GST Connect

The GST law was with also the objective of reducing multiple litigations pertaining to erstwhile regime like VAT, Service Tax, and Excise etc. being put to rest. However, there are still aspects like compensatory damages, employee notice period recovery which needs clarity. In many private organizations, employees would be legally bound to serve for specified […]

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Taxing resident welfare associations and branches for head office expenses allocated are the worst forms of tax tyrannyThe government is going overboard on GST. It subjects branches to GST on allocation of head office expenses allocated to them. It is a common accounting practice in companies to load the branches and other profit centres with their share of head office expenses before determining the head office’s and branches’ profits. This is done to arrive at fair profits because branches do depend upon head office support for their survival, existence and performance.But then such allocation is notional and no money changes hands. Indeed, they simply cannot change hands because after all a branch and head office is nothing but the same entity. That one cannot trade with oneself much less make profit from each other, is axiomatic and forms the bedrock of the mutuality theory, the most fundamental tenet of taxation.Yet, the GST authorities brazenly defy this time-honoured and time-t…

The CAG has criticised the Gujarat government for the slow pace of recovery of pre-GST arrears from 2013-14 to 2017-18. According to the CAG, the recovery rate of the government was as slow as 4.68% in 2017-18. The highest recovery rate was just 17.38% in 2013-14 during the period.The Gujarat government’s unrecovered revenue arrears of the pre-GST era has more than doubled to Rs 40,221.74 crore from Rs 18,117.02 crore during the five years beginning 2013-14, according to the latest report of the Comptroller and Auditor General of India (CAG), which was tabled in the Gujarat Assembly on Wednesday.The value of unrecovered arrears assumes significance in the backdrop of the Gujarat government’s annual debt of over Rs 2 lakh crore. The CAG has criticised the Gujarat government for the slow pace of recovery of pre-GST arrears from 2013-14 to 2017-18. According to the CAG, the recovery rate of the government was as slow as 4.68% in 2017-18. The highest recovery rate was just 17.38% in 2013-…

The GST rate on mobile phones is 12%, whereas that on phone parts and batteries is 18%NEW DELHI: The goods and services tax (GST) rate on mobile phones and fabric may be hiked by the GST Council next week. This could be part of an exercise to correct the inverted tax structure and boost revenue collection.The structure of higher tax rates on inputs than on final products is resulting in a huge input tax credit outgo. Other items which have seen an inverted duty structure include fabric bags, shoes, tractors etc.The GST rate on mobile phones is 12 per cent, whereas that on phone parts and batteries is 18 per cent, triggering an inverted tax structure. That, in turn, leads to unutilised input tax credit and hence issuance of refunds by the government.In case of phones, a single manufacturer last year claimed a refund of close to Rs 4,100 crore. Pointing out that the issue of inverted tax structure is resulting in huge refunds outgo, a government official said that mobile phones and fabr…

“The amount of Rs 73 crore shall be deposited within the next three months from the date of passing this order,” the order saidThe goods and services tax (GST) profiteering watchdog imposed a penalty of Rs 90 crore on fast-moving consumer goods giant Nestle for not passing on the benefit of rate reduction to consumers.The national anti-profiteering authority (NAA) noted that the methodology adopted by Nestle to pass on GST rate-cut benefit was ‘illogical, arbitrary, and illegal, which has resulted in unfairness and inequality while passing on the benefit of tax reduction’.Nestle, the maker of Maggi, KitKat, Munch, and Nescafe, had already deposited Rs 16 crore in the consumer welfare fund last year on a voluntary basis and now requires to deposit Rs 73 crore within the next three months.“The amount of Rs 73 crore shall be deposited within the next three months from the date of passing this order,” the order said.The NAA held that the benefit of rate reduction was to be passed on for e…

Kabeer Reality Private Limited Vs The Union of India & Others (Madhya Pradesh HC) The petitioner has certainly not paid the GST. It is noteworthy to mention that GSTR-1 is declaration of tax liability and GSTR-3B is evidence of actual payment. The petitioner has stated that GSTR-1 cannot be termed or classified as self assessed […]

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We are happy to announce the release of our thoroughly revised detailed book on GST titled A Complete Analysis on GST – November 2019 Edition

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Sales Tax Bar Association (Regd) & Anr. Vs Union of India & Ors. (Delhi High Court) Till the constitution of Public Grievance Committees (PGCs), we direct that the Chairman and the CEO, GSTN shall be responsible to monitor, and they shall ensure the rederessal of all grievances relating to the GSTN, including IT related grievances […]

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New Rule 36(4) of CGST has been inserted vide Notification no 49/2019 Central Tax dated 9-10-2019 which reads as under: ‘Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers under sub-section (1) of section 37, shall not exceed […]

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