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Showing posts from October, 2019

GST: LTCG, dividend distribution tax cut hopes fade for equity investors with tepid revenue collections

Abolishing dividend distribution tax (DDT) and long-term capital gains tax (LTCG) on shares may burn Rs 80,000 crore hole in government’s coffers; corporate tax reduction has already hit government revenuesNEW DELHI: Scrapping dividend distribution tax (DDT), securities transaction tax (STT) and long-term capital gains tax (LTCG) on shares could result in a revenue loss of Rs 80,000 crore as the government finds it difficult to roll out any immediate tax incentives.Several news reports suggested that the finance ministry could offer multiple tax sops to equity investors, including abolishing the DDT and a tweak in the LTCG and even in the STT.It is worth noting that domestic firms pay DDT of about 20.35 per cent (including cess and surcharge) on dividends distributed by them to the stakeholders. Also, an individual receiving Rs 10 lakh as dividend has to pay an additional tax of 10 per cent. Equity investors have to pay LTCG of 10 per cent on profits of over Rs 1 lakh. STT is paid by …

Food grain may be brought under GST, tax mechanism likely to be rejigged

Through this route, registered entities can pay GST on behalf of unregistered playersNEW DELHI: Items such as food grain, which earlier attracted purchase tax under the value added tax (VAT) regime, may now be brought under the goods and services tax (GST) net. The officers’ committee on revenue augmentation is examining the feasibility of imposing GST on such products on the basis of reverse charge mechanism.Through this route, registered entities can pay GST on behalf of unregistered players. “The idea was to go with the revenue neutrality principle in GST.Source- Business Standard.The post Food grain may be brought under GST, tax mechanism likely to be rejigged appeared first on GST Station.

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E-invoicing under GST may be made mandatory in future, says GSTN CEO Prakash Kumar

GSTN CEO Prakash Kumar on Thursday said that e-invoicing under GST will remain on a voluntary basis initially, however, it could be made mandatory in future if the council feels the need of doing so.“The council has given us the date of January 1st to deploy it on voluntary basis; the way we have done for e-way bill — it will be on a voluntary basis for some time and after that, it will be made mandatory whenever the council thinks of,” said Kumar in an interview with CNBC-TV18.The goods and services tax (GST) collection has remained subdued in October as well. GST mop-up, according to sources, stands at Rs 93,000 crore, significantly lower than Rs 1 lakh crore in October 2018.“The applications which were filed were around 3.5 crore and 1,500 have already been issued; the sanctions and refund have already taken place,” said Kumar.“If there is deficiency, it is returned back and the taxpayer is supposed to add those papers and that is treated as a fresh application,” added Kumar.On sim…

UP wants GST compensation scheme to continue for five more years

Uttar Pradesh wants the Centre to continue the compensation scheme under the Goods and Services Tax (GST) for the next five years. And when the time comes, the central government should withdraw the compensation in phases and not at one go, the state government feels.The current five-year scheme ends in August 2022. Having put the demand to the 15th Central Finance Commission (CFC) that visited the state last week, the state government is planning to write a formal letter to the Centre in this regard.Additional chief secretary, commercial tax, Alok Sinha had made a detailed presentation before the CFC headed by former bureaucrat and Rajya Sabha member NK Singh.“Our main contention is that since the GST is still to stabilize, with the GST Council making amendments to the tax slabs and rates every now then, the compensation for any possible revenue fall due to GST must continue for the next five years till 2025,” commercial department sources said.“We have already apprised the 15th Fina…

GST: Centre planning cap on number of invoices for new registrants

The cap on the number of invoices will be in line with the annual turnover of the businesses, which could then be raised on basis of credit history, a senior Finance Ministry official said.To put a check on fly-by-night operators and generation of fake invoices under the Goods and Services Tax (GST) regime, the Centre is mulling limiting the number of invoices generated by new registrants. The cap on the number of invoices will be in line with the annual turnover of the businesses, which could then be raised on basis of credit history, a senior Finance Ministry official said.The restrictions on the number of invoices are likely to come into effect once the new GST returns system is rolled out from April 1 next year. “We are detecting tax evasion through data analytics and artificial intelligence instead of randomly going on the street and trying to scare traders and businessmen. What we are doing is very, very targeted, non-obtrusive, non-manual approach. In most cases, it is based on…

GST: Why you should check a supplier’s tax payment history; don’t go by the lowest rates offered by him

New rules notified on October 9 have restricted input tax credit utilisation by a buyer if the supplier has not uploaded correct details in GSTR-1 return.If you are a GST registered business then the lowest rate offered by your supplier may not be the best option for you if your supplier has a history of not depositing the GST tax to the government on time. Under the GST law, a supplier is required to file GST return in GSTR-1 form before the 11th day of the next month, which will have the details of all outward supplies. This information is used by the buyers who will use that to avail input tax credit (ITC). According to tax experts, a GST registered supplier’s tax payment record is more important than the low rate offered by him as under the new rules any default in the payment of GST by the supplier to the government would result in withholding of the input tax credit benefits to the buyers of that supplier.“The lowest quote rate quoted by a supplier may not be the best thing for …

Government unlikely to go for income tax cut due to fiscal stress

According to sources, personal income tax rate cut is difficult at this juncture due to multiple factors like slowdown in economy, lower tax realisation and subdued non-tax mop up.The government is unlikely to moderate personal income tax rates for the rich due to fiscal stress on account of lower tax realisation amid slowdown in the economy, sources said. Pressure is mounting on the government to cut personal income tax rates to boost demand, especially after the finance ministry reduced the corporate tax rate by up to 10 percentage points.According to sources, personal income tax rate cut is difficult at this juncture due to multiple factors like slowdown in economy, lower tax realisation and subdued non-tax mop up. The government last fiscal missed its direct tax collection target, and for this financial year it has set a higher revenue mobilisation goal of Rs 13.80 lakh crore.The government needs higher revenue to spend on social security schemes like Ayushman Bharat, Mahatma Gand…

Govt needs to focus on increasing its revenue from GST

The government needs to focus on increasing the revenue on GST and help the retailers achieve a good margin.This refers to “Deep discounting isn’t part of ease of doing biz, govt tells e-tailers” (October 29). Big discounts continue to rule on e-commerce websites thereby affecting the GST revenue. The customers are going online because of the unbelievable discounts compared to the offline market. The government is not taking any serious decisions except for few actions against discounts.Some retailers are complaining that the new FDI rules have not helped in decreasing the sales of e-commerce firms. If this continues then the retailers in the online market will get less income. The government needs to focus on increasing the revenue on GST and help the retailers achieve a good margin.Source- Business Standard.The post Govt needs to focus on increasing its revenue from GST appeared first on GST Station.

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LUT Facility extension for MSME and Small scale units who supply to primary suppliers supplying to Exporters or SEZ Units

In the erstwhile Central Excise and Service Tax regime the benefit of claiming export exemption was also available down the line to MSME and small scale suppliers of goods and services who supply goods and/or services to the primary suppliers supplying to exporters and sez’s.

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New GST Rules regarding 20% Formula for Input Credit – Is History repeating itself?

CBIC issued notification no 49/2019 dated 09-10-2019, amending the rules for claiming Input Tax Credit wherein the government has capped the ITC that a registered person can claim.

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Gujarat HC serves notices on govt, GST council for breach of refund norms

Under the Rule 92 of the Central GST (CGST) Act, the claim of the refund has to be made in the RFD 04 form. Thereafter, the officer concerned can accept or reject the claim after his investigationsNEW DELHI: The Gujarat High Court has issued notices to the union government and the GST Council over the alleged breach of refund norms by field officers under the goods and services tax (GST) regime.Under the Rule 92 of the Central GST (CGST) Act, the claim of the refund has to be made in the RFD 04 form. Thereafter, the officer concerned can accept or reject the claim after his investigations.If the claim is accepted, he would issue refund in the form RFD 06. In case the refund is required to be adjusted, the officer would withhold it in the form RFD 07. If the refund is not admissible, partly or wholly, this would be communicated through the form RFD 08.If the amount is rejected, it would be credited to the government account under the Rule 93 of the CGST Act, but for that, due process o…

Registration under GST – Detailed Analysis

Introduction > Registration is a basic requirement to run the net work of GST. > Registration is an Authority available to the Registered Person to collect tax on behalf of the Government. > Registration is a source by which the Registered Person can claim input Tax Credit. > Seamless flow of Input Tax Credit among […]

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Now, officers to exclusively handle GST, Customs complaints

A nodal officer will be appointed in each CGST and Customs Commissionerate to sort out taxpayer grievances. The move would ensure an escalation point for taxpayers in case their grievances are not addressed at designated level.In line with Prime Minister Narendra Modi’s assurance that honest taxpayers would not be harassed and wealth creators would be respected, the indirect tax body – Central Board of Indirect Taxes and Customs (CBIC) has directed to appoint a nodal officer in each CGST and Customs Commissionerate to sort out taxpayer grievances.Industry and tax experts have hailed the decision saying that the move would ensure an escalation point for taxpayers in case their grievances are not addressed at designated level.“In order to institutionalize the taxpayers’ services in the field formations, it is necessary to designate officers who are to act as the nodal officers assigned with the job of taxpayer service,” CBIC Chairman P. K. Das has written to senior officers.Accordingly,…

Punjab finance minister seeks early release of GST arrears from Centre

Punjab finance minister Manpreet Singh Badal met the Union finance minister Nirmala Sitharaman on Tuesday and sought the early release of GST arrears, which are due to the state. Manpreet stated that the release of Punjab’s share was crucial, since its delay is impeding regular and routine functioning on the state government.The Union minister assured him of the highest consideration on the matter, said Manpreet Badal in a statement released on late Tuesday.Punjab finance minister also took up the issues of Punjab, which were pending with the Union government, particularly the exemption of service tax. He shared the details of the new and ambitious industrial policy of Punjab that has been formulated recently. “There is an urgent need to industrialize the state, and we need the cooperation and support of union government to implement the new industrial policy at the earliest,” Manpreet Badal said.Source- Times of India.The post Punjab finance minister seeks early release of GST arrear…

CAIT asks finance minister to probe business model of e-tailers, says deep discounts causing GST loss

According to the traders’ body, under the GST Act, the government has the power to determine the actual market value of the products if it appears that it is under billed.NEW DELHI: Traders’ body CAIT on Monday urged the government to probe the business model of e-commerce majors like Amazon and Flipkart, alleging that deep discounts on products were causing loss of GST revenue to the Centre and state governments.In a letter to Union Finance Minister Nirmala Sitharaman, the Confederation of All India Traders ( CAIT) has claimed that e-commerce companies Amazon and Flipkart and others were selling goods much below their market value thus denying the Government of its due legitimate GST revenue.CAIT Secretary General Praveen Khandelwal has “urged the Finance Minister to institute a probe into this business model which is causing huge GST revenue losses to the government and recover the difference of GST between billed price and market value from the period of implementation of GST”.Acco…

Chamber wants VAT and GST notices revoked

The Indian Chamber of Commerce (Kochi chapter) on Tuesday criticised the state government for allegedly making the life miserable for traders.KOCHI: The Indian Chamber of Commerce (Kochi chapter) on Tuesday criticised the state government for allegedly making the life miserable for traders. Alleging that the arm-twisting tactics being adopted by the government for the generation of revenue are nothing short of harassment, Sunny L Malayil, president of the chamber’s Kochi chapter, urged the government and finance minister to look into the plight of the entire trader fraternity.“During these trying times when the economy is going through a slump and the traders are hard-pressed, the proceedings initiated to squeeze the trade further on one pretext or the other by the government is not in good taste. The latest development in the form of penal and assessment proceedings being invoked both under the GST as well as for periods under the VAT regime can be seen as nothing short of punishment…

Input Tax Credit: New GST refund rules create confusion as deadline to file first returns comes close

GST: Taxpayers will begin filing their first GST returns under the new rule from next week.New GST Input Tax Credit Rules: Millions of GST payers are eagerly awaiting clarity over the new rules notified early this month that restricted the refund of input tax credit to 20% of the total claimed amount. The GST registered businesses will begin uploading their returns from next week and it will be the first occasion when they will file their returns under the new rules governing the refund of the input tax credit. On October 9, the GST council notified new rules under section 43 of the GST law that restricts the refund amount to 20% of the claimed amount if the suppliers have not uploaded correct details in the GSTR 1 form uploaded on GSTN portal. Businesses are expected to face challenges this month onwards due to the lack of clarity on the applicability of this rule, said Pritam Mahure, a Mumbai based Chartered Accountant.Though the decision was aimed at curbing the use of fake GST inv…

Procedure to be followed for update DSC under GST Law, 2017

Dear Colleagues, good morning to all of you. I have received suggestions from our colleagues to prepare notes on update DSC issues and procedure to be followed step by step under GST Law,2017 practically ode. So, I am trying to provide detailed notes on what are the steps to be followed for update DSC at […]

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Seats for railway coaches classifiable under Heading 9401, taxable @ 18% GST: AAR

The Hon’ble AAR, Punjab in the matter of M/s. Sutlej Coach Products Pvt Ltd. held that Seats for Railway Coaches supplied to Rail Coach Factory falls under Heading 9401, liable to GST at 18%, and cannot be classified at 5% under HSN 8607 as parts of Railway.

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Gas and ATF likely to be brought under GST soon, says govt source

Experts said that the ATF price would come down if it is kept in the 18% GST bracketNEW DELHI: At least two out of the five petroleum products, including aviation turbine fuel or ATF and natural gas, are likely to be among the first set of petro products to be included in the Goods and Services Tax (GST) fold ahead of an earlier agreed schedule.Sources said that the prospect of the two products being included into the GST fold has brightened as the government has started consultations to shift to GST 2.0, which will have fewer rates and limited exemptions.As part of this, the Finance Ministry has started preparing ground for the next round of discussions at the GST Council with proposal for including gas and ATF into GST fold first before evolving consensus on other petroleum products.The Ministry of Petroleum and Natural Gas has already put a request for their inclusion in the indirect tax system and the Finance Ministry could consider placing the proposal in the next round of meetin…

Experts call for multiple GST rate cuts in India citing Singapore example

Singapore has only one tax rate under GST- seven per cent — on taxable goods and services while India has multiple slabs to charge the indirect taxCiting the example of Singapore, several experts have suggested that India should do away with multiple tax slabs under the Goods and Services Tax (GST) for greater ease of compliance.Singapore has only one tax rate under GST— seven per cent — on taxable goods and services while India has multiple slabs to charge the indirect tax.An achievement of India’s GST implementation is that the measure hasn’t been inflationary, according to Abhijit Nath, who works with Insitor Partners, a consultancy firm on GST.“However, to avoid confusion and greater ease of compliance, India should aim for a two-rate system over time to be in line with global best practices,” suggested Nath.GST introduction in India has the potential to be a long-term game-changer by unifying the country as one market, he said.Singapore’s practice of early announcement of GST rat…

Procedure for accounting and payment of RCM Liability under GST

Section 9(3) of the CGST Act states that the Government shall notify the supply of goods or services, the tax on which shall be paid under RCM. Vide Notification No. 13/2017 – CT (R) dated 28th June, 2017, the government has notified such services on which tax shall be paid under RCM. Now, Section 31(3)(f) […]

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Detention of conveyance in absence of discrepancy in E-Way Bill or Tax Invoice not sustainable

When the conveyance in question was carrying the goods which were duly accompanied by documents and no discrepancy was found in connection therewith, there was no reason for the third respondent to confiscate the same. The impugned order of confiscation passed by the third respondent under section 130 of the CGST Act, therefore, cannot be sustained.

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Workshop on GST Audit & Annual Return (Limited Seats)

We are happy to announce One Day GST workshop for effective GST Audits and Annual Returns. The workshop would cover clause wise clause detailed Analysis for Form GSTR 9, GSTR 9C along with GST Audit tool for GST Health Check-up. We are having workshops at  Mumbai on 27th July 2019 and on 2nd August 2019 at New Delhi.

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HC sets aside NAA’s ruling against Franchisee of McDonald’s

Hardcastle Restaurants Pvt. Ltd. Vs Union of India (Bombay High Court) The main contention of the Petitioner is of violation of the principles of natural justice. Petitioner contends that since the hearing was only by three members and the impugned order is by four members, it is in breach of principles of natural justice. The […]

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E-invoicing Concept under GST

E-invoicing Concept The GST Council approved the standard of e-invoice in its 37th meeting held on 20th Sept 2019 E-invoicing is proposed to be implemented from 1st January 2020. It will be implemented in a phased manner by GSTN. Similar to the new GST return filing system, the electronic invoicing system will first be available […]

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Book titled ‘Complete Analysis on GST– Nov 2019’ edition- Buy Now

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

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Validity of Proceeding against transporter of goods: HC allows filing of appeal

The moot question, according to learned counsel for writ petitioner is, the transporter cannot be proceeded against even if the allegations against the owner of the goods i.e., dealer under TNGST Act, are true.

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Enjoy the Crackers Stall of GST!

Arjuna, ‘Sutali Bomb’ from Government is ‘Restriction to claim ITC’. The restriction to claim Maximum Input tax credit of upto 120% of the eligible credit available in GSTR-2A is the Sutali Bomb, as its going to have a loud impact on Taxpayers. Every taxpayer should keep this provision in mind and comply the same. Otherwise the ‘Sutali Bomb’ of the Government would burst on the taxpayers.

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Builder found guilty of Profiteering, Not passed ITC benefit Fully to Buyers

Haryana State Screening Committee on Anti-profiteering examined the aforesaid application in its meeting held on 20.06.2018 and observed that the burden of tax had reduced in the GST era due to increased availability of input tax credit, which the builder should have passed on to the recipients in terms of Section 171 of the Central Goods and Services Tax Act, 2017.

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Rejection of application by AAR without giving opportunity of hearing to Appellant is invalid

The issue before us for determination is whether, the rejection of the application filed by the Appellant seeking Advance Ruling by the Lower Authority is as per the provisions of Law and Principles of Natural Justice.

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HC dismisses writ filed as alternate remedy except to file present writ petition was exist

Sri Nayaz Ahmed Vs  State of Karnataka (Karnataka High Court) State counsel to accept notice for respondents. 2. In the instant petition, the petitioner has sought for quashing the Order, dated 4-2-2019 vide Annexure-C, passed under section 83(1) read with section 5(3) of Karnataka Goods and Services Act of 2017 (hereinafter referred to as ‘the Act’). 3. Petitioner has […]

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ITC not available on services used exclusively for providing exempt services

The applicant is not eligible for the credit of tax paid on the Input services used exclusively for providing exempt services of health services to in patients such as laundry services used for in patients. For Input services such as housekeeping, leasing of equipment used for both exempt supply of health services to in patients and taxable supply of medicines etc. to outpatients , the appropriate ITC eligible is determined by Rule 42 of the CGST Rules 2017 and TNSGST Rules as amended read with Section 17(2) of CGST/TNGST Act 2017.

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Time of supply In case of continuous supply of service of renting of immovable properties

In respect of continuous supply of service when the license is in effect , as per Section 31(5), the tax invoice, containing the details as per Rule 46 of CGST/TNGST Rules ,should be raised on or before due date of payment as ascertainable from the contract. It is seen in the sample contracts provided that in certain cases, the due date of payment is periodical, either monthly or annually, with the due dates specified after the end of such period.

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Time of supply when license for renting of immovable property expires but licensee continues to be in Possession of property

In the scenario of the license for renting of immovable property has expired and not in force but the licensee continues to be in Possession and occupation of the immovable properties , in cases where there is a provision in contract for continued supply of service after expiry or termination of the contract, the Rent Claim Advice is issued by the applicant with the period prescribed in Section 31(5) and the Time of supply as determined by Section 13(2)(a), as the earliest of the date of issue of Rent Claim Advice by the supplier and the date of receipt of payment.

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Tamarind Fruit (undried) classifiable under CTH 08109020: AAR Tamilnadu

Murali Mogan (GST AAR Tamilnadu) Tamarind supplied by the applicant which has not undergone the process of direct drying in sun or by industrial process is classifiable under CTH  08109020.

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GST on Medicines, consumables & implants used while providing health care services to in-patients

Medicines, consumables and implants used in the course of providing health care services to in-patients by the applicant is a composite supply of Inpatient Services classifiable under SAC 999311.

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Whether Carbonated Fruit Juice falls under Fruit Juices or Aerated drinks?

Waters with added carbon dioxide which may contain added preservatives and flavoring , sugars are separately classified under Para 2.10.6 as Carbonated Water' and Category 14.1.1.2 as 'table waters and soda waters' which are different from 'Carbonated Fruit Beverages or Fruit Drinks' of Para 2.3.30 and Category '14.1.4.1' of FSSAI regulations.

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‘Happy Diwali’ to all GST Station Members

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Gujarat HC orders inquiry against GST officials

In an important direction, a bench of the Gujarat High Court has ordered Commissioner of State Tax, Ahmedabad, to conduct inquiry against GST officials for illegally camping at house of a taxable persons without authority of law. The court has asked to submit a report before the court on or before November 13.The court was hearing a petition filed by Paresh Chauhan claiming GST officials forcefully camped inside his house from October 11 to 18. The GST officers had stationed in the flat round the clock and his family members were not allowed to go out of the house, he had claimed.“The HC has taken a strict view and entrusted inquiry in the issue. The matter will be heard on November 13,” said Chetan Pandya, counsel for Chauhan. “The exercise carried out by the concerned officers from Oct 12 to Oct 18 was without any authority of law and in flagrant disregard of the provisions of the Act and the rules and in total abuse of the powers. The manner in which the officers have conducted the…

India should adopt Singapore’s ‘GST voucher scheme’ to help lower, middle income groups: Experts

One aspect of Singapore GST that can be adopted in India is the voucher system which provides benefits even to non-registered citizens of Singapore against the tax charged to them at the time of purchases madeSINGAPORE: Singapore’s Goods and Services Tax (GST) voucher scheme should be adopted in India to bring huge positive impact for those in the lower and middle income groups, say tax experts.“An interesting aspect of Singapore GST that can be adopted in India is the voucher system which provides benefits even to non-registered citizens of Singapore against the tax charged to them at the time of purchases made,” said Rashmi Deshpande, partner, Khaitan & Co, a consultancy firm that has a pan-India presence.She said there are three kinds of vouchers – Cash, MediSave and U-Save – being provided by Singapore to its citizens.Cash vouchers provide for cash for immediate needs. MediSave provides elderly Singaporeans aged 65 and above with benefits which will cover their medical expense…

Two held for evading Rs 108 crore GST by fudging documents

JAIPUR: The zonal office of director general of GST intelligence have arrested two persons for evading GST amounting to nearly Rs 108 crore. The accused, who were involved in creating fake firms and invoices, have been sent to judicial custody.Based on specific inputs, an investigation was initiated by officials of the GST intelligence unit against the accused identified as Mohammad Yunus proprietor of M/s Shopiera situated at D 15/24, Third Floor, Sector 3, Rohini, North West Delhi.“He was involved in creating fake firms that only existed on papers and was involved in generating fake invoices without actual supply of goods and resulting in availing of ITC (Input Tax Credit) on such invoices. He had 25 other firms which also issued fake invoices. The probe suggested that the accused was indulged in breaching of various provisions of the CGST Act, 2017. Searches were also conducted at his Delhi residence and his office where various incriminating documents were found,” said Rajendra Ku…

GST fraud worth Rs 138 crore unearthed in Odisha, 4 arrested

Describing the modus operandi of the accused, he said that with the lure of providing employment, they collected identity documents of people, and opened bank accounts and obtained SIM cards through such records.Tax authorities in Odisha on Friday claimed to have unearthed a Rs 138-crore GST fraud, and arrested at least four persons for being part of a racket that created fictitious firms and fake invoices. Investigations revelaed that between August 2018 and September 2019, the fictitious firms used fake invoices and made purchases of over Rs 603 crore and sale of Rs 743 crore without paying taxes, but availed input tax credit, Goods and Services Tax (GST) Commissioner Sushil Kumar Lohani said. He said as many as 20 fictitious firms in the names of housewives, taxi drivers, daily wage earners, plumbers and unemployed youths were created by the racketeers.“At least four persons have been arrested in this connection under different sections of the OGST Act, 2017,” Lohani said. “While o…

No GST on Adoption Fees received from Adoptive Parents by Trust under Adoption Law

Receipt of the Adoption Fees paid under Regulation 46 of the Adoption Regulations, 2017 by the Prospective Adoptive Parents to the Trust is exempted from the levy of Goods and Services Tax.

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Liability to File Kerala Flood Cess Return

As per Rule 3 (1) of Kerala Flood Cess Rules, 2019, only taxable persons are liable to file Kerala Flood Cess Return in Form KFC-A and to pay Kerala Flood Cess. If the taxable persons has no supply liable to Kerala Flood Cess during a Financial Year, they are not liable to file Kerala Flood Cess Return.

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Cancellation/Deregistration of GSTIN

Section 29 of the Assam GST Act categorically ordains a Proper Officer to cancel registration of a taxpayer that yields no revenue to the exchequer or does not comply with the mandatory provisions of return submission within a definite time or obtained registration with fraudulent motif.

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Special Drive for Cancellation of GST Registration of Return Defaulters

SGST Dept. - Goods and Service Tax - Action against Return Defaulters - Special Drive for Cancellation of Registration of Return Defaulters -instructions issued- In the interest of revenue, registration of all the return defaulters who had failed to file returns has to be cancelled to ensure that the non-filing of return will not cost the exchequer.

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ICICI Bank exits GST Network, sells entire 10% stake to 13 state govts

The stake transfer to various stake governments will be completed by the end of March 2020NEW DELHI: Private sector ICICI Bank on Friday said it has exited the GST Network, the company facilitating collection of the indirect tax, by selling its entire 10 per cent stake to as many as 13 state governments.The stake sale is for aggregate cash consideration of Rs 1 crore, ICICI Bank said in a regulatory filing.The stake transfer to various stake governments will be completed by the end of March 2020, it said.The bank will transfer 0.14 per cent stake to the Assam government and 0.81 per cent stake to the Telangana government.Besides, it will transfer Goa, Kerala, Manipur, Tripura, West Bengal, Delhi, Jharkhand, Uttar Pradesh, Chhattisgarh, Madhya Pradesh and Arunachal Pradesh governments 0.82 per cent stake each.ICICI Bank has exited the company following the government of India’s decision to make GST Network into a public sector entity last year.As per the decision, the Centre will own a…

Revised GST concession guideline for Vehicle Purchase by Disabled

Revised Guidelines for issue of GST concession certificate for purchase of vehicles by the persons with Orthopedic Physical Disability

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Amendment in CGST Rules & Due dates of GSTR 1 / GSTR 3B

CBIC issues Notifications relating to filing of returns under GST Central Board of Indirect Taxes and Customs has issued Notifications 44-48/2019 Central Tax dated 9 October 2019 relating to filing of returns under Goods and Services Tax (GST). The key changes are as follows: Notification no. 44/2019-Central Tax dated 09 October 2019 CBIC vide said […]

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CBI Arrests a Superintendent of CGST in a Bribery Case

CBI has arrested a Superintendent of CGST & Central Excise Division Range-II, Lucknow (Uttar Pradesh) for demanding and accepting a bribe of Rs.25,000/- from the complainant.

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Examination for Confirmation of Enrollment of GST Practitioners

Examination for Confirmation of Enrollment of GST Practitioners will be a Computer Based Exam. The registration for the exam can be done by the eligible GSTPs on a registration portal, link of which will be provided on NACIN and CBIC websites. The registration portal for exam scheduled on 12.12 .2019 will be activated on 22nd November, 2019 and will remain open up to 5th December, 2019.

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HC Quashes Non-Speaking Order for Detention of Goods under GST Law

India Logistics And Cargo Movers Vs The State of Gujarat (Gujarat High Court) It was incumbent upon the GST Department to give reasons in support of their conclusion that the goods in question and the conveyance are required to be confiscated. However, the impugned order is totally bereft of any reasons, in the absence of […]

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Impact of 20% Input Tax credit Restrictions in GST

Recently, notification no 49/2019-central tax on 9th October, 2019 has come restricting the input tax credit to 120% of the eligible input tax credit on the basis of invoices actually uploaded by supplier under section 37(1). We have analyzed the notification in detail and below is the mechanism how to arrive at this 120% and […]

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People with orthopaedic disability to pay lower 18% GST on some vehicles

NEW DELHI: People with orthopaedic physical disability will pay a lower Goods and Services Tax (GST) of 18% on vehicles up to 4 metre in size, according to a notification issued on Thursday by the department of heavy industry (DHI). The GST rate otherwise on vehicles is 28%. Patients with disability equal to or higher than 40% will get the benefit after submitting the necessary documents to DHI.The documents required to be submitted include a medical certificate and a three-year income tax return.The vehicles that can be purchased under the policy include those running on petrol, liquefied natural gas and compressed natural gas with engine capacity of up to 1,200 cc. The engine capacity in the case of diesel vehicles has been capped at 1,500 cc with the length being 4 metres in all cases.An officer not below the rank of deputy secretary in DHI only can issue the certificate to the patient looking to buy a vehicle under the policy. The certificate has to be issued within a month of the…

Last date for filing of CMP-08 extended to 22nd October 2019

Due date for furnishing the statement containing the details of payment of self-assessed tax in said FORM GST CMP-08, for the quarter July, 2019 to September, 2019, or part thereof, shall be the 22nd day of October, 2019.

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DGGI unearths scam of availing ITC worth Rs 3 crore on bogus invoices

SURAT: The Directorate General of GST Intelligence (DGGI) raided a saree manufacturer in Pandesara GIDC for fraudulently availing input tax credit (ITC) on the basis of bogus invoices issued by various firms on Thursday.
Official sources said that the DGGI officials raided Pandesara GIDC based Siddhi Vinayak Knots & Prints Private Limited which is the manufacturer of Laxmipati Sarees. The firm had availed ITC on basis of bogus invoices issued by various firms.During probe, it was revealed that the ITC worth Rs 3 crore was claimed on the basis of fake invoices issued by firms including Darsh Exports, Balaji Enterprise and Subham Traders. Further investigations revealed that fictitious invoices were prepared by these three firms and issued to various other companies including Siddhi Vinayak Knots & Prints Private Limited.The department has initiated a process to recover illegally availed ITC by Siddhi Vinayak Knots & Prints Private Limited. Statement of the administrative he…

GST: Three booked for trying to influence DGGI probe

SURAT: Three persons, including a woman, were booked at Umra police station on Wednesday for making calls in an attempt to influence officers of Director General of GST Intelligence (DGGI) carrying out in investigation in a bogus billing racket.The accused made calls claiming to be a personal assistant and officer on special duty of cabinet minister Bhupendrasinh Chudasma. The accused woman also visited the office of DGGI at Vesu multiple times since June.The person, who made calls claiming to be PA and OSD of the minister, remains unidentified. He was booked along with Hetal Shah, a resident of New Rander Road, and Ashraf Ibrahim Kalvadiya, a resident of Unn area, who is facing investigation in the alleged bogus GST billing racket. The accused were booked under Indian Penal Code section 170 (impersonating as public servant). The complaint was lodged by Mehar Sinh, an officer of DGGI.The complaint says the caller made calls to DGGI officials and said Kalwadiya was friend of Chudasma. …

Disastrous way to improve GST compliance

The move to restrict input tax credit for non-filing of GSTR-1 is too harsh and could be legally challengedThe 37th GST Council meeting held on September 20, 2019, was widely lauded for numerous business-friendly measures, which have significantly boosted trade confidence. The meeting also noticeably occurred in the backdrop of plateauing rates of compliance and frauds involving fake invoicing.The recent Comptroller Auditor General (CAG) audit report highlighted that non-filing of Form GSTR-1 was an especially critical issue. This is because supplies declared in GSTR-1 provided the Income-Tax department invoice-level details to verify the turnover declared in GSTR-3B, which is merely a summary return.Aiming to incentivise compliance and to check fraud, the GST Council suggested “imposition of restrictions on availment of input tax credit” where supplies had not been declared in the relevant return filed by the vendor. The industry was, therefore, left guessing as to exactly what restr…

Nirmala Sitharaman promises further GST simplification to help India improve business ranking

Sitharaman, while talking to reporters, said states too will have to make efforts in improving the business climate in India, especially with regard to property registration.Finance Minister Nirmala Sitharaman on Thursday said efforts will be made to further simplify Goods and Services Tax (GST), and expressed hope that it will help in further improving India’s ranking in the World Bank’s ease of doing business index. India has jumped 14 places to rank 63rd out of 190 countries in the World Bank’s Doing Business 2020 report on account of significant improvement in resolving insolvency and obtaining construction permits.The other parameters where the country has done well include trading across borders, registering property, paying taxes, getting electricity connections and starting a business. However, the improvement in the remaining three parameters — getting credit, protecting minority investors, enforcing contracts — are not impressive.Sitharaman said that the effort will be now t…