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Showing posts from March, 2020

57 Technical Glitches and Issues of GSTN

In this article I have tried to compile some major technical glitches, errors, issues in GSTN. Hope few of them may be the reason why Mr. Nielkani was called for and to resolve them in time.

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CBIC Clarification on GST refund related issues

CBIC vide Circular No. 135/05/2020 – GST dated 31st March, 2020 issued Clarification on GST refund related issues which includes Bunching of refund claims across Financial Years, Refund of accumulated input tax credit (ITC) on account of reduction in GST Rate, Change in manner of refund of tax paid on supplies other than zero rated […]

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FY is ending on 31st March – Know what is CORONA relief

Krishna, The government, considering the sufferings of businessmen throughout the country due to CORONA , has provided relief amidst such outbreak. What is the relief provided?

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Place of supply of goods and services outside India: Part 3

The most critical part in GST is determining the location of place of supply of goods and services outside India. Section 11 and section 13 of the IGST Act, 2017, contains the provisions of determining the place of supply outside India. As per Section 7(5) of the IGST Act, 2017 Supply of goods or services […]

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GST on Real Estate – A Handy notes for Professionals

Article explains Classification of Transactions under Real Estate for GST, Whether it is Supply of goods, Whether it is Supply of Service, Transitional Transaction under Real Estate, Rate of Tax on Transactions under Real Estate – Up to 31.03.2019, Rate of Tax after 01.04.2019 on Transactions under Real Estate, Input Tax Credit prior to 31.03.2019, […]

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Lawyers & law firms required to take GST registration in certain situations

1. The general understanding / consensus among lawyers and law firms in India is that they are not required to obtain registration under the GST law and accordingly are not required to pay GST on their supply of legal services in India. This understanding to a large extent is legally correct, however there are certain […]

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Advisory on Tracking GST Refund Application Status

GSTN Issued Advisory on Tracking GST Refund Application Status on the GST Portal and PFMS portal Initially, the functionality to track the status of GST refund application has been available on the GST common portal at www.gst.gov.in only. Now, the Public Financial Management System (PFMS) of the Controller General of Accounts (CGA) has also made […]

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40% Discount on Self-Learning Course on GST & Income Tax by TaxGuru Edu

40% Discount on Self-Learning Certification Course on GST and Income Tax by TaxGuru Edu Sharpen your skills while in Quarantine. As our country fights the Covid-19 and we are all in a lockdown for 21 days, TaxGuru Edu aims at making your quarantine – a quality time. Through the self-learning courses, we hope to give you a […]

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How to Track GST Refund Application Status on GST & PFMS portal

The functionality to track the status of refund application has been available on the GST portal. By utilising this functionality, the taxpayers can know the stage at which the refund application is pending with the tax-officer/ taxpayer.

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Tax Update: Deferral of GST/HST Payments

On March 27, 2020, the federal government announced that GST/HST remittances and customs duty payments will be deferred to June 30, 2020. This follows similar announcements from the Provinces regarding provincial sales taxes.The extension applies to monthly filers that would have to remit GST or HST amounts collected during the February, March, and April 2020 reporting periods. It also applies to quarterly filers that would have to remit amounts collected during the January 1 to March 31, 2020 reporting period, as well as annual filers whose GST/HST return or any installment is due in March, April, or May 2020.Notwithstanding the announcement, it remains unclear whether the requirement to file GST/HST returns is deferred. Indeed, the Canada Border Services Agency confirmed that there is no change to the timeframes for accounting for imported goods. As such, registrants and importers may wish to take caution and maintain their reporting practices, subject to further announcements from …

GST rates for mobile phones, matchsticks, MRO services notified

Mobile phones will be charged 18% GST from April 1, compared to 12% earlier, while all kinds of matchsticks will be charged a 12% GST versus a range of 5% to 18%. Maintenance and repair operations (MRO) services required for aircraft will be charged 5% GST, lower from the earlier rate of 18%, with full input tax credit.The Central Board of Indirect Taxes and Customs (CBIC) notified new goods and services tax (GST) rates for mobile phones, matchsticks and maintenance and repair operation services for aircraft.Mobile phones will be charged 18% GST from April 1, compared to 12% earlier, while all kinds of matchsticks will be charged a 12% GST versus a range of 5% to 18%.Maintenance and repair operations (MRO) services required for aircraft will be charged 5% GST, lower from the earlier rate of 18%, with full input tax credit, giving a fillip to the local industry and small scale businesses in the sector.The decisions were taken by the GST Council earlier this month aimed at correcting th…

Practical Approach of Audit by GST Authorities under CGST Act

Practical Approach of Audit by GST Authorities under Section 65 of the CGST Act, 2017 The intention of this article is to give all the readers a practical understanding of how the authorities go about with the GST Audit and to highlight the parameters which are mostly taken into consideration by the officers as a […]

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When GST Refund not available for Exporters

Under section 16 of IGST Act 2017, exports are considered as zero rated supplies. Zero rated supplies means where the GST burden on both inputs and outputs is zero. This is mainly to make Indian Goods and Services competitive in the international market. GST Act has prescribed ways to achieve this mainly. 1. Export of […]

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SCN must be issue before Recovery under GST except in fraud cases: HC

Godavari Commodities Ltd. Vs  Union of India (Jharkhand High Court) In the present case, though it is submitted by learned counsel for CGST that since the tax was paid, Section 73 (1) of the Act shall not be attracted in the case of the petitioner, but the fact remains that the tax was not paid […]

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Punjab CM Amarinder Singh urges finance minister to release Rs 2,088 crore GST arrears

CHANDIGARH: Punjab chief minister Amarinder Singh on Saturday sought urgent intervention of the Union finance minister to mitigate the crisis caused by Covid-19 outbreak in the state, including immediate release of GST compensation arrears of Rs 2,088 crore, specific only to Punjab as on March 31 as well as deferment of instalments of industrial and agricultural loans by commercial banks.In a letter, Amarinder asked Union finance minister Nirmala Sitharaman for some additional steps to mitigate the crisis caused by the outbreak of Covid-19 global pandemic. Sitharaman had earlier called up Amarinder, who subsequently sent her a detailed letter, for listing out certain important proposals to help out the state in this critical time, according to an official spokesperson.Amarinder conveyed to Sitharaman that for opening the banks, he had asked the state finance department to issue necessary guidelines to facilitate the common man in meeting his banking requirements.In addition to the Pun…

GST: Industry hails govt, RBI relief measures

The trade and industry has welcomed the announcement made by Finance Minister Nirmala Sitharaman and RBI Governor on Friday to combat the economic stress that is setting in across sectors.“We appreciate the government for extending the deadline for compliance requirements under the Income Tax Act, GST, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, Commodity Transaction Act. The extension of timelines by three months up to June is a major relief for the industrial sector and public at large,” said V Venugopal, President, Cochin Chamber of Commerce and Industry.The cut in repo rate, reverse repo rate and Cash Reserve Ratio (CRR) will provide the much-needed impetus to the economy.The RBI’s decision to permit all commercial banks, cooperative banks, all India financial institutions and NBFC’s to allow moratorium of three months on repayment of EMIs will play a crucial role in supporting the industry and the public who are struggling to make both ends me…

GST: Restaurants urge mall owners, landlords to waive rentals, CAM charges till June

The restaurant industry has urged mall owners and landlords for complete waiver on rental and CAM (Common Area Maintenance) charges till June or till the time the country is under lockdown to battle Covid-19 outbreak.In an open letter to landlords of the F&B industry, the National Restaurant Association of India (NRAI) said:, “While this shutdown may continue for a month or two, we will take many more months after that to get back on our feet and we will not be able to sail through this period smoothly without your support.”The industry body has also urged landlords to waive off minimum guaranteed rents for a period of six months after resumption so that restaurant businesses can sustain.Anurag Katriar, President of NRAI, said, “As very critical partners in our business, we seek support from the landlords across the country. Some of the big mall owners such as the Lulu Group, Lodha Group, Forum and Vegas have already announced immediate interim relief and we request other mall own…

40% Discount on Self-Learning Course on GST & Income Tax by TaxGuru Edu

40% Discount on Self-Learning Certification Course on GST and Income Tax by TaxGuru Edu Sharpen your skills while in Quarantine. As our country fights the Covid-19 and we are all in a lockdown for 21 days, TaxGuru Edu aims at making your quarantine – a quality time. Through the self-learning courses, we hope to give you a […]

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Transfer of Input Tax Credit of GST in case of Demerger

Note on Transfer of ITC on account of Demerger Reference: Circular No.133/03/2020-GST This article is made to brought some clarity in transaction regarding Transfer of ITC in case of Demerger of a Business Unit as per Section 18(3). Before getting into topic it is important to have a brief of Section 18(3). As per Section […]

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Place of Supply under GST- Section wise Analysis

Article explains Place of supply, Place of supply of service where the location of supplier or recipient is outside India and Place of supply of service where location of supplier & recipient in India:- Place of Supply of Goods: Sec Particulars Place of Supply 10(1) Supply of goods within India a) Involves movement of goods […]

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Impact of GST on Advances/Security Deposit Etc.

One of most important decisions taken by Central Government is the implementation of Goods and Services Act, 2017 all over India. Implementation of GST has been done to remove anomalies in previous VAT/Services Tax and other taxes. In previous tax regime, end users were enforced to pay tax on taxes. The Cascading Affect of taxes […]

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Compliance Guide of Your Online Business

It’s the era of e-commerce. Shopping websites are much more than just online shopping destinations. Many MSME Start-ups have started working through e-business mode. After you’ve evaluated your online store idea and have a plan for product sourcing, it’s highly recommended that you research any financial & tax related regulations that may affect you when […]

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Cryptocurrency, its history & considerations for tax in India

Cryptocurrency Crypto in India has always been something which is not understood by majority masses. India having one of the largest economy in the world, would always fear something which has a potential to replace the fiat currency primarily because it does not have a know how to curb the wrong practices which can result […]

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GST Appellate Authority can condone delay of upto 30 days only

In re the Deputy Conservator of Forests (GST AAAR Karnataka) It is evident that GST Appellate Authority being a creature of the statue is empowered to condone a delay of only a period of 30 days after the expiry of the initial period for filing appeal. As far as the language of Section 100 of […]

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No ITC on goods or services used in construction of shopping Mall for leasing: AAAR

In re Tarun Realtors Pvt. Ltd. (GST AAAR Karnataka) Restriction contained in Section 17(5)(d) is applicable to goods and services received by a taxable person for construction of an immovable property. When goods and services are received by a taxable person for construction of plant or machinery, there is no bar on eligibility to input […]

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GST on bank charges deducted on inward remittance of exports

It is usual practice for all the exporters of goods / services to receive money in foreign currency. Few exporters would have EEFC (Exchange Earners’ Foreign Currency Account) where they can directly deposit the foreign currency in their account which would be maintained in foreign currency in an Indian Bank. Majority of the exporters would […]

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GST on Issuance of NOC to private persons, for change of name

In re Department Of Printing, Stationery and Publications (GST AAR Karnataka) Issuance of No Objection Certificate (NOC) to private persons, for change of name This category covers the questions bearing number 23, 24 & 25, which deals with issuance of No Objection Certificate (NOC) to private persons, for change of name. Private individual who intended […]

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Decoding Goods Transport Services under GST

This article would enlighten you with following aspects: 1. Analysis of term 'Goods Transportation Agency' (GTA) 2. Charge of GST in case of Goods Transportation Agency Services 3. Exemptions for GTA under GST 4. Place of Supply (S. 12 & 13 of IGST Act, 2017) [Special Discussion on Proviso for S. 12(8) of IGST Act]

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GST: Gujarat government estimates Rs 4,000 crore hit on revenues

The lockdown for the Covid-19 pandemic may lead to a revenue loss of Rs 3,000-4,000 crore to the state, sources in the government said on Friday. Lower GST collection stemming from complete shutdown of manufacturing and service sectors, drastic reduction in income from electricity duties, and lack of real estate transactions will take their toll, sources said.“Revenue collection under various heads increase in March due to the end of the financial year. But this time, GST collection is expected to drop sharply and the Centre’s share will also plummet. The shutdown in real estate and other sectors has stifled income from stamp duty and registration fees,” said a senior government official. He said the government is also staring at a drop in revenues generated from sales of motor vehicles, and electricity duty from from industries.“Collectively, the loss of overall income of the state government may extend to Rs 3,000-4,000 crore,” he said.The official said the possibility of reduction …

Relief to 2.75 lakh taxpayers in Bihar, waived late fee-penalty on GST returns till this date

Providing relief to the traders of Bihar, the government has not only extended the date of their GST return for 3 months, but has also waived the late fees, interest and penalty on it.Bihar Deputy Chief Minister and Finance Minister Sushil Kumar Modi gave a big relief to the GST taxpayer in view of the lockdown, saying that now they will be able to pay tax and pay returns without any late fees or penalty till 30 June 2020 instead of 31 March. Modi said that taxpayers with less than 5 crore turnover will be able to file tax payments and returns for March, April and May without any interest, late fees and penalties till June 30. In Bihar, about 2.75 lakh people will get the benefit of about 85 percent of the total taxpayer.He said that 20 thousand taxpayers with a turnover of more than 5 crore will be able to pay the tax till March-May till June 30 without any late fees and penalties, but instead of 18, they will have to pay interest at 9 percent annual rate.The Deputy CM said that the …

SOP to be followed by Exporters for Refunds

For Exporter, refund of GST is available under Section 54 of CGST and SGST Act. Refund is available in following cases  1) IGST paid on Zero rated supplies 2) Tax paid on inputs for Zero rated supplies (Export supplies) 3) Inverted Duty Structure 4) If taxable person has paid excess tax by mistake 5) Excess […]

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Amendment/Relaxation by Govt in view of outbreak of COVID-19

Article explains recent Amendment/Relaxation by RBI, SEBI, Ministry of Corporate Affairs, CBIC, Ministry Of Labour And Employment and ESIC in view of outbreak of COVID-19. it Contains Relaxation announced by the RBI governor on 27 March’2020, Relaxations from compliance with following provisions of SEBI LODR, Changes in Income Tax, GST and Custom duty Law with […]

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GST on amounts collected towards Local Area Development, which form part of value of lease/rental services

In re Karnataka Solar Power Development Corporation Limited (GST AAR Karnataka) 1. The amount collected by the applicant towards LAD fund forms part of value of supply of rental/leasing service and hence is taxable under forward charge mechanism. 2. The applicable SAC for the impugned activity is 997212. 3. The exemption under S1.No.3 or 3A […]

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GST payable on supply of purified water to public in empty unsealed cans

In re Water Health India Private Limited (GST AAR Karnataka) Whether supply of purified water to public in empty unsealed cans is exempt under GST law? Supply of purified water whether in sealed container or unsealed container not entitled for GST exemption as the purified water excluded from the Sl. No. 99 of notification No. […]

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GST on imported goods supplied directly from port of import to customer

The place of supply in case of import of goods, is the location of the importer in terms of section 11(a) of the IGST Act 2017 and in the case of applicant the location of the importer is the state of Karnataka where the applicant has obtain the GST registration. Therefore, the applicant though import the goods to the port nearest to the location of the receipient, said imported goods are deemed to have been supplied to the location of the importer

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GST: Enforcement ramped up to check fleecing by traders

Legal Metrology Department to act against dealers charging rates above MRPThe Legal Metrology Department (LMD) has stepped up enforcement measures to prevent fleecing by traders following shortage of commodities in the market due to restrictions in the wake of the COVID-19 crisis.This follows complaints that a section of traders who stopped issuing computerised receipts, are charging rates above the MRP. “Many items have run out of stock at several shops in the city, following which people queue up in front of shops selling them. It is a matter of concern that some traders have stopped issuing computerised receipts. There is every probability that unscrupulous traders will overcharge gullible customers,” said Suresh Kumar Prabhakaran, a retired government employee.LMD Joint Controller R. Ram Mohan exhorted the public to inform the department if traders were found charging rates in excess of prices specified for various goods. “The price of mask, sanitisers, and bottled drinking water …

Gift and GST returns added to postponed tax and filing deadlines

Late on Friday, the IRS added gift and generation-skipping transfer (GST) tax returns to the list of federal taxes and tax returns that have had their April 15 deadlines postponed to July 15 due to the ongoing coronavirus pandemic. Friday’s notice, Notice 2020-20, updates the guidance issued a week earlier in Notice 2020-18.The earlier notice had applied only to federal income tax returns and payments (including self-employment tax payments) due April 15, 2020, for 2019 tax years, and to estimated income tax payments due April 15, 2020, for 2020 tax years. Notice 2020-18 explicitly did not apply to any other type of federal tax or to any federal information returns. Practitioners had noted the narrow focus of the earlier guidance, and on Thursday the AICPA requested broader relief from the IRS. Among the specific requests made by the AICPA was that if an individual tax return is postponed until July 15, the due date for a related gift tax return should also be automatically extended t…

Mobile phone makers seek rollback of GST increase

In a recent letter to finance minister Nirmala Sitharaman, the Indian Cellular & Electronics Association (ICEA) said the hike in the GST rate to 18% effective April 1 from 12% would “draw out Rs 15,000 crore from the ecosystem and devastate the retail sector already under attack from Covid-19″ and further impact 80 crore consumers at a time when their spending capacity could come under pressure.NEW DELHI: Mobile handset manufacturers have claimed that the recent 50% hike in GST rate was ‘erroneously’ based on the premise that pre-GST excise duty rate was 12.5%, when it was just 2%.They sought an urgent roll back of the increase, saying it would “devastate” the sector already reeling from the impact of the Covid-19 outbreak, lead to huge job losses and a strong return of the grey market.In a recent letter to finance minister Nirmala Sitharaman, the India Cellular & Electronics Association (ICEA) said the hike in the GST rate to 18% effective April 1 from 12% would “draw out Rs …

GST: Government Clarifies On Utilisation Of Tax Credit For M&A

Entities undergoing business reorganisation via merger, demerger, amalgamation, change in ownership and transfer of assets have now been given clarity on utilisation of input tax credit.Input tax credit is the tax paid on inputs. Businesses get a credit for this to deduct from the tax on the output so as to avoid double taxation and pay tax only on the value added.Apportionment of input tax credit must be on the basis of state-wise assets in demerger schemes, the government has clarified.Section 18 of the Central Goods and Services Tax (CGST) Act allows transfer or apportionment of accumulated and unutilised input tax credit between entities undergoing business reorganizations. While the Act lays down the method, it is silent on certain practical aspects of such transfer. The circular aims to clarify on such issues.Demergers: Apportionment of Tax CreditThe CGST Rules say tax credit can be transferred or apportioned to a demerged entity based on the ratio of value of transferred assets…

Meaning of Turnover or sales for Section 44AB Tax Audit

A person is required to get his accounts audited u/s 44AB if  turnover of  business exceeds Rs 100 Lakhs , or In case of Profession Gross Receipts  exceed Rs 50 Lakhs. In case of business what should be the meaning of turnover/sales? Should it be Gross sales or net sales? Should it include GST? The meaning of turnover/sales for the purpose of tax audit is discussed as follows:

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Self-Learning Certification Course on GST & Income Tax by TaxGuru Edu

Sharpen your skills while in Quarantine. As our country fights the Covid-19 and we are all in a lockdown for 21 days, TaxGuru Edu aims at making your quarantine – a quality time. Through the self-learning courses, we hope to give you a space that will provide a sense of normalcy to your day. Transform in these […]

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Due Dates of GST Returns

Return Type Month/Period Due DateGSTR-3BJune (2020) (>5 cr)20th July, 2020GSTR-3BMay (2020) (>5 cr)20th June, 2020GSTR-3BApril (2020) (>5 cr)20th May, 2020GSTR-3BMarch (2020) (>5 cr)20th April, 2020GSTR-3BJune (2020)22nd & 24th July, 2020 (Different States)GSTR-3BMay (2020)22nd & 24th June, 2020 (Different States)GSTR-3BApril (2020)22nd & 24th May, 2020 (Different States)GSTR-3BMarch (2020) (<5 cr)22nd & 24th April, 2020 (Different States)GSTR-1July-September (2020) (<1.5 cr)31st October, 2020GSTR-1April-June (2020) (<1.5 cr)31st July, 2020GSTR-1January-March (2020) (<1.5 cr)30th April, 2020GSTR-1June (2020) (>1.5 cr)11th July, 2020GSTR-1May (2020) (>1.5 cr)11th June, 2020GSTR-1April (2020) (>1.5 cr)11th May, 2020GSTR-1March (2020) (>1.5 cr)11th April, 2020GSTR-2--Suspended until further notice from Government.GSTR-3--Suspended until further notice from Government.GSTR-4January-March (2020)18th April, 2020GSTR-5March (2020)20th Apri…

Recent changes in due dates relating to GST returns

Analysis of Various due date in Press Release Dt. 24/03/2020 of FM In View of Covid-19 Union Finance & Corporate Affairs Minister Smt. Niramla Sitharaman announced several important relief measures taken by the Government of India in view of COVID-19 outbreak, especially on statutory and regulatory compliance matters related to several sectors on 24 March […]

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ITC is a Form of Concession not a right; Bombay HC upholds vires of time limit U/Rule 117 of GST Rules

The Bombay High Court recently held that the time limit prescribed under Rule 117 of the Goods and Services (GST) Rules for filing TRAN-1 form in order to claim input tax credit from the previous regime is not ultra vires to the Central Goods and Services Tax Act.Division bench of Justice Nitin Jamdar and Justice MS Karnik dismissed the writ petition filed by Nelco Limited after concluding that input tax credit is a form of concession not a right.Case BackgroundThe Goods and Services Tax Act was brought into force from July 1, 2017. This tax replaced and subsumed various indirect taxes in India. For the transition between the old and new regimes, the Act provides for utilization of Input Tax Credit accumulated under the earlier tax laws upon certain conditions. The Goods and Services Tax Rules framed under the Act provide for filing of a form known as GST TRAN-1 for availing of such input tax credit. The Rules provide for a time limit within which the TRAN-1 Form has to be filed.Accor…

Separate GST registrations confuse interim resolution professionals

IRPs appointed under the Insolvency and Bankruptcy Code (IBC) have approached the finance ministry, seeking clarity on several aspects regarding the Central Board of Indirect Taxes and Customs (CBIC) notification issued on Saturday and a follow-up circular on Monday, people familiar with the development said.NEW DELHI: Interim resolution professionals managing various companies under the insolvency process have flagged several issues in a recent notification requiring separate GST registration for such companies to file fresh returns from the time the insolvency proceedings began.IRPs appointed under the Insolvency and Bankruptcy Code (IBC) have approached the finance ministry, seeking clarity on several aspects regarding the Central Board of Indirect Taxes and Customs (CBIC) notification issued on Saturday and a follow-up circular on Monday, people familiar with the development said.They wanted to know whether separate goods and service tax (GST) registration was mandatory for comple…

India Inc needs more tax breaks during Covid

While extending the date for filing returns is welcome, expediting tax refunds and lowering GST on essentials must be consideredTo fight the spread of Covid-19, Prime Minister Narendra Modi announced a nationwide lockdown for 21 days. Most businesses have come to a complete standstill and the livelihoods of millions of people are at stake. Not only have profits drastically reduced, but cash flow blockages are also impeding the paying capacity of businesses across all sectors. Recently, the Ministry of Labour and Employment issued an advisory to businesses, asking them not to cut salaries or lay-off their employees.While small businesses, travel and tourism, and the restaurant industry have reportedly been hit the hardest, sectors engaged in the supply of essential goods and services continue to operate amidst reports of severe shortage of protective health gear such as masks, body coveralls and sanitisers.Governments across all major countries, including the US, Canada, Australia, the…

GST: Corona-hit maritime and logistics sectors seek rescue package as trade slows

India’s maritime industry, the backbone of the export-import trade, is seeking a relief package from the government to deal with a looming crisis as the coronavirus pandemic takes a toll on the global economy.Industry executives say that the devastation brought on by the pandemic has had a “disastrous effect on almost all container terminals, bulk cargo terminals, container freight stations (CFS) and inland container depots (IDCs) across India”.“While industries such as hospitality, airlines and tourism have come under stress, we are underestimating what is going to happen to the ports and logistics sectors in the country. It is going to completely collapse in the next two to three months,” said the managing director of a port logistics company.“The government should recognise that the industry will go through a severe Black Swan event and support the sector. Ports and related logistics segments are an essential service; it’s a large employer and there needs to be continuity,” he adde…

Recent Due date Changes in Income Tax, GST and Customs

Article compiles due date Under Income Tax , GST and Custom before and after Comprehensive Announcement on relief for Statutory Compliance Regulations due to COVID 19 by Hon’ble Finance Minister dated 24/03/2020. Comprehensive Announcement on relief for Statutory Compliance Regulations due to COVID 19 by Hon’ble Finance Minister dated 24/03/2020 Direct Tax Subject Matter Before Announcement […]

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GST: Stop using fuel taxes as milch cow

High excise duty and VAT on fuel results in high inflation, higher subsidy payments on fertilisers, food, etc, and low international competitiveness of Indian goods.In the wake of widespread destruction of demand triggered by Covid-19, failure of OPEC and non-OPEC suppliers to agree to a production cut, and the two front-line exporters from the respective groups viz. Saudi Arabia and Russia vying to capture the shrinking market, the price of crude oil has plunged to less than $30 per barrel. Leveraging this, in sync with its past practice of mopping up the oil bonanza, the Modi government has yet again hiked central excise duty (CED) on petrol and diesel by Rs 3 per litre each—Rs 2 per litre by way of special excise duty (SED), and Rs 1 per litre in ‘road cess’—from March 14, 2020 to Rs 23 per litre for petrol, and Rs 19 per litre for diesel.Faced with a shortfall of about Rs 2 lakh crore in tax collections vis-à-vis even the revised estimate (RE) of Rs 14 lakh crore for FY20 and, lik…

GST: Future Of E-invoicing In India

The GST Council has announced the deferment of mandatory e-invoicing in India till the time a robust and integrated system is not builtBy Rajat Mohan
Senior Partner, AMRG & AssociatesIn the late 1980s, less than 1 per cent of the world’s technologically stored information was in digital format. It increased to 94 per cent in 2007 and further to nearly 99 per cent by 2014.In this era of digital revolution business processes are under total revolution. Back in July 2017, it was estimated that Indian Goods and Services Tax (GST) network would hit about 3.5 billion invoices every month, amounting to 42 billion annual invoices. Now, one can estimate the burden on tax authorities to check and reconcile 42 billion invoices and ensure payment of taxes and legal claim of tax credit.Looking at the Indian scenario and global solutions available, GST Council constituted a Committee of Officers on Generation of Electronic Invoice (E-invoice) through GST Portal which is loaded with the task of e…

CBIC revises GST rate of matchsticks & telephone sets

CBIC amends notification No. 1/2017-Central Tax (Rate) to prescribe   uniform GST rate of 12% on all matchsticks & 18 % on all telephone sets vide Notification No. 03/2020–Central Tax (Rate) Dated- 25th March, 2020. MINISTRY OF FINANCE (Department of Revenue) Notification No. 03/2020-Central Tax (Rate) New Delhi, the 25th March, 2020 G.S.R. 216(E).—In exercise of […]

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GST reduced to 5% on MRO services of aircraft with full ITC

CBIC amends Notification No. 11/2017-Central Tax (Rate) dt. 28.06.2017 reducing CGST rate on Maintenance, Repair and Overhaul (MRO) services in respect of aircraft from 18% to 5% with full ITC vide Notification No. 02/2020–Central Tax (Rate) Dated- 25th March, 2020. MINISTRY OF FINANCE (Department of Revenue) Notification No. 02/2020–Central Tax (Rate) New Delhi, the 25th […]

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GST on Recovery of Food & Transportation expenses form Employees

Note on Recovery of expenses form Employees wrt Food and Transportation facility etc: – Now a days it’s very common that companies are doing some recoveries on account of food and transportation facility being provided to their employees, let us discuss these aspects under GST in simplest way:- √ By virtue of Schedule I of […]

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Is Amendment of Rule 61(5) enough to Make GSTR 3B – A Return Under Section 39(1)

As per law, the form, manner and time within which a return under Section 39 is to be furnished was to be prescribed. Sub rule (1) and (5) of Rule 61 were prescribed vide Notification No. 10/2017 – Central Tax dated 28th June 2017 which prescribed GSTR 3 as the return under Section 39 and […]

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Material stuck in transit & E-way Bill expired-What to do during lockdown

Industry is facing the issue in respect of goods in transit which are stuck at various places including transportation hubs, state borders and even at the gates of recipients who are not operating during this period of lockdown. On the top of it in most of the cases eway bills have also expired. Now question arises what to do and how to settle the situation.

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ITC Refund in Zero Rated Supply – Simplified Calculation

As per 89(4) of CGST Rules, in case of zero rated supply of goods or services or both without payment of tax under bond or letter of undertaking in accordance with the provisions of section 16(3) of the IGST Act, refund of input tax credit shall be granted as per following formula :- Refund Amount […]

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Place of supply of services in India- Part 2

Section 12 of the IGST Act, 2017 provides the set of rules for determining the place of supply of services within India. General rule for determination of place of supply- Section 12 (2) – The place of supply of services, except the services specified in sub-sections (3) to (14),–– (a) made to a registered person […]

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ITC under GST on Hiring a Cab

The confusion among the taxpayers is whether ITC on ‘Hiring a Cab’ can be claimed by the registered taxpayers or not. In this Article, we’ll be discussing the situations where a taxpayer can claim ITC and where they can’t.

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Pay GST, Safeguard Duty Compensation to Solar Developers in 60 Days: MNRE to SECI and NTPC

The Ministry of New and Renewable Energy (MNRE) has released a circular stating that Goods and Services Tax (GST) and Safeguard Duty (SGD) compensation to solar project developers should be paid within 60 days.Mentioning the orders already passed by the Central Electricity Regulatory Commission (CERC) on the ‘Change in Law’ compensation for GST and SGD, the ministry added that there is now no need for the developers to approach the CERC for each case individually.Since a majority of solar projects were already under development when the safeguard duty and GST were announced, they came under a clause called “Change in Law.” Change in law comes into play when there is a new law or a change in the tax structure or when a new tax is introduced.Previously, MNRE had stated, “Change in the rates of any taxes as mentioned in clause 5.7.2 of “Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects,” includes a change in rates…

Revocation of cancellation of Registration under GST

In recent times, we have witnessed a lot of cancellation of GST registrations by the Department due to taxpayers not complying with law by not filing the GST returns and payment of liability. GST being a new tax regime, small taxpayers are still trying to understand the law and importance of complying with law. The […]

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Gujarat HC allows Rebate of Excise Duty to Petitioner in Cash instead of Cenvat Credit in post GST regime

The Gujarat HC conclusively held that the Respondent ought to have directed the sanctioning Authority to refund the duty of the amount in cash instead of credit in the CENVAT account and for the foregoing reasons, the Petition was allowed to succeed.

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GST: Is partial extension enough or FY 2019-20 needs to be extended?

The country has come to a standstill due to pan India lockdown to contain spreading of highly infectious Novel Coronavirus COVID-19.As the country has come to a standstill due to pan India lockdown to contain spreading of highly infectious Novel Coronavirus COVID-19, Financial Minister Nirmala Sitharam has announced extension of cutoff dates related to income tax, GST and other compliances till June 3, 2020.However, the extension beyond the financial year (FY) 2019-20 end date of March 31, 2020 has created some doubts. For example, if a person makes some tax-saving investment between April 1, 2020 to March 31, 2020, whether it will pertain to FY 2019-20 or FY 2020-21.So, to remove such confusions, will it be better to extend FY 2019-20 itself? Experts, however, differ on this.According to Archit Gupta, Founder and CEO – ClearTax, “The spread of Coronavirus or COVID-19 has shut businesses and enforced a stay at home for all of us. The Indian financial year ends on March 31, and we are …