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Showing posts from July, 2019

Impact of Kerala Flood Cess

In August 2018, the State of Kerala faced a devastating flood due to high rainfall which was the worst flood in nearly a century. There was huge loss to the assets, revenue of the State. As a result, the State of Kerala proposed for levy of additional cess in GST which was approved by the GST council in its 32nd Council meeting held on 10th January 2019.

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Corporate Compliance Calendar for the Month of August, 2019

This article contains various Compliance requirements under Statutory Laws for the Month of August, 2019. Compliance means adhering to rules and regulations. Article contains Compliance Requirement Under Income Tax Act, 1961, Goods & Services Tax Act, 2017 (GST), Other Statutory Laws, Foreign Exchange Management Act, 1999 (FEMA), SEBI (Listing Obligations And Disclosure Requirements) (LODR) Regulations, […]

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No Interest can be levied in GST | GSTR 3B is not a return

Whether GSTR-3B is not a return? Absolutely not. Beyond any doubt GSTR-3B is a return. Merely, it is not a return u/s 39. It is a return prescribed u/r 61(5) which has its relevance till the time the GSTR-2 and GSTR-3 are not finally brought to the common portal.

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GST payable on amount received by society from Company for CSR programmes

In re M/s Indian Institute of Corporate Affairs (GST AAR Delhi) Q1. Whether Goods and Services Tax shall be leviable / chargeable on the transaction / agreement as per provisions of Central Goods and Service Tax Act, 2017. . The amount received by the applicant from AICL is not in the nature of grant-in aid […]

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GST: Goa govt may reduce taxes for registering new vehicles

Speaking in the Goa Legislative Assembly on Wednesday, chief minister Pramod Sawant said that in the past Goa had a lower tax rate compared to other states which led to owners getting their cars to the coastal state for registration.The Goa government is exploring the possibility of lowering the tax on registration of vehicles to attract buyers from other states.Speaking in the Goa Legislative Assembly on Wednesday, chief minister Pramod Sawant said that in the past Goa had a lower tax rate compared to other states which led to owners getting their cars to the coastal state for registration.“If we lower the tax, people will once again come in large numbers to register vehicles in Goa. It can be a revenue source. We are examining the issue,” Sawant said.The Goa government has been exploring ways to help shore up its revenues as tax collections have taken a massive hit since the implementation of the Goods and Services Tax (GST) regime two years ago.As of today the state government, has…

Hotel body says charging 18% GST is legal

The apex hospitality body explained that as per GST laws, hotels are supposed to charge the customer 9% CGST and 9% UT GST and pass the same on to the government as per law.The apex body of hotels and restaurants in the country has backed the Chandigarh five star hotel that found itself in the eye of a storm after charging Rs 442 for two bananas from actor Rahul Bose last week.The actor raised the issue on Twitter on July 22 and shared a video clip in which he talked about his bizarre experience, and displayed the hotel’s bill for the bananas. The video went viral and much public outcry ensued.The Federation of Hotel and Restaurant Associations of India (FHRAI) on July 30 clarified that there was nothing illegal in what the hotel had done. The apex body said in a statement that hotels are legally mandated to charge 18 % GST.Justifying the steep amount charged for the commonly available fruit, FHRAI founder Gurbaxish Singh Kohli said: “Hotels do not sell or buy fruits and vegetables, b…

Hotel accommodation services provided outside India attracts GST

In re M/s TUI India Private Limited (GST AAR Delhi) The applicant is supplying booking of hotel accommodation services. They are admittedly paying GST @ 18% (9% CGST + 9% SGST) on service fee / convenience fee commission received from clients and also on target based sales commission received from the foreign hotel aggregators (DOTW). […]

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Cheque Bounce Charges attracts GST: AAAR

In re Bajaj Finance Limited (GST AAAR Maharashtra) The Appellate Authority for Advance Ruling upheld  the ruling given by the Advance Ruling Authority by observing  that the bounce charges recovered by the Appellant from their borrowers on account of the default of the borrowers, where their repayment instruments get dishonored due to lack of the […]

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Electro Ink supplied with consumables by HP is Mixed Supply: AAAR

In re H.P. Sales India Pvt. Ltd. (GST AAAR Maharashtra) The supplies of the Appellant have been held to be a continuous supply by the Advance ruling authority and while deciding whether the supply is composite or not have done so keeping in mind the continuous nature of the supply. They have stated that each […]

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GST Payable on Penal Interest for delay in EMI payment: AAAR

In re Bajaj Finance Limited (GST AAAR Maharashtra) The Appellate Authority for Advance Ruling upheld  the ruling given by the Advance Ruling Authority by observing  that the penal charges / penalty recovered by the Appellant from their borrowers on account of the delay in payment of EMI by borrowers are adequately covered under clause 5 […]

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Fan Coil Unit classifiable under Heading No. 8415: AAAR

In re M/s. Bhutoria Refrigeration Private Limited (GST AAAR Maharashtra) The Appellate Authority for Advance Ruling upheld  the ruling given by the Advance Ruling Authority by observing that the Fan described under 8414 do not at all have any resemblance with a FCU.  Therefore, there is no reason to believe that FCU will be covered […]

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Job work services for manufacturing beer attracts 18% GST

In re Crown Beers India Private Limited (GST AAAR Maharashtra) It is worth noting here that in erstwhile Service Tax regime also, the said activities of CBUs of manufacturing alcoholic liquor on behalf of Brand Owners (BOs) against a consideration, were subjected to Service Tax and this was clarified also by CBIC (earlier CBEC) vide […]

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AAAR do not have jurisdiction to decide place of supply of service

In re Sabre Travel Network India Pvt. Ltd. (GST AAAR Maharashtra) The Appellate Authority for Advance Ruling  held that the entire gamut of activities of the Appellant is in the nature of the composite supply, of which intermediary services is the principal supply. Further, as regards the services provided by the Appellant to their Client, […]

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GSTN releases offline tool of new GST return for trial run

These two forms would be part of the proposed GST Return filing system under which a taxpayer would have to file FORM GST RET-1 (Normal) or FORM GST RET-2 (Sahaj) or FORM GST RET-3 (Sugam) on either monthly or quarterly basis.Goods and Services Tax Network (GSTN) on July 30 released trial version of offline tools of GST forms related to supply of goods and services. The offline tools have been released for Annexure of supplies (GST ANX-1) and Annexure of Inward Supplies (GST ANX-2), GSTN, which is the IT backbone of the indirect tax regime, said in a statement.These two forms would be part of the proposed GST Return filing system under which a taxpayer would have to file FORM GST RET-1 (Normal) or FORM GST RET-2 (Sahaj) or FORM GST RET-3 (Sugam) on either monthly or quarterly basis.GSTN provides offline tools that can be downloaded for filing GST returns.All the outward supplies will be detailed in GST ANX-1 while GST ANX-2 will contain details of inward supplies auto-populated mainly…

GST: GJC seeks immediate rollback of import duty on gold

The import Duty of 12.5% and GST of 3% has made gold jewellery costlier thereby negatively impacting consumer sentiment leading to postponement of purchase decisions.All India Gem and Jewellery Domestic Council (GJC) has sought immediate rollback in import duty of gold – the basic raw material for the jewellery business – from 12.5% to 10% and immediate implementation of a comprehensive integrated Gold Policy to save the gem & jewellery business and the jobs of 55 lakh labour force engaged in the business and the livelihood of their dependents/ families.The import Duty of 12.5% and GST of 3% has made gold jewellery costlier thereby negatively impacting consumer sentiment leading to postponement of purchase decisions. The lack of demand in the gem & jewellery has resulted in many craftsmen and artisans being out of work and shifting to other businesses, where they are getting employment. And there have been several reports of gem & jewellery sector workers committing suicid…

CBI arrests GST employee for accepting bribe of ₹ 50,000

The Central Bureau of Investigation has arrested a Superintendent at the Goods and Services Tax (GST) Division in Khanna (Punjab) for demanding and accepting a bribe of ₹ 50,000 from a complainant.A CBI statement said that a case under Section 7 of Prevention of Corruption (Amendment) Act, 2018 was registered against the Superintendent.“The complainant alleged that he is running a firm of iron trading at Mandi Gobindgarh on behalf of his maternal uncle and on July 29, 2019 the accused had detained their truck containing iron scrap material at Khanna. It was further alleged that later on, a bribe of ₹ 1 lakh was demanded by the accused for releasing his truck and on the request of the complainant, the accused reduced the amount to ₹ 50,000. CBI laid a trap and caught the Superintendent, GST Division, Khanna red handed while demanding and accepting a bribe of ₹50,000 from the complainant,” the CBI said.Searches are being conducted today at the residential and office premises of the accu…

2 years after roll-out, GST glitches still exist, says CAG report

Report also points to slowdown in revenues in FY18NEW DELHI: The Comptroller and Auditor General of India (CAG) has pointed out lacunae in the goods and services tax (GST) regime, saying that system-validated input tax credit through invoice matching is not in place and a non-intrusive e-tax system still remains elusive after two years of its roll out.In its report on GST for 2017-18 tabled in Parliament on Tuesday, the CAG said tax collections under the GST slowed down in the first year of its roll out.To buttress its point, the CAG said growth in indirect taxes of the Union government slowed down to 5.80 per cent in 2017-18 as compared to 21.33 per cent during 2016-17.It said post-implementation, the Centre’s revenue from GST (excluding central excise on petroleum and tobacco) registered a decline of 10 per cent in 2017-18 compared to revenue of subsumed taxes in 2016-17.It pulled up the department of revenue, the Central Board of Indirect Taxes and Customs (CBIC), both under the fi…

Due date Compliance Calendar for August 2019

Article compiles due dates of compliance related to GST, Income Tax, ESI, PF Acts which includes compliance related to GSTR-1, GSTR-3B, ITC-04, GSTR-5 & 5A, GSTR-6, GSTR-7, GSTR-8,  RFD-10, Due dates for payment of TDS / TCS, Dues date for Payment of Advance Tax, Due date for Issue of TDS/ TCS Certificates, Due date for […]

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Relief to Small Composition & Electric Vehicle Manufacturers in GST

In 36th GST Council Meeting the GST rates related to supply of few goods and services were proposed to change. Even extension of due dates were recommended.

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Provisions under Goods and Services Tax (GST) for Duty Free Shops

In March 2018, under GST law, an Advance Ruling was pronounced, in the matter of ‘ROD Retail Private Limited‘, [2018-VIL-09-AAR] on the taxability of sale from Duty Free Shops under GST Law. In this case, considering the definition of ‘export of goods’ (which means taking goods out of India to a place outside India) and […]

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Executive Summary of first Audit Report of CAG on GST

Report No.11 of 2019 – Compliance Audit of Union Government, Department of Revenue (Indirect Taxes – Goods and Services Tax) This is the first Audit Report of CAG on Goods and Services Tax (GST), prepared on the basis of audits conducted during the year 2018-19. The Report acknowledges the magnitude of the tax reform that […]

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Trial run of Offline Tool of New Return of GST for familiarisation

New Return filing System: In the proposed system of new GST Return filing, you would be required to file FORM GST RET-1/2/3, on the basis of option selected. The Annexure of Supplies in Form GST ANX-1 i.e. supply commonly called sales, made by you and the Annexure of Inward Supplies in Form GST ANX-2 i.e. purchases made by you, will be uploaded prior to filing of these returns. The taxpayer will also be required to take action on Form GST ANX-2, which will contain details of inward supplies auto-populated from the suppliers GST ANX-1, Form GSTR-5 and Form GSTR-6.

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GST under CAG lens: National auditor lists concerns; says full potential not achieved even after 2 years

Even as GST roll out completed two years, no process of system-validated input tax credit (ITC) system through invoice matching has been put in place, a CAG report on GST said.Even as GST roll out completed two years, no process of system-validated input tax credit (ITC) system through invoice matching has been put in place, a CAG report on GST said. In addition, non-intrusive e-tax system still remains elusive, said the report tabled in Parliament on Tuesday. The GST was launched on July 1, 2017, and has completed two years. The indirect tax was introduced as the biggest tax reform and showcased as ‘One Nation One Tax.’ Adding, the report said that the system has become prone to ITC frauds, owing to the complex nature of the return mechanism and the technical glitches leading to a roll back of invoice-matching.The report also noted that the GST tax compliance system is non-functional in absence of invoice matching and auto generation of refunds, assessments and others. “The extent of…

Bizmen say not getting GST refunds on time

Ruing delay in GST refunds, city businessmen are blaming both the state GST (SGST) and the Central GST (CGST) departments. They say even after filing their GST returns regularly, they were not getting the refunds on time, as a result their working capital was getting blocked and their businesses were suffering badly.Raj Kumar Singla, president of Fasteners’ Suppliers’ Association, Ludhiana, said, “Whether it’s SGST department or CGST, our tax refunds are not being given on time despite timely returns. This is a nightmare for us, as our years’ old VAT refunds are still pending with the state taxation department even after the system has been scrapped. Now adding to our woes is the holding up of GST refunds worth crores. What was the benefit of introducing GST when situation of refunds was the same. We have decided to take up the matter with Punjab finance minister Manpreet Badal. This week a delegation of our association will meet him and apprise him of this problem and seek a solution…

Bogus dealers used fake address for GST registration in Chandigarh

CHANDIGARH: While the UT excise and taxation department unearthed input tax credit (ITC) scam worth over Rs 70 crore, the probe conducted by the department revealed that these bogus dealers used fake addresses for registration under goods and services tax (GST) in Chandigarh.Meanwhile, the department has also cancelled GST registration number of five bogus dealers, who were earlier slapped a penalty of Rs 17 crore. The registration was cancelled with effect from the date of registration of these bogus firms. The list of other 15 was sent to the central excise department for action.During probe, the department officials checked records of around 440 firms registered in Chandigarh, and it was found that 132 bogus firms were registered under GST in Chandigarh.A senior official of the UT excise and taxation department said they have started checking of bills and other documents of those firms, who were issued invoices by five scrap dealers, against whom the department has decided to write…

Electronic devices that you can buy after the GST rate cut of 2018

As a Christmas surprise to the common man, the GST Council of India cut down the tax rates on 23 goods and services, including Television, monitor screens, power banks and several other things. The revised rates are likely to come into effect from January 1, 2019, Finance Minister Arun Jaitley announced this after the 31st meeting of Goods and Services Tax (GST) Council.Of the 23 goods and services on which rates have been slashed, the tax rate on seven products in the 28 percent slab has been brought down. After this, merely 28 items remain in the highest 28 percent tax bracket.Below-mentioned are the items on which GST that been lowered to 18% from 28%:
• Monitors and TV screens up to 32 inches • Power Banks• Pulleys• Transmission shafts and cranks • Gearboxes• Used tyres • Power banks of lithium-ion batteries• Digital cameras• Video camera recorders • Video game consoles• Cement• Air conditioners • DishwashersAir travel of pilgrims by non-scheduled/charter operations being facilitat…

Implication of GST on demerger of business

In GST Act, In case of demerger of company, the registered person shall be allowed to transfer its unutilised input tax credit to resulting company through ITC-02. For this purpose input tax credit shall be transferred to the resulting company in the ratio of the value of assets held by them at the time of registration.

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Filing procedure for Form CMP-08- Quarterly statement-cum-challan for Composite Dealer

CBIC has introduced new challan-cum-statement, Form CMP-08, to be filed by registered composite dealers quarterly on or before the 18th of the month succeeding the quarter of financial year, and Form GSTR-4, to be filed annually on or before the 30th April at the end of each financial year.

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CBIC extends last date to furnish FORM GST CMP-08 to 31.08.2019

CBIC extends the last date for furnishing FORM GST CMP-08 for the quarter April -June 2019 till 31.08.2019 videNotification No. 35/2019 – Central Tax dated 29th July, 2019. Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs Notification No. 35/2019 – Central Tax New Delhi, the 29th July, […]

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GST payers warned against relying on unscrupulous consultants

The Divisional officer of CGST Commissionerate in Coimbatore has nabbed a tax consultant for allegedly defrauding the department of ₹36 lakh.The consultant, the department found, was running a firm to file GST returns and other liaison work on behalf of his clients. The issue came to light when the divisional officer found that the concerned GSTIN registrant had not paid the dues since March 2018Summons were issued by the department to the GSTIN registrant notifying about the dues. According to a department official, “the receipts and supply details as declared in the respective GST returns showed nil payment of GST in GSTR 3B from March 2018 and showing the GST involved in supplies in GSTR 1.”It is learnt that the tax consultant would ask the GSTIN registrant to transfer the GST liability to his account, provide forged challans to the client and hold on to the money (without filing).Due to this fraudulent act of the consultant, the GSTIN registrant was compelled to remit his GST liab…

GST: Odisha legislators express concern over reduction in Central assistance to state

Besides, the FFC had also recommended that the State’s share in Central taxes should be 48,250 crore in 2019-20.BHUBANESWAR:  Members cutting across party lines on Monday expressed concern in the Assembly over the drastic reduction of Central assistance to Odisha even as Finance Minister Niranjan Pujari said the State Government has strongly protested the Centre’s act of not implementing the recommendations of Fourteenth Finance Commission (FFC) on the sanction of funds.Replying to a question from Ashwini Kumar Patra (BJD) and supplementary from other members, Pujari said the State Government has raised this issue in different forums like Inter-State Council, NITI Aayog and the Central Government’s pre-budget discussion.The Minister said the FFC had recommended Rs 1,84,070 crore to Odisha as its share from the Central tax between 2015-16 and 2019-20. The State should have received Rs 1,35,820 crore during the four financial years from 2015-16 to 2018-19 as per the recommendation. Howe…

GST: Government to set up a welfare board for traders

The industry ministry will set up the National Traders’ Welfare Board to help improve access to funds, and suggest simplifications of the Acts and rules applicable to traders, an official source told FE.The industry ministry will set up the National Traders’ Welfare Board to help improve access to funds, and suggest simplifications of the Acts and rules applicable to traders, an official source told FE.Although recommending changes to the FDI rules on e-commerce is not explicitly mentioned in the board’s objectives, the board may also offer its views periodically on these key issues as well as these rules directly affect traders.The creation of the board, which has been approved by commerce and industry minister Piyush Goyal, was part of the BJP’s election manifesto for traders. The board will have a chairman to be nominated by the government, five experts having knowledge of technical and other aspects of the retail trade and 10 members from various trade associations.The chairman wi…

GST evaders beware: Risky taxpayers to be profiled to pre-empt dodging

In a bid to pre-empt tax evasion under the Goods and Services Tax (GST), the government is looking at options to deal with taxpayers based on their risk profile. Assessees identified as ‘risky’ could face restrictions on issuing invoices, utilisation of input tax credit and sanctioning of refunds.The government has been grappling with evasion through fake invoice since the GST was launched two years ago. The indirect tax department has detected such frauds worth over Rs 12,000 crore. A tax official said the rule of the thumb indicated that detected frauds were only about 10% in value of actual frauds being committed, which would take actual evasion to nearly Rs 1.2 lakh crore.The GST Council, which is the apex decision-making body for the GST, has constituted a committee of officers (CoO) to suggest parameters for risk-based profiling so that a taxpayer could be categorised as risky in an automated manner. Further, the CoO will identify methods for assessing financial credibility of a…

SEIS and taxability of such notified export of services under IGST Act

Service Exports from India Scheme (SEIS) and taxability of such notified export of services under IGST Act Focus: Deemed export of goods under section 147 does not include deemed ‘export of services’ and hence the notified goods only enjoys the privileged benefit of being called as ‘deemed to be exported’ and thus can avail benefits […]

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Expression “In the Course of” in GST Laws

The Honorable Supreme Court of India, in its judgment in State of Travancore-Cochin vs. Shanmugha Vilas Cashew Nut Factory And Others, Judgment Dated May 08, 1953, had occasion to examine certain sales or purchases of goods (cashew nut) if they could have been said (i) in the course of inter-State trade or commerce; or (ii) […]

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GST on electric car battery chargers reduced to 5%

PATNA: Deputy CM Sushil Kumar Modi said on Sunday that the goods and service tax (GST) council has reduced the GST on electric cars and their battery chargers to 5% on the special initiative of the Bihar government to promote the use of electric cars in the state to combat air pollution and global warming.To start it, CM Nitish Kumar had arrived at the state legislature premises on Thursday in an electric car rented out to the state government by Tata Motors for a fee of Rs 22,500 per month. When fully charged, the electric car concerned would cover 142 kms. In the open market, the price of the electric car concerned is Rs 12 lakh.Modi said the state government would procure one electric car each for six departments at the state headquarters at the same rental. He said the day the CM arrived at the state legislature premises, the state government had reduced the road tax by 50% to promote and popularize electric cars. It worked positively and the GST on the battery chargers was reduce…

Redefinition of affordable housing, GST rate cut can boost real estate

Homebuyers are inundated with good news. Earlier this month, the budget proposed an additional deduction of ₹1.5 lakh on interest paid on loans for affordable housing priced up to ₹45 lakh. Last week, the State Bank of India reduced its marginal cost of lending rate (MCLR) by 5 basis points across all tenures. By themselves, both measures are likely to have a limited impact. The additional deduction may not get fully utilized and the rate cut by SBI is marginal at best. However, if these benefits are combined with an earlier change in GST rules, the pressure on the buyer’s pocket could ease significantly.In March, the GST Council reduced the GST rate for residential under-construction property from 12% to 5% and for affordable housing from 8% to 1%. The real estate sector, which was floundering under the triple impact of the Real Estate Regulation Act, demonetisation in 2016 and introduction of GST in 2017, finally had something to cheer about.However, the reduction in GST rates will …

Consumer panel fines retail store for charging GST on discounted price

LUDHIANA: Clarifying that charging GST on a discounted price of a product is an unfair practice, District Consumer Disputes Redressal Forum has imposed a fine of Rs 4000 on a city based retail store, that had overcharged Rs.3.68 from a customer.In its detailed order the Forum asked Lifestyle International Private Limited, MBD Neopolis, Ferozepur Road, Rajguru Nagar to pay Rs.2000 as compensation for mental harassment and agony and an equal amount as litigation expenses to the customer Rahul of Modern Housing complex in Manimajra of Chandigarh. In his complaint to Forum on February 1, 2019, Rahul a resident of Chandigarh said he had purchased a product from the store on July 23, 2017 by paying an amount of Rs.78. The maximum retail price (MRP) of the product inclusive of all taxes was Rs.245. After giving discount of 70% , the discounted price payable was Rs.73.50 but on this price GST at the rate 5% of Rs.3.68 charged. Claiming that charging GST on discounted price was an unfair trade…

Traders seek reduction in GST from 18% to 5% for fireworks

Fireworks traders have urged the Tamil Nadu government and political parties to pass a special resolution in the assembly to protect the fireworks industry in the state.A resolution in this regard was passed at the second state level conference of the Federation of Tamil Nadu Fireworks Traders (FTFT) in Madurai on Sunday.Federation president V Raja Chandrasekaran said the government should press for exemption of fireworks under 3(3B) of the Environmental (Protection) Rules, 1986, as pollution caused by fireworks lasts less than 48 hours. The federation also urged the government and police to take stringent action against illegal sale of ‘pop pop’ fireworks and Chinese fancy fireworks.Recalling a ban on import of such fireworks, the federation alleged that these items were available in fancy stores and gift shops. They were being sold by some shops by flouting norms and without licence, it said.The federation pressed for reduction in the goods and services tax (GST) on fireworks, from …

Auditor takes 2 GST payers for a ride

COIMBATORE: The commissionerate of GST and central excise here has identified two incidents of fraudulent activities in Pollachi involving an auditor.The first incident came to light after a divisional officer summoned a GSTIN registrant for paying the goods and service tax, said an official from the commissionerate. “Registrants will have to pay the tax on or before 20th of every month. In this case, the tax payer had given the tax amount every month to an auditor, who had taken up the job of paying the tax through the GST portal. Instead of paying the tax, the auditor created forged challans and swindled the money. Also, there were discrepancy in the submitted forms. While it was mentioned that the product comes under 5% GST slab in one of the forms, in another form, it was shown that the product was exempted from the tax,” the official said.The auditor is estimated to have swindled over Rs 36 lakh. “But nothing can be done. The applicant will have to pay the tax amount along with 1…

Plea to reduce GST on catering services

TCC to make representation to govt.The Tirupati Chamber of Commerce (TCC) president, A. Manjunath, on Sunday said that the hotel industry suffered a severe blow due to the 18% GST on catering services.Speaking to the media on the occasion of its annual general body meeting here, he said that a representation would be made to the State government to bring down the GST from 18% to 5% on the catering services.He appealed to the government to bring in a liberal sand policy in the State as the current regulation had led to doubling of the price. The restrictions also adversely impacted the livelihood of construction workers and the workforce in the allied wings.He said that the business community in Tirupati had been extending their cooperation to the civic body in curbing plastic use and maintaining cleanliness in the temple town.Earlier, about 100 members of the TCC donated blood, which would be given to the SVRR Government Hospital and the Maternity Hospital.Source- The Hindu. The post P…

ITC: Offset Liability Calculator under GST

Utilisation of Input Tax Credit – Section 49A & 49B read with Rule 88A of CGST ACT as clarified vide Circular No. 98/17/2019-GST Dated 23rd April 2019– The new order of set off is resulting in blockage of ITC of SGST & CGST, resulting in payment of taxes by taxpayers. Illustration:- Description Tax Payable (₹) […]

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All About GST Input Tax Credit in Motor Vehicle Services

A registered supplier is not allowed to avail of the Input Tax Credit of GST paid in respect of motor vehicles. The Act is silent on the allowability of Input Tax Credit of GST paid on insurance, repair and maintenance of motor vehicles. So, the taxpayers were in dilemma whether such ITC should be claimed […]

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Filing Process of CMP-08

All the registered taxpayers paying tax under the provisions of section 10 of CGST Act 2017 or availing benefits of Notification No. 2/2019-Central Tax (Rate) dated 07th March 2019 have been categorized under ‘special category of persons’ by the CBIC. A special procedure has been laid out by the CBIC via Notification no. 21/2019 – […]

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GST: Spiralling land cost means ‘affordable housing’ is still a mirage for salaried class

It accounts for more than 50% of the total housing cost, says Builders’ Association of IndiaAffordable housing continues to remain a mirage for middle-income category households and the salaried class in the city owing to spiralling land cost.As per the 33rd GST Council meeting held early this year, affordable housing was defined as flats with a value up to ₹45 lakh with a carpet area of up to 90 sqm or 970 sq.ft. in case of non-metros.But members of the Builders’ Association of India, Mysuru, point out that given the premium on land, it was impossible to construct individual row-type houses of multi-storey apartments at the prevailing land cost.They argued that only government agencies, like the Mysuru Urban Development Authority (MUDA), and not private builders can subsidise the land cost and pass on the benefit to the end users.N. Subramanya of BAI Mysuru told The Hindu that not withstanding the demonetisation in 2016 and its impact on real estate, people are coming to terms with i…

GST Payable on subscription received by Banking Institute from RBI for improvement in banking operations 

In re M/s. National Institute of Bank Management (GST AAR Maharashtra) Question 1:-Whether consideration paid as subscription or contribution towards recurring or capital expenses or reimbursement or by whatever name called to National Institute of Bank Management (NIBM); a society registered under Societies Registration Act, 1860 by its members (being Banks) for its recurring and […]

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No GST on Supply of goods from bonded warehouse to vessels 

Supply from Bonded warehouse will fall under Schedule III of CGST Act and exempted from GST and supply from Non-Bonded warehouse will not fall under Schedule III of CGST Act and therefore not exempted from GST

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No GST on Tanker water supply services with GPRS system help to local authority

Whether the contract from Nagpur Environmental Services Ltd (NESL) Nagpur (a 100% subsidiary of the Nagpur Municipal Corporation, Nagpur) for providing services for the management of Non-Network Tanker with the help of GPRS system at Nagpur would be exempt from GST since it falls under the various exempt services in the article 243 W of the constitution of India as well as services rendered to a local authority,

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Question on Assessment of supplies based on taxability out of purview of AAR

In re Cummins Technologies India Private Limited (GST AAR Maharashtra) The applicant has sought clarification in respect of various services rendered by them to their group company situated abroad, as to whether such services being supplied by them for consideration to an overseas group company, the liability to pay tax on the subject supplies can […]

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AAR cannot decide on whether member or Non member of Society will be at par

In re Kabra Galaxy Star 3 Co-Op Housing Society (GST AAR Maharashtra) The question asked is, whether members of the society will be at par with the other individual flat owners who are not members. Section 97(2), which encompasses the questions, for the ruling by the AAR does not cover the question raised by the […]

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18% GST Payable on Plastic handles for motor vehicle doors

In re M/s Nexture Technologies Private Limited (GST AAR Maharashtra) The issue before us is in respect of classification of goods manufactured by the applicant. namely: Plastic handle for motor vehicle doors (including lever handle); Plastic fittings for such for motor vehicle’s doors such as Bracket, Housing, Bracket housing, Gasket, Stator; and Glove box locking. […]

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GST payable on Security Services to University imparting graduation courses

In re Security and Intelligence Services (India) Ltd. (GST AAR Maharastra) We find that the applicant has been given the status of a Deemed University by the University Grants Commission. The UGC was formally established 1956 as a statutory body of the Government of India through an Act of Parliament for the coordination, determination and […]

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GST not payable on composite supply of health care treatment

In re Terna Public Charitable Trust (GST AAR Maharashtra) Question 1:- Whether the supply of medicines, surgical items, implants, consumables and other allied items provided by the hospital through the hospital owned pharmacy, as well as food, room on rent to the in-patients is part of composite supply of health care treatment; and hence not […]

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GST on Services of printing or reproducing contents of customers

Whether the activity of merely printing or reproducing the content given by the photographers / retail customers on pen drive, CD, memory card or any other storage media will be classifiable under Service Code 998912 or 998386?

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36th GST Council Meeting- Changes in GST Law, Due dates and Rates

GST rate on all Electric Vehicles reduced from 12% to 5% and of charger or charging stations for EVs from 18% to 5%. Hiring of electric buses by local authorities exempted from GST.Changes in GST rates shall be effective from 1st August, 2019

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GST Council cuts tax on electric vehicles, chargers from 12% to 5%

The 36th Goods and Services Tax (GST) Council on Saturday unanimously decided to give an extra push to electric vehicles(EVs). The council approved the proposal to cut GST rates on electric vehicles from current 12 percent to 5 percent and has also brought down rates on chargers for electric vehicles from current 18 percent to 5 percent.“The initial proposal was to bring down the rates on EVs to 5 percent and chargers for EVs to 12 percent, but the council went a step ahead to keep both vehicles and chargers on the same rate, after detailed deliberations,” highly places sources, who were present in the GST Council on the condition of anonymity.The new rates will be applicable from August 1, 2019, GST Council said.The council also decided to exempt GST for local authorities on hiring of electric vehicles with a carrying capacity of more than 12.Though, the decision is unanimous but sources, quoted earlier, shared that “states such as Punjab, West Bengal and Delhi did voice their concer…

GST: Lid off fake billing scam worth Rs 70 cr

Bogus firms identified; claimed input tax creditThe Excise and Taxation Department  has unearthed the biggest-ever fake  billing scam in Chandigarh ever since the implementation of the Goods and Services Tax (GST). While the  department has identified five  bogus  firms  under its  jurisdiction   for their alleged involvement in the  scam worth around Rs 70 crore,  it has  also   detected 15 more firms falling  under  the Central GST Department. It has  also identified  132  firms  registered on bogus addresses. The department  is  now in the process of writing to the  police to file an FIR  against the five  firms.Sources said the five firms generated  fake bills to fraudulently claim the input tax credit (ITC). The bogus bills were used to fraudulently claim the ITC from the department without the actual movement of goods. the sources said the firms involved in the racket obtained GST registration. Using the registration, the fake movement of goods was shown and bogus purchase invoi…

UT excise department unearths Rs 70 crore input tax credit scam

CHANDIGARH: The UT excise and taxation department has unearthed input tax credit (ITC) scam worth over Rs 70 crore in a first of its kind case in the city. Five city-based scrap dealers were involved in fraudulently availing Rs 70 crore ITC by generating fake invoices.Deputy commissioner Mandip Singh Brar, who is also holding charge of excise and taxation commissioner, ordered a penalty of Rs 17 crore on the five dealers. The department would also write to the UT police for lodging an FIR against them.A senior official of the UT excise and taxation department said the investigation conducted so far has revealed that these dealers were not doing any sale and purchase in Chandigarh but dealing only in Haryana and other states. These dealers issued invoices to numerous firms/companies without actual supply of goods mentioned and facilitated illicit ITC entitlement, the official said.The department would also investigate the role of companies, who have got bills from these dealers. Some o…

Nitin Gadkari rules out special tax incentives to Andhra Pradesh

Union Minister Nitin Gadkari said it is not possible to give any special tax incentives or GST concession to a particular state.Union Minister for MSME Nitin Gadkari made it clear that provision of special tax incentives or any special GST concession to Andhra Pradesh is not possible, while replying to a question raised by YSRC MP YS Avinash Reddy in the Lok Sabha on Thursday.  Avinash Reddy said Andhra Pradesh has been suffering due to lack of industrial growth post bifurcation and there is severe unemployment problem in the state.Pointing out that even the promised Special Category status was not given to Andhra Pradesh, he asked Nitin Gadkari if his ministry will provide special incentives to Andhra Pradesh such as tax exemption and provision of subsidy to MSMEs that are being set up in the State to promote industrial growth and address the unemployment problem.The MP also wanted to know the status of the 23 proposals for the cluster development programme submitted to the ministry.…

ITC of Motor Vehicles can be claimed now

Finally the Truth Reviled!!!! Whether ITC of CAR/ Truck can be eligible???? Various notifications, Circulars, and Articles issued by various entities regarding the Input Tax Credit on Motor vehicles/ truck does not provide us the crisp information whether the Input Tax Credit is eligible or not. Finally in the CGST Amendment Act, 2018 which is […]

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Join Exhaustive Online GST Certification Course by TaxGuru (Last Day to join)

We are happy to announce the 11th Batch of our Advanced Online GST Certification Course which will start from 28th July 2019. Learn GST in a Practical way and become an Expert in this field. Batch covers detailed analysis of entire GST law with special focus on Effective GST Audits & Reconciliation Statements, filing of […]

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Coaching centres demand lower GST rate

Representatives of major coaching institutes have met Union Finance Minister Nirmala Sitharaman and demanded to either remove the 18 per cent GST on coaching centres or reduce it to the lowest tax slab.The delegation, which met the finance minister in New Delhi on Wednesday, also underlined the adverse impact of such a high rate of the goods and services tax (GST) currently on coaching centres.The centres demanded the finance minister to either scrap the 18 per cent GST on coaching education or reduce it to the lowest GST slab, said Lalit Maheshwari, an official at Allen Career Institute, Kota.The removal of high GST slab or reducing it to the lowest slab would directly benefit lakhs of students and their parents across the country.Around 50 lakh students every year write entrance examinations for admission in engineering and medical collages and almost 25 lakh of them join coaching institutes for preparation, the delegation told the finance minister, he said.The delegation also submi…

Man held in Ahmedabad for huge GST fraud

AHMEDABAD: A man was arrested here on Thursday for his alleged involvement in illegally utilising and passing Input Tax Credit of Rs 129.92 crore, an official said. With his arrest, the Preventive wing of the Central GST Ahmedabad-South Commissionerate busted the racket of issuance of fake invoices wherein huge amount of ineligible Input Tax Credit was fraudulently availed and utilised to evade the payment of GST, said Sachin Gusia, Joint Commissioner (Preventive), CGST, Ahmedabad-South.Aliasgar Vahidali Saiyed, 31, a resident of Ahmedabad, was arrested for availing wrong Input Tax Credit of Rs 129.92 crore on bogus invoices without the receipt of goods, he said. He further issued bogus invoices for RS 846.58 crore without supplying the goods, facilitating wrong availment and utilisation of input tax credit by other companies, Gusia said, adding that his act has caused a huge evasion of GST. Saiyed, the mastermind of the fraud, created and managed as many as 61 fake firms which had be…