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Showing posts from April, 2020

How to convert the lapsed ITC in to Genuine ITC

Meaning of Input Tax Credit (ITC); Section 2(63) of CGST Act, ITC means the credit of input tax and Section 2(62) of CGST Act, Input Tax means, in relation to registered person, tax charged on any supply of goods or services or both made to him and specifically includes, IGST paid on imports, RCM paid […]

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Persons Liable to obtain GST Registration & Compulsory Registration

Provisions relating to persons liable for obtaining GST registration and provisions relating to compulsory GST registration are contained under section 22 and section 24, respectively, of the Central Goods and Service Tax (CGST) Act, 2017. The current article explains both the aforesaid provisions. Person Liable For Obtaining GST Registration As per section 22 of the […]

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Interview With GST Personality CA Sushil Goyal

On 28th April Today I have with me one of the renowned GST Personality CA SUSHIL GOYAL B.Com (H), FCA, DISA (ICAI). He is a Chartered Accountant from 1996; He is author of a Book on Service Tax and has immense contributions on GST to his credit. CA Sushil Goyal has developed a system of […]

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GST order not valid if passed without opportunity of hearing to assessee

HC find that the order dated 26.09.2018 to be not assigning any reasons whatsoever. Also, HC noticed that prior to passing of the impugned order, no opportunity of hearing was ever afforded to the writ-petitioner. As such, there was gross violation of principles of natural justice in passing of the impugned order.

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Reversal of Input Tax Credit (ITC) in respect of Capital Goods

1. The CBIC vide Notification No. 16/2020- Central Tax dated March 23, 2020 has amended CGST Rules 43 . This rule applies for ITC reversal in respect of capital goods if the said capital goods used for producing supplies partly for exempted/ non business purpose and partly for  taxable / business purpose supplies . 2. Before […]

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GST: Karnataka loses Rs 10,000 crore tax revenue in one month of lockdown

With the trade and industry shutting down their businesses since the beginning of the lockdown on March 25, the Karnataka state government has suffered a loss of around Rs 10,000 crore by way of taxes under various heads. The turnover loss for trade and industry is estimated in the range of Rs 1.5 lakh crore.According to data available with the state department of commercial taxes, so far in the month of April, the state has earned close to Rs 1,000 crore from VAT on petrol and diesel, and Rs 1,500 crore from GST, which is barely 20 per cent of its normal collections. Meanwhile, the state government is yet to get GST compensation to the tune of Rs 3,500 crore from the Central government for the months of February and March 2020.In addition to this, professional tax amounting to Rs 900 crore for the month of April will not be there as the government has deferred the date for depositing the tax to May 31. The central government has allowed businesses to submit their GST returns for Marc…

DGGI founds case of Non-payment of IGST on free-of-cost import of software

The DGGI Delhi Zonal unit has booked an important case involving non-payment of IGST on free-of-cost import of software by a major software company whose sister company is based abroad and recovered the entire duty amount of Rs 22.68 crore for the period July, 2017 to March, 2020.

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Interest from shipping bill date allowed in case of serious delay in effecting refunds

In case of serious delay in effecting the refunds under GST Act, GST Authority to pay IGST refund alongwith interest from date of shipping bill after following due procedure.

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Assam’s GST collection drops by 80 percent amid Covid-19 pandemic

Assam has collected only Rs 193 crore as Goods and Services Tax (GST) revenue collection in April, 2020.As the global economy has been affected by the novel Coronavirus (COVID-19) pandemic, along with other states of the country Assam too is badly affected.Due to the Covid-19 pandemic, the revenue collection of Assam has dropped by 80 percent in the first month of the current financial year.Assam has collected only Rs 193 crore as Goods and Services Tax (GST) revenue collection in April, 2020.In April, 2019, the state had collected Rs 932.36 crore as GST revenue collection.Assam Finance minister Dr Himanta Biswa Sarma on Wednesday said the state economy has been badly affected due to Covid-19 pandemic.“In April 2019, our GST collection was Rs 932.36 crore and this year we have collected only Rs 193 crore. Our GST collection has dropped by 80 percent,” Himanta Biswa Sarma said.He further said that, in April 2019, the state had collected Rs 406 crore as SGST, Rs 276 crore as CGST, Rs 19…

Lockdown: Pharma firms in Tamil Nadu seek 6 months GST holiday

Pharmaceutical manufacturers and marketing companies in Tamil Nadu want the Centre to declare a six-month GST holiday starting March, citing the closure of clinics and private practitioners due to the ongoing national coronavirus lockdown.The Tamil Nadu chapter of Consortium of Indian Pharmaceutical Manufacturers and Marketers Associations (CIPMMA) claimed their business representatives now have no scope to be entertained by doctors in hospitals and clinics or by private practitioners following enforcement of prohibitory orders in the state since March last week.It has over 500 registered member companies which are both manufacturers and marketers of their own products and concentrate mostly in the southern districts.“Notwithstanding the unusual situation being imposed by the government to contain the pandemic, we urge the centre to announce a Goods and Services Tax holiday for six months from March, besides exempting the interest on loans availed from various financial institutions,”…

GST collections for April and May set to decline drastically

Number of e-way bills generated for transporting goods fell by 30% in March and by over 80% in April sequentiallyNEW DELHI: Goods and services tax (GST) collections are set to fall drastically in April and May with the number of electronic permits or e-way bills generated for transporting goods decreasing by close to 30% in March and by more than 80% in April sequentially, reflecting a general contraction in economic activities, according to official data.E-way bills are required for transporting goods worth more than ₹50,000 within and across states. These enable officials to keep a tab on transactions without physically interfering with goods movement.Businesses had generated only 6.7 million e-way bills from 1 to 27 April, against the 40.6 million generated in March, according to data available from GST Network (GSTN), the company that processes tax returns.The estimated more than 83% fall in e-way bills generated in April is set to have a telling effect on the GST revenue to be co…

New Composition Scheme under GST regime -Quick Analysis

New GST composition scheme which came not as an addition to the earlier existing section 10 of the CGST Act, 2017, but through a notification dated 7th March, 2019 [Notification No. 2/2019 - Central Tax (Rate)].

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Checklist before filling GSTR-3B for March 2020

Introduction COVID -19 Pandemic has halted the businesses around the world, and this has made the regulatory authorities to take facilitation measures for various compliance requirements. One such measure is extension of due dates for filling GSTR-1 and GSTR-3B. Notification no-31/2020 dt-03/04/2020 is issued relaxing the filling dates of GSTR-3B, as per the said notification […]

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A brief note on Actionable Claim under GST

The term actionable claim has not been defined under GST law. It has same meaning as mentioned in section 3 of Transfer of Property Act 1882. As per section 3 of transfer of property Act 1882, “Actionable claim” means a claim to any debt, other than a debt secured by mortgage of immoveable property or […]

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GST on Tour Operator Services

‘Tour Operator’ shall mean any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours. The definition is provided by the Explanation in Heading 9985 of GST […]

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Legal Updates for Income Tax,GST, Corporate Law & Other Laws

Legal Updates- IMPACT OF COVID 19 Income tax 1. The due date of TDS/TCS Return for Q4 (FY 2019-20) has been extended from 15.05.2020/31.05.2020 to 30.06.2020. 2. CBDT has clarified that for the purpose of TDS on Salary for FY 2020-21, employer is required to obtain a declaration from each employee about opting of scheme […]

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No Bail due to COVID-19, if no Covid19 case in Jail & if it is safe

In the present case there are allegations on the petitioner of having caused loss to State-Exchequer to the tune of Rs 20 crores appx. by evasion of payment of GST and he has applied for grant of interim bail, mainly on account of the prevalent conditions of spread of COVID-19 virus.

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Bail given in GST defaults case on complying with conditions

Lalit Kumar Gandhi Vs State of M.P. (Madhya Pradesh High Court) This is an application made by the applicant under Section 439 Cr.P.C. for grant of bail during trial. The allegation against the applicant is that he had received a sum of about Rs.6,52,00,000/- from the applicant for supply of pesticides and insecticides and as […]

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Composition Scheme under GST | Section 10 | CGST Act 2017

Composition Scheme was introduced for small taxpayers, so that they can get rid of tedious GST formalities and pay indirect tax at a fixed rate of turnover. ♦ Eligibility :- 1. It is an optional scheme available to taxable person, Taxable person can opt for the scheme if aggregate turnover is upto Rs. 1.5 crore […]

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GST & Indian Economy

The growth of Indian economy & growth in collection of GST both are positively correlated to each other. Goods and Services Tax is defined as the giant indirect tax structure designed to support and enhance the economic growth of a country. GST is consumption based tax and therefore, it wholly depends on the purchasing power […]

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GST Registration – A Trigger Point

Goods and Service Tax law in India is a multi-stage, comprehensive, destination – based tax that is levied on every value addition. GST is one Indirect Tax Regime for the entire country and levied on the supply of goods and services. GST replaces many indirect tax laws that was previously prevails in India. Whereas, due to flooded notifications, […]

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Books of Accounts & Records under GST Regime

Section 35 of CGST Act 2017 deals with the upkeep and maintenance of books of accounts and records by every registered person* at his principal palace of business** from where business is being pursued. Generally such place is mentioned in Certificate of registration of registered person.

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CBIC notifies effective date for Rule 87(13) & Form GST PMT09

CBIC notifies 21st day of April, 2020 asthe date from which Rule 87(13) of CGST Rules  & Form GST PMT-09  will comes into effect.  After this rule comes into effect a registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash […]

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Goods cannot be detained merely because driver has taken a different route

Detention of goods on the ground that the vehicle took a different route or reached wrong destination- The High Court observed that allegation of ‘wrong destination’ or that the driver has taken a different route is not a ground to detain the vehicle carrying the goods or levy tax or penalty. It was held that the fact that the vehicle was found at another place does not automatically lead to any presumption that there was an intention of evasion of tax. The amount collected was directed to be refunded with interest @ 6%. 

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HC releases goods detained on the ground of wrong classification of goods

Daily Fresh Fruits India Pvt. Ltd. Vs Asst. State Tax Officer (Kerala High Court) Detention of goods on the ground of wrong classification of goods- The High Court quashed detention order on the ground that this was a bona-fide case of dispute in the classification of goods and directed release of goods. FULL TEXT OF […]

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HC releases goods seized for writing wrong Tax Invoice No. on E-way Bill

Incorrectly mentioning the number of tax invoices as tax invoice number on E-way Bill- Prima facie, there seems no discrepancy in E-way Bill attracting seizure of goods. Goods directed to be released without insisting for a deposit of any amount and furnishing security as GST already paid on goods. 

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Online Self-Learning GST & Income Tax Course at 40% discount (Last 2 Days)

40% Discount on Self-Learning Certification Course on GST and Income Tax by TaxGuru Edu. From 1st May 2020 discount will reduce to 25% on Single Course and 35% on Combined Course. 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 […]

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Know Search Verify Your GSTIN GST Number

Articles below will help readers on how to Search GST Number in India.By Ashish GogiaKnow Search Verify Your GSTIN GST Number, Know Your GSTIN GST Number, Verify Your GSTIN GST Number, Search Your GSTIN GST Number, GST number search indiaKnow Your GSTIN GST Number : Under Goods and Service Tax Act, each tax payer will be allotted a state wise PAN based 15 digit GSTIN Number. GSTIN is described as Goods and Services Taxpayer Identification Number.Format of GSTINThe first two digits represent the State in the Country where such registration is allowed. As an illustration in terms of the Indian Census 2011 the unique two digit code of “09” has been allotted for the State of Uttar Pradesh while “27” has been allotted for the State of Maharashtra, so on and so forth.The second set of 10 digits would be the Permanent Account Number (PAN) allotted by the Income tax department for each Legal entity.The 13th digit would be alpha-numeric (1-9 and then A-Z) and would be assigned depending upon t…

News of relief on GST returns, government gave two months exemption

Due to Coronavirus, business has been stalled due to Lockdown across the country. This has shocked the treasury as well as the traders.Due to Coronavirus, business has been stalled due to Lockdown across the country. This has shocked the treasury as well as the traders. Meanwhile, the Uttar Pradesh government has given a big relief to the traders of the state in view of the lockdown. The government has granted one month to the big taxpayer and two months to the small taxpayer to file GST returns. According to Commissioner of Commercial Taxes Amrita Soni, traders with a turnover of more than Rs 5 crore will be able to file returns by June 27 instead of May. Whereas the taxpayer with a turnover of up to 5 crore rupees will be able to file the return by 14 July 2020 instead of May. According to the official, if the traders want, they can file the returns even before that. The facility of online refund filing in GST has been given to the traders. He can submit online returns from home.The…

GST: Real estate sector can be rescued without government relief

Developers, HFCs and the government need to come together and work cohesively for the revival of the real estate sector.Zooming through various webinars on the revival of real estate one would have observed that prominent suggestions were goods and services tax (GST) input credit, a reduction in GST rates, a cut in municipal charges, limited-period zero stamp duty, etc for reviving the sector.There is no doubt that most of these are much-needed measures and should be implemented. However, there is a difference between the survival of the supply side and the revival of the demand side. The above measures will provide the much-needed ventilator to developers but not a long-term immunity. Time and again it has been proven that the long-term survival of the industry lies only in the vaccine called “home sales”.What is therefore important is to address the key reasons that dissuade customers from buying a home. Interestingly, many of these can be addressed without the government losing rev…

GST for sanitisers, masks challenged in HC

The Madras High Court on Tuesday ordered notices, returnable by May 18, to the Centre as well the State government to a plea for suspending collection of Goods and Services Tax (GST) for hand sanitisers and masks used to fight COVID-19. Justices M. Sathyanarayanan and M. Nirmal Kumar issued the notices on the public interest litigation petition filed by S. Stalin Raja who claimed that the Centre was continuing to collect GST at the rate of 18% for hand sanitizers and 5% for masks.Source- The Hindu.The post GST for sanitisers, masks challenged in HC appeared first on GST Station.

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Returns Under GST (New as well as Existing)

Here I tried to discuss about all the GST Returns,New (ANX-1/2/3) etc as well as existing GSTR-1/3B/4/5/6/7/8/9/9A/9B/9C/10 etc. Existing Return Regime: Section 37 : Furnishing Details of Outward Supplies Section 38 : Furnishing Details of Inward Supplies-GSTR-2 (Suspended) Section 39 : Furnishing of Returns(GSTR-3B,4,5,6,7,8) Section 44 : Annual Return(GSTR-9) Section 45 : Final Return(GSTR-10) The new Returns will also be […]

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Mechanism of Input Tax Credit under GST

Goods and Services Tax (GST) is considered as the biggest reforms in India. However, one thing that has become the talking point is – the mechanism of input credit under GST. In simple words, Input credit means that at the time of paying taxes on sales made, you can reduce the tax from the tax paid […]

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Reverse Charge Mechanism (RCM) Under GST Regime

In the GST regime, An Entity or Supplier is required to be registered either mandatorily under cretin circumstances (say, crossing threshold limit – 40L/20L; involved in specified business’s) or on voluntary basis. However there are certain suppliers,not registered due to illiteracy (say, local good transporters) or they are situated in non-taxable territories (say, supplier in […]

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Things Professional can do at Home……….

Now, here are some suggestions for OFFICE WORK to do at home before actually you start office in next week.  Mainly it will help to those who are into GST and Income Tax practise. On GST side- 1. You can select Monthly / Quarterly category for each client FOR 20-21. This can save your lot […]

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Promissory Estoppel against area based exemptions and other investment based incentives after GST

Present article in Part A examines the controversy over continuation/ grandfathering of investment based incentives upon implementation of Goods and Services Tax (GST) and the corners of promissory estoppel as possible recourse to re-gain lost incentives. Part B encapsulates some other aspects that are relevant in the context on investment based exemptions

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Is GST applicable on ‘salary’ paid to all directors?

Recently, the Rajasthan Authority of Advance Ruling (‘AAR’) has issued a ruling in the matter of Clay Craft India whereby AAR has interpreted the definition of ‘supply’ and provisions of reserves charge very differently. The AAR has levied GST under reverse charge mechanism (‘RCM’) on salary payments made to directors and has failed to distinguish between […]

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What, when a Vehicle is intercepted at Check Post under GST?

Check Post Problems!!! What is the right and responsibility of Tax-Payer when a Vehicle is intercepted at the Check Post? Check Post problems are the toughest problems for a Tax Practitioner. May it be the old Sales Tax or the Value Added Tax or the Goods and Service Tax, check post problem has been trouble […]

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Deemed Exports under GST Regime

Deemed Exports in GST is not like an export made out of India. According to the section 147 of CGST Act, goods supplied under deemed export shall not leave India and payment for such supplies is received either in Indian rupees or in convertible foreign exchange, if such goods are manufactured in India. In GST […]

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GST Treatment on disposal of capital asset

Definition of Capital good under GST As per section 2(19) of CGST act, 2017  ‘capital goods’ means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business. GST treatment […]

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Tax Audit Report- Applicability of Clause 30C & Clause 44 deferred

Tax Audit Report (Form 3CD- Applicability of Clause 30C & Clause 44 deferred till March 31, 2021 Central Board of Direct Taxes (CBDT) has issued Circular No. 10/2020 dated April 24, 2020 by which the CBDT has deferred the applicability of certain Clause of Form 3CD (Tax Audit Report) till March 31, 2021. Order under […]

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No Separate GST registration required for execution of Work Contract in other State

Normally we feel that where the work contract is obtained we should get registration to do purchase in the State . If the contractor is got three work contract in three  different State, we assume that separate registration in required each and every State. Fact is not the same, we can take registration in one […]

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Every Customer entitled to tax rate reduction benefit by way of Reduced Prices

Every Recipient/Customer is Entitled to the Benefit of tax Rate Reduction by way of Reduced Prices: National Anti-Profiteering Authority [Ref: State Tax Officer Versus Cilantro Diners Private Limited (Case No. 18 Of 2020)] (A) BRIEF FACTS Application was filed under Rule 128 of the Central Goods and Services Rules, 2017 [“CGST Rules”] alleging profiteering in […]

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GST Vs. Earlier Indirect Taxation regime from Business & Law point

Since the inception of the Indian Constitution the earlier In-direct taxation system has faced a jolt most because of the imposition of multiple taxes before the GST reform. The old multilayer taxation scheme imposed a scenario of double taxation along with its cascading effect which ultimately led to in equal distribution of revenues between the two tier system of government as based on the division of powers in India.

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Transitional Credit under GST – The Never Ending controversy

First major litigation before various courts across the country in GST era was pertaining to the transitional credit where the assessees were not able to file TRAN-1/ TRAN-2 within the requisite time. Whereas Government being already short of revenue was adamant on recovering some undue amount from the dealers, the assessees could not let go an amount which was available with them under the pre GST era, especially keeping in the view the fact there were many teething problems with the GST Network which was the only option for using the accrued credit. Also the fact that in some cases the amount involved was huge.

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States seek GST compensation beyond 2022 to tide over Covid-19 crisis

State finance ministers, during a video conference on Monday, also discussed issues arising out of the lockdown, including the urgent requirement of some form of aid for micro, small and medium enterprises, which have been affected the most, besides relief for the services sectors.NEW DELHI: Opposition-ruled states including Punjab, Kerala and Delhi pitched for extension of goods and services tax (GST) compensation to the states for two years beyond 2022 to tide over the crunch they may face in the post-Covid-19 scenario.State finance ministers, during a video conference on Monday, also discussed issues arising out of the lockdown, including the urgent requirement of some form of aid for micro, small and medium enterprises, which have been affected the most, besides relief for the services sectors.“GST compensation, which is due to the states, should be given… the GST Council could also borrow and let the compensation continue for a year or two after 2022 also, which can be collected …

Subsume multiple levies into GST to cut tax burden on mining sector: Ficci

Underlining multiple challenges coupled with disruptions due to coronavirus lockdown, Ficci has also sought deferment of royalty and contributions to DMF and the National Mineral Exploration Trust (NMET) by six months.NEW DELHI: Industry body Ficci has sought subsuming all levies like royalty and contributions to the District Mineral Foundation (DMF) into one tax like GST to reduce the tax burden on the mining industry. The industry body argued that the mining sector is going through a tough time due to falling commodity prices and demand contraction.Underlining multiple challenges coupled with disruptions due to coronavirus lockdown, Ficci has also sought deferment of royalty and contributions to DMF and the National Mineral Exploration Trust (NMET) by six months.“Under such challenging times, when commodity prices are freely falling and demand is contracting, most of the miners are struggling to remain profitable or even survive,” the industry body said.It recommended “subsuming of …

Govt mulls 6-month pause on GST payments for affected sectors: Report

The pause on GST payments might be extended to industries such as aviation and hospitality, and a lower rate might be set for the real estate sector.Amid the nationwide lockdown, the government may provide a six-month freeze on goods and services tax (GST) as relief for most affected industries, according to a report by The Economic Times.India is currently in a nationwide lockdown to contain the spread of COVID-19. That only essential items and services can be provided during this period has hurt several sectors.The pause on GST payments might be extended to industries such as aviation and hospitality, and a lower rate might be set for the real estate sector, the report said.There is also a recommendation to move to a cash-based method of calculating tax from the existing invoice-based system, The Economic Times reported.The Centre may also provide GST relief on sales for which payments have been received during the lockdown by treating them as bad debts, the report said.The governme…

GST, GAAR reporting delayed till March 2021 amid coronavirus outbreak

The I-T Dept had, in 2018, changed the tax audit form 3CD, seeking details under GST as well as GAAR, which seeks to prevent firms from routing transactions through other countries to avoid taxesNEW DELHI: The income tax (I-T) department on Monday deferred, for the third time, the requirement for firms to include details of Goods and Services Tax (GST) and GAAR in their tax audit report, in view of the pandemic.The reporting requirement of these details in the I-T audit form has been kept in abeyance till March 31, 2021, suggesting that audit reports need not include details on GST and General Anti-Avoidance Rules (GAAR) till then.Business entities with turnover of over Rs 1 crore (or Rs 2 crore if they have opted for presumptive taxation), and professionals with gross receipts of more than Rs 50 lakh, have to comply with the tax audit requirements, for which the due date is September 30.It is November 30 in case of the taxpayer being covered by transfer pricing provisions. The Centra…

Analysis of Jharkhand HC Judgement on demand of Interest under GST

Analysis of the Hon’ble Jharkhand High Court’s Judgement on Demand of Interest under GST [Mahadeo Construction Co. Vs. Union of India-W.P(T) No. 3517 of 2019 dated 21.04.2020] In recent days, many Taxpayers has received communications from the GST Department in respect to payment of interest due to delay in payment of taxes. In some cases, […]

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File FORM GST PMT 09, to transfer/shift money in Electronic Cash ledger

File FORM GST PMT 09, to transfer/shift the money available in Electronic Cash ledger, between various major and minor heads of GST Taxpayers deposit money using challan and the paid amount gets credited in the particular head in the Electronic Cash ledger and the same can be utilized in settling liabilities of that head only. […]

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CBDT deffer GST & GAAR Reporting in Tax Audit Report by one more year

Income Tax Circular No. 10/2020-Income -Regarding reporting requirement under clause 30C and clause 44 of the Form 3CD defers GST & GAAR Reporting in amended Income Tax Audit Report amidst Covid-19. Income Tax Circular No. 10/2020 F.No. 370142/9/2018-TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes TPL Division **** […]

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Supply of Car for Demonstration- Its Classification, taxability, applicable rate & ITC Provision

Goods & Service Tax (GST) introduced in year 2017 enacted the law with similar provisions for sale of old or new car. Thereby implementing heavy tax burden on the same with applying Cess over and above the highest slab rate of 28%. Later in beginning of year 2018 statue were relaxed in regards to used car.

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Reverse Charge Mechanism (RCM) List under GST

Reverse Charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply. There are two type of reverse charge scenarios provided in law. First is dependent on the nature of supply and/or nature […]

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Paying Guest Accommodation Services cannot be treated as renting of Residential dwelling

It is held  in Re Sri. Taghar Vasudeva Ambrish (GST AAR Karnataka),  that leasing of immovable property for Paying Guest Accommodation cannot be treated as renting of residential dwelling and is not exempted from GST. In this article , an attempt has been made to simplify the contents of Advance Ruling and explain  the term […]

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Some GST Aspects & Transactions Explained thru Q & A – Series III

When you supply goods on High Seas Sale basis, it will remain an exempt supply – also a non-taxable supply.  Once this is so, you will get no input tax credit for inputs, input services and common input services and if you have claimed, it will have to be reversed u/s 17 of CGST Act. 

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Amendment in Time clause for refund of inverted duty structure

Whether amendment made in section 54 regarding the time clause for refund of inverted duty structure has retrospective effect or not. Summary: An attempt has been made to analyze the impact of change made in clause pertaining to time period prescribed for filling refund application of unutilised input tax credit on account of inverted duty […]

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Registration under GST- CGST ACT, 2017

THE FILE ENCLOSED DESCRIBES THE FULL DETAILS OF REGISTRATION (SECTION 22 TO 30)  AS WELL AS COMPOSITION SCHEME (SECTION 10). REGISTRATION UNDER GST CGST ACT, 2017 Section 22 : Person liable for Registration Section 23: Person not liable for Registration Section 24 : Compulsory Registration Section 25 : Procedure for Registration Section 26 : Deemed […]

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Fake Invoicing – Penalty under Income Tax & GST

In the recent past, GST Department has caught various fraudulent cases of Input Tax Credit. Fake invoice are issued without any actual supply of goods or services with an aim of claiming ITC and reduce GST output liability. To curb this, Finance Act,2020 has brought amendment to penalty provisions of Sec 122 & Sec 132 […]

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Interview with GST expert CA Sudhir Halakhadi

Interview of GST expert 'CA Sudhir Halakhadi' by 'CA Ajay Sharma' -Today I have with me GST Personality, Professional, author and writer SUDHIR HALAKHANDI. Sudhir Halakhandi has More 500 Taxation articles to his credit and a very popular GST writer in Hindi.

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Interest on delayed payment of tax: Section 50 of CGST Act, 2017

Introduction: This article discusses in detail about interest payable on late payment of tax liability under GST. As per Sec 50(1) of CGST Act 2017 , Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made there under, but fails to pay the tax or […]

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Taxability of Health Care services under GST

India is the largest producer for generics. Country’s Pharmaceutical Industry is currently the 3rd largest in the world in terms of volume and ranks 14th in terms of value. As the population continues to grow, the need for better Healthcare Services is also growing. Currently, 5 percent of the country’s GDP is spent on the Healthcare sector.

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GST on Boarding & Lodging facilities both on monthly & daily tariffs

In re Srisai Luxurious Stay LLP (GST AAR Karnataka) 1. Whether the daily accommodation services ranging from Rs.300 to Rs.500 per bed are eligible for exemption under Notification No.12/2017-Central Tax? The daily accommodation services ranging from Rs.300 to 500 per bed are eligible for exemption under Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 2. […]

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Leasing of Satellite Transponder falls under SAC Code 997319

In re New Space India Limited (GST AAR Karnataka) 1) Whether Leasing of Satellite Transponder which is covered under SAC Code 997319 be charged at 5% GST as per HSN Code 8803 – Parts Goods of Heading 8802 (Satellites)? The service of Leasing of Satellite Transponders, covered under SAC 9973 19, falls under the Entry No. […]

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Separate GST registration in other State not needed for execution of contract in that state

In the instant case, the applicant intends to supply goods or services or both from their principle place of business, which is located in Rajasthan. The applicant has only one principle place of business, for which registration has been obtained and does not have any other fixed establishment other than the principle place of business, as admitted by the applicant. Therefore the location of the supplier is nothing but the principle place of business which is in Rajasthan. Thus there is no requirement for a separate registration in Karnataka for execution of the contract referred supra.

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No GST exemption on leasing of immovable property in the nature of hotel, inn, guest house

The contract of the applicant group with the Company is verified and found that what is given is an immovable property consisting of only rooms with attache toilets as per the Layout of the leased premises annexed to the Lease agreement and does not fit into the meaning of a dwelling which means a house.

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No exclusion of Govt subsidy granted to farmer from transaction value

The amount of assistance received by the farmer or on account of the farmer from the Government Department has no bearing on the price and hence on the value of supply made by the applicant to the farmer and is not covered under section 15(2)(e) of the CGST Act, 2017.

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GST on second hand gold jewellery purchased from individuals (Non dealers)

In re Attica Gold Pvt. Limited (GST AAR Karnataka) a) Whether applicant dealing in second hand goods and tax is to be paid on the difference between the selling price and purchase price as stipulated in Rule 32(5) of CGST Rules, 2017 if dealer purchases used / second hand gold jewellery from individuals who are […]

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GST on letting out residential dwelling -AAR Application withdrawn

In re C. Ramappa (GST AAR Karnataka) Whether letting out the residential dwelling to a firm results in supply of service? An opportunity of hearing was given to the applicant on 03.2020 and Sri Rajesh Kumar T R, Chartered Accountant & duly authorised representative of the applicant appeared for the said hearing & reiterated the […]

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Issues under GST for Companies under IBC, 2016

Clarification In Respect of Issues Under GST Law For Companies Under Insolvency And Bankruptcy Code, 2016 (IBC 2016) OVERVIEW  Insolvency and Bankruptcy Code, 2016 (IBC) is an evolving legislation, still being interpreted by courts in order to harmonize IBC with our related legal policy. The Hon’ble Supreme Court in the matter of State Bank Of […]

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Demands and recovery under GST- Detailed Analysis

1. Introduction: Levy of tax is mandated by law under GST, its recovery is an important administrative function under law. Though the focus is on self-assessment and voluntary payment of tax, there bound to be certain disputes and other factors resulting in non-payment, delayed payment of tax. In civil society the demand of tax before […]

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Alert for those Opting for GST Composition Scheme enabled

Alert for taxpayers about non-eligibility of certain Commodities, for opting for composition, while filing Form GST REG 01 & Form GST CMP 02 or filing any non-core amendment related to option for composition. Taxpayers opting for composition and engaged in manufacturing of commodities, will be shown an alert, if they are manufacturer of certain commodities […]

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TCS Registration of E-commerce operators without physical presence enabled

Registration for TCS taxpayers: Registration in a State/ UT with address of Head Office – changes in Form GST REG-07 The GST law requires an entity to obtain registration for TCS in each State /UT, where it has an obligation to collect TCS. The E-Commerce operators were facing a challenge of having to obtain registration […]

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Extension for submission of LUT for 2020-21, GST TDS, Refund claim

Extension for submission of LUT for 2020-21 Notification No. 37/2017-Central Tax, dated 04.10.2017, requires LUT to be furnished for a financial year. However, in terms of notification No. 35/2020-Central Tax dated 03.04.2020, where the requirement under the GST Law for furnishing of any report, document, return, statement or such other record falls during between the […]

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Bogus billing under GST : A false claim on assessee

Nowadays, various cases of bogus billing have been reported by the authorities, wherein, fake invoices have been used to avail ineligible Input Tax Credit. In this article let us understand that what is bogus billing? How it is triggered?, what are penalties for it under GST law? How to safeguard oneself from such bills? Article […]

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Valid Modes of service of notice under GST

SECTION 169 OF THE CGST ACT, 2017 1) Any decision, order, summons, notice or other communication under this Act or the rules made thereunder shall be served by any one of the following methods, namely: MODE-1:- PHYSICAL DELIVERY MODE a) By giving or tendering it directly or by a messenger including a courier √ To […]

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Important Aspects for GST Audit of Multi-Locational Entities

As per the provisions of section 22(1) Every supplier shall be liable to be registered under GST Act in the State or Union territory, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds prescribed limit.

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Demand and Recovery Forms (DRC) in GST

Among plenty of forms in GST, DRC forms are forms which are related to demands and recovery proceedings. Few of DRC forms has already came to use like DRC – 03, DRC – 01 DRC – 01A etc. but most of the forms have not came to use till date, which will come near in […]

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Whether remuneration paid to directors as per employment contract is liable to tax under GST (RCM) or not

GST on directors remuneration Schedule III ( see section 7) ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES 1.Services by an employee to an employer in the course of or in relation to his employment Understanding of the Text: “Services supplied by the director of […]

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GST on sale of old and used vehicles reduced

Big Relief on Sale of Old and Used Vehicles:Government by issuing the Notification No. 8/2018 Central Tax Rate read with state Tax Notification, reduced the Rate of GST on old and used vehicle as follows:

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How to file GST returns for online business?

Introduction The trend of selling goods & services online has seen a boost like never-before. It is convenient & economical to sell online and one could take up this business even along-with their ongoing profession/business or Job. The government has also realized the potential of the online ecosystem and that is why we have been […]

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GST interest recovery proceeding not Permissible without initiating adjudication proceedings

Whether interest liability under Section 50 of the Central Goods and Services Tax Act, 2017 (for short ‘CGST Act’) can be determined without initiating any adjudication process either u/s 73 or 74 of the CGST Act in the event of an assessee raising dispute towards liability of interest?

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Karnataka AAR ruling: Subletting, leasing under GST ambit

NEW DELHI: The Authority on Advance Rulings (AAR), Karnataka has ruled that GST is applicable on residential accommodation sublet by a tenant, a ruling that experts said could open a Pandora’s box of litigations.In a case involving about 42 single rooms having been sublet by a tenant to students for periods ranging between three months to 11 months, AAR noted that the property given out for sub-renting matched that of a hotel – rooms with attached bathrooms – “which can by no imagination be termed as residential dwelling”, or a house.While renting of accommodation is exempted from the goods and services tax (GST), the authority has ruled, “The exemption prescribed cannot be sought and the lessors have to charge GST while issuing invoice for the lease services.”It said, “The applicant is not providing the service of leasing in individual capacity to the company but as a part of the group of lessors… It is seen from the agreement that lessors are providing the service of leasing or rent…

GST: Supreme court quashes judgments by high courts on area-based exemption

Rules refunds should be limited to actual manufacturing or value additionIn a ruling aimed at preventing the misuse of tax exemptions, the Supreme Court on Friday overturned the relief given by the high courts of Gujarat, Guwahati and Sikkim and held that area-based exemptions in the form of tax or duty refunds should be limited to actual manufacturing or value addition.The judgment favours the Union government’s stance of limiting refund of erstwhile central excise given to units in industrially backward areas such as Kutch (Gujarat) and the north-eastern regions in tax incentive schemes dating back to 2001 and 2007, respectively.The apex court pointed out that tax paid needs to be sanctioned by the Centre only in cases where there is actual manufacturing of goods and not where goods are only manufactured on paper.This will have a financial impact on industrial units who would have received refunds on a provisional basis following the favorable High Courts orders, experts said.Expert…

Working on Rs 1 trn fund for MSMEs to provide liquidity: Nitin Gadkari

Move may see Govt tap into Rs. 80,000 crore worth of ESIC fundsNEW DELHI:The government may soon set up a Rs 1 trillion revolving fund for micro, small and medium enterprises (MSMEs) to bring in much-needed liquidity for small businesses if the Prime Minister’s Office accepts the proposal, MSME Minister Nitin Gadkari (pictured) said on Friday.A day after he first mentioned the ambitious scheme, Gadkari on Friday fleshed out his plan at a webinar with industry body Assocham. While the minister remained mum on the details, he revealed that it involves using funds lying idle with the Employees’ State Insurance Corporation (ESIC) to help small businesses on an emergency footing. It will push in liquidity through bank guarantees for MSMEs which have borne the brunt of the ongoing coronavirus crisis.Gadkari said he has asked Labour Minister Santosh Gangwar to make use of a major chunk of funds to the tune of Rs 80,000 crore lying idle with the Employees’ State Insurance Corporation (ESIC). …

GST applicability on Electricity Paid under Rent Agreement

Applicability of GST on recovery of Electricity charges, on actual basis, relating to renting of commercial property-  Today, there are many business entities which are operating under the roof owned by others. Also, it is not feasible for every entity to purchase land, construct building / factory on the same and commence their operations. Therefore, […]

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Synopsis of Judgement – Mahadeo Construction Co. Vs UOI (Jharkhand HC)

Synopsis: Recently, the Hon’ble HC, Jharkhand in the matter of Mahadeo Construction Co. [W.P.(T) No. 3517 of 2019 dated 21-04-2020] held that no interest liability u/s 50 of the CGST Act 2017 can be determined without initiating any adjudicatory process either under section 73 or 74 of the CGST Act. Further held that, garnishee proceedings […]

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GST on Export of Goods & Services

I have tried to explain the basic provision, rules as well as notification which are very important to understand the GST on the export of Goods as well as services.

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No TDS on GST component included in bill

As we all aware that currently this is the TDS compliance period is going on. At the time of compliance many tax deductor face the confusion at the time of tax deduction such at what amount the TDS should be deducted and at what amount, when the invoice is issue within ambit of GST? That […]

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GST PMT 09 – Transfer amount from one head to another head in cash ledger

GST PMT 09- Transfer amount from one head to another head in cash ledger Earlier launched by CBIC via Notification no. 31/2019 CT on 28th June 2019, PMT- 09 is the prescribed challan for relocating the falsely or erroneously paid ITC. This enables a registered taxpayer to transfer any amount of tax, interest, penalty, etc. […]

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GST Rate: Works Contract vs Pure Labour Contract

As per Black’s Law dictionary contractor have been defined as one who contracts to do work or provide supplies for another competent contractor. A contractor who has the knowledge, skill, experience, and available equipment to do the work that he is employed to do without creating an unreasonable risk of injury to others and who […]

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Implications of GST on transfer of business

Implications of GST on transfer of business Nowadays corporate restructuring has become a need for change in the organizational structure, or business model of a company. It is done majorly to revive a declining business, increase a company’s value or to gain a competitive advantage. Post this Covid-19 pandemic as well, we may notice major […]

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How to Pay GST Demand and Taxes in Installment

How to Pay GST Demand and Taxes in Installment –Section 80 of CGST Act 2017 Dear readers, after the implementation of GST Act, many dealers has done mistake in complying with GST law, due to unawareness of law or due to mala fide intention. When they come to the notice of department, the department will […]

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‘Mango Pulp’ falls under entry No. 453 of Schedule III- 18% GST Payable

In re Universal Import Export (GST AAR Gujarat) Question 1: At What rate GST payable on supply of MANGO PULP falling under Heading No. 08045040 of the Customs Tariff Act, 1975 and rate of GST? Answer : ‘Mango Pulp’ will fall under the entry No. 453 of Schedule III of the Notification No.01/2017- Central Tax […]

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Imposition of GST on Directors: Another Instant of Transgression Through Notification of the Limits Provided by Parent Act

Notification No. 13/2017 provides that the Services provided by Director to the body corporate would come under the ambit of Reverse Charge Mechanism. By the virtue of the said Notification, the services provided by the Director would be taxable. But the question arises that whether the said entry of the Notification is under the permissible limits as prescribed by the Parent Act i.e Central Goods Service Tax Act, 2017.

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TDS (Income Tax) Deposit for March 2020 & Filing of Return (Q4)

Government of India vide Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 on 31.03.2020. notified relief measures  related to Income Tax return filings, GST compliance, PAN-Aadhar linkage and other statutory and regulatory issues. Income Tax Act 1961 also covers under the Specified Act as per Para 2 of the ordinance. Extension of TDS Return […]

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Process of Refund of Input Tax Credit or Integrated GST paid on export supply of Goods

A person can make the export supply of goods by making payment of Integrated GST and refund can be claimed for the same. Further exports can be made without making payment of IGST after the submission of Bond/LUT. In such cases, a refund of accumulated Input Tax Credit on expenses may arise.

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Restaurant Sector facing serious GST issues

Background Food supplied by a restaurant is whether supply of goods or supply of services? This question has been hovering since last few decades. The Constitutional Amendment by inserting Article 366 (29A) (f) partially included it within the definition of deemed sale of goods. With introduction of service tax law, the service portion was separately […]

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Tax relief for recovery: GST concessions can go a long way in supporting businesses

The post-Covid economic scenario will be extremely cost-sensitive. Seamless flow of ITC can greatly reduce cost stress.  During lockdown, companies will still incur routine expenses (such as rent, IT) without revenue.Various measures have been taken by the government to tide over the Covid-19 storm. It has announced relief via relaxations in GST compliance.  Price controls have been imposed on various essential commodities. Recently, it also announced exemptions on customs duties and health cess for some products. GST rates should be suspended/reduced on critical items, including surgical masks, disposable gloves, ventilators, hand sanitisers, etc.
Hospital services are exempt from output GST.However, hospitals routinely incur several input taxes, including huge GST outlay on capital procurement of equipment, and recurring GST on medical devices/ items/drugs and services such as rent/marketing/R&D.As ITC facility is not available for exempt-supply, these credit costs are built int…

Centre Must Release States’ GST Share To Help Fight Coronavirus: Congress

Congress said that with the centre not releasing GST funds, “the fight against COVID-19 is weakened.”NEW DELHI: Congress leader Randeep Singh Sujrewala on Thursday said the fight against coronavirus will not be fought only at the centre but in every nook and corner of the country.“The fight against the coronavirus will not be fought at the centre but in every nook and corner of the country. The centre has to lead this fight but this fight needs to be fought by all the states,” Mr Sujrewala said during a press briefing.He said that every state expects a financial package from the centre. With regard to the state’s share in the Goods and Services Tax (GST) collected by the centre, he said that the centre has not released the states’ share.“The states’ share in the GST has not been released by the centre. Just a few days ago, they have given an instalment of Rs 42,000 crore worth of GST. Each and every state has a right to get its share,” he added.He further said that with the centre not…

Recovery of interest for late GST payment needs to be adjudicated in case of dispute, says HC

Goods & Services Tax (GST) authority cannot raise demand or initiate recovery of interest on late payment of tax without adjudication in case of a dispute, a High Court has ruled.Amid lockdown, a division Bench of Jharkhand High Court, using video conference, delivered judgment to interpret certain Sections on the GST Act. These Sections deal with interest on delayed payment of tax (Section 50), determination of tax not paid or short-paid or erroneously refunded or input tax credit wrongly availed of or utilised for any reason other than fraud or any wilful misstatement or suppression of facts (Section 73 & 74) and recovery of tax (Section 79).“Liability of interest is automatic, but the same is required to be adjudicated in the event an assessee disputes the computation or very leviability of interest, by initiation of adjudication proceedings under Section 73 or 74 of the CGST Act. In our opinion, till such adjudication is completed by the Proper Officer, the amount of inter…

All about interest in GST – Past, Present & future outlook

History of Interest under GST When the GST got introduced from 1st July 2017, quite a number of registered persons were struggling to come to terms with the change in the systems, policies and procedures that was brought by the new regime. This resulted in some of the major compliance decisions getting impacted such as […]

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