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Showing posts from April, 2019

New ITC Set Off Rules under 88A | Relaxation from existing draconian proviso

Brief Background of Input Tax Credit and it’s provision Input Tax Credit “Input Tax” in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both and includes 1. the integrated goods and services tax charged on import of […]

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GST investigation arm finds Tata Starbucks guilty of profiteering Rs 4.51 cr

NEW DELHI: The GST investigative arm has found Tata Starbucks guilty of profiteering to the tune of Rs 4.51 crore by not reducing prices of coffee despite a cut in the rate.Investigation by the Directorate General of Anti Profiteering (DGAP) has revealed that Tata Starbucks, the equal joint venture between the Tata and global coffee chain Starbucks, had hiked the base price of one its coffee variant after the GST Council cut tax rates on restaurants from 18 per cent to 5 per cent with effect from November 15, 2017.This kept the retail sale price of the product pre and post GST rate reduction intact.Sources said the DGAP has concluded its investigation in March and found that Starbucks profiteered Rs 4.51 crore.This case will be now heard by the National Anti-Profiteering Authority (NAA), which will pass the final order about the quantum of profiteering.When contacted, Tata Starbucks spokesperson said: “As a responsible organization, Tata Starbucks conducts its business ethically and c…

Changes in taxation of Works contracts service under Real Estate

Arjuna, recently the new taxation procedures and rates were  notified in relation to real estate industry. These notifications have also brought changes in the construction services provided in relation to real estate, which are made effective from 1st April 2019.

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GST: Companies face queries over input tax credit claims

Effectively, while a business may have paid the tax to a vendor for which it wants to claim credit, it may not be possible to ascertain if the vendor has deposited the GST.NEW DELHI: India Inc could face a tax landmine with authorities beginning to question input tax credit claimed by companies in lieu of Goods and Services Tax (GST) paid by their vendors.The authorities have already started sending notices to businesses, confirming fears that scrutiny will increase in the new financial year as the government looks to plug leakages. Experts said notices have been sent in Gujarat, Telangana, Andhra Pradesh, Haryana and some other states.The issue has its origin in the provisions of the GST law that warrant a reversal of input tax credit claimed by a business if its vendor has not paid the tax for which credit is being claimed.Currently, there is no mechanism to ascertain if vendors have paid GST. The GST Network Portal allows viewing of the return-filing status of a registered person, …

We expect a 5-10% reduction in GST in lighting sector: Sumit Joshi, CEO, Signify

As for the 2019, he said they may see muted numbers from government projects in the first quarter because of the ongoing elections.NEW DELHI: Sumit Joshi, CEO, Signify Innovations India hopes for reduction in GST on lighting industry from current 12-18% to 5-10%.“While GST is going to make things much simpler we still believe there is room for reduction in taxation which can further fuel the growth of industry,” said Joshi.According to him, in last few years, government has played a major role in converting conventional light points to LED light points. Government initiatives such as Street Lighting National Program (SLNP) and the UJALA scheme enabled an increase in demand which helped the industry achieve critical mass, which in turn enabled the industry to optimize prices.The amount of spending in smart city initiatives and infrastructure has gone up which also helped in the growth of LED industry.As for the 2019, he said they may see muted numbers from government projects in the fi…

Two cheers for GST’s anti-profit wing

FMCG firms have come under the scanner. However, the withdrawal of input tax credit, with lower rates, impacts themThe anti-profiteering clause of the GST Act is now in the news, with some companies under the lens for allegedly not complying with it. The cases that have come to light have been intriguing. They show an increase in base price to offset the tax reduction. However, companies argue that these increases are not without basis.Compared with some other Sections of the GST law, Section 171 is not a very lengthy one. The first clause of this Section states that any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices.As per the requirement of the second clause of the Section, a National Anti-Profiteering Authority (NAA) was set up to look into cases of possible anti-profiteering. Till date, around 100 cases of anti-profiteering have been referred to the author…

Flawed GST structure putting domestic makers of Indian Railways locomotives, rolling stocks at a disadvantage

Under Chapter 86 of the GST tariff rules, specified items for supplies to the railways are taxed at a benign 5% but without a refund of unutilised input tax credit (ITC).A distinct GST structure that exists for the railways and the suppliers of capital goods and other inputs to the transporter has put the domestic manufacturers of locomotives, rolling stocks, track fixtures, etc, at a disadvantage. The railway travellers and freight customers may not be better off either.Under Chapter 86 of the GST tariff rules, specified items for supplies to the railways are taxed at a benign 5% but without a refund of unutilised input tax credit (ITC).As for the railways, which pays GST for certain services, the tax rate is again 5% but the ITC is available only for input services (not for goods); according to official sources, the transporter’s cash loss on restricted ITC is some Rs 400-500 crore per month. However, the suppliers to the railways are even worse off, as they don’t enjoy low-cost fin…

How service sector benefited and govt lost revenue after GST

Companies were able to set off a higher share of tax liability using input-tax credit in the first year of GSTNEW DELHI: The first two years of goods and services tax (GST) have been associated with a lot of activity, from rate cuts to revenue loss and technical glitches. But when it comes to the services sector, it has changed the dynamics of tax payments and collection, official data accessed by Business Standard show.Across ten prominent services, GST revenue paid to the government has reduced by 20 per cent in the first year of GST compared to the last year of the service tax regime. This happened despite the fact that tax liability against these services had grown by 50 per cent.Source- Business Standard. The post How service sector benefited and govt lost revenue after GST appeared first on GST Station.

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IGNOU to launch awareness programme on GST

The Indira Gandhi National Open University (IGNOU) will launch an awareness programme on Goods and Services Tax (GST) in collaboration with Bombay Stock Exchange Institute Limited from its July 2019 session, the varsity said Monday.The programme, which will be launched by IGNOU’s School of Management Studies aims to impart basic knowledge and skills required to fulfil various requirements under the GST Act.This programme would be beneficial to people who are engaged in maintaining accounts and filing of various indirect tax returns, the varsity said.Entrepreneurs engaged in small-scale business ventures can also benefit from this programme as it gives an overview of the procedures and formalities to comply under the GST Act, it said.The main objective of the programme is to impart skills to book keeping professionals to file various regular GST returns along with the various compliance requirements, it said.Those who have passed Class 12 are eligible for the course, which will be offe…

Precautions to be Taken After GST Registration

Dear Friends, after the introduction of GST in July 2017, starting a business in India becomes so easy that, even an uneducated person can start his business with the help of an Accountant (Book-Keepers). Due to which, many new business has been started but due to lack of knowledge at Promoter level as well as […]

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Corporate Compliance Calendar – May 2019

CORPORATE Compliance CALENDAR  covers Compliance under Income Tax act, 1961, Compliance under Goods & Services Act, 2017, Compliance under Other Statutory Laws (PF, ESIC, Under Factories Act, 1948 and Contract Labour Regulation and Abolition Act, 1970 )  and Quarterly Compliances under SEBI (LODR) Regulations 2015.

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Restaurants, small B2C entities under scanner for GST evasion

NEW DELHI: GST officers are working out a mechanism to deal with non-payment of taxes by large number of small restaurants and B2C entities which are collecting taxes from customers but not depositing the levy with the government.Several consumers have filed complaints through a mobile app -Iris Peridot – that GST was charged by small restaurants but the eatery neither deposited taxes with the government nor filed GST returns.Many customers have downloaded the Iris Peridot app, developed by a GST Suvidha Provider, allowing them to scan the unique GST Identification Number (GSTIN) of a business and find out whether the returns have been filed by the entity.Complaints of consumers about non-filing of returns by the entities which are charging Goods and Services Tax (GST) are being forwarded on a real-time basis to the tax department for further action.Small businesses with an annual turnover of up to Rs 1.50 crore can opt for the composition scheme and file returns quarterly. However, s…

Housing sales down 5% in Jan-Mar 2019 on changes in GST rates, rules: PropTiger

NEW DELHI: Housing sales dipped by 5 per cent to 75,706 units in nine major cities during January-March period because of transition in GST rates, according to a report by property brokerage firm PropTiger.The company, which is part of News Corp-backed Elara Technologies that also owns Housing.com and Makaan.com, Monday released its ‘Real Insight Report’ for Q4 2018-19 that tracks housing sales and new launches in nine major cities — Bengaluru, Kolkata, Mumbai, Chennai, Hyderabad, Pune, Ahmedabad, Gurugram and Noida.“Housing sales in India’s nine key property markets declined 5 per cent year-on-year (y-o-y) and new project launches fell 32 per cent annually during Q4 2018-19,” the report said, adding that the unsold housing stock numbers declined by 10 per cent.PropTiger attributed the decline in home sales numbers to changes in the Goods and Services Tax (GST) transition rules.In contrast to PropTiger report, real estate consultant Anarock recently said housing sales rose by 58 per c…

Rs 7.91-cr GST loss to govt; 2 traders booked

Traders Angrej Singh and Bijendra Kumar Sharma have been booked for issuing bogus bills for iron and steel, copper, scrap, wires and machinery, causing a loss of Rs 7.91 crore to the state exchequer.The complainant, ETO Shiv Kumar, said a fake firm named AS Chauhan registered under the GST Act had issued 676 bogus bills worth Rs 38.35 crore and showed bogus purchases. Its proprietor, Angrej Singh, did not pay Rs 6.9-crore GST to the government.In the second complaint, the ETO said Sharma got a firm BK Steel registered under the GST Act.On inquiry, it was found that the accused had allegedly issued bogus bills for Rs 5.62 crore and paid no GST to the government, causing a loss of Rs 1.01 crore to the exchequer.Source- The Tribune. The post Rs 7.91-cr GST loss to govt; 2 traders booked appeared first on GST Station.

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GST: Relaxed norms for setting up firms, other steps to help improve India’s ease of biz ranking

India is aiming to improve its ranking within top 50th in the coming years. Improving ranking helps a country to provide a better investment climate for investors.The government’s initiatives such as relaxed norms for company incorporation, and removing requirement of a bank account for GST registration will help India further improve its ease of doing business ranking of the World Bank this year, a senior official has said.“Several steps have been initiated by the government this year on all the ten parameters. It will significantly help improve India’s ranking this year,” the official said.In its annual ‘Doing Business’ report, the World Bank ranks nations based on 10 parameters relating to starting and doing business in a country.These parameters include ease of starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts and resolving insolvency.The next report is expected to be released in October 2019. In…

Dream11, other eGaming companies face potential tax bouncer on GST

Essentially tax officials want to determine if GST is applicable on the total transaction value or the net commissions (revenues) that accrue to these gaming firms.MUMBAI: The indirect tax department has started questioning some of the leading online fantasy gaming companies to ascertain if there is a revenue leakage on account of the methodology used by these platforms to calculate and pay goods and services tax (GST), people familiar with the development said.Essentially tax officials want to determine if GST is applicable on the total transaction value or the net commissions (revenues) that accrue to these gaming firms.Fantasy sports is beginning to take off in India. Mumbai-based Dream11, which recently entered the coveted unicorn (startups with a valuation exceeding $1 billion) category, is widely seen as the industry leader.Some state-level tax authorities have begun an exercise to determine whether GST should be applicable on the entire contest entry amount, which includes user…

Money laundering Act to curb GST frauds?

NEW DELHI: The Central Economic Intelligence Bureau (CEIB) is of the view that use of the stringent Prevention of Money Laundering Act could be considered to curb and deter fraudulent input credit tax, claimed by companies generating fake invoices of Goods and Services Tax.A proposal was recently floated by the CEIB, which has said that in the previous financial year, till December 2018, input tax credit was fraudulently availed by creating fake GST invoices to the tune of Rs 4,000 crore.This is just a small fraction of the actual tax evasion and money laundering using shell companies. Invoices generated without actual supply of goods to the tune of Rs 24,000 crore has been detected last year by the Directorate General of GST Intelligence.The CEIB study says fraudulent claims of input tax credit at the state level could be larger. Invoices are generated without actual movement of goods and suppliers down the line claim input tax credit based on such fake invoices. Money earned through…

Over 50 builders face probe for profiteering under GST

NEW DELHI: More than 50 property developers, including some of India’s top builders, are being investigated for profiteering under the goods and services tax (GST) regime, said a person aware of the development.The investigation by the Directorate General of Anti-Profiteering (DGAP) is trying to find out if the builders made undue profits by failing to pass on to buyers the benefit of input tax credit that was available to them.Before GST was introduced in July 2017, various taxes levied by central and state governments on under-construction property added up to 5.5-6.5%. Under GST, real estate was placed under the 12% tax slab. Many builders duly raised prices, even though they could now claim input tax credit against products and services on which they had already paid tax.“In the pre-GST era, there was no input tax credit facility on construction materials like cement and steel, which was there in the GST regime (till March-end). This called for a price cut, not a price increase,” …

ITC, Patanjali now on GST anti-profiteering list, says report

FMCG and retail majors ITC and Baba Ramdev’s Patanjali Ayurved are likely to be under the lenses of the National Anti-Profiteering Authority in GST as the two companies are believed to not be transferring the GST benefits to the consumers in a timely manner.Sources told the paper that the two firms are being investigated along with P&G, J&J, among others. ITC, the paper said, received the notice asking whether the firm has passed on the GST rate cut benefit on 178 of its products.An ITC source told the paper that the firm is being asked if they are passing on the tax benefit to the consumers and if the benefit is not being passed on, how much profit the said firms are making out of it.  ITC confirmed with the paper that it received a notice and told the paper that they have been cooperating with the officials.For Patanjali, sources told the paper, that the company has an anti-profiteering amount collection of nearly Rs 176 crore, until August 2018 and said they are extending t…

Soon, businesses may have to generate GST e-invoice on govt portal

The proposed ‘e-invoice’ is part of the exercise to check GST evasionNEW DELHI: GST officers are working on a system where businesses above a certain turnover threshold will have to generate ‘e-invoice’ on government or GST portal for every sale, thereby effectively reducing the room for tax evasion.To start with, businesses above a specified threshold will just get a unique number for every electronic invoice or e-invoice generated. This number can be matched with the invoices reported in the sales return and taxes paid, an official said.Going forward, businesses will be required to generate full electronic-tax invoice or e-invoice recording entire value of sales.The official said that businesses beyond a turnover threshold would be provided a software which will be linked to GST or a government portal for generating e-invoice. The threshold can also be fixed on the basis of the value of invoice.“The requirement of e-invoice generation could be either on the basis of turnover of the …

Utilisation Of ITC Sequence In GST Act- Recent Changes & Analysis

Utilisation Of ITC Sequence In GST Act- Circular No. 98/17/2019-GST Dt.23-04-2019 RECENT CHANGES & CLARIFICATIONS ON SEQUENCE OF ITC UTILIZATION After introduction of section 49A in CGST Act, 2017 by amendment in CGST Act through CGST (Amendment) Act, 2018 a confusion arose due to new sequence of setting up ITC sequence which was earlier already […]

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Detention of Imported Goods- “E-Way Bill non-compliance”

This is with reference to the judgement of Ahmedabad High Court in case of M/s NEUVERA WELLNESS VENTURES PVT LTD dated 18-04-2019 whereby the court had given judgment basis the findings in the order passed without any reason assigned to it while issuing order. Hence, the order issued was not a speaking order and the […]

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Points to Kept in mind during the GST Audit

Here I would like to mention to all of you details which would be require kept in mind at the time of GST Audit. I had done GST Health Checkup (i.e. GST Compliance of more than 30 companies like Manufacturing, Service, Trading, Pharma, Health, Export oriented unit, etc is limited as well as MNC companies). […]

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Easiest Way to Start a New Business in GST Regime: FAQs

Q.1 – How can I start my business as Proprietorship Concern? Ans - An Individual can start his Proprietorship concern just by taking registration under GST Law. Q.2 How many days, it will take to get GST Registration? Ans: In normal circumstances, it will take just 3-4 working days to get your GST Registration.

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5 New Changes In E-Way Bill System

NEW CHANGES IN E-WAY BILL SYSTEM Recently, the e-way bill system has been empowered with various fruitful changes. The e-way bill system now would be empowered to auto calculate the route distance based on the PIN code; knowing the distance between two PIN codes; blocking of generation of multiple e-way bills based on the single […]

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Clarification On Manner of Utilizing Input Tax Credit (ITC)

The Government has issue a clarification on manner of utilizing input tax credit w.e.f. 29.03.2019 [As clarified by CBIC Circular No. 98/17/2019-GST dated 23.04.2019] because GSTN does not have updation for the new manner of taking credit.

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Provision and Procedure related to Provisional GST Assessment

Every one may have question why there is requirement of Provisional Assessment under Law. In this it is to be better understand by the entity who has paid magnificent amount of Tax just due to – Improper Valuation – Falling to Determination of Accurate rate – Falling to Determination of Place of Supply – Procedural […]

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Decoding Applicability of GST Audit – GSTR-9C

Finally after a long waiting period GSTR-9C was been released and made available on GST portal on 14th April 2019 as a Tamil New Year gift to the nation. Last date for filing GSTR-9C along with GSTR-9 is 30th June 2019, though words repeatedly used in relation to filing of GSTR-9 and GSTR-9C is “along […]

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GST Impact Analysis on Non Resident Taxable Person

REGISTRATION ´First of all lets start from the simple definition as per Section 2(77) of CGST Act, 2017 of “Non Resident Taxable Person” which means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place […]

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Interest under GST -“Gross Tax Liability”

This is with reference to judgment of Hon’ble Telangana High Court in the case of M/s. Megha Engineering & Infrastructures Ltd. v. Comm. of Central Tax, wherein, the petitioner filed a writ petition against the demand of interest for delay in filing GSTR 3B returns, on the ground that interest is to be calculated only on the ‘net […]

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Interest on Late payment of GST on Gross Liability

During the 31st GST council meeting dated 22nd December 2018, it was proposed that – Section 50 of CGST Act 2017 should be amended to allow payment of interest on Net cash liability, i.e. interest should be charged only on the net liability of taxpayer, after taking into account the admissible ITC. However, no amendment has […]

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GST Procedure On Return of Time Expired Drugs or Medicines

Whenever one buys any medicine or drugs, one never forgets to check its expiry date. Medicines and drugs have defined life term. They always come with an expiry date.  Generally Medicines/Drugs are sold by the manufacturer to the wholesaler, by the wholesaler to the retailer and at last by the retailer to the consumer. The […]

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“Composite Supply”- Reimbursement of actual expenses “E-Square Leisure AAR”

-Whether GST is to be levied on reimbursement of expenses from the lessee by the lessor at actuals- In case GST is to be levied, what would be the applicable rate of GST- Whether reimbursement of expenses by Applicant can qualify as expenses incurred as a 'Pure Agent' and would not be considered in the value of supply for levy of tax

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Individual supplies of goods or services cannot be held as Composite Supply

In re Sandvik Asia (P) Ltd. (GST AAAR Rajasthan) Activities performed under the Agreement, though comprises of two or more individual supplies of goods or services, can not be held as Composite Supply . Consequently, such activities will fall under the category of ‘Mixed Supply’ as per definition of Mixed Supply, under Section 2(74) of […]

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GST is not applicable on the sale or purchase of DFIA

In re Space age syntex Pvt. Ltd. (GST AAAR Maharashtra) The Appellate Authority for Advance Ruling set aside  the ruling given by the Advance Ruling Authority by observing  that No GST is applicable on the sale or purchase of DFIA,  as provided in Sr. 122A of the Notification 02/2017-C.T. (Rate) dated 28.06.2017 as amended by […]

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GST Exemption on Pure Services to Government

This write up is an analysis of GST exemption on pure services provided by registered taxable person to Government. Since services to government needs special attention of the service providers, it is our endeavour to highlight some areas which needs to be examined before treating the services as exempted under the serial no. 3 of notification no. 12/2017 i.e. for pure services. In this write up, we have covered following areas:

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GST payable on Back Office Support Services and are not Exports

In re Vservglobal Pvt. Ltd. (GST AAAR Maharastra) The Appellate Authority for Advance Ruling upheld  the ruling given by the Advance Ruling Authority by observing  that the services being offered by Appellant is a package of services, which is nothing but a composite supply, of which the principal supply is that of intermediary services. The […]

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Rule 138E to be applicable from 21st June, 2019

As per Rule 138E, if an assesse, who is a composition dealer has not filed GST returns for two consecutive tax periods, e-way bill can-not be generated for making supply to him. In case of assesses other than composition dealers, if they do not file their GST returns for a consecutive period of two months, e-way bill can-not be generated for making supply to him.

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GST on royalty paid in respect of mining lease

The royalty paid by M/s NMDC in respect of mining lease is classifiable under sub heading 997337 ; 'Licensing services for the right to use minerals including its exploration and evaluation' (covered under entry no. 17 of Notification No. 11/2017 (Rate), dated 28.06.2017, attracting GST at the same rate as applicable for the supply of like goods involving transfer of title in goods, under reverse charge basis.

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The GST Saga – A Story of Extraordinary National Ambition

Chanakya’s words summarize the whole GST process – ‘even if something is very difficult to be achieved, one can obtain it with penance and hard work’. If we take into consideration the 29 states, the 7 Union Territories, the 7 taxes of the Centre and the 8 taxes of the states, and several different taxes […]

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GST payable on Freight amount inclusive of diesel Cost

In re Shri Nawodit Agarwal (GST AAR Chhattisgarh) Do we need to charge GST on Freight amount excluding diesel cost or on total amount which is inclusive of diesel cost? In the instant case as has been the contention of the applicant, the service recipient i.e. M/s. Shree Raipur Cement, C.G is providing diesel to […]

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GST Rates applicable in case of hostel on rent to various boarder

The activity of providing accommodation services by the applicant in their hostel for which the applicant is collecting an amount below the threshold limit of Rs. 1000/- per day and no other charges are being collected for providing other allied facilities / services therein viz. canteen food, parking space for vehicles, coaching, library, entertainment etc. merits exemption

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Businesses can use IGST credit to settle centre, state tax dues: CBIC

Importers typically pay IGST on goods they bring into the country. Also IGST is paid on inter-state movement of goods. This tax is supposed to be set-off against the actual GST paid, or may be claimed as refund in certain cases.Businesses that have accumulated Integrated GST (IGST) credit in their books can settle it against central and state tax dues in any proportion, the revenue department has said.Importers typically pay IGST on goods they bring into the country. Also IGST is paid on inter-state movement of goods. This tax is supposed to be set-off against the actual GST paid, or may be claimed as refund in certain cases.The Central Board of Indirect Taxes and Customs (CBIC) in March had allowed utilisation of input tax credit (ITC) of IGST towards the payment of Central GST and State GST, in any order subject to the condition that the entire IGST liability has been first discharged using the accumulated credit.However, there were confusion among taxpayers regarding the quantum of…

GST refunds for exporters can now come in 3-4 days: CEPC’s Mahavir Pratap Sharma

CEPC chairman, Mahavir Pratap Sharma is of the view that it makes sense for the government to create an online e-wallet which has been in the works since some time.The initial hurdles of GST refund for exporters are now showing some signs of ease. Mahavir Pratap Sharma, Chairman, Carpet Export Promotion Council looks back at the GST regime saying that the first nine months turned out to be a rather trying time. “I think it was the biggest challenge that we could have and, quite honestly, we as exporters were up in arms because of GST being deposited and exports hampered in the process. We took a beating because we had to park our funds and they got stuck,” he rues.However, brighter days are there now with the process being seamless if all returns are duly filed. “Now, for the GST refund, if one is filing all returns in a perfect manner, if shipping bills are filed, if the shipment is on board and exported, then I think the refunds will take 3-4 days and I think everyone is getting the…

HC order on goods detained for not accompanying Part-B of E-way bill

Kuntal A Parikh Vs Mr. Utkarsh Sharma (Gujarat High Court) Assistant Government Pleader for the respondents, supported the impugned order by submitting that admittedly the goods were not accompanied by Part-B of the E-way bills and hence, the second respondent was wholly justified in detaining the conveyance and goods. It was further submitted that as […]

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Pay Interest On Gross GST Liability ??

The industry needs to be vigilant in ensuring timeliness in the filing of GSTR-3B since delays in filings have implications of interest on gross GST liability. Basis the judgement given by Telangana & Andhra Pradesh High court, the liability to pay interest under Section 50 of the CGST Act, 2017 will NOT be limited to the net tax liability; instead, interest would be payable on the gross tax liability that is including the portion which is available for set-off against ITC.

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GST: You may be paying higher tax on annual maintenance bills

NEW DELHI: Goods and services tax (GST) on annual maintenance contracts (AMCs) is proving to be contentious issue for some of the white goods and electronics companies, which have decided to play it safe and charge higher rates, increasing the burden on consumers. A leading electronics goods company, for instance, is levying 28% GST, applicable on high-end gadgets, instead of 18% that applies to AMCs. There are others too who have decided against taking any chances.“Even though the intention behind availing maintenance of such products is uninterrupted service, in view of divergent rulings by AARs (Authority for Advance Rulings), some companies are charging higher rate (28%) even on annual maintenance services (18%) provided along with these products. This is resulting in unnecessary payment of higher price by the common man,” said Harpreet Singh, partner at consulting firm KPMG.The confusion stems from the classification as a ‘composite’ or a ‘mixed’ supply. A composite supply, such …

Big MNCs did not pass on GST rate-cut benefits, say taxmen

P&G, Samsung and J&J being investigated, according to an officialIndian tax authorities have alleged that a number of big multinational companies have not passed on benefits from a tax cut to customers, a senior government official told Reuters.The tax authorities have alleged that US consumer goods maker Procter & Gamble did not pass on more than $35 million in tax benefits which were meant to have gone to its customers.Separately, the authorities are also investigating South Korea’s Samsung Electronics and US drug maker Johnson & Johnson among others, the senior government official, speaking on condition of anonymity, said.P&G, Samsung and J&J all deny any wrongdoing.The National Anti-Profiteering Authority — a quasi-judicial body set up following the rollout of the Goods and Services Tax in 2017— found P&G had not reduced prices on many products after a tax cut on those items, the official said.In a statement, P&G said: “As a responsible corporate, P…

GST: Buying second home from the same developer is a big No-No for many buyers now

In some markets, buyers said they will not consider buying a property from the same developer, clearly giving an indication that they are not satisfied with their developer.In today’s time, customer satisfaction is of paramount importance for most companies providing a product or any service to people. Therefore, in order to understand how consumers felt about their product from their respective developer, property consultant ANAROCK recently asked the property buyers – “Given a chance, will you consider buying again with the same developer with whom you bought your last property?”Surprisingly, only 52% of the respondents seemed satisfied with their earlier-bought home, while 48% buyers said that if given a chance, they will not buy a property from the same developer. The response, however, varied from city to city.At the city-level, a majority of respondents (about 68%) in Delhi-NCR, for instance, said they will not consider buying a piece of property from the same developer, clearly…

Congress committed to single GST: Rahul

NEW DELHI: Congress president Rahul Gandhi on Thursday said the “Gabbar Singh Tax” and demonetisation “destroyed” crores of jobs, and asserted that his party was committed to implementing a “single GST”.He also tweeted a video on the Congress’s vision for “GST 2.0”, which highlights the problems faced by small traders from the current version of the Goods and Services Tax (GST) and how the party wants to simplify it.“Gabbar Singh Tax and Demonetisation destroyed crores of jobs causing tremendous pain and badly damaging our economy. The Congress Party is committed to GST 2.0 – a single GST, with simple reporting,” Gandhi tweeted.With Gandhi repeatedly referring to the current GST as “Gabbar Singh Tax”, the Congress video uses the names of various characters from Bollywood blockbuster “Sholay” to drive home its point.“Gabbar Singh” was the name of the character portrayed by actor Amjad Khan in “Sholay” and is considered as an iconic villainous role.Source- Business Standard. The post Con…

Businesses can apply for revoking of GST cancellation by July 22: CBIC

CBIC said it is providing a “one-time opportunity” to apply for revocation of cancellation of GST registration for those entities for whom cancellation order has been passed up to March 31, 2019NEW DELHI: The revenue department has allowed businesses whose GST registration has been cancelled due to non-filing of tax returns to apply for its revocation by July 22, provided they file their pending returns and pay due taxes.In a letter to field offices, the Central Board of Indirect Taxes and Customs (CBIC) said it is providing a “one-time opportunity” to apply for revocation of cancellation of GST registration by July 22, 2019, for those entities for whom cancellation order has been passed up to March 31, 2019.The CBIC said where the registration has been cancelled with effect from the date of the order, all returns due till the date of such cancellation are required to be furnished before the revocation application is filed.In cases where the registration has been cancelled with retros…

Non Filing of GST returns may restrict E-way Bill Generation w.e.f 21st June 2019

Government has decided to restrict furnishing information in Part A of Form GST EWB – 01 for certain tax payers which is as under –For Composition Dealer (paying tax U/s 10 of CGST Act, 2017) – Non furnishing the return for two consecutive tax periods - Being person other than Composition Dealer – Returns for consecutive period of two months

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Automatic GST Late Fees Calculator | Interest Calculator on Late Filling of GSTR 3B

Since, GST is being operationalised since Jul-17, One of major concern is how to calculate INTEREST on late payment of GST & Late fees for filling GSTR 3B. Calculator for Late Fees under GST As per GST laws, the Late Fee is an amount charged for delay in filing GST returns. It can be referred […]

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Restrictions on Issue of E Way Bill W.E.F. 21-06-2019

Important Notification No. CT-22 has come on 23/04/2019 i.e. w.e.f. 21/06/2019 no person (including a consignor, consignee, transporter, an e-commerce operator or a courier agency) will not be able to fill Part A of E way-Bill if he has not filed his two consequently returns of GST – i.e. If monthly then two months returns […]

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Interest Whether on Gross or Net GST Dues?? HC Ruling & Additional Contentions

1. Recently, Telangana High Court in the case of Megha Engineering & Infrastructures Ltd. v. The Commissioner of Central Tax and others (Writ Petition No. 44517 of 2018) held that in the event of the delayed filing of the return, the interest payable u/s 50(1) of the CGST Act, 2017 shall be on the gross […]

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