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Horse owner must pay 18% GST on racing prize

MUMBAI: Vijay Baburao Shirke, owner of several winning racehorses, is often spotted at derby matches and in sports sections of newspapers. This time, he is in the limelight due to an advance goods and services tax (GST) ruling sought by him.Advance ruling authorities recently agreed with his view that horse owners must pay 18% GST against the prize money earned by them.Shirke’s horses have emerged as winners in races organised by several clubs, including the Royal Western India Turf Club (Pune and Mumbai), Mysore Race Club and Bangalore Race Club, to name a few. As owner of the winning horses, he is awarded prize money by race organisers.In 2012, when service tax was introduced, Royal Western Turf Club had informed horse owners that their prize money would be subject to it. When GST was introduced on July 1, 2017, Shrike continued to pay GST on the prize money earned by him, as the definition of “service” was identical under the GST Act.From the date of introduction of GST till the en…

Rs 450-crore GST fraud detected

Company MD held on charges of receiving and raising fake invoicesPersonnel of the Directorate General of GST Intelligence (DGGI), Visakhapatnam, on Wednesday arrested a 45-year-old managing director of a company.The company, which is engaged in infrastructure projects and government contracts, has allegedly received and issued fake invoices to the tune of ₹450 crore. “This is one of the biggest GST frauds detected in recent times by the DGGI,” said an official.Documents seizedSimultaneous searches were conducted in various parts of Andhra Pradesh, Telangana and Tamil Nadu, and incriminating documents recovered, the official added.On interrogation, the accused confessed that the company received and raised fake invoices without actually supplying services, the official said.Besides artificially boosting the turnover of the company, the input tax credit (ITC) so availed on the basis of fake invoices was also passed on for further utilisation by other major infrastructure companies. This…

E-invoicing, a game-changer for GST

All you wanted to know about how e-invoicing worksThe GST Council, on September 29, 2019, has approved the introduction of ‘E-invoicing’ or ‘electronic invoicing’ for business to business (B2B) transactions from January 1, 2020. Once implemented, it can help arrest tax evasion as it enables pre-populating of GST returns with the e-invoice details. Return filing will also become simpler with reconciliation becoming easier.Recently, a concept note explaining what e-invoice is and how it operates was released and made available on the GSTN website.The document allayed the concerns of the tax payers and reiterated that there is no requirement to generate the e-invoice on a government’s tax portal. The taxpayer can continue to use his accounting system such as ERP, Tally and excel based tools for creating the invoice. The only requirement is that the supplier’s software should be able to generate the invoice in a specified template in JSON format.E-invoicing, which is touted as more of a b…

Parle Biscuits profit up in FY19, months after seeking GST rate cut amid slowdown

Months after the biscuit manufacturers asked the government for a GST rate cut to boost slowing demand, Parle Biscuits posted 15.2 per cent on-year growth to Rs 410 crore in net profit for FY19Months after the biscuit manufacturers asked the government for a GST rate cut to boost slowing demand, Parle Biscuits posted 15.2 per cent on-year growth to Rs 410 crore in net profit for FY19, business platform Tofler data showed. Parle Biscuits reported a profit of Rs 355 crore in the previous year. While revenue grew over 6 per cent to Rs 9,030 crore, the revenue from operations surged about 6 per cent to Rs 8,780 crore as against the last year, the data also showed. In August this year, the company had said that it may cut 10,000 employees in the ranks owing to muted biscuit demand. Parle Products declined to comment to the Financial Express Online queries.In a recent interview, Mayank Shah, senior category head, Parle Products told Financial Express Online that while sales were down for it…

18% GST payable Construction new civil structures Airport Authority India

In re Vishal Infra Structure limited (GST AAR Karnataka) The applicant is undertaking a contract of works contract of construction of a civil structure or any other original works for the Airport Authorities of India. The Department of Personnel and Training, Government of India has shown in the company profile that the shareholding of the […]

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Bangalore Development Authority is a Government Authority under GST Law

Bangalore Development Authority is an authority established by the State Government under the Bangalore Development Authority Act, 1976 and it is entrusted with the activity of development of the City of Bangalore and areas adjacent thereto and for matters connected therewith.

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Supply of both goods & services in relation to an immovable property is a works contract

In re Gowri Infra Engineering Private Limited (GST AAR Karnataka) a) Whether the activity undertaken by the applicant is covered under section 2(119) of the CGST Act, 2018 read with point 6 Schedule II of the CGST Act, 2017 read with the Karnataka GST Act, 2017 and the IGST Act, 2017? The applicant is constructing […]

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Accommodation services to SEZ units can be treated as zero rated supplies

In re Carnation Hotels Private Limited (GST AAR Karnataka) a. Whether accommodation service proposed to be rendered by the applicant to SEZ units are liable to CGST and SGST or IGST? The accommodation service proposed to be rendered by the applicant to SEZ units are covered under the IGST as it is an inter-State supply […]

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GST on Printing of books etc. for which materials are provided by customers

In re Sukee Printpack LLP (GST AAR Karnataka) 1. In the case where applicant is supplying the paper and paper board printed with content supplied by the recipient of the goods made using physical inputs including paper belonging to the recipient and – a. If the final printed material is a book or a journal […]

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Pattadar Passbook cum Title Deed classifiable under HSN 4820

In re Manipal Technologies Limited (GST AAR Karnataka) Whether Pattadar Passbook cum Title Deed is a ‘Document of Title’ so as to classify under HSN 4907 or as a ‘Passbook’ under HSN 4820. Section 3 of Telangana State Rights in Land Pattadar Passbooks Act – 1971, provides that a record of rights shall be created. […]

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