets resulting in strengthening the economy.



    In India, Excise Duty/Service Tax on export of goods/services is exempted; A simple question arises in mind that 

    “If export of services are exempted then what is the use of Cenvat credit lying in the books of Accounts?” 

    Rule 5 of Cenvat credit rules, 2004 (CCR Rules, 2004)provides an opportunity to the service provider/manufacturer to utilize the accumulated CENVAT credit relating to export of goods or services for the payment of service tax on domestic output services and excise duty on final products cleared within India and in case any credit is left after making the stated adjustments the service provider/manufacturer can opt for refund of CENVAT credit. 


    Key Topics Covered:

    • International Taxation
    • FEMA
    • Audit
    • Income Tax
    • Indirect Tax


    • Income Tax
    • Companies Act, 2013
    • Indirect Tax
    Tags: ,

    From the title of the article, it is clear that entire discussion is relating to understanding of ‘Governmental Authority’ prior and post to the judgment of Honourable High Court of Patna in the case of Shapoorji Paloonji and Company Pvt Limited. Before going into the discussion, let us try to understand the significance of the phrase ‘governmental authority’.


    We all know that negative list has been introduced from 01.07.2012 and post its introduction, majority of the exemptions are clubbed under single notification 25/2012-ST dated which is colloquially referred as ‘Mega Exemption Notification’. The subject notification grants exemption from service tax on various activities and has quite a long list. One such entry is Entry 12 which deals with exemption provided in respect of construction activities if the service receiver is ‘government, governmental authority or local authority’.


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