The 50th GST Council Meeting was held on 11-07-2023 in which Council recommended multiple changes in GST law. Kindly refer recommendations that may have an impact on the company: Reduction of GST rate on uncooked/unfried snack pellets: The council has decided to reduce the GST rate on uncooked/unfried snack pellets, by whatever name called, to 5%...
It’s not an uncommon instance whereby certain services from a single vendor are being availed of by multiple entities of a single group. In such cases, the distribution of input tax credit (ITC) on such services becomes tricky as the service consumers are multiple and therefore, all the recipient entities have the right to avail...
The 50th GST Council Meeting took place on 11th July, Tuesday, in New Delhi, observing a momentous milestone in the journey of Indian Goods and Services Tax (GST). The meeting was led by Union Finance & Corporate Affairs Minister Nirmala Sitharaman. She made several important decision changes and recommendations changes in GST tax rates, streamlining...
In a significant development for India's tax landscape, the Goods and Services Tax (GST) Council is expected to approve the blueprint for the long-awaited GST tribunal this month. The establishment of the tribunal has been a subject of anticipation and debate, as it aims to resolve disputes between taxpayers and tax authorities in a fair...
The Goods and Services Tax (GST) drive has been a significant reform in India's taxation system since its implementation in July 2017. It aimed to streamline the indirect tax structure and create a unified market across the country. While GST has simplified the tax process for many businesses, micro and small enterprises are now apprehensive...
In a significant ruling, the Delhi High Court has recently ordered the refund of Goods and Services Tax (GST) collected from candidates appearing for Diplomate National Board (DNB) examinations. The decision comes as a relief to DNB candidates who had been burdened with GST charges on their examination fees. This landmark judgment highlights the court's...
The Goods and Services Tax Network (GSTN), the backbone of India's Goods and Services Tax (GST) system, has recently implemented a significant upgrade to its functionality. This latest enhancement allows taxpayers to easily retrieve the Invoice Reference Number (IRN) by utilizing the Document Number associated with their invoices. The introduction of this feature streamlines the...
The Central Board of Indirect Taxes and Customs (CBIC) has recently implemented an advanced solution aimed at streamlining the scrutiny process for Goods and Services Tax (GST) returns. The new system, known as the Automated Return Scrutiny Module, has been integrated into the ACES-GST backend application, catering specifically to Central Tax Officers. This ground breaking...
In a significant move aimed at further streamlining the invoicing process and promoting digitalization, the Central Board of Indirect Taxes and Customs (CBIC) has announced a reduction in the e-invoicing threshold from 10 crore to 5 crore. Effective from August 01, 2023, this decision is expected to impact a large number of businesses in India....
The Hon'ble Rajasthan High Court in M/s R.K. Jewelers v. Union of India [D.B. CWP No. 4236 of 2023 dated April 26, 2023] has made an important decision regarding the revocation of cancelled GST registration and Input Tax Credit (ITC) claims. The case involved a petition filed by M/s R.K. Jewelers challenging the cancellation of...
Finance Minister Nirmala Sitharaman has stated that the online gaming industry in India has the potential to attract significant investment once the tax policies for the sector are finalized. Speaking at a recent event, she highlighted the importance of the sector as a source of revenue for the government, as well as a driver of...
In a significant boost to the Indian economy, Prime Minister Narendra Modi lauded the highest-ever Goods and Services Tax (GST) collection in the month of April 2023. According to reports, the GST collection for April 2023 touched a record high of Rs 1.78 lakh crore, surpassing the previous high of Rs 1.41 lakh crore collected...
The new Goods and Services Tax (GST) rules for businesses with an annual turnover of over ?100 crore have come into effect from today, May 1, 2023. These new rules aim to simplify the GST compliance process and improve tax administration. Here's what you need to know about the changes: Monthly Returns: Businesses with an annual...
The Chhattisgarh High Court has recently passed a judgement that allows the reimbursement of additional tax liability on companies involved in construction activities in the pre-GST regime. The judgement has been welcomed by the industry as it provides relief to the companies that were facing financial burden due to the additional tax liability. Before the introduction...
The Calcutta High Court recently made a landmark ruling in favour of recipients of services under the Goods and Services Tax (GST) regime. The ruling states that recipients of services are entitled to seek advance rulings under GST, just like suppliers of goods and services. The case before the court involved a company that had sought...
According to recent reports, the Goods and Services Tax (GST) collections in India are expected to break all records in April 2023. The GST is the largest indirect tax reform in India that came into effect on July 1, 2017, and is designed to create a uniform taxation system across the country. The GST is levied...
GST officers in India have recently uncovered a large-scale tax evasion by offshore entities providing online betting and gambling services. The investigation was carried out by the Directorate General of GST Intelligence (DGGI), which is responsible for enforcing GST laws and preventing tax evasion. According to reports, the DGGI conducted raids on several offshore companies that...
The Indian government is set to announce a new national retail trade policy and an accident insurance scheme for traders registered under the Goods and Services Tax (GST) system. The announcement is expected to come soon, according to sources familiar with the matter. The national retail trade policy is aimed at promoting ease of doing business...
In a recent raid conducted by the tax department on several companies in Uttarakhand, it was found that these companies had evaded GST to the tune of Rs 5 crore. The raid was conducted on the basis of a tip-off received by the tax department, which suggested that the companies were engaged in fraudulent activities...
Goods and Services Tax (GST) registration frauds have been on the rise in recent years, and authorities have been cracking down on these fraudulent activities. One common tactic used by fraudsters is the filing of multiple GST registrations, often using fake identities, to obtain multiple GSTINs (GST Identification Numbers) and take advantage of various schemes...
The Authority for Advance Ruling (AAR) has recently ruled that employee services provided from a branch office to the head office, and vice versa, are liable to attract 18% GST. This ruling was given in response to a query by a taxpayer seeking clarification on the GST liability of such services. The AAR observed that the...
The Committee of Officers on GST Audits, a group of experts responsible for developing guidelines for conducting audits under India's Goods and Services Tax (GST) regime, has released the much-awaited "GST Audit Manual 2023." The manual, which provides detailed instructions and guidance for conducting GST audits, is expected to significantly improve the efficiency and effectiveness...
According to a recent report by the National Institute of Public Finance and Policy (NIPFP), the Centre has received a significant boost in tax revenue post the implementation of Goods and Services Tax (GST). However, the report also points out that states are yet to see a similar improvement. The GST was implemented on 1st July...
The Delhi government is taking steps to plug revenue leakages in the Goods and Services Tax (GST) system to increase its revenue collection. The move comes as the state has witnessed a significant shortfall in its GST collection over the last few years. According to a recent report, the Delhi government has identified several areas where...
In recent news, several banks and insurance companies in India are facing GST notices for allegedly disguised payouts made to customers. The notices were issued by the Central Board of Indirect Taxes and Customs (CBIC) after an investigation was conducted by the Anti-Profiteering Authority (APA). Disguised payouts refer to payments made to customers by businesses that...
The Karnataka High Court recently issued a ruling permitting the Superintendent of Central Tax to pass orders for revoking the cancellation of GST registration on filing returns. The ruling came in response to a writ petition filed by a taxpayer who had challenged the cancellation of their GST registration by the tax authorities. According to the...
According to a recent report, the performance of the Goods and Services Tax Network (GSTN) has steadily improved over time. The report, which was released by the Ministry of Finance, highlights the progress made by GSTN in terms of data processing speed, stability, and reliability. The GSTN is a technology platform that was set up to...
The Goods and Services Tax (GST) is a consumption tax levied on goods and services in India. The tax was introduced on 1st July 2017, to replace multiple indirect taxes imposed by the central and state governments. The GST is divided into four tax slabs - 5%, 12%, 18%, and 28%. Recently, there has been...
Companies often send their employees to their branches or sister concerns whether within or outside the home country. This is known as the secondment or deputation of employees or expats. One of the important factors in the case of secondment or deputation of expats is taxation. While the income tax provisions are pretty clear, the...
The state GST department has unearthed a scam with a new modus operandi where 1,500 Aadhaar cards were illegally used in the past eight months to generate bogus GST registration numbers. The department carried out spot verification of suspected firms, including those in Surat, Bhavnagar, Ahmedabad, Anand and Rajkot, on February 7, to keep a check...
GST authorities have proposed prosecution against insurance intermediaries for allegedly generating fake invoices which are around 100 cr. rupees in the name of marketing and sales. A Bengaluru based intermediary got prosecution notice in January from DGGI (Direct General of GST Intelligence). And the top management of film is been questioned. They have been asked to...
CBIC Chairman, Vivek Johri said, the CBIC will use data from electric meters and property tax to raise the basis of GST. The CBIC Chairman said, although GST was implemented, there was a GST tax base of Rs 45-50 lakh, which is now raised to Rs 1.4 crore. Johri added, “here is a good scope for...
This is recent news regarding, “CBIC says won’t object to a petitioner going to HC in absence of GSTAT” dated 14.02.2023 Official source Business Standard. A Write petition regarding the dissent over refund was filed in Bombay high court. An affidavit was filed by CBIC board in the court regarding the writ arguing that the challenge against...
The Government collects tax breaks at each stage making it a long supply chain where the government charges tax on each stage but in the case of unregistered sellers, the Government does not get the taxes on the last stage. “CBIC is looking to increase the number of taxpayers to achieve that we are working jointly,...
Budget 2023 was presented by Nirmala Sitharaman on 1st February 2023 and it was indeed a revolutionary budget, especially for the taxpayers and middle class. In this article, we have highlighted key highlights of Budget 2023 on GST with Interpretation and analysis by an industry experts. One of the major changes in the GST law...
This is a recent ruling regarding, the matter of M/s S.B. Traders. v. The Superintendent [W.P. Nos. 39498 & 39502 of 2022 dated October 28, 2022] dated 28.12.2022 wherein it was held that GST registration could not be cancelled on the basis of the direction of Head Office without assigning any reason by the Hon’ble...
This a recent notification regarding, “Changes in the CGST Rules w.r.t. the recommendations of the 48th GST Council Meeting” dated 27/12/2022 Official source CBIC. The CBIC vide Notification No. 26/2022 – (Central Tax) dated December 26, 2022, has issued ‘the Central Goods and Services Tax (Fifth Amendment) Rules, 2022’ to further amend the Central Goods and...
Tata Group has approached the Bombay High Court to contest a Rs 1,500-crore GST notice issued by the Directorate General of GST Intelligence (DGGI). The notice is related to Tata's 2017 dispute settlement with Japanese telecom operator NTT Docomo, according to an Economic Times report. In 2017, Tata had to make settlements worth $1.27 billion with...
Central Board of Indirect Taxes Chief Vivek Johri said on Saturday that online games where winning depends on a certain outcome would attract 28 % GST on the full bet value. Though the report of the Group of Ministers on online gaming did not come up for discussion at the GST Council meeting, the department would...
In a momentous move, the GST Department has issued around 50,000 show-cause notices (SCN) to several companies and firms across sectors, including jewelry and real estate, following the findings of a GST audit exercise they started earlier this financial year in the first comprehensive audit exercise since the inception of the GST regime. It has covered...
Experts also noted that the establishment of the GST Appellate Tribunals agenda is pending for a long, given that the indirect tax regime has now completed 5 years. A number of other cases are also pending in the High Courts. The GST Council is likely to meet in-person in next year February, after the Union Budget...
The 48th GST Council met under the Chairmanship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman via virtual mode in New Delhi on December 17, 2022. The meeting was also attended by Union Minister of State for Finance Shri Pankaj Choudhary besides Finance Ministers of States & UTs (with legislature) and senior...
This is the recent news regarding, “18% GST is payable on works contract service of constructing warehouse and cold storage godown for Govt. entity which will be rented out” dated 16/12/2022 Official source Live Law.in. The Telangana AAR ruled that work contract services for constructing warehouses and cold storage for Telangana State Industrial Infrastructure Corporation Limited...
Earlier, the CBIC vide Notification 83/2020-Central Tax dated November 10, 2020 (“the Notification”) extended the time limit for furnishing the details of outward supplies in Form GSTR-1 of the Central Goods and Services Tax CGST Rules, 2017 (“the CGST Rules”) for each tax periods till 11th day of the month succeeding such tax period. Now, the...
In Firozabad, the GST department is running a vigorous raid campaign in the matter of tax evasion, due to which the traders are very scared. On the call of Mukund Mishra, the provincial president of the UP-Industry Trade Board, the trade board officials took out a procession from Gandhi Park at ten in the morning...
The Central Board of Indirect Taxes and Customs Legal Cell has issued Letter vide F. No. 275/11/2022-CX.8A dated November 04, 2022 informed that the Board has decided that the GST department will not challenge the Supreme Court decision in Mohit Minerals case. SC ruling on Mohit Minerals case The ruling pronounced by the Supreme Court on May...
The GST Council said "The 48th Meeting of the GST Council will be held on 17th December, 2022 by video conference”. The agenda of the 48th meeting of the GST Council is expected to be finalized in the coming days. Still, the meeting also assumes significance as it comes just ahead of the 2023-24 Union...
Pointing out some emerging issues in income tax and GST, Revenue Secretary Tarun Bajaj said there is a need for reforms in both direct and indirect taxes. He mentioned “We have to rationalise rates under the Goods and Services Tax,…reduce the number of slabs and relook at exemptions. Then there are some issues like online gaming,...
Amidst an ongoing tussle between the Karnataka government and cab aggregators, the state government has reportedly sought to cap the convenience fee at 5% for auto rickshaw rides. However, senior officials told the Economic Times that the convenience fee was exclusive of GST, meaning users will have to pay an additional 5% GST on an aggregate...
To discourage gambling and betting-related games, the GST Council is likely to hike the tax rates for online gaming from 18% to 28%. A Group of Ministers, set up by the Ministry of Finance to look into matters related to the GST regime covering online gaming, casinos, and race courses, may suggest a flat GST...
The Union Finance Minister Nirmala Sitharaman met infrastructure industry experts at the customary pre-budget meeting, the latter sought rationalisation of GST, easier bank credit and a hike in public expenditure. Cellular Operators' Association of India (COAI) in its demonstration to the Finance Minister has presented a reduction of levies and taxes on the telecom sector amidst...
The government is considering removing the penal offences which are already covered under the IPC from the GST Act to make it more taxpayer-friendly, an official said. The part of the exercise to decriminalise GST law is supposed to be taken up in the next GST Council meeting. The Finance Ministry will propose amendments to...
The central government has made a significant step to boost the health insurance sector. The government aim to reduce the GST on health insurance on premium package. However, a deadlock persists on the input tax credit. People are becoming more aware of health insurance after Covid pandemic and this move aims to boost insurance penetration. Insurance companies...
Principal Chief Advisor Amit Mitra to the Chief Minister of West Bengal wrote Union Finance Minister Nirmala Sitharaman in a letter on Wednesday to call an urgent GST Council meeting which was not met for over four and half months. In a letter to the Finance Minister, Amit Mitra who was the former chairman of the...
This is news regarding Maharashtra businessman nabbed as GST sleuths bust Rs 45 cr fake bills scam on 4th November 2022. An official said here on Friday, the Maharashtra Goods & Services Tax Department has busted a GST scam involving fake invoices worth Rs 45 crore and arrested a businessman for the alleged fraud. Launching a...
This is news regarding low number of E-way bills in India despite high GST revenue. The GST regime covers e-way bills for the transport of goods, which went down during October, even as the tax inflow was high. For the month of October India's GST collection has surpassed the INR 1.5 lakh Cr. mark for the...
This is the recent news regarding Chandigarh GST revenue sees 28% rise in October, dated 02/11/2022 Official source Indian Express. The Chandigarh administration collected Rs.203 crore GST in October, which is the first month of this financial quarter, an increase of 28% from Rs.158 crore in October last year. They also reported that they had also seen a...
This is the recent news regarding GST slabs rejig unlikely before 2024 general elections, dated-28/10/2022 Official source Financial Express. According to official sources, with inflation likely to remain elevated for a longer period and key state elections due in 2023, the Narendra Modi 2.0 government may choose not to restructure the GST slabs before it demits...
The GST Council is prone to meet within the first half of November to debate the reviews of the panel of ministers on establishing the GST Appellate Tribunal and levy of tax casinos and online gaming, an official mentioned. As well as, the standing on the lot awaited full report of the committee tasked with the...
This is in regard to recent news in one of the Official sources dated 19.10.2022 for an opportunity that could be given to businesses to settle minor GST offences in works. This is to highlight that the Government is considering a GST dispute settlement scheme offering a time-bound scheme covering only minor GST offences while a...
This is to highlight that now businesses with an annual turnover of over Rs 5 crore will have to move to e-invoicing under goods and services tax (GST) from January 1, 2023. The GST Network has asked its technology providers to make the portal ready to handle the increased capacity by December, a government official...
The Goods and Service Tax Network has issued a new module for GST stakeholders. These functionalities pertain to different modules such as Registration, Returns, Refund and other miscellaneous topics. Below is the summary of the New functionalities made available on the GST portal 1. Registration Functionality to add new fields while submitting a response to a notice, in...
According to Government sources, it is informed that Delhi's Goods and Services Tax (GST) collection in the second quarter of 2022-23 has dipped by more than 6 per cent in comparison to the first quarter of the fiscal. However, the combined GST collection of the first two quarters of 2022-23 was 28% higher than the corresponding...
The Punjab finance, planning, excise and taxation minister Harpal Singh Cheema has stated that the state had collected INR 10,604 crore GST during the first 6 month of this year, stating a growth of 22.6% in GST collection against the same period last year which was INR 8,650 crore. He also added that the state government...
This is to update you regarding a press release dated 04-10-2022 issued by the Ministry of Finance. Vide Notification no.18/2022 Central tax dated 28.09.2022, from 01.10.2022 the provisions of Sec 100-114, except clause (c) Sec 110 and Sec 111, of Finance Act 2022 shall come into force. The time limit of particular compliance has been extended to...
Amendments made in Finance Act 2022 notified w.e.f 1st October 2022 vide Notification No. 18/2022 – Central Tax, F.No.CBIC-20013/1/2022-GST, Dated 28th September 2022 Finance Act 2022 made around fifteen amendments which include omissions, insertions, and substitutions made in the CGST Act 2017. They were covered by section 100 to section 114 of the Finance Act, 2022...
The Central Government has appointed 1st October 2022 as the date on which the provisions of sections 100 to 114 of the Finance Act, 2022 shall come into force. Precisely, the amendments in section 16(2), 29(2), 34, 37, 38, 39, 41, 47, 48, 49, 52, 54, and 168, and omission of sections 42, 43, 43A of...
This is regarding news dated 25-09-2022. As per a press report, the Directorate General of GST Intelligence has issued show cause notice (‘SCN’) to Gameskraft Technologies Pvt. Ltd. (‘Gameskraft’) for INR 21,000 crores (USD 2.6 billion), the biggest ever in history of Indian indirect taxation. Gameskraft engages in hosting of online games on its platform...
The National Informatics Centre("NIC") has issued an Update on the E-way bill generation for the movement of Gold. As per the Government's approval, E-way bill generation has been provisioned for the movement of Gold (HSN Chapter 71) for all Intrastate and Interstate shipping. The inhabitant of the state may generate the E-way bill for Gold as...
The Government has enabled the option of payment through credit card, UPI, and internet banking on the income tax e-filing portal. However, if an individual opts for payment of income tax on the e-filing portal for the 'payment gateway' method, he may be charged certain charges if he opts for such a payment method. In addition...
Currently, many taxpayers only record the ITC on an eligible inbound supply in their ITC ledger, and the ITC is required to be respected in the following scenarios: If cancellation of ITC is requested on account of ordinary inward supply used for both taxable and exempt outward supplies in terms of rules 42 and 43; or Cancellation...
Clause 44 of Form 3CD Tax audit Report contains a pool of various clauses that keep on amending owing to the disclosure requirements and transparency. New clause 44 of Form 3CD was introduced requiring entities to disclose the break up of total GST and non-GST expenditure irrespective of whether they are registered under GST or...
The limit for e-invoicing is now being reduced from 20 crores to 10 crores from 01.10.2022. It means if aggregate turnover has exceeded 10 crores in any preceding F.Y i.e 17-18, 18-19, 19-20, 20-21, or 21-22, then E-Invoicing will be applicable from 1st October 2022. The authorities have ensured the smooth implementation of the e-invoicing module....
This is in regard to the recent updation that have been made by CBIC in regards to the e-invoice applicability, and some functionality in the GSTN Portal, which are listed as under: A. E-Invoice Vide Notification No. 17/2022 – Central Tax, dated 01.08.2022, the Central Government has made it mandatory for a taxable person whose aggregate turnover...
The renting of a residential dwelling for use as residence is exempt from the levy of GST vide S. No. 12 of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017. Now, in the 47th GST Council meeting, it was decided to introduce RCM on renting residential dwellings. The CBIC vide Notification No. 4/2022 Central Tax (Rate)...
GSTN portal to open common portal for all assesses to claim transitional credit for 60 days from 01.09.2022 till 30.10.2022 All assesses can claim benefit whether they have filed Writ or not GSTN to make sure no technical glitch during this time 90 days given to officers thereafter to verify the claim of credit on merits and pass...
The GSTN has issued an advisory dated 21.07.2022 regarding the implementation of mandatory mentioning of HSN codes of GSTR-1. Vide Notification No. 78/2020 – Central Tax dated 15.10.2020, it is mandatory for the registered persons to mention the HSN codes in Table 12 of GSTR – 1. The reporting digits shall be a minimum of 4/6 digits...
The GST Council made a recommendation to the Government to impose GST on “a person has given residential property to the registered person (GST Registered Person) to renting of residential dwellings (Living) with effect from 18.07.2022 in its 47’th meeting at Chandigarh on 28th &29th of June’2022. Prior to 18.07.2022, A person who has given a residential...
The changes in reference to the GST rates, as recommended under the 47th GST Council Meeting will come into effect from today, i.e. 18.07.2022. One such recommendation relates to the imposition of GST on specified goods when “pre-packaged and labelled”. Certain doubts/queries have arisen regarding the GST levy on “pre-packaged and labelled” goods (particularly in respect of...
To further ensure better compliance and plug leakages, the GST e-invoicing to be expected to be mandatory for firms having turnover of INR 5 crores from January 1st, 2023, as per the Chairman of Central Board of Indirect Taxes Vivek Johri. Johri further told Financial Express that expanding the coverage to over Rs. 5cr will give...
Vide, CBIC notification no. 13/2022 – CT, dated July 5th, 2022, the issuance of the order under section 73(9) of the CGST Act, 2019 for the following w.r.t. the F.Y. 2017-18, shall be upto 30th September 2023: Recovery of taxes not paid; Recovery of taxes short paid; Recovery of Input Tax Credit wrongly availed or utilized. Furthermore, the period...
Vide, CBIC notification no. 09/2022 – CT, dated July 5th, 2022 the amendments in Section 50 and Section 52 of the CGST Act, 2017 shall come into effect from July 5th, 2022. After the amendment the aforementioned sections would be as follows: Section 50(3) - Interest on delayed payment of tax: “Where the input tax credit has been...
As per the recent news, the Government is planning to bring down the current mandated threshold of INR 20 crore or above for e-invoicing to INR 5 crore or above. Revenue Secretary Tarun Bajaj shared, the plan is to bring down the applicability of e-invoicing to INR 10 crore and then to INR 5 crore, from...
The 47th Council meet was held during 28th-29th June, 2022. The meeting was chaired by our Finance Minister Nirmala Sitharaman. Certain recommendations have been made by the GST Council relating to the GST Law and procedure. NOTE: All rate changes recommended will be made effective from 18th July, 2022. Such recommendations are as follows: Recommendations relating to GST...
Finance Minister Nirmala Sitharaman chaired the 47th GST council meeting taking place in Chandigarh yesterday i.e. 28th June 2022. GST Council is meeting to deliberate on a number of GST-related issues such as GST compensation, GST rate rationalisation and other critical aspects. Yesterday, during the GST Council Meeting, Nirmala Sitharaman came up with a range...
The GST Council in its meeting during the 28 – 29th June, is likely to consider giving relief to the tourism and hospitality industry. The relief can be given in the form of introducing a new margin scheme. As per the news, the applicable effective rate of GST on the tour operators is currently too high according...
GST Council likely to consider clearer framework to curb fake invoices GST Council in its meeting to be held during 28-29 June 2022, will possibly consider the plan to bring out more clarity on what actions to be taken against the entities which are involved in claiming Input Tax Credit (ITC), which has become a major...
As per the news, the Goods and Services Tax (GST) Council is set to discuss a number of changes in the law it is looking forward to presenting. Among others, the same would also include amendments to GSTR-3B (Monthly GST Return). By allowing the composition scheme to the e-commerce suppliers the GST Council will reportedly ease...
As per the GST Council’s tweet on Saturday, June 18th, 2022, the location of the 47th meeting of the GST council has been moved from Srinagar to Chandigarh. The meeting is to be held during June 28th-29th. The meeting of the appointed Group of Ministers (GoM) has already been conducted. Karnataka Chief Minister Basavaraj Bommai leads...
Instruction No. 03/2022, dated June 14th, 2022 Under the mentioned Instruction, reference has been drawn to the following: As per Section 107 (2) of the CGST Act, 2017, the commissioner has the power to review, if he may, any decision/order (including an order of refund, w.r.t. its legality or propriety). Also, the commissioner may direct any subordinate...
A Circular (No. /DCCT(E-G)/CR-07/2022-23) has been issued by the Government of Karnataka, relating to the issue regarding the revocation of the cancelled GSTIN beyond time period prescribed. As per the GST laws [Section 29(2)(c )], where the registered person has not furnished proper returns, for a continuous period of 6 month, the GST officer has the...
The Goods and Services Tax (GST) Council will likely meet in the second half of June, amid a new debate on the way taxation powers are shared between the Centre and states. As per the recent Supreme Court (SC) ruling, the recommendations of the council are not binding on the Union Government and the States, but...
The entire amount of GST compensation (Up to 31st May, 2022) payable to the States amounting to Rs. 86,912 cr has been released by the Government of India (GOI). Despite the fact that about only Rs. 25,000 cr is available in the GST compensation fund, the decision has been taken. The Centre has released the balance of...
Haryana Revenue Department to start regular data sharing of Commercial Rent and Lease Deed with the Haryana Excise and Taxation Department to curb GST Evasion. On 23rd May 2022, a meeting was held between Sh. Anurag Rastogi, ACS (E&T) and Sh. Pranab Kishore Das, ACS and FCR to discuss the problem associated with GST evasion in renting...
GSTR-3B for the month of April-2022 is due on 20th May 2022. However, there have been some technical issues pertaining to GSTR-2B of April 2022 that directly affect the ITC you claim in GSTR-3B. As per the GST Network’s clarification, certain records are not reflected in the GSTR-2B statement for the tax period of April 2022....
GST reconciliation has been one of the major concerns of the taxpayers. GST compliances involve the filing of multiple returns. For instance, for reporting sales, we have GSTR-1 and GSTR-3B. For reporting purchases, we have GSTR-3B which involves auto-population of details from GSTR-2B. Further, the details reported in the GST returns shall match with the...
As per the press release posted on April 25th, 2022 by PIB Delhi, the Finance Ministry has clarified that reports of purported feedback sought on raising GST Rates on 143 items are misleading. The media reported that feedback has been sought from the States relating to suggestions for raising the Good & Services Tax (GST) rates...
When it comes to practical implementation, the GST portal consists of three pillars that provide a snapshot of the transactions undertaken on the GST portal. These are the electronic ledgers of GST which include: Electronic Credit Ledger Electronic Cash Ledger Electronic Liability Register In this guide, we will be discussing the meaning of electronic credit ledger in GST and...
1. Extension in time-limit to claim ITC under GST - It seeks to amend section 16(4) of the CGST Act, 2017 so as to provide that a registered person shall not be entitled to take input tax credit in respect of any invoice or debit note after the thirtieth day of November (Earlier this date...
The CBIC has issued Notification No. 39/2021–Central Tax on 21-12-2021 through which Section 16 of CGST Act, 2017 has been amended. A new clause has been inserted in section 16 of CGST Act, 2017 after sub-section (2), clause (a), which reads as: “(aa) the details of the invoice or debit note referred to in clause (a) has...
Concessions on drugs used for COVID-19 treatment have been extended until 31st December 2021. Further, the list has been expanded to include more drugs which are now taxed at 5% GST. The council recommended changes in rate in respect of the supply of various goods and services. Various clarifications have been provided in respect of the applicable...
The Gujarat Authority of Advance Ruling in case of M/s WAGO PRIVATE LIMITED vide Advance Ruling /SGST&CGST/2020/AR/54, dated 30th July 2021 on an application filed by applicant passed his ruling after considering the issues involved, on which advance rulings are sought by the applicant, relevant facts and interpretation of the law. Fact: The applicant M/s. Wago Private...
The West Bengal Authority of Advance Ruling in case of M/s TERETEX TRADING PRIVATE LIMITED [Advance Ruling No. AD190321001275L, dated 28th June 2021] on application field by applicant passed his ruling after considering the issues involved, on which advance rulings are sought by the applicant, relevant facts and interpretation of law. Fact: Application is filed by M/S...
THE MAHARASHTRA AUTHORITY FOR ADVANCE RULING vides NO.GST-ARA-65/2020-21/21-22/B-3 Dated 27.07.2021 on an application field by M/s NAGPUR WASTEWATER MANAGEMENT PVT LTD passed its advance ruling after considering the issues involved, on which advance rulings are sought by the applicant, relevant facts, and interpretation of the law. FACTS:- The Nagpur Municipal Corporation (NMC) in order to manage the...
Karnataka AAAR in case of M/s PAGE INDUSTRIES LTD [ORDER NO.KAR/AAAR/05/2021, dated: 16.04.2021] on appeal field by the appellant under section 100 of CGST Act 2017 against the Advance Ruling Order No. KAR ADRG 54/2020 passed his ruling after considering the issue involved, on which advance ruling is sought by the applicant, relevant facts, and...
GST is a historic tax reform introduced on the 1st of July 2017. Over the years there has been a reduction in the tax rates, simplification of procedures and a growing economy has also led to an exponential increase in the tax base. GST revenues have steadily grown and have been above the 1 lakh...
The Central Board of Indirect Taxes and Customs (“CBIC”) has issued Circular No. 150/06/2021-GST dated 17th June 2021 to provide clarification whether GST applicable on annuities paid for the construction of road where a certain portion of the consideration is received upfront while remaining payment is made through deferred payment (annuity) spread over years. As per...
The Central Board of Indirect Taxes and Customs (“CBIC”) has issued Circular No. 149/05/2021-GST dated 17th June 2021 to provide clarification whether serving of food in Anganwadis and schools under Mid-Day Meals Scheme would be exempt if such supplies are funded by government grants and/or corporate donations. As per Entry No. 66 clause (b) (ii) of...
The 44th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through video conferencing held on 12th June, 2021. The Council in its meeting has decided to reduce the GST rates on the specified items being used in Covid-19 relief and management till 30 September, 2021. The details of...
The 43rd GST Council Meeting was held on 28-05-2021, Friday via video conferencing chaired by FM Nirmala Sitharaman, held at New Delhi. Finance Ministers of States & UTs and Senior officers from Union Government & States are also present in the meeting. The GST Council has made the following recommendations relating to changes in GST...
The Karnataka Authority of Advance Ruling in case of M/s Guitar Head Publishing LLP [Advance Ruling No. KAR ADRG 23/2021, dated 16th April 2021] on application field by applicant under section 97 of CGST Act, 2017, in Form GST ARA-01 passed his ruling after considering the issues involved, on which advance rulings are sought by...
All goods imported into India have to pass through the procedure of customs for proper examination, appraisal, assessment and evaluation. This helps the custom authorities to charge proper tax and also check the goods against the illegal import. Imports through courier mode have registered a healthy rate of growth in recent years in India. The facility...
The Hon’ble Supreme Court of India in the Commissioner of Commercial Taxes and Anr. etc. VS the Ramco Cements Ltd. etc. [Petition(s) for Special Leave to Appeal (C) No(s) .15785-15788/2020, dated March 24, 2021] declined to interfere in Revenue’s Special Leave Petitions, for use of ‘C’ Forms of the Central Sales Tax Act, 1956 (“CST...
The CBIC has issued Advisory No. 8 /2021- Refunds dated 20th April 2021 related to the implementation of PMT-03 to re-credit the ITC sanctioned as a refund. Kind reference is invited to the notification No.16/2020-Central Tax dated 23.03.2020, vide which sub-Rule (4A) has been inserted in Rule 86 of the CGST Rules, 2017 (Rule 86 of...
The budget was presented on 01-02-2021 and amendment was carried out in the Finance Bill, 2021 which will come into effect from the date when the same will be notified, as far as possible, concurrently with the corresponding amendments to the similar Acts passed by the States and Union Territories with Legislature. AMENDMENTS IN THE CGST...
CBIC vide Notification No. 94/2020 – Central Tax dated 22nd December 2020 has amended CGST Rules, 2017. These rules may be called the Central Goods and Services Tax (Fourteenth Amendment) Rules, 2020. The various amendments are as follows: The time limit for system-based GST Registration increased The time for system-based registration has been enhanced from 3 days...
A facility of ‘Communication Between Taxpayers’ has been provided on the GST Portal, for sending a notification by recipient (or supplier) taxpayers to their supplier (or recipient) taxpayers, regarding missing documents or any shortcomings in the documents or any other issue related to it. This facility is available to all registered persons, except those registered as TDS,...
Who can opt for the scheme: Following registered person can file quarterly returns and pay tax on monthly basis w.e.f. 01.01.2021 : A registered person who is required to file Form GSTR 3B with aggregate turnover (hereinafter AATO) of up to INR 5 Cr. in the previous financial year is eligible to opt in this scheme....
In terms of Rule 138E (a) and (b) of the CGST Rules, 2017, the E-Way Bill (EWB) generation facility of a taxpayer is to be blocked, in case the taxpayer fails to file their returns in Form GSTR-3B or Statement in Form CMP-08, for two or more consecutive tax periods. For unblocking of this facility,...
The government’s efforts to check evasion of Goods and Service Tax (GST) and step up the indirect tax system’s efficiency is set to reach the next level soon with officials being able to intercept suspicious transactions on a real time basis and pre-empt fraud. The idea is to enable tax officials to block generation of electronic...
A Composition taxpayer may now file NIL statement in Form GST CMP-08 for a quarter, through an SMS, apart from filing it through online mode, on GST Portal. To file NIL Form GST CMP-08 through SMS, the taxpayer must fulfil following conditions: The taxpayer must be registered as composition taxable person (by filing Form GST REG-01) or...
E-Invoicing’ has been one of the most discussed topics for the past month and it has made its way to the to-do lists of all large corporates having GST aggregate turnover of more than ?500 crores. The Government notified the implementation of e-invoice from 01 October 2020, which will mandate registration of all tax invoices*...
‘E-invoicing’ for certain classes of taxpayers has come into effect from 1-10-2020. Keeping in view the hardships faced by the taxpayers due to COVID-19 lockdown and as some of these taxpayers are still not ready, as a last chance, Government had given relaxation that invoices raised by notified taxpayers during October, 2020 without following e-invoice procedure...
GST Council is likely to approve a two-year extension of compensation cess levy on goods and services to allow Centre to pay entire shortfall in GST tax collection by states expected till June 2022. Sources in the government said that with 21 states expressing their preference for the Borrowing Option-1 proposed by the Centre to meet...
1. An offline tool has been made available to the taxpayers to match Input Tax Credit (ITC), as auto populated in their Form GSTR-2B, with their purchase register. This tool will help the taxpayer to compare their ITC as per their Purchase Register, with the ITC as shown available in their auto drafted Form GSTR-2B...
The GST Council, in its 39th meeting held on 14th March 2020, had recommended to adopt and implement the incremental approach of linking the present system of filing of GSTR-3B and GSTR-1 and other significant changes like enhancements in GSTR-2A and its linking to GSTR-3B. One such enhancement that the Council recommended was the introduction of...
The Central Board of Indirect Taxes and Customs (CBIC) vide Instruction No. 390/Misc/3/2019 – JC dated August 21, 2020 issued the revised guidelines for conducting the personal hearing by virtual mode under CGST Act, 2017, IGST Act, 2017, Customs Act, 1962, Central Excise Act, 1944 and Chapter V of Finance Act, 1994. The Board has...
A facility has been provided to the taxpayers to download document wise details of Table 8A of Form GSTR-9, from the portal in excel format. This can be done by using a new option of ‘Document wise Details of Table 8A’ given on the GSTR-9 dashboard, from Financial Year 2018-19 onwards. This will help the...
The Suvarna Karnataka Chemists and Distribution Association (SKCDA) has sought clarification from the State drug controllers about the procedures followed by the authority in granting manufacturing as well as sale licenses to manufacturers of hand sanitisers in the State. It has written a letter to the drug controlling authority with a request for detailed data...
The Goods & Services Tax Network (GSTN) Portal has now enabled the facility of filing GSTR-4 Annual Return by Composition Taxpayers. What is GSTR-4 (Annual Return)? GSTR-4 is an Annual Return that is required to be filed by Taxpayers who have opted for Composition Scheme. Such Taxpayers are required to file Annual Returns under form GSTR-4 from...
CBIC has extended timelines for Compliances such as filing of Details of Outward Supplies reported under Section 37 in form GSTR-1, Return of Inward and Outward Supplies, Input Tax Credit availed, tax payable and paid under Section 39 in Form GSTR-3B, Return of Inward Supplies of Services and Input Credit Distribution by Input Service Distributor in Form GSTR-6,...
A recent observation by Maharashtra Authority of Advance Rulings (AAR) resulted in the ruling that GST will not be applicable if the Indian project office (PO) of an MNC is accounting for the salary of an expatriate employee. The AAR also observed that considering, the expat employee, in such cases, is on the payrolls of...
Ahmedabad: The Gujarat high court has said that only the ‘Veggie Supreme’ of Pizza Hut can be a matter of investigation in an anti-profiteering case. Pizza Hut has been fighting a legal battle after a customer accused its SG Road outlet of overcharging though GST rates had been slashed. On Wednesday, the Gujarat HC directed...
GSTN has issued Frequently Asked Question on filing of nil GSTR-1 through SMS on GST Portal. Some of the important questions for the understanding of the taxpayers are as under:- 1. Ques: When can Form GSTR-1 be filed as Nil? Ans: Form GSTR-1 can be filed as a nil return if there are no outward supplies (including...
The CBIC vide Notification No. 48/2020 – Central Tax dated 19th June, 2020 has amended Central Goods and Services Tax Rules, 2017. Earlier Rule 26 sub rule (1) second proviso states: “Provided further that a registered person registered under the provisions of the Companies Act, 2013 (18 of 2013) shall, during the period from the...
Many FMCG and pharma companies that had paid Goods and Services Tax (GST) on raw materials and services used to manufacture perishable goods are staring at a situation where they will have to reverse input tax credit (ITC) availed, as these goods could never be sold before their expiry date due to the nationwide lockdown....
In a relief to small taxpayers with turnover up to Rs 5 crore, the GST Council on Friday halved the interest on delayed filing of GST returns for February, March and April to 9 per cent, provided the returns are filed by September 2020. Also, the deadline for filing returns for May, June and July...
CBIC vide Circular No. 140/10/2020-GST issued clarification in respect of levy of GST on director remuneration. CBIC has examined the subject matter in two category which is: Leviability of GST on remuneration paid by companies to the independent directors or those directors who are not the employee of the said company The primary issue to...
The 40th GST Council met was held on 12-06-2020 under the Chairmanship of Union Finance and Corporate Affairs Minister Smt Nirmala Sitharaman. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and seniors officers of the Ministry of Finance....
As per the reports, the Goods & Services Tax Network (GSTN) on Sunday, 31st May, 2020 said that it has enabled new registration functionality on the GST portal for registered entities who are now corporate debtors under the provisions of the Insolvency & Bankruptcy Code (IBC). This will benefit companies undergoing the Corporate Insolvency Resolution...
The Insolvency Resolution Professionals/ Resolution Professionals (IRPs/RPs), appointed to undertake corporate insolvency resolution proceedings for Corporate Debtors, can apply for new registration on GST Portal, on behalf of the Corporate Debtors, in each of the States or Union Territories, on the PAN and CIN of the Corporate Debtor, where the corporate debtor was registered earlier,...
The finance ministry is not in favour of raising the goods and services tax (GST) rates even on non-essential items at a time its revenue collections are expected to be badly hit by the nationwide lockdown to contain the spread of Covid-19. “Post the lockdown, demand has to be induced and economic activity has to...
The Commissioner of CGST Thane, Mumbai vide F.No. V(Misc)/AdjudicationPH/Thane/2020 dated May 18, 2020, issued guidelines for conducting a personal hearing in the virtual mode in respect of pending show cause notice/ appeals etc. under the provisions of erstwhile the Central Excise Act, 1944, the Finance Act, 1994 & the Central Goods & Services Tax Act,...
High Court of Jharkhand passed a judgement on 21st April, 2020 in the case of Mahadeo Construction Co. (Petitioner) stating that without initiation of any adjudication proceedings, no recovery proceeding under CGST Act can be initiated for recovery of the interest amount. The case is described as under: Facts of the Case The petitioner stated that...
The pandemic situation of COVID-19 has created an obligation for the Government to take necessary preventive steps. In this context Ministry of Home Affairs (MHA) has issued various orders and guidelines from time to time. MHA in its order dated 15th April 2020 has provided measures to be implemented in all offices, factories, and other establishments....
The High Court of Delhi on 5th May, 2020 passed a judgement in the case of four Petitioners namely Brand Equity Treaties Limited, Micromax Informatics Ltd., Developer Group India Private Limited, Reliance Elektrik Works vs. Union Of India & ORS (Respondent) stating that the taxpayers can file TRAN-1 to avail the CENVAT or Input Tax...
Ministry of Home Affairs (MHA) in wake of COVID 19 has made medical insurance mandatory for the workers of offices, workplaces, factories, and establishments. This decision of the Government has brought great relief for the organization as now organizations can take the benefit of input tax credit paid on medical insurance premiums. In this article, we...
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. In case a taxpayer deposited any amount under a major head i.e. IGST, CGST, SGST/UTGST and Cess or minor head i.e. Tax,...
HC of Gujarat gave an important judgment dated 16th December, 2019 regarding procedure for acquiring GST Number (registration) of company in case of OL of Sterling Basic Organics Ltd.(In Liqn) [2020] 114 taxmann.com 498 (GUJARAT) which is discussed as below: Facts of the Case Company is in liquidation and official liquidator has filed a writ. Official Liquidator received...
NEW DELHI: The government is unlikely to exempt GST on medical items like ventilators, PPEs, masks, test kits and sanitisers, as it would lead to blocked input tax credit (ITC), thereby increasing the cost of manufacturing and increase the price for consumers. There have been demands from certain sections to exempt GST on certain items...
The following amendments will be needed to be passed or notified through the issuance of the legal circulars and legislative amendments, after being approved by the Goods and Services Tax (GST) Council which are as follows: Read more: https://www.ascgroup.in/highlights-of-38th-gst-council-meeting/ Taxpayers having an annual aggregate of up to Rs. 5 Crore: The due dates for filing of GSTR-3B...
Due to COVID-19 pandemic and challenges faced by taxpayers, Government has extended dates for GST filings. These are notified in Notifications 30/2020 to 36/2020 dated 03.04.2020. Circular No. 136/06/2020-GST dated 3rd April, 2020 has been issued. Normal Taxpayers filing Form GSTR-3B a. Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY Tax period Late fees waived if return filed on or...
The government has retrospectively extended the validity of e-way bills under the Goods and Services Tax (GST) regime that would have expired between March 20 and April 15 to April 30. Also, in a move that will ease the working capital requirements for businesses, the government has deferred the implementation of 10 per cent restriction...
High Court of Karnataka gave an important judgment dated 27th November 2019 regarding the legality of an order passed by a single judge enabling the assessee to file GST TRAN-2 in case of Union of India v. Aravind Lifestyle Brands [2020] 113 taxmann.com 483 (Karnataka), which is discussed as below: Facts of the Case Assessee while filing Form GST...
CBIC stated via different notification issued on 23rd March, 2020 that Aadhaar authentication is mandatory for GST registration from 1st April 2020. The detailed notification is as under: - Notification No. 17/2020 – Central Tax Dated 23rd March, 2020 G.S.R. 200 (E).- In exercise of the powers conferred by sub-section (6D) of section 25 of the Central Goods and Services Tax...
The CBIC on recommendations made in 39th GST Council Meeting vide Notification No. 16/2020 Central Tax dated 23rd March,2020 has amended Central Goods and Services Tax Rules, 2017 (“CGST Rules, 2017”) to provide for recovery of refund on export of goods where export proceeds are not realized within the time prescribed under FEMA. In CGST...
In wake of complete lockdown due to fast spread of COVID-19 in India, our Finance Minister today held a Press Conference in New Delhi. Following are the key decisions taken in the aforesaid Press Release that have impact on Corporate India: Income Tax Changes: Last date of filing ITR for FY 2018-19 has been extended to...
In an investigation led by CGST Meerut team has prima facie revealed issuance of GST invoices of Rs. 1,708 crores from a chain fake firms/companies operating from Delhi, Moradabad and Meerut, involving fraudulent ITC of about Rs 281 crores. The fraud amount may exceed on further probe. On the basis of initiative taken by the...
The 39th GST Council meeting was held on 14-03-2020 under the Chairmanship of Union Finance and Corporate Affairs Minister Smt Nirmala Sitharaman. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance....
The Council would also discuss the integration of the GST e-way bill system with the NHAI's FASTag mechanism from April to help track the movement of goods and check GST evasion. The GST Council is likely to rationalise tax rates on five sectors, including mobile phones, footwear, and textiles, and defer implementation of the new...
MUMBAI: The Reserve Bank of India’s (RBI) decision to extinguish Additional Tier 1 (AT1) bonds of Yes Bank will hurt a large number of retail and other investors (through write-offs in mutual funds and insurance funds), bank treasuries and HNIs. In addition, RBI’s decision has also increased uncertainty about these bonds, which are leading to...
Tax Regime - Four years ago, Indonesian finance minister Mulyani Indrawati had invited captains of industry and CEOs to banquets.As they would be having sumptuous meals, she reportedly would give presentations listing out who among them had — and, by omission, who had not — signed up to the tax amnesty offered by the government. This...
Mumbai: GST on non-compete fee - Non-compete agreements during acquisitions that restrict the seller from starting a new venture for some time or poaching employees and customers, have attracted the taxman’s attention. Several private equity firms, strategic investors and others that have bought businesses and entered into these contracts with the sellers have received notices...
The inability of the Goods & Services Tax (GST) Administration to determine the ‘Place of Supply’ for over the counter (OTC) sales can potentially result in more and more litigations. GST is a destination-based tax in which a consumer will bear the final tax and the State where consumption has taken place will get the...
A buyer cannot be penalized in case a seller does not deposit tax collected from her/him, a High Court has ruled. This order could become precedent in a number of similar cases all over India as many businesses are denied input tax credit (ITC) under the indirect tax regime when the counterparty does not file...
Issue of Composite Supply - The Kerala high court has tried to clear the air over the contentious issue of composite supplies under the Goods and Services Tax (GST) which experts say may become guiding principles to decide cases in litigation. If more than one good or service are supplied by a company, these could...
The Central Board of Indirect Taxes and Customs has issued notices to some businesses for initiating audit under the said period, a government official told BloombergQuint on the condition of anonymity. The businesses, the official said, have been asked to share accounting details and income tax returns, among other particulars, in accordance with Section 65...
38th GST Council meeting took place on 18 December 2019, Wednesday. It was presided by our Honourable Union FM Nirmala Sitharaman and conducted in New Delhi. Following are the highlights of the meeting: 1. Due dates extended for GSTR-9 and GSTR-9C for FY 2017-18: The due date of GSTR-9 and GSTR-9C are extended further till 31...
NEW DELHI: The goods and services tax (GST) Council on Wednesday fixed a uniform tax rate of 28 percent on both state and private lottery which will come into effect from March 2020. At present, lotteries run by state governments attract 12 percent GST while those authorized by them and sold outside the state are...
NEW DELHI : If you have been wondering why your income tax return (ITR) has not been processed yet or why there has been a delay in getting tax refund, first check whether you have e-verified your ITR. Although when you file your ITR on the income tax department's e-filing portal the taxman receives it, but...
What Law provide? As per section 67 of CGST Act, 2017 Power of inspection, search and seizure have been given to proper officer not below the rank of joint commissioner when he has reason to believe that assesse has acted in such a way which will lead to evasion of tax. What happened in a few cases? In some...
GST health check-up is a recent initiative to protect an organization and fulfill GST compliances to run the business of an entity seamlessly. GST health check-up includes Routine GST compliances, identifying GST data with books, analyzing the transactions and compliances relating to GST laws, and tracking and executing the ways through which an organization can...
Natural gas in GST - Oil Minister Dharmendra Pradhan on Monday made a vehement appeal to Finance Minister Nirmala Sitharaman for bringing jet fuel and natural gas under the ambit of GST to reduce multiplicity of taxes and improve business climate. When GST was introduced on July 1, 2017 amalgamating over a dozen central and...
The government recently declared to limit input tax credit under the goods and services tax to 20% of the eligible amount for a business if its supplier has not uploaded appropriate invoices specifying the payments made. There exists no limitation on unreconciled GST Input Tax until now and input tax credit was requested by taxpayers...
CBIC issues 6 New GST Notifications on 09th October 2019 to give outcome to decisions of 37th GST Council Decisions and also to make alterations in Central Goods and Services Tax Rules 2017. Through these Notifications CBIC Notifies Due Date of GSTR 3B And GSTR 1, CBIC further informs that GST Annual Return is voluntary...
It has been just under 36 months since the parliament passed the amendments required to bring in the promise of a simpler and more effective indirect tax system, GST. In the 24 months since its implementation, there have been many promises that have been made, many that have been met, and for some, still, a...
The Goods and Services Tax (GST) collections dropped sharply to a 19-month low of Rs 91,916 crore in September, mirroring a widening slowdown in the economy triggered by shrinking consumer demand. This is the second straight month of decline in GST collections, according to official data released by the finance ministry. The tax collections at Rs...
On Thursday, GST Network (GSTN), the IT backbone of the Goods and Services Tax system, unveiled an online refund process. In a statement, GSTN said that with the deployment of online refund functionality, taxpayers can now file refund application (in RFD 01 form) easily and tax officers can process the same online. All communications between...
The CBIC vide Circular No. 107/26/2019-GST dated July 18, 2019, has clarified various issues related to supply of Information Technology enabled Services (“ITeS services”) such as call center, business process outsourcing services, etc. and “Intermediaries” to overseas entities under GST law and whether they qualify to be “export of services” or otherwise. The gist of the...
The risk Parameters has been developed by the audit department of CBIC (Central Board of Indirect Taxes for choosing taxpayers based on the annual returns to be audited. In the detailed letter, the department has initiated officials to shift to Desk-based Filing instead of the traditional method of audits, especially for the small taxpayers. The...
Facts: M/s. Kindorama Healthcare (P.) Ltd. (“the Applicant”) renders medical services with experienced professionals like doctors, nursing staff, lab technicians etc. The in-patients are provided with facilities for accommodation, medicines, consumables, implants, dietary foods including surgical procedures required for the treatment. Issue Involved: Whether the supply of medicines and other services to in-patients in hospital would...
After reviewing a petition filed by the Solar Power Developers Association (SPDA) that challenges the new tax formulation structure for solar projects, a bench of the Delhi High Court has asked GST Council to review the newly-introduced taxation formula. In December 2018, the GST Council, in its 31st meeting, had given its recommendations on solar power generating projects. In...
CBIC has Released Excel based Form GSTR-9C Offline Tool on April 14, 2019. GSTR-9C Offline utility is designed to help the taxpayer to prepare the GSTR-9C return offline. Your downloaded (GSTR9C Offline Tool) zip file contains: • GSTR_9C_Offline_Utility (Excel Macro) • Release Notes Installation 1. Access the GST Portal http://www.gst.gov.in. 2. Go to Downloads > Offline tools > GSTR-9C Offline Tool > Download...
The National Informatics Centre (“NIC”) has made new changes in E-Way Bill System dated March 25, 2019, which will be made effective in Next Version which will be implemented very soon. The following are the gist of the forthcoming changes In E-Way Bill System are as here under:- 1. Auto calculation of route distance based on...
The GST Council in the 34th meeting held on 19th March 2019 at New Delhi discussed the operational details for implementation of the recommendations made by the council in its 33rd meeting for lower effective GST rate of 1% in case of affordable houses and 5% on the construction of houses other than the affordable...
Restaurant-cum-sweet shops are better off maintaining two books of accounts for the Goods and Service Tax (GST) regime. Besides, billing and taxation on the same items sold through restaurants and sweet shops located in same premise will be different. In one of the rare cases, the Appellate Authority for Advance Rulings for the State of...
The Finance Ministry may explore a clearly-defined broad framework to ensure that cuts in GST rates benefit consumers. The fresh initiative is being considered in the wake of rising number of complaints against companies that are found tweaking rules to avoid lowering retail prices. At present there is no prescribed method under the GST law...
Fact: M/s. Micromax Informatics Limited (“the petitioner”) had imported mobile handsets under various bill of entries filed during the period between July, 2014 to June, 2015. On such imports, the petitioner had made payment of additional duty of customs commonly referred to CVD at the rate of 7.21% till February 28, 2015 and for the...
GSTN will focus, amongst others, on the development of new return filing, further improving the user interface, and Business Intelligence and Analytics. Improvement in User Interface on the basis of feedback is a continuous process. A few important initiatives/improvements made for better User Experience are: Questionnaire for filing GSTR-3B to avoid errors by taxpayers. Option to generate pre-populated...
While the government has amended the GST law a few times since its rollout, a lot of the changes in the provisions and concepts of the new indirect tax regime came about due to court rulings. Last June, when the Goods and Services Tax (GST) was about to complete a year, former revenue secretary Hasmukh...
Several major infra companies which are into government projects like irrigation and other works in Telangana and Andhra Pradesh along with iron and steel companies that are supplying fake invoices to them are now under the scanner of GST Intelligence sleuths. Two cases one by GST Intelligence and another by GST Hyderabad commissionarate — linked...
Non-filers of GST returns for 6 consecutive months will soon be barred from generating e-way bills for movement of goods. The Goods and Services Tax Network (GSTN) is developing such IT system that businesses who have not filed returns for two straight return filing cycle, which is 6 months, would be barred from generating e-way...
The GST e-way bill system is likely to be integrated with NHAI’s FASTag mechanism from April to help track movement of goods and check GST evasion. The revenue department has set up an officers committee to integrate e-way bill, FASTag and DMIC’s Logistics Data Bank (LDB) services, after consultation with transporters. “It has come to our...
In pursuance of the decision in the 32nd Meeting of GST Council held on 10th January 2019 at New Delhi, a Group of Ministers (GoM) for boosting the Real Estate Sector under the GST regime has been constituted. The ‘GoM for boosting Real Estate Sector under the GST regime’ shall consist of the following members: The Terms...
The Goods and Services Tax was introduced with the aim of bringing India’s scattered and somewhat complicated tax structure under a single umbrella. GST came into effect on 1st July, 2017 and while there was much anticipation about the Act, it has in fact proven to be a binding force for the Indian tax structure....
Goods and Services Tax was introduced in an effort to bring all taxes under one uniform structure. In this article, we will throw light on who needs to file GST returns, the process of filing GST returns and the schedule. All registered businesses have to file monthly as well as quarterly and annual returns depending...
The Goods and Services Tax has brought with it a number of instrumental changes – some which have led to a reformed Indian taxation system. Making this structure stronger, India now requires that foreign e-commerce companies apply for GST registration in every state. The Government has stated that the new provisions for tax collected at...
The GST council in its 28th Meeting held at New Delhi on July 21st, 2018, has made various recommendations in GST laws which is summarized below. These are the proposed recommendations which have been discussed in the 28th GST Council Meeting. However, these recommendations shall be placed before the parliament and the respective legislatures of...
The hotel industry is one of the fastest-growing domains in India, and, together with the travel segment, it was valued at $136.2 billion by the end of 2016. The implementation of Goods and Services Tax (GST) will help the hotel and travel industry largely by bringing down costs for customers, consolidating the multiple taxes into...
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