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Showing posts from January, 2020

Economic Survey warns Centre, states’ fiscal health depends on GST mop-up

NEW DELHI: Growth in Goods and Services Tax (GST) collections holds the key to the fiscal health of the Union and state governments in the future, the Economic Survey for fiscal 2019-20 tabled in Parliament by Union finance minister Nirmala Sitharaman on Friday said, hinting that an overhaul to the tax system may be on the cards.The Survey warned that the next financial year posed several challenges for the government on the fiscal front amid an economic slowdown. “The financial year 2018-19 has ended with a shortfall in GST collections. Therefore, revenue buoyancy of GST will be key to improved resource position of both the central and state governments,” said the Survey.The Survey’s observation is indicative of the central government’s theory that overhauling the indirect tax system is essential to realise the full potential the new tax system holds for economic growth and revenue collections.Goods and services tax (GST) collections exceeded the ₹1 trillion mark for the second strai…

Budget 2020: Ease in GST refunds could be a big boost for MSMEs

There has been irregularity from the GST committee in getting GST refunds on timeAs a representative of the Indian packaging industry, below are what am looking forward to in the Union Budget 2020, which will be presented by Union Finance Minister Nirmala Sitharaman.Interest rates have to be brought down for small and medium enterprises, which form the backbone of the country’s packaging industry. Low interest rates will make the industry competitive and also increase the consumption.It has been observed that there has been irregularity from the GST committee in getting GST refunds on time. This has to be regularised. The procedure towards the compliance of GST has been highly strict and tedious. Even a small delay is severely penalised. We appeal to the government to bring in some relaxation in GST compliance procedure.Many a times, there is a burden for the GST payer to pay on time without receiving the same from the creditor. There is some relaxation required here.Keeping the GST r…

GST reduction on autos will hit revenues in Q2, Council against any reduction

Cutting GST to 18 percent from the current 28 percent would have offset the 10-15 percent increase in vehicle prices due to BS-VIReduction in the Goods & Services Tax (GST) was the most popular demand by auto makers to help them tide over the prolonged slowdown. The GST Council, however, is against any such rate reduction fearing revenue impact, the Economic Survey stated.The Society of Indian Automobile Manufacturers (SIAM), the apex lobby body of vehicle makers, in addition to several entrepreneurs including Pawan Munjal of Hero MotoCorp voiced their concern over the demand situation for automobiles that has remained weak for several quarters.Their primary demand has been to bring down GST to 18 percent from the current 28 percent, which will offset the 10-15 percent increase in vehicle prices brought about by the implementation of Bharat Stage VI (BS-VI) emission norms from April 1.“GST rate structure on auto and auto parts has been discussed and debated significantly in last f…

GST: Budget should increase the availability and accountability of startup funds

We need better management, a digital platform, and a known manager to manage the startup funds as similar as mutual fund managers. We also expect a lot of incentives as we create employment and startups should be rewarded.We need a rational budget 2020 and one whose focus should be on measures that can revive the struggling economy. With the continued slowdown in the economy and job losses, this has to be a blockbuster budget for the common man and to shore up the economy.GST CutsWe thank the government for reducing GST for the Hospitality sector, but would like them to review and lower the tax rate as it is still higher compared to tourism economies like Thailand, Singapore, Dubai etc. I would prefer GST deducted at the source from the buyers/service users. Currently, the trader/business pays based on Invoice and he gets payment between 90-120 days, but he has to pay the GST with his own funds in the same month. This makes limitations for people to do business and put stress on the e…

20 imperative GST judgments for the year 2020

As GST roll out completed 2.5 years, we have seen everything in this period–transitioning from existing regime to new era ,understanding the provisions of GST, analyzing what impact does it had rather still having on business, making GST compliances from return filing to reconciliations and as soon as one tax period completed, audit requirements also […]

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Retention & Withheld Amount and GST

Treatment of retention & whithheld amount under construction contracts. Real Estate/ Construction Industry is one of most developed industries in India. Real Estate industry is also most unorganised sector in India. It is developing day to day and provided crores of people employment. Real Estate industry has its say in GDP of India. Retention Amount […]

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Tender for Appointment of CA firm for undertaking GST Audit

Tender for Appointment of Chartered Accountant firm for undertaking a GST Audit of the GST registration and filing Forms GSTR-9 and GSTR-9C for FY 2018­-19.

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E-Way Bill System- Blocking/Unblocking of E-Way Bill Generation

E-WAYBILL SYSTEM The Blocking/Unblocking of E-Way Bill Generation E-Way Bill system now has a new feature of blocking/unblocking of the taxpayer’s GSTIN, as per the rule. That is, if the GST registered taxpayer has not filed Return 3B for the last two successive months in GST Common portal, then that GSTIN will be blocked for […]

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E-Way Bill System Verification of Vehicle number in EWB Portal- FAQs

Q 1.What is verification of vehicle number in EWB Portal? Ans: E-Way bill has been integrated with Vahan System of Transport Department. Vehicle number entered in e-way bill will now be verified with the Vahan System. If Vehicle no. is not available in the Vahan system user will get ‘Alert Message’ about the non-availability of […]

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Chandigarh to levy GST on commercial ventures of bar association

The UT excise and taxation dept has asked Punjab and Haryana HC bar association to submit information about revenue from its shops, paid-parking and other ventures within a weekThe UT excise and taxation department has asked Punjab and Haryana High Court bar association to submit information regarding the revenue being generated by the bar from its commercial establishments, including shops and paid-parking being run by it. It has been asked to submit information within couple of weeks.A GST of 18 per cent is applicable on parking-lot services and rental income. “An assessment is being made whether the bar’s revenue is covered under GST and the quantum of tax to be levied. If the receipts are more than ₹20 lakh, the bar association must have a GST number. The contractor charging the parking fee will have to collect the stipulated GST from users and pay it to authorities,” a department official said.A green belt near the entry to Punjab and Haryana high court complex has been turned in…

FinMin summons Infosys on GST tech glitches

With complaints rising against the IT system of Goods & Service Tax (GST), the Finance Ministry has summoned Infosys on Friday to seek an explanation. Infosys is the technology service provider for GST.According to FinMin sources, the Finance Ministry has called CN Raghupati, Senior Vice-President of Infosys and V Rangnathan, Vice-President.They will be asked to explain as to why they have not yet resolved the technical issues of the GSTN system despite being informed and requested to mend these glitches for last 4-5 months.There have been repeated complaints from businesses and industry over the technical glitches on the GSTN portal while filing returns. Sources said that the Finance Ministry has been repeatedly referred the matter to Infosys the difficulties being faced by taxpayers while filing GSTR returns. The problems faced by tax payers include GSTN portal slowdown, login error or auto logout, non-delivery of OTP or delayed OTP, network error or Gateway timeout, OTP issues …

How to boost government’s revenue collections: Forget GST rates, look here instead

Union Budget 2020 India: As the overall revenue collections from Goods and Services Tax (GST) remain muted on the back of slow economic growth, it is unlikely that the government will give any indication to raise GST rates to grow revenue.Budget 2020 India: As the overall revenue collections from Goods and Services Tax (GST) remain muted on the back of slow economic growth, it is unlikely that the government will give any indication to raise GST rates to grow revenue, according to an industry survey. “While suggesting ways to augment both tax and non-tax revenue collections, economists pointed out to persistently weak demand conditions as a major impediment that was inhibiting India’s growth,” industry body FICCI said in its Economic Outlook Survey report. Economists were cautious in recommending raising GST rates to improve revenue collections. The move could risk private consumption falling further, which could, in turn, impact the country’s economic growth along with future collect…

GST: CAIT calls for a special income-tax slab for traders

CAIT has been at the forefront of the protest against the discount policy on e-commerce sitesNEW DELHI: Urging the government for keeping the trading community on priority list, the Confederation of All India Traders (CAIT) said on Thursday that the upcoming Union Budget should introduce a special income tax slab for the traders.In a statement, CAIT Secretary General Praveen Khandelwal said that the government should also review the Goods and Services Tax (GST) along with simplifying and rationalising the GST tax structure.He also sought the waiver of bank charges on digital payments for faster acceptance and adoption of digital payments in the country. Khandelwal has also asked for policies to support digitalisation and computerisation of traders’ businesses.CAIT has been on the forefront of the protest against the discount policy on e-commerce sites and has time and again asked the government to look into the operations of the online platforms.In its statement on Budget recommendati…

Letter for GST Portal issues and GSTR 9 & GSTR 9C Date extension

Taxation Bar Association, Modinagar has made a representation and requested for upgrading GST Portal and for extending the due date of Form GSTR-9, GSTR-9A, GSTR-9C and GSTR-1. It also demanded refund of late fees paid by taxpayers for delay in filing of GSTR-3B, GSTR-1 and GSTR-10. it further demand facilty to revise GSTR-9, GSTR-9A, GSTR-9C […]

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Request to extend due date of GSTR-9, 9A & 9C for F.Y. 2017-18

6 Major Professional Bodies of  has requested considering the fact that the filing of FY 2017-18 is the first filing by all taxpayers and professionals and considering and issue faced in filing GSTR-9, 9A & 9C, date for filing the said forms be extended by at least two months i.e. from 31.01.2020 to 31.03.2020, and also waive late fees on these returns and report (F.Y. 2017-18) permanently.

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What can GST Council do to augment tax collection; these are the key trends to watch out for

While the government is focusing on increasing compliances to bridge the gap, who knows what lies in future if it does not yield the intended resultsGoods and Service Tax (GST) was introduced two and a half years back replacing various indirect tax laws like excise duty, service tax, value-added tax, etc. It also saw the creation of GST Council, which brought both the Centre and state governments on to a common platform for deciding changes in the law, rate of taxes etc. This has resulted in having a uniform indirect tax law across India. Now eyes are on what could be the key themes/trends to watch out for in the next couple of years.Extensive use of technologyIntroduction of GST has seen extensive use of technology by the tax authorities to administer the laws. Technology has been fulcrum of compliance. There has been considerable emphasis on seeking detailed information relating to procurements, sales, etc, to introduce transparency and plug the revenue leakages.Initiatives like fil…

GSTR-9C filing within one month- GSTN reply and Advisory

Query- New version of GSTR9C was made available on the Portal in December 2019. How can we file within one month? Ans. -The offline tool for preparation and upload of GSTR 9C was provided on the Portal in April 2019. A total of 51,881 taxpayers had filed GSTR 9C using this tool by 26/08/2019. Some […]

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Notice Period Recovery – liable for GST?

In recent years, the issue of Service Tax/GST liability on the Notice period recovery is a subject matter of dispute. While certain conservative employers have made a choice to pay service tax on such recoveries, certain employers have made bold choices of not paying taxes which were followed by the issuance of the demand notices/orders confirming the service tax demand by the Revenue department.

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GSTR-9 & GSTR-9C/ GST Audit Date Extension & Result of Denial of Extension

There is a genuine demand for Extension of Date for GSTR-9/ GSTR-9C and the date should be extended as desired by various Trade and Industry Association and supported by various professional Associations. Let us see what will be the eventuality if date is not extended so that you can complete your work without tension. Try […]

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HC stays order related to Transition of Education & Krishi Cess in GST Regime

Assistant commissioner of CGST and Central excise  Vs. M/s Sutherland global services (Madras High Court) Madras High Court Division Bench stays order of single judge in Matter relating to transition of education cess, secondary and higher education cess and krishi Kalyan cess into the Gst regime. FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT Mr.Raghavan […]

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Waive GST on life insurance policies, says AIIEA

No tax imposed on savings models such as fixed deposits or mutual funds, say membersAt the ongoing 25th National Conference of All India Insurance Employees Association, the members resolved to demand the withdrawal of GST from life insurance policies, here on Wednesday.M. Girija, Joint Secretary of AIIEA, pointed out that the Union Government has not imposed GST on other savings models such as fixed deposits or mutual funds, but is imposing GST on life insurance policies that vary from 2.5% to 18%. “Even insurance policies are savings and they cannot be treated differently,” she said.The members voiced their disapproval against the disinvestment in LIC. They were of the opinion that LIC being the largest government-owned insurance company, the proposal of disinvestment should be shelved.“From an invest of ₹5 crore in 1956, the company has grown phenomenally and today has an asset value of over ₹31 lakh crore. Its solvency rate is over 158%, so where is the need to privatise it?” aske…

GST: Notice pay recovery not liable to service tax, rules Madras High Court

Experts expect some clarification to be issued under GSTRecovery of notice period pay will not be subjected to services tax, Madras High Court has ruled. Now, the government is expected to come out with a clarification to deal with such matter under the Goods & Services Tax (GST) regime.The case belongs to the old regime of service tax. The petitioner GE T&D India Limited (formerly Alstom T&D India) received certain amount in lieu of notice period from outgoing employees.The Assessing Officer was of the view that this amount would attract Service Tax since the petitioner is deemed to have facilitated the termination of employment and thus a category of service entailed and described as ‘facilitation of termination of employment’ was carved out by the Assessing Officer. Accordingly show cause notices were issued against which the petitioner moved to the court.During the hearing, the tax department said that payment in lieu of notice constitutes payment to an employee by the…

GST overhaul: Amit Mitra calls for meet of state FMs

In a statement, Trinamool Congress said the faulty design of GST “is one of the reasons for the economic slowdown”.West Bengal Finance Minister Amit Mitra has called for a three-day session of all state finance ministers to overhaul the framework of the Goods and Services Tax (GST). In a statement, the state’s ruling Trinamool Congress said, “Bengal Finance Minister Amit Mitra has called for a three-day session of all finance ministers to overhaul the framework of the Goods and Services Tax, the design of which is faulty and is one of the reasons for the economic slowdown in the country today.”“In an interview, Mitra, who is also chairman of the committee of empowered finance ministers, said there were four points behind why the GST had failed since the three years that it has been implemented. One, the entire design was faulty: there were no pilots done, no data tests, no trials. And this when, for the first time in the history of the world, the largest tax reforms were taking place,…

Oil Ministry pitches for inclusion of natural gas in GST

Union Budget 2020 India: When the Goods and Services Tax (GST) was introduced on July 1, 2017, amalgamating 17 central and state levies, five commodities namely crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) were kept out of its purview.Budget 2020-21: Ahead of the Union Budget, the Oil Ministry has made a renewed pitch for inclusion of natural gas in the ambit of GST to promote the use of the environment-friendly fuel by reducing multiplicity of taxes and improving business climate. When the Goods and Services Tax (GST) was introduced on July 1, 2017, amalgamating 17 central and state levies, five commodities namely crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) were kept out of its purview given the revenue dependence of state governments on this sector.“Currently natural gas is taxed under the VAT regime with VAT ranging from 3 per cent to 20 per cent across states,” the ministry said in a booklet it brought out to promote the use o…

GST, VAT collection dips as 6 states’ tax revenue till November FY20 falls

On the other hand, tax revenues rose 13.44 per cent for West Bengal in this periodNEW DELHI: States like Andhra Pradesh, Gujarat, Maharashtra, Punjab, Manipur, and Uttarakhand saw fall in their overall tax receipts during the first eight months of the current fiscal year, compared to the corresponding period of the previous year.On the other hand, tax revenues rose 13.44 per cent for West Bengal in this period.The bulk of states’ revenue comes from the devolution from the Centre’s divisible tax pool, goods and services tax (GST), value-added tax (VAT) on petroleum, and excise duty on alcohol.These revenues declined by 11.4 per cent in this period in Andhra Pradesh, while Punjab witnessed 10.4 per cent contraction.Figures for these two states are also available till December. If these are taken into account, Kerala saw some reduction in the rate of fall at 10.9 per cent. However, Punjab witnessed an increase, as its tax revenues saw 11.7 per cent decrease.Among other states, Manipur, t…

Unaccounted goods at disclosed place of business are ‘secreted’

Rajeev Traders Vs State Of U. P. (Allahabad High Court) Allahabad High Court held that once it was admitted that assessee had not recorded goods found stored at his disclosed place of business, in his books of account, a presumption of goods having been ‘secreted’ as per CGST Section 67 did arise. Upholding seizure of […]

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Request for extending filing date for GST Annual Return and Audit

Representation Requesting for Extension of filing date for GST Annual Return and GST Audit (Forms GSTR-9, 9A, 9B and 9C) for a reasonable period not less than 30th June 2020.

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Budget 2020: Relief in GST, income tax needed to boost e-commerce

Budget 2020 Expectations for e-commerce: Tier 2 to 5 cities and towns contribute more than 50 per cent to e-commerce and online retail.Budget 2020 Expectations for e-commerce: Supported by cashless transaction apps, which are safer and easier than ever before, as well as deeper penetration of inexpensive mobile data plans and better connectivity, the e-commerce industry in smaller cities across India is witnessing an increase in sales.Tier 2 to 5 cities and towns contribute more than 50 per cent to e-commerce and online retail, as an estimated 56 million+ digital shoppers from smaller cities and rural areas have adopted online platforms.However, despite at least 56 airports and 31 heliports being developed as a part of the government’s efforts to provide connectivity to unserved tier 2 to 5 cities and towns, deeper penetration of courier services and further enhancement of postal services will go a long way in cementing the logistical roadblocks.“The government needs to continue showi…

Reduce tariffs and streamline taxes: Indo-US business groups to FM

In a series of recommendations ahead of the Union Budget 2020, USISPF urged Sitharaman to allow two per cent mandatory spend on CSR as a tax-deductible expenseFor India to remain on track as a favourable investment destination and become a $5 trillion economy, it has to streamline taxation guidelines and improve GST compliance which will boost exports and increase growth, according to top India-centric American business advocacy groups.US India Strategic and Partnership Forum (USISPF) has appealed to Finance Minister Nirmala Sitharaman to announce reduction and streamlining of various tax and tariff structures and open up the economy, arguing that it would bring the country on the path of fast track growth and create employment in large numbers.“As businesses become increasingly digital, India’s digital taxation model needs to be globally aligned for the future,” USISPF said, adding that it has put forth industry recommendations to improve ease of doing business, tax guidelines, GST c…

Extend dates for filing Form GSTR-9 and Form GSTR-9C for FY 2017-18

GSTPAM requested Union Minister of Finance and requested for Extension of dates for filing Annual Return in Form GSTR-9 and Audit Report in Form GSTR-9C for financial year 2017-18.

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5 suggestions on filing of GSTR 9C based on recent issues in filing

Article explains about Issue of Auto-population of ITC figures in Table 8A of Form GSTR-9 based on Form GSTR-2A, Issue Faced While Using GSTR 9C Offline Utility, When to Use INITIATE FILING of GSTR – 9C, Action on JSON File – After receipt of JSON file and Signature Related Issue Faced while Using GSTR 9C […]

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Steps for Filing Form GSTR 9C

STEPS FOR FILING FORM GSTR 9C Pre-requisites for filing FORM GSTR 9C i. Prior filing of Annual Return GSTR-9 is mandatory ii. Form GSTR-9C hes to be mewed by the Auditor by titling tip date in the offline Tool available an the GST portal. Note: Any observations/ comments must be entered in excel tool directly and […]

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GST: Delegation of powers for blocking of ITC under rule 86A

Delegation of powers to all the Deputy Commissioners, Assistant Commissioners and to all the State Tax Officers for blocking of ITC under rule 86A of MGST Rules, 2017 COMMISSIONER OF STATE TAX, MAHARASHTRA STATE GST Bhavan, Mazgaon, Mumbai 400 010, dated 24th January 2020 Order MAHARASHTRA GOODS AND SERVICES TAX ACT, 2017. No. D.C.(A&R)-2/GST/PWR/Section/2017-18/ADM-8.—In exercise […]

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Request to extend due date of GST Annual Returns for year 2017-18

Tax Bar Association, Guwahati requested Hon’ble Union Finance Minister for extension of due date for filing of GST Annual Return Forms GSTR 9, 9A & 9C for the year 2017-18 till 31st March, 2020, in order to mitigate the hardship of taxpayers and professionals. Text of the Representation is as follows:- Dated: January 27, 2020 […]

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Problems in application of Rule 36(4) of CGST Rules, 2017

Challenges faced by the registered person while applying Rule 36(4) of CGST Rules, 2017- 1. The auto calculation/matching is not made by the GST portal between ITC of GSTR 2A & GST 3B and it is left upon the registered person to calculate the claimable ITC before filing the GSTR-3B.

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31 March 2020- An Important date for the Assessee

In India, Financial Year begins with 1st of April and end on 31st March every year. Hence, 31st March is the date by which important taxation related obligations should be fulfilled. Following are the things which shall be taken care of as the financial year is ending soon. There are mainly two types of taxation […]

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Advantages & Disadvantages of GST as an Essence of Tax Administration

Tax cascading is concrete in India for years. The tax cascading brings ultimate tax liability to the person who is the final consumer of goods and services. With the GST being the new ruler in the India tax administration, there is no room for tax on tax policies. Erasing the tax on tax effect from the rule book is one of GST’s popular achievements.

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Labour supply services classifiable under Chapter head 9986

Exemption available to 'supply of farm labour' services falling under Chapter heading 9986 under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and Notification No. 09/2017- Integrated Tax (rate) dated 28.06.2017 is not available to supply of manpower services falling under SAC 99851.

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No GST on Labour contract services for construction of flats under PMAY

Services of pure labour contract supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works under PMAY is exempted from GST vide Entry 10 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended).

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Fortified Rice Kernels FRK classifiable under HSN 19049090

AAR held that Fortified Rice Kernels FRK manufactured and supplied by the applicant is classifiable under HSN 19049090 and attracts GST @ 18% (SGST 9 % + CGST 9 %).

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ITC on Hotel Construction- AAR allows withdraw of application

In re Geetastar Resorts Pvt. Ltd. (GST AAR Rajasthan) Whether Input Tax Credit on goods and services used in construction of hotel will be available to the applicant engaged in providing taxable services of hotel accomodation and related services? Since the applicant has withdrawn the application, therefore, no ruling is given. FULL TEXT OF ORDER […]

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Ancillary Services to tour operators are ‘Support Services’- 18% GST

The services provided by the supplier are not in the nature of services provided by Tour Operator, the said supply of services cannot be classified under SAC 9985(i) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017.

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Fried Fryums’ classifiable under Tariff Item 21069099

In re Alisha Foods (GST AAR Madhya Pradesh) Heading 2106 is an omnibus heading covering all kind of edible preparations, not elsewhere specified or included. Chapter Note 5 provides an inclusive definition of this heading and covers preparations for use either directly or after processing, for human consumption. In 5(b) above preparation for use after […]

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18% GST payable on parking services provided by Contractor of Market Committee

Whether the parking lot services provided by the Contractor appointed by the Market Committee, which is a Government Authority is exempt under Notification No.12/2017 as the parking lot activity is covered under Article 243 of the Constitution.

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Rubber Pad falls Under Chapter 4016 of GST Tariff Act 2017

Rubber Pad falls under Chapter 4016 of the GST Tariff Act 2017 and attract GST @ 18% [9% CGST + 9% SGST] as on date. In re V K Enterprises (GST AAR Uttarakhand);

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AAR cannot give ruling on issue pending with SGST Authorities

Since the question raised in the application is pending with SGST Authorities under the provisions of this Act, therefore as per proviso to section 98(2) of the Act the said application filed by the applicant is hereby not admitted.

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GST collections for January may hit record Rs 1.15 lakh crore

The highest GST collection in a single month so far was Rs 1.13 lakh crore in April 2019. Last month, the collection was Rs 1.03 lakh crore.Goods and Services Tax (GST) collection may hit a record Rs 1.15 lakh crore in January, while the shortfall in gross direct tax collections may be only Rs 11,000 crore in the first 10 months of the current financial year as compared to same period last year, two government officials familiar with the matter said on condition of anonymity.Both direct and indirect tax collections are on track despite a slowdown in the economy, mainly because of efficient tax administration, albeit minus any overreach, they added.The overall impact of these numbers will have to be seen; the finance ministry budgeted an ambitious 25% growth in net tax revenue to Rs 16.5 lakh crore in 2019-2020. It managed to collect less than half of that in the first eight months of the year. To be sure, tax collections, especially income tax, are usually back-ended in January, Febru…

Government blocks Rs 40,000 crore GST claims on returns mismatch

NEW DELHI: The Central Board of Indirect Taxes and Customs (CBIC) has frozen tax credits of around Rs 40,000 crore as the returns did not match, exposing alleged fraud by close to 2,000 entities, apart from cases where returns were not filed. Last week, the indirect tax wing of the revenue department blocked the credits within four hours, CBIC chairman John Joseph said at an event on Monday.Companies are entitled to credits on tax paid on inputs in the production chain so that there is no cascading effect of taxes. But major discrepancies in returns and instances of a large number of frauds prompted the government to crack the whip.There have been multiple ways in which frauds have been taken place. Sources said, the department had collected data on mismatch of over 20% in the initial GSTR-1 filing for the month and the final GSTR-3B returns. Subsequently, the bar was lowered to a difference of 10% and the government used various red flags to then identify companies, while completely …

Auto component industry body seeks uniform 18 per cent GST, fund to support R&D

The industry body also sought import duty exemption on auto component prototypes to encourage domestic R&D and testing.NEW DELHI: Auto component industry body ACMA on Monday sought uniform 18 per cent GST in the upcoming Budget.Currently, about 60 per cent of auto components are at taxed at 18 per cent, while the remaining high-value parts attract a duty of 28 per cent.The auto component segment, which currently employs 50 lakh people and contributes 2.3 per cent to India’s gross domestic product (GDP), also urged the government to come up with a fund to support R&D and indigenous technology development.“The automotive industry in India is undergoing a significant transformation due to new regulations and policy changes. On top of it, the economic slowdown has deterred domestic consumption, we hope that the forthcoming budget will help uplift both the consumer and industry sentiments,” Automotive Component Manufacturers Association of India (ACMA) President Deepak Jain said in…

MSMEs seek end to GST woes; want FM Sitharaman to take this step against payments issue

Budget 2020 India: Ease in GST filing will greatly benefit SMEs even as the GST council has taken several steps to simplify the process over the past couple of years.Indian MSME sector, which contributes around 29 per cent to the country’s GDP and around 50 per cent to total exports, has been grappling with issues that are known. Complex norms around GST, lack of affordable access to capital, delayed payments issue etc, have been the challenges hindering the growth of MSMEs over past many years. Despite multiple actions initiated by the government to solve these challenges, the situation hasn’t drastically improved for small businesses. Few of India’s leading technology-enabled businesses, which engage with MSMEs as their customers and partners, detail out what government must do to ensure these challenges eat up least amount of time and cost for MSMEs.Simplified GST: Ease in GST filing will greatly benefit SMEs even as the GST council has taken several steps to simplify the process o…

Budget 2020: SIAM seeks incentive-based scrappage policy, GST rate cut

Seeking a turnaround in fortune, the auto industry has been seeking government support and reduce the burden of transition to BS-VI with lower GST rateNEW DELHI: Auto industry body SIAM on Monday urged the government to announce an incentive based scrappage policy ahead of the Budget, while also seeking a reduction in GST on BS-VI vehicles to 18 per cent.Society of Indian Automobile Manufacturers (SIAM) also suggested Finance Minister Nirmala Sitharaman to increase budget allocation for internal combustion engine (ICE) bus procurement by state transport undertakings.“As SIAM, we have urged the Finance Ministry to consider announcing an incentive based scrappage policy and also increase Budget allocation for ICE bus procurement by State transport undertakings,” SIAM President Rajan Wadhera said in a statement.He further said increased cost of BS-VI vehicles may effect demand.“Hence, we have also requested government to reduce GST rates for BS-VI vehicles effective April 1 from 28 per c…

Budget wishlist: Reduce GST on bicycles to 5% from 12%, says Hero Cycles

The company has also sought extension of FAME-II benefits to electric bicyclesNEW DELHI: Leading bicycle maker Hero Cycles on Monday urged the government to reduce GST on bicycles from 12 per cent to 5 per cent ahead of the Union Budget to revive demand in the rural markets.The company has also sought extension of FAME-II benefits to electric bicycles.“The budget must focus on reviving slumping demand across the country through a series of measures including re-adjusting GST slabs to put more disposable income into the hands of people,” Hero Motors Company (HMC) Chairman Pankaj M Munjal said in a statement.The bicycles are largely used by low income group and rural populations and therefore need to be made cheaper by slashing GST from the current 12 per cent to the lowest 5 per cent slab, he added.“Similarly, we also want the government to extend FAME-II benefits to electric bicycles,” Munjal said.Lower GST on bicycles would provide relief to millions of low income households, the com…

GST Portal Issues | Problems in Forms | GSTR 9/9C due date extension

Ahilya Chamber of Commerce and Industry  has made a representation to Chairman of GST Council and  made suggestions for better working of GST portal and for better compliance of GST Provisions. It also highlighted Problems in GSTR -1, GSTR 3B and New GST Returns. It has further requested to extend due date of filing GSTR […]

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RCM on renting of Motor Vehicle-Differently decoded (Amended as on 31 Dec 2019)

HIRING/RENTING OF MOTOR VEHICLE UNDER REVERSE CHARGE 9(3) 1. Recently a new Notification no 22/2019 dated 30th Sep 2019 was introduced wherein Renting of Motor vehicle was made taxable under Reverse charge. But not all is renting and not all is taxable under RCM. Lets us find out: 2. Notif no : 22/2019 CGST (rate) […]

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Extend due date of GSTR-9 & 9C for further one month

Kerala Tax Practitioners’ Association (KTPA), Kochi has requested to extend the due date of GSTR-9 and GSTR-9C for the FY 2017-18 to further one month. Relevant Text of the Representation is as follows:- To, Nirmala Sitharaman            Hon. Union  Minister of Finance and Corporate Affairs             […]

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Gujarat High Court sets aside IGST on Ocean Freight

In the case of Mohit Minerals Pvt. Ltd. Vs Union of India, Gujarat High Court has sets aside IGST on Ocean Freight and held that no tax is leviable under the IGST Act, 2007, on the ocean freight for the services provided by a person located in a non-taxable territory by way of transportation of […]

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Compensation Cess Validity- SC rejects review Petition of Mohit Mineral Case

Mohit Mineral Pvt Ltd Vs UOI (Supreme Court) The Hon’ble Supreme Court in the above referred case held as under Application for oral hearing is rejected. The present review petition is devoid of merits & so merits being dismissed. The case pertained to the challenge to the Compensation Cess being levied by the Government under […]

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Annual GST Return filing Status FY 2017-18- Only 19.85% filed GSTR-9C

GSTN has released Status of Annual Return filing for FY 2017-18 for Regular Taxpayers as on 24th January 2020 and Status of Composition Taxpayers’ Annual Return Filing for FY 2017-18 as on 24th January, 2020.  Details shows that for FY 2017-18 till 24.01.2020 only 19.85% of those eligible to file GSTR-9C,  only 44.41% of those eligible […]

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GSTN to alert taxpayer during filing of NIL refund application

Taxpayers while filing refund application will now be given an alert, if they wish to file NIL refund application or not, so that they do not inadvertently file NIL refund claim. It may be noted that once refund is filed, taxpayers can’t change the particulars of the refund application, even if they have some refund […]

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Changes in Filing Requirements of Form GSTR 9 & 9C & Advisory

Article explains Changes in Filing Requirements Form GSTR 9 & GSTR 9C, Simplifications made in Form GSTR-9, Simplifications made in Form GSTR-9C, Solution to issue of ITC auto  populated in Table 8 A does not match figures of  Form GSTR 2A in Form GSTR 9 and Solution to the issue of taxpayer who are Unable to  upload  Balance Sheet  […]

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Fraudsters & Defaulters Beware! Tax Authorities & Intelligent System Watching You

The DGGSTI is now taking up the job to sensitize the income tax department and even banks about such cases. GST authorities started process of blocking input tax credit of about 1,000 taxpayers who have allegedly claimed more credit than they were eligible for.

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Levy on Royalty Paid on Mining Laese- an Analysis

Levy and applicability of tax on royalty was disputed in the erstwhile Service tax regime. But in GST regime the applicability is not the matter of dispute rather applicable rate of GST on royalty is the matter of litigation, which has been clarified by the CBIC

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Input tax Credit restriction in GST

The restriction of availment of ITC is imposed only in respect of those invoices /debit notes, details of which are required to be uploaded by the suppliers under sub-section (1) of section 37 and which have not been uploaded.

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Extend due date of GSTR-9 & GSTR-9C for FY 2017-18

District Tax Bar Association, Sonepat has Requested for Extension of due date of filing of GSTR-9 and GSTR-9C for FY 2017-18 to 31st March 2020 considering the difficulties and hardships faced by the trade. industries and consultants at large due to delay in enabling GST Annual & Audit related returns, requirement to file state-wise Audit […]

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Your company’s GST refund might be blocked; operations may be investigated

Prime Minister Narendra Modi’s Sabka Vikas Yojana is received well by the taxpayers due to its amnesty on tax dues, but errors and mismatches have led to the government blocking GST refunds to the tune of Rs 40,000 crore.Prime Minister Narendra Modi’s Sabka Vikas Yojana is received well by the taxpayers due to its amnesty on tax dues, but errors and mismatches have led to the government blocking GST refunds to the tune of Rs 40,000 crore. Due to mismatch in GST filings and returns, credits worth Rs 40,000 crore has been blocked on the directive of the Central Board of Indirect Taxes and Customs (CBIC), CNBC TV18 reported citing CBIC Chairman John Joseph. More than 2,000 companies are under the Income Tax Department scanner for reporting inaccurate GST returns. Their credits (GSTR-2A and GSTR-3B) were blocked on January 24, the report added.The board has further suggested to survey the operations of companies and “catch the suppliers” for not uploading the correct invoices with the gov…