MAHANAGAR TELEPHONE NIGAM LTD (A GOVT OF INDIA ENTERPRISE) O/o DGM (TR), 4th Floor, Prabhadevi Telephone House, V. S. Marg, Dadar (W), Mumbai – 400 028.
CIN No: L32101DL1985GOIO23501 Date: 16/06/2017
Dear Customer, Subject: Goods & Service Tax (‘GST’) regime – Mandatory Changes for transition to GST to Enterprise customers As you may be aware, GST is proposed to be implemented in India with effect from 1 July 2017 and hence it would be critical for all the stakeholders to be ready for the said change. The said change would involve transformation of various functions of businesses like supply chain, accounting, IT and Tax. One of the main objectives of GST is to create a seamless credit chain thereby reducing tax costs leading to an opportunity for businesses to work towards the same. One of the underlying principles is the removal of cascading effect of taxes and this would be achieved by increasing the eligibility of taxes paid in the supply chain as input tax credits. With increase in pool of credits, tax cost of business operations would be considerably reduced. In order to have efficiencies of GST and ensure smooth implementation of change, we request you as our customers to ensure that below steps are being well taken in advance: A.
Obtain the GST Identification Number on time from the Government and provide us an update in this regard.
In case you have multiple GST registrations (state-wise/ verticals), please provide us the same in order to enable us to update the same along with the relevant place of businesses for the purpose of invoicing/ billing.
3. In case you are a Normal customer or SEZ unit/ SEZ developer, GSTIN is applicable. If you are a specialized agency of United Nations Organization or Multilateral Financial Institution and Organization notified, Consulate or Embassy of foreign countries and other notified persons, UIN is applicable. 4. If you are an SEZ customer, additionally, please also provide declaration evidencing procurement of our services for authorized operations. The government is yet to notify the rules of compliances for SEZ and in case any further compliances is required to supply services without payment of GST, the same shall be communicated separately. 5. Please verify the billing address with the GST/ UIN registration address for your company, both have to be same. 6. Please ensure your company name on GST certificate is exactly the same as provided to us for billing purpose (else you would be considered as unregistered). 7.
In view of the above, we request you to provide us the required details in the attached format (Annexure 1–Customer Communication application form). Please provide this information in excel format only. CORPORATE OFFICE: Door Sanchar Sadan, 9, CGO Complex, Lodhi Road, New Delhi-110003
In case the above information is not provided within the time, we will consider you as unregistered person and accordingly no credit would be available to you in respect of the taxes levied on the services provided by us.
Please provide the GST details in order to enable us to print the GST details on your invoices so you can avail benefits of GST beginning 1st July 2017.
Taxes sought to be levied
Under GST regime followings taxes are applicable for each nature of transaction. The same would be charged by us on provision of services to you.
Applicability of taxes
Intra-state supply of goods or services
SGST/ UTGST1and CGST
Inter-state supply of goods or services
C. GST and MTNL (telecommunication industry) 1. Definition of Telecom service as per GST law: “telecommunication service” means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electro-magnetic means. 2. Relevance of place of provision of services: Under GST, ‘Supply’ is a fundamental concept and all the provisions of GST revolves around it. Under Supply, there are three key elements namely time of supply, place of supply and value of supply.These three elements together determine the chargeability of taxes on supply. ‘Place of Supply’ under GST is an important factor as it defines whether the transaction will be counted as intra-state (i.e within the same state) or inter-state (i.e. between two states) and accordingly the changeability of tax, i.e levy of SGST, CGST & IGST will be determined. While determining the levy of taxes based on Place of Supply, two things are considered namely, location of supplier (LSP) and place of supply (POS). In case both the LSP and POS are in the same state, CGST+SGST would be applicable. In case LSP and POS are in different states, IGST applicability would arise. In case of telecommunication services, it is deemed that the supplier of said services is located in every state in India. 3. Relevance of Place of Supply Rules: The government has prescribed certain rules to determine the place of supply of goods and services. A registered dealer is required to assess the POS basis the rules prescribed under the IGST Act.
SGST – State Goods and Service Tax, CGST – Central Goods and Service Tax, IGST – Integrated Goods and Service Tax, UTGST – Union Territory Goods and Service Tax under Goods and Service Tax Act, 2017; BCD – Basic Customs Duty under Customs Act, ___.
Output Tax liability: Basis the place of supply rules, MTNL would determine the location where the supply i.e. the output services provided by them would be deemed to be supplied. Determining the said location is also important because invoices for the services provided by MTNL would be required to be raised from such locations after levying appropriate GST.
Availment of input tax credit on purchases: For the provision of the output services by MTNL, certain procurement of goods and/ or services are required. MTNL would be liable to discharge GST liability on all such purchases. Determination of place of supply in case of purchases gains importance because the same would determine the location where MTNL would able to avail input tax credit of the GST paid by it on its purchases. Thus, mentioned below are the place of supply rules prescribed under law which would determine the location where the supply would be deemed to be provided followed by an example to explain the same.
Output supply: In case of telecommunication services provided by MTNL, the location from where invoices are to be raised i.e. the ‘Bill to’ and customers location where invoices are to be addressed i.e. ‘Bill from’ location basis the place of supply are as follows: Table 1 GST regime
Type of Services
Invoicing location from where invoice has to be raised
Customer location where has to be addressed
In case of enterprise customers (say Income tax department), landline connections are provided on PAN India basis.
Fixed telecommunicati on line and broadband
Mobile post paid
Bills to be raised from the state where fixed line is installed
State where fixed line is installed
Bill to be raised from the state where customer is located
Contractual/ local billing address of the customer
The billing under GST for the landline connections provided to Income tax department will be done by the respective states where such fixed lines have been installed. In other words, in case of landline services provided to Income tax department in Gurgaon, billing will be done by the MTNL office in Haryana. In case an enterprise customer procures PAN India post-paid connections for its various offices (say Income tax department). The postpaidbilling under GST for the postpaid connections provided to Income tax department (across India) will be done by the respective states where such connections have been provided. In other words, in case post-paid connections are provided to Income tax department in Gurgaon, billing will be done by the MTNL office in Haryana.
Bills to be raised from the states where the two ends of leased circuits are installed in equal ratio
Location of the customer in the states where the two ends of leased circuits are installed
Where the two ends of the circuit are in Puneand Jaipur, what is charged for the Pune-end should be considered to have been provided by the MTNL from Mumbai and accordingly CGST+SGST of Mumbai to be charged. Similarly, Telco from Jaipur should be considered to be provider of service for Rajasthanend and accordingly CGST+SGST of Rajasthan is to be charged.
D. GST Invoice and payments 1. Thus, going forward under GST, MTNL would be raising local invoices on its enterprise customers (as described in the table above) for the services provided to various customer office located across India. Further, in case you (MTNLcustomer) require that the invoice should be sent to the customer at head office, we shall e-staple the invoices raised in respective states (for supply of services) and send the same to your head office. 2. Accordingly, it is requested that your GST details is shared with us in order to enable us to print the GST details on your invoices so you can avail benefits of GST beginning 1st July 2017. E. GST Returns and Payments 1.
As soon as MTNL uploads its outward supply details in the return GSTR 1, it would be the responsibility of the customer (B2B customer) to reconcile the same and suggest changes, if any, within the due date of filing such return.
It should be noted that in case you do not suggest/make changes within the time limit prescribed, MTNL would not be responsible for any loss suffered by you.
F. Other key considerations Penalty - In case penalty is leviable on you in terms of the agreement for infringement of any terms of agreement or for any other reason, the same shall be recoverable from you along with GST (as may be applicable);
In this regard, we would like to update you that we have already migrated our existing registrations is given
below: Sr. No.
Principle place of business location
4th Floor, Telephone House, MTNL Mumbai, Prabhadevi, dadar (W), Mumbai 400028
Mahanagar Telephone nigam ltd, Khursidlal Bhawan, Janpath, New Delhi-110050
Application reference number (ARN)
Pursuant to GST, the rights and obligations of you have been proposed to be amended as per Appendix 2. In case, you need to discuss the changes, please revert within 30 days. We are pleased to have you as a valued customer and we sincerely look forward to continuing our business relationship in the future. We also request you to provide us the name and contact details of the relevant person in your organisation, with whom we can discuss any GST related query pertaining to registration, invoices etc. Should you require any clarifications, we request you to contact the concerned person the details of whom have been shared below:
Feel free to send in your queries to [email protected]
,if any. In case of hard copies, please send it to the following address: Dy. Manager (GST) MTNL MUMBAI 4th Floor, Telephone House Prabhadevi, Dadar (W)-400028
Thank you for your partnership, integrity and professionalism. For Mahanagar Telephone Nigam Ltd
ANNEXURE-I Customer Information Update Form Customer name (Legal Entity Name) Constitution of business Select
Others (Please specify)
If others (Please specify)
Communication address State PAN Customer type:
GST registration status Registration migration status (GST)
Existing tax registration number (please specify) Contact Person Designation Telephone Number Fax No. Email ID Bank Details Name of Bank Name of Branch Branch Address Swift Code Account Number Account Name Incase if registered, provide the following information for all the registrations: Total no of GST Registrations (pan India) For each of the registrations, kindly provie the following information Registration for State 1 GSTIN/ UIN number
Date of registration
Registered Address PIN code Composition scheme availed Declaration by:
Name: Designation: Date:
Registration for State 2 (if applicable) (please add field for other states in the form if applicable) Date of registration GSTIN/ UIN
number Registered Address PIN code
Composition scheme availed Declaration by:
Name: Designation: Date:
Name: Designation: Date:
Note: Please provide a copy of document evidencing provisional GSTIN ID issued by GSTN Note: In case you have multiple registration, please copy row 34 to 41 and insert the details