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Showing posts from September, 2019

Corporate Compliance Calendar – October 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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Buy one Get one Free Under GST

1. Ever wondered Being a seller what is the application of GST on such offers? 2. Whether Only on one Item GST is to charged or Both 50%-50%? 3. Whether both are provided for a single price? 4. Price of one is being charged and other is provided free? 5. What Rate it is to […]

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Gujarat Vat | Amnesty Scheme

Hello All, Good news for businesses having pending litigation cases under Gujarat VAT and related laws. Gujarat Government, as promised in the State Budget 2019, has issued resolution no. GST-102019-2006-Th dated 11 September 2019 to provide an amnesty scheme. The pure purpose of this scheme is to reduce pending litigation, start afresh and smooth transition of GST. We have highlighted some […]

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How GST is hurting this set of Indian SMEs, global competitiveness lost

Trade, Imports, Exports for MSMEs: Small and medium enterprises (SMEs) acting as intermediaries or agents of businesses in India are facing acute financial crises on account of depleting margins on their businesses. Most of these intermediaries earn commissions by facilitating sales on behalf of foreign principals supplying goods to customers within and outside India.Losing Competitive AdvantagePost the goods and services tax (GST), tax rates on intermediary services have gone up significantly, thereby eating into the margins of these SMEs. They also tend to lose out on the competitive advantage against intermediaries in other countries who are not taxed as their services are treated as exports. While there is pressure on India from the World Trade Organisation to cut down on tax standard operating procedures (SOPs), the GST Council should seriously consider granting an exemption to genuine exporters of services which may not violate international trade norms.It was recently clarified…

Around 60 realty firms face GST anti-profiteering cases

The complainants have alleged that realtors didn’t pass on the benefit of the ITC to the customers and instead profiteered from the creditsThe National Anti-Profiteering Authority (NAA) for goods and services tax is likely to deliver orders, starting next month, in around 60 profiteering cases filed by homebuyers against the builders from across the country. Godrej Properties, Hiranandani Realtors and Salarpuria Sattva are among the prominent builders facing the charges, officials privy to the development said.The Director General of Anti-Profiteering (DGAP), the investigation arm of the NAA, has submitted probe reports in two-third of the cases to the quasi-judicial body which is hearing the cases. The remaining investigations are likely to be completed soon.Several projects by builders in Mumbai, Delhi, Bangalore, Chennai and other metros are under scanner over alleged profiteering by builders not passing on the benefit of input tax credit (ITC) to customers. These include Mumbai-ba…

Constitution of GST Appellate Tribunal held unconstitutional

Constitution of Goods and Services Tax Appellate Tribunal held as unconstitutional by Hon’ble Madras High Court The Hon’ble Madras High Court in the case of Revenue Bar Association versus Union of India, The Goods and Services Tax Council, The State of Tamil Nadu has : 1. struck down Section 110(1)(b)(iii) of the CGST Act which states […]

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Due date Compliance Calendar for October 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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List of 162 Forms available on GST Portal as on 27/09/2019

Forms available on GST Portal for Taxpayers and Tax Officials on 27/09/2019 Government has issued various forms for GST related compliances to be made by taxpayers and for taking actions on them by tax officials. Various forms issued for registration, filing returns or refunds etc. have been made available on the GST Portal. So far […]

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237 Available Functionality for Tax Payers in GST Portal

GSTN has so far release  or made Available 237 Functionality for Tax Payers in GST Portal as on 27.09.2019. Detailed list of the same is as under- # Module / Area FORM/FOR FORM Components/Details 1 Refund Taxpayers (An Advisory on refund for taxpayers is attached for information) 2 Return- Form GSTR 9C Taxpayer Now taxpayer […]

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GST: Despite big corporate tax cut gains, ITC’s stock has not fired up enough

ITC Ltd, whose mainstay is the cigarettes business, has been one of the biggest beneficiaries of the cut in corporate tax rates. Since the tax rates were slashed, the stock is up 7%. But investors want more. That’s because, despite the recent appreciation in the share price, the ITC stock has lagged so far in FY20. For perspective: ITC shares declined as much as 15% compared to the flattish performance of the Nifty 50 index in the current fiscal year.For one, volume growth concerns remain high. ITC’s cigarette volume growth was estimated at 3% for the June quarter. The cigarette business accounted for 86% of ITC’s overall last quarter Ebit (earnings before interest and tax). As such, analysts have been reducing its valuation multiples for the cigarette business. One reason is that the valuation multiples of global tobacco firms are under pressure due to muted volume outlook and threat from e-cigarettes.“We are now valuing ITC at a lower multiple for its cigarettes business at 20x vs 2…

E-commerce sales depriving govt of GST revenue, traders body tells Nirmala Sitharaman

CAIT said that e-commerce companies through their festive sales are depriving the government of “huge amount of GST revenue” by charging GST on the discounted price of the products instead of levying it on the maximum retail price.Traders’ body Confederation of All India Traders (CAIT) in a letter sent on Sunday to the Finance Minister Nirmala Sitharaman said that e-commerce companies through their festive sales are depriving the government of “huge amount of GST revenue” by charging GST on the discounted price of the products instead of levying it on the maximum retail price. “E-commerce companies like Amazon and Flipkart instead of charging GST on the maximum retail price of the product are charging it on the price after discount. This is leading to heavy loss of GST revenue to the government,” CAIT Secretary General Praveen Khandelwal told Financial Express Online.The letter also drew Nirmala Sitharaman’s attention towards 10 per cent to 80 per cent of ‘deep discounting’ on goods s…

Govt may seek Rs 30,000 crore interim dividend from RBI, says report

Last fiscal, the RBI paid Rs 28,000 crore as interim dividendThe government may seek an interim dividend of about Rs 30,000 crore from the RBI towards the end of the financial year to meet its fiscal deficit target of 3.3 per cent of GDP for 2019-20, sources said.Government finances have come under pressure due to moderation in revenue collection and a slew of measures taken to lift growth from a six-year low of 5 per cent in the first quarter of the current fiscal.“If required, the government may request the Reserve Bank of India for interim dividend of Rs 25,000-30,000 crore during the current fiscal,” an official said.The assessment in this regard would be made in early January, the official added.Apart from the RBI dividend, there are other means of bridging any shortfall, including mop up from disinvestment and higher utilisation of National Small Saving Fund (NSSF), sources added.In the past, the government has taken the route of seeking interim dividend from the RBI to balance …

GSTN starts online refund process to bridge communication gap between taxpayers and tax officers

NEW DELHI: In a bid to make the refund process more easy and taxpayer friendly, Goods and Service Tax Network (GSTN) has unveiled an online refund process.With the deployment of online refund functionality, taxpayers can now file refund application (in RFD 01 form) easily and tax officers can process the same online, GST Network said in a statement.All communications between taxpayers and tax officers will also be online. The online refund process has become effective on the GST portal from 25 September 2019.Earlier, single tax authority was responsible for refund processing for both Central and State GST but disbursement was done by accounting authorities of central and state tax departments separately, which causes delay on account of sharing of sanction order with counterparty accounting authority through that tax authority, it said.The new system has done away with this and after processing is completed by the tax officer, the sanctioned amount will get credited to the bank accoun…

Provisions of Section 62(2) of GST Act have to be construed strictly

M/s Bridge Hygiene Services Private Limited Vs The State Tax Officer (Kerala High Court) The statutory prescription of 30 days from the date of receipt of the assessment order passed under sub section (1) of Section 62 has to be strictly construed against an assessee and in favour of the revenue, since this is a […]

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Update on 37th GST Council meeting at Goa on 20.09.2019

The 37th meeting of GST Council was held on 20th September, 2019 at Goa where in several taxpayer friendly measures have been announced which inter alia include GST rate reduction on hotels, few exemptions, lower rate on diamond related job works and outdoor catering, measures to boost export, few clarifications and relaxation in filing annual returns etc. However, no change has been made in audit requirements.

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Online GST refund processing and single authority disbursement : Advisory

Online processing of refund applications and single authority disbursement implemented The online processing of refund applications and single authority disbursement has been implemented. The taxpayers are advised to take note of the following changes: Refund applications filed by the taxpayers in RFD-01 form shall be processed electronically/ online by the tax-officer and all communications between […]

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Removal of Difficulties Order – View Points

Removal of Difficulties Order – View Points Under Central Goods and Services Act, 2017 Removal of Difficulties Order plays a vital part to implement the provisions of this Act by extending time limit.  Until now the Government has issued 13 Removal of Difficulties Order, on the recommendations of the GST Council. The List of Removal […]

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Clarification on GST and ITC in Respect of Free Samples etc.

Clarification on GST and ITC in Respect of Free Samples, Stolen, Discount, Theft and Loss of Goods Gifts to incentivize Distributors Gifts or samples for Marketing Distribution of Samples through Branches As per section 7 supplies refers to all form of supply made or agreed to be made FOR CONSIDERATION in the course of furtherance […]

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Loopholes in Goods & Service tax

Since the inception of the Goods and Service Tax in India, GST has been a matter of discussion for every layman and experts in the country. Like every coin has 2 sides, the implementation of GST in the country also has arguably many merits and demerits as compared to the earlier subsumed taxes. Moving on […]

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Expect 10% GST refund if room rate exceeds Rs 7,500

MUMBAI: Guests of luxury hotels are likely to gain from the recent government decision to slash goods and services tax (GST) on rooms priced at over Rs 7,500 to 18% from 28% now, and below that tariff to 12% from 18%. The new rates will be effective from October 1.So, if a person books a stay in a luxury hotel with an average room rate of Rs 10,505, he will save Rs 1,050, or around 8%, under the new GST rate as he has to shell out a total of Rs 12,395 against Rs 13,446 under the existing tax regime.The new rate will also be applicable to those who have already paid for bookings after October 1.Typically, holidaymakers book hotel rooms in advance as tariffs are known to rocket during peak season in India, which begins in October and touches a high by the year-end.One such vacationer, John Paul (name changed), has booked three rooms for a five-night stay in December at a luxurious Goa property. He shelled out Rs 2.6 lakh per room for five nights that included a 28% GST of Rs 57,540.Days…

GST scam: Chandigarh police seek details of five bogus firms

CHANDIGARH: Police have asked the UT excise and taxation department to provide complete details of five bogus firms in connection with Rs 70 crore GST scam.Recently, the excise and taxation department had written to the police for lodging an FIR against five bogus companies. Replying to department’s letter, the police has now sought complete details of these firms.The department has, so far, identified 305 companies that claimed the maximum input tax credit (ITC) under GST in recent years. These five dealers had claimed input credit in many transactions.The department has already detected 132 bogus dealers who used fake addresses for registration under GST in the city. The investigation has so far revealed 20 dealers, including five who were penalized, 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.…

Security firm admits to evading tax worth Rs 6 crore: GST Intelligence

As per the initial estimates, GST evasion of about Rs. 6 crores has been detected, which the registrant has admitted to have evaded and promised to deposit in a few days.The Directorate General of GST Intelligence (DGGI) raided the premises of a security agency in Vapi of Valsad on Friday and found tax evasion upto Rs 6 crore, as per initial findings.According to a release by Press Information Bureau (PIB), DGGI officials raided the premises of NISA Industrial Services Private Limited in Vapi, after they received an input that the firm might be involved in evasion of GST, by collecting the tax amount but not remitting to the government exchequer. The security agency provided “security services” to various industrial units in Gujaratat Ahmedabad, Baroda, Bharuch, Surat and Vapi.“During the course of the search, various incriminating documents were recovered substantiating huge evasion of tax. As per the initial estimates, GST evasion of about Rs. 6 crores has been detected, which the r…

GST: Govt compulsorily retires 15 more senior tax officials on graft charges

Since June, this is the fourth round of sacking of corrupt tax officials.The government has compulsorily retired 15 more tax officers in the fourth tranche of its crackdown on errant officials accused of corruption and other malpractices.The Central Board of Indirect Taxes and Customs (CBIC) — the agency that oversees GST and import tax collections — compulsorily retired 15 senior officers under Fundamental Rule 56(J) on corruption and other charges, official sources said.Since June, this is the fourth round of sacking of corrupt tax officials. In the previous three rounds, 49 high ranking tax officers, including 12 from the Central Board of Direct Taxes (CBDT), were compulsorily retired.Sources said the action was in line with Prime Minister Narendra Modi’s address to the nation from the ramparts of the Red Fort when he had said some black sheep in the tax administration may have misused their powers and harassed taxpayers, either by targeting honest assesses or taking excessive acti…

GST refund: 90% of overdue as on Aug 23 have been cleared, says FM Sitharaman

NEW DELHI: Union Finance Minister Nirmala Sitharaman held a meeting with secretaries and financial advisors of key selected ministries in the national capital on September 27. The meeting was conducted to review total CAPEX (capital expenditure) by the ministries in 2019-20 till now and to plan for future CAPEX in current financial year.While addressing the media, Nirmala Sitharaman said, “Actual details will be given to you later but 90% of the overdue as on August 23 when I spoke about GST refund, have been cleared. Hopefully, 30-day limit is not crossed and I am sure Revenue Secretary will inform me but even in that we have kept the promise that refunds shall not be delayed.” “Capital Expenditure (CAPEX) is on track as per budget target.Government owes only Rs 20,000 crores dues that will be released by first week of October. Have asked all ministries and will ask Central Public Sector Enterprises tomorrow to prepare CAPEX plan for next four quarter,” FM added.Source- Business Stan…

Nirmala Sitharaman Press Conference Live: Asked ministries to clear all pending dues to service providers

Track this space for all updates on Finance Minister Nirmala Sitharaman’s address to the media following her meeting with ministry officials with a major infrastructure spend.05:25 PM- We are looking to cap expenditure at this stage to ensure that the spending continues:FM Sitharaman.05:05 PM- Close to 90 percent of the outstanding GST dues, as of August 23 when I first mentioned the GST refunds, have been cleared.05:02 PM- I have called for ministries to provide their capex plans for the next four quarters. The details are expected to come within a week: FM Sitharaman.04:58 PM- The ministries and PSUs will clear all the non-litigation related dues: FM Sitharaman.04:51 PM- FM Sitharaman: The idea is to ensure that there are no outstanding dues to various ministries for services provided.04:50 PM- Total capex spend is at 42 percent till August-end, said Expenditure secretary.04:35 PM- Finance Minister Nirmala Sitharaman may have met with officials of various ministries related to infra…

Corporate tax cut to improve India’s competitiveness in Asia: IHS

The decision to implement the sweeping corporate tax reform measures reflects the slowdown in economic growth momentum in recent quarters as well as the need to improve India’s international competitiveness as a manufacturing hub, it said.The steepest ever cut in tax that companies pay will improve relative competitiveness of India and should help boost corporate investment over the medium-term, IHS Markit said in a report on Friday.The decision to implement the sweeping corporate tax reform measures reflects the slowdown in economic growth momentum in recent quarters as well as the need to improve India’s international competitiveness as a manufacturing hub, it said.The economy has been facing headwinds in 2019 due to weakening domestic demand. The RBI has eased monetary policy four times so far in 2019, by a total of 110 basis points, over concerns that growth momentum is slowing down.The GDP growth in April-June 2019 slowed to 5 per cent year-on-year, the weakest pace of growth sin…

Fin min urged to abolish GST reverse charge mechanism

The Tamil Nadu Foodgrains merchants’ association has urged the finance minister Nirmala Sitharaman to abolish the reverse charge mechanism way of taxation or extend the implementation date by a year from Sept 30, 2019.
According to a press release, president of the association, S P Jeyaprakasam has said that it has almost been two and a quarter year since the Goods and Service Tax act was implemented in the country. It is only now that the authorities are coming to know the hardship faced by traders and manufacturers.The reserve charge mechanism was there in the country when GST was implemented. For example, expenses for coffee, tea and unregistered tiffin to customers, products purchased, services utilized from unregistered dealers by the registered stakeholders are levied under the reverse charge mechanism. Small manufacturers and traders are immensely affected by this way of taxation. After many representations were made the authorities by section 9(4) deferred the reverse charge m…

GST Council recommends relaxation in filing of annual returns for MSMEs

The new GST return system is now to be introduced from April 2020.With this, several transitional issues that could crop up while implementing in the middle of the year can now be avoided.The 37th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman here recently, has recommended relaxation in the filing of annual returns for Micro Small and Medium Enterprises (MSMEs) for Financial Year 2017-18 and Financial Year 2018-19.Similarly, it has decided to extend the last date for filing of appeal against orders of Appellate Authority before the GST Appellate Tribunal as the Appellate Tribunal is yet not functional, an official release said on Wednesday.The new GST return system is now to be introduced from April 2020. With this, several transitional issues that could crop up while implementing in the middle of the year can now be avoided. Taxpayers can begin on a fresh note from a new financial year.The meeting was also attended by Minister of State for Finance Anurag Thakur,…

Due Date of Filing Tax Audit Report & ITR extended to 31st Oct 2019

Due Date of Filing Tax Audit Report & ITR extended to 31st Oct 2019As desired by the tax payers and professionals, the due date of filing tax audit report and Income Tax Returns for the Assessment year 2019-20 has been extended to 31st Oct 2019.Taxpayers were facing difficulties in filing returns due to various other Deadlines like ITR of Non-Tax cases, GST Returns, GST Annual Returns, GST Tax Audits etc.Also there was situation of Flood in various states due to which taxpayers and professionals were facing problems.Various Organizations like The Punjab Accountants Association, Western Maharashtra Tax Practitioners’ Association, District Taxation Bar Association (Direct Taxes), Ludhiana, Tax Bar Association, Jodhpur, The Chamber of Tax Consultants, All India Federation of Tax Practitioners, All Gujarat Federation of Tax Consultants, BCAS, Goods & Services Tax Practitioners Association of Maharashtra, Karnataka State Chartered Accountants Association, Institute of Chartered Acc…

HC allows petitioner to file TRAN-1 Forms again

Kusum Enterprises Pvt. Ltd. Vs Union of India & Ors. (Delhi High Court) GST Department to either open the portal so as to enable the Petitioners to again file the TRAN-1 Forms electronically, failing which the Department will accept the manually filed TRAN-1 Forms on or before 31st July, 2019. The Petitioners’ claims will thereafter […]

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GST Network starts online refund processing, will help taxpayers in claims

GST Network lets taxpayers to file refund application (in RFD 01 form) easily and tax officers to process online.NEW DELHI: GST Network, the IT backbone of the indirect tax system, on Thursday started an online refund process made by the GST Council.The system lets taxpayers to file refund application (in RFD 01 form) easily and tax officers to process online, said the Network in a statement.All communications between taxpayers and tax officers will also be online. The online refund process has become effective from September 25, 2019, on the GST portal, it said.Earlier, the refund process was done for both Central and State GST by one tax authority to whom the taxpayer was assigned administratively but disbursement was done by accounting authorities of central and state tax departments separately.This was leading to a delay on account of sharing of sanction order with counterparty accounting authority through that tax authority, it said.The new system has done away with this and afte…

The GST’s initial premise should be revisited

Automatic invoice matching was crucial in preventing fraud. A sudden rollback left the GSTN vulnerableWhen the GST was launched in July 1, 2017 with the promise to simplify our incredibly complex indirect tax system and unify the country through a single indirect tax, the nation supported the new disruptive tax regime the way it had supported demonetisation, setting aside the creeping doubts that were upsetting many businesses. The GST system was built on the simple premise of automatic matching of the invoices submitted by suppliers and buyers, enabling automatic processing of input tax credits (ITC) and refunds by the Infosys-built GST Network (GSTN) portal, the IT architecture that is the backbone of implementation. The GSTN was supposed to minimise frauds, curtail evasion, end harassment of taxpayers and corruption, and bring in transparency, leading to an increase in revenues, which would enable the government to lower rates and converge slabs, finally culminating in a single rat…

Hotel guests may not gain much from GST rate cut

There will be no change in pricing for customers; hotels may evaluate hikesThe decision to hike hotel room rates by hospitality chains has raised another concern in the market – will the benefits from the recent reduction in goods and services tax (GST) rates on hotel room tariff be passed on to customers? There are apprehensions that hiking room tariffs between 4% and 15% starting October 1, 2019, will basically negate the GST rate cut, as a result there will be no change in pricing for customers booking hotel rooms October onwards.Last week, finance minister Nirmala Sitharaman announced GST rate cuts from 28% to 18% for rooms priced above Rs 7,500 per night and from 18% to 12% for rooms under 7,500 per night. Hotel rooms priced below Rs 1,000 will have no GST. While hotel executives are certain that hotel guests will benefit from the GST rate cuts, they say the two developments (GST rate cuts and hike in room tariffs) cannot be interrelated.Speaking to DNA, Sanjay Sethi, Managing Di…

HC permits revision of TRAN-1, waives penalty & interest for late filing of GSTR-3B

M/s Blue Bird Pure Pvt. Ltd. Vs Union of India & Ors. (Delhi High Court) In the present case, the Court is satisfied that, although the failure was on the part of the Petitioner to fill up the data concerning its stock in Column 7(d) of Form TRAN-1instead of Column 7(a), the error was inadvertent. […]

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Steps taken by Centre to boost economy will largely benefit U’khand: CM

CM Trivendra Singh Rawat said that the decisions taken by the Union government to boost the economy will largely help the Himalayan state. Rawat said that in the last one year, the state government has received investments worth over Rs 17,000 crore and the positive steps taken by the Narenda Modi-led government will improve the prospects for Uttarakhand.“The slash in GST rates will help tourism and service-based industry of Uttarakhand. Now GST for hotel rooms in the range of Rs 2,500 to Rs 7,000 has been brought down from 18% to 12% and for hotel rooms of over Rs 7,500 the GST has been brought down from 28% to 18%,” he said, adding that Uttarakhand sees a high number of tourist footfall each year. “This will help tourists as well as people involved in the hotel industry. The move will open doors to start new hotels in the state,” added the CM.Source- Times of India.The post Steps taken by Centre to boost economy will largely benefit U’khand: CM appeared first on GST Station.

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Five luxury car dealers found stashing GST

NAGPUR: Agencies selling high-end luxury automobile brands like Jaguar and BMW’s cars, and motorcycles like Harley Davidson and Kawasaki were found to be charging goods and services tax (GST) from the buyers and not passing it on to the government.A raid by the directorate general of GST intelligence (DGGSTI) has led to a demand of Rs 25.04 crore being raised against five such agencies in the city dealing in these vehicles. The interest component on the tax liability runs up to Rs 28.47 lakh.Given that the prices of these vehicles go up to over a crore, the GST component also comes to a substantial amount, which is shelled out by the customers. In this case, it was found that the agencies had not deposited the tax at the government exchequer for as long as four months to one year, in some cases.GST is charged at 28% on these products, along with a hefty cess. Indirect taxes like GST, which are added to the sale price of a commodity have to be passed on to the government.GST has to be …

Punjab: Bogus GST billing scam busted, three arrested

The state GST department has busted a network of firms engaged in the issuance of fake invoices and passing the bogus input tax credit to various firms in Punjab causing losses to the state exchequer.During the investigations, the department has found that three firms of Mandi Gobindgarh namely M/s Tarun steel industries, M/s Fortune alloys and metals and M/s Broadways sales corporation had in connivance with each other issued fake invoices worth Rs 100 crores involving tax of Rs 19.83 crores.All three firms showed cash withdrawal from various banks worth Rs 96.24 crores while issuing bills without actual movement of goods.The state GST department arrested three persons – Rajinder Bassi proprietor of Tarun steel industries, Tarun Bassi proprietor of M/s Broadways Sales Corporation and Manish Paul proprietor of M/s Fortune alloys and metals, as these were major players in the tax evasion scam. All three were presented before duty magistrate who sent them under judicial custody for 14 d…

GST aid: States to fall off the cliff if GST compensation is withdrawn, says Amit Mitra

Mitra alleged that a ‘massive fraud’ has taken place in the GST regime due to the tax’s “unprepared roll-out”and inadequate structural support.State governments are facing the dire prospect of having to bear 60% of the public development expenditure with much reduced share of general government revenue by 2022 when the guaranteed compensation for GST revenue shortfall for them will end, West Bengal finance minister Amit Mitra said on Wednesday and warned that this could be “extremely destabilising” for India’s federal polity.His remarks come at a time when the 15th Finance Commission is finalising the formula for sharing of resources between the Centre and states for the FY21-FY25 period and many states are reiterating their concerns over the commission’s terms of reference being allegedly skewed in favour of the Centre.“I said to Mr. NK Singh (chairman of the Commission) when he came to the GST meeting (in Goa last Friday), that I can see in 2022 states will fall off the cliff..,” Mi…

GST: Homebuyers unlikely to gain from reduction in corporation tax rates

Property developers are unlikely to pass on any benefit to homebuyers in the form of price cutsProspective homebuyers are unlikely to reap any benefit from the corporation tax rate cut announced by Finance Minister (FM) Nirmala Sitharaman last Friday as developers are in mood not to cut prices of apartments.They feel unit prices are already pretty low. Sitharaman had reduced tax on corporate entities from 30 per cent to effectively 25.7 per cent, in a bid to boost the economy reeling from a slowdown.But property developers will not pass on any benefit to homebuyers in the form of price cuts.“Prices are already low. They will remain low, as supply will go up after the reduction in tax. Market forces will not allow prices to go up,” said Rajeev Talwar, chief executive at DLF, the largest listed developer in the country.He added that prices had not gone up since 2007 because of an oversupply and delay in completion of projects. “If the economy gets a boost, it will help the real estate s…

GST on service to Govt related to road construction & irrigation

In re Sumitabha Ray (GST AAR West Bengal) Whether service to Govt relating road construction and irrigation is exempt supply? The Applicant is providing pure service to the State Governments in relation to the projects described in para nos. 3.10 and 3.12 above. The projects involve functions entrusted to a Panchayat or a Municipality under […]

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Standalone service of arranging accommodation in a hotel- ITC & Classification

In re Golden Vacations Tours and Travels (GST AAR West Bangel) What is the classification of the standalone service of arranging accommodation in a hotel and is input tax credit admissible? The Applicant is admittedly a tour operator. But the question on which the advance ruling is sought is whether it should continue to be […]

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GST on composite goods used primarily as parts of railway locomotives

In re Kay Pee Equipments Pvt Ltd. (GST AAR West Bengal) The composite goods manufactured by the Applicant that are used primarily as parts of railway locomotives are to be classified under heading 8607 and taxable @ 5% GST with no refund of the unutilized input tax credit. The same classification will apply to the […]

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Solid waste conservancy Services to Municipality exempt from GST & TDS not deductible

In re Mahendra Roy (GST AAR West Bengal) Whether solid waste conservancy is an exempt supply and whether TDS is payable The Applicant’s supply to the Howrah Municipal Corporation, as described in para 3.5, is exempt from the payment of GST under SI No. 3 of Notification No. 12/2017 — Central Tax (Rate) dated 28/06/2017 (corresponding […]

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Don’t think government will cut GST rate on automobiles: TVS Motor Chairman Venu Srinivasan

TVS Motor Chairman Venu Srinivasan said on September 24 that although the auto industry is under pressure to clear inventory, the government may not cut goods and services tax (GST) on automobiles as it would impact its finances.Srinivasan said that there was disappointment when the government did not make any provisions for an economic stimulus in the last Budget. When asked about the cut in corporate tax, he said that the company may pass on some benefits to customers, and that he believed the corporate tax rate cut would provide a boost to the economy.When asked about how long it would take for the auto sector to revive, he said, “It could be 3-6 months for growth and demand to come back.”Source- Moneycontrol.The post Don’t think government will cut GST rate on automobiles: TVS Motor Chairman Venu Srinivasan appeared first on GST Station.

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GST amendments: A bid to iron out the issues

While the GST Council did address some aspects that were causing pain, sector-specific measures were a given a missOn September 20, taxpayers were looking forward to the outcome of the 37th meeting of the GST Council expecting some relief measures for the economy in general, as well as for certain sectors such as automobiles and textiles in particular. Long before the GST Council meeting commenced, the Finance Minister diverted attention by slashing income tax rates drastically. Eventually, the decisions taken at the GST Council meeting paled in comparison to the big-bang income tax announcement. No sector-specific reliefs were provided, nor was there any path-breaking announcement.Composition dealers and those with a turnover of up to ₹2 crore should heave a sigh of relief, since the need to file the annual return in Form GSTR 9 has been removed. For the others, the government has stated that a Committee of Officers would be appointed to recommend simplification of the forms. This is…