Karnataka AAAR in case of M/s PAGE INDUSTRIES LTD [ORDER NO.KAR/AAAR/05/2021, dated: 16.04.2021] on appeal field by 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 interpretation of law.
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.
CBIC vide circular No. 153/09/2021-GST dated the 17th June, 2021 clarified the provisions related to GST on milling of wheat into flour or paddy into rice for distribution by Govt.
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 construction of road where certain portion of consideration is received upfront while remaining payment is made through deferred payment (annuity) spread over years.
It has been clarified that any catering service provided to an educational institution is exempt from GST. It is further mentioned that such exempt service includes mid- day meal service provided to an educational institution. The scope of this entry is thus wide enough to cover any serving of any food to a school, including pre-school. Further, an Anganwadi interalia provides pre-school nonformal education. Hence, anganwadi is covered by the definition of educational institution as pre-school
The Central Board of Indirect Taxes and Customs (“CBIC”) has issued Notification no. 05/2021 – Integrated Tax (Rate) dated 14th June, 2021 to reduce GST rate of certain COVID-19 relief supplies.
The 44th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through a video conference 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 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 rates on supply of goods and services and changes related to GST law and procedure:
To provide relief to the taxpayers, late fee for non-furnishing FORM GSTR-3B for the tax periods from July, 2017 to April, 2021 has been reduced as under
In the GST council met held on 28th May, 2021, an important recommendation related to COVID-19 products has been taken to provide relief from COVID-19.
The Madurai bench of Madras High Court on 18th March, 2021 set aside the order rejecting refund claim of CGST and IGST of the assesse wherein, the entire refund liability of Input Tax Credit (“ITC”) got auto populated under a single head i.e. State Goods and Services Tax (“SGST”) in the case of Tvl. Mehar Tex (Petitioner) Vs. Commissioner of Central GST And Central Excise (Respondents). The case is described as under:
The Madurai bench of Madras High Court on 24th February, 2021 quashed the order passed by the officer levying the entire tax liability on the purchasing dealer in the case of M/s. D.Y. Beathel Enterprises (Petitioner) v/s The State Tax Officer (Data Cell), (Investigation Wing) (Respondents). The case is described as under:
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 the applicant, relevant facts and interpretation of law.
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 CBIC vide Notification No. 12/2021 – Central Tax dated 1st May, 2021 has made an amendment in Notification No. 83/2020-Central Tax, dated November 10, 2020 whereby time limit for furnishing the details of outward supplies in FORM GSTR-1 for the registered persons required to furnish return under sub-section (1) of section 39 of the said Act, for the tax period April, 2021, is till 26th day of the month succeeding the said tax period, i.e. for April 2021 return under sub-section (1) of sect
The CBIC vide Notification No. 07/2021–Central Tax, dated 27th April 2021, has made an amendment in Rule 26 in Sub – Rule 1 of the Central Goods and Services Tax Rules, 2017 that covers the method of authentication of documents or application.
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 Act”) post GST in respect of purchase of six commodities (petroleum crude, diesel, petrol, aviation turbine fuel, natural gas and liquor) for use in the
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 CGST Rules, 2017 talks about electronic credit ledger) and Para 4 of the Circular No 135/05/2020 dated 31.03.2020, wherein the procedure for refund of tax paid on supplies, other than zero rated supplies was provided.
CBIC has introduced a Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme intending to help small taxpayers. This scheme can be availed by taxpayers whose turnover is less than or equal to INR 5 crore in the preceding financial year. In this scheme, taxpayers file GSTR-3B quarterly and pay taxes monthly.
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.
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:
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, TCS, or NRTP.
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. If AATO crosses INR 5 Cr. during a quarter, registered person will become ineligible for the scheme from next quarter.
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, taxpayer need to apply to jurisdictional Tax Official in Form GST EWB 05.
E-Way Bill is an Electronic Waybill (EWB) for the movement of goods to be generated on the E-Way Bill Portal. An assessee who is registered under GST cannot transport goods in a vehicle whose value exceeds Rs. 50,000 (Single Invoice/bill/delivery challan) in relation to a supply or for reasons other than supply or due to inward supply from an unregistered person without an e-way bill.
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.
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.
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 crore. The Government notified the implementation of e-invoice from 01 October 2020, which will mandate registration of all tax invoices* details on a centralised portal. This will involve uploading of invoice details on a notified Invoice Registration Portal (“IRP") where validation of key invoice particu
In terms of Rule 138 E (b) of the CGST Rules, 2017, the E Way Bill generation facility of a person is liable to be restricted, in case the person fails to file their GSTR-3B returns, for a consecutive period of two months or more.
The government expects e-invoicing to have other major advantages of improving the payment cycle for the industry and give boost to invoice based lending to MSMEs.
42th Council Meeting has been held on 5th October, 2020. In this meeting the council has made following recommendations: Due date of furnishing quarterly GSTR-1 by quarterly taxpayers to be revised to 13th of the month succeeding the quarter w.e.f. 01-01-2021.
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 (i.e. uploading invoice details on e-invoice portal (IRP), obtaining IRN and issuing invoice with QR Code) will be deemed to be valid and no penalty will be there if the IRN for such invoices is obtained within 30 days
Vide Notification No 67/2020 dated 21.09.2020, the taxpayers who were under Composition Scheme, during any period till 31st March, 2019, have been provided relaxation in payment of late fees, on filing Form GSTR-4 (Quarterly Return).
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.
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 and thus help them to claim correct ITC, while filing Form GSTR-3B.
A pdf statement has been made available to taxpayers, filing monthly GSTR-1 statement, with system computed values of Table 3 of Form GSTR-3B. This PDF will be prepared on the basis of the values reported by them, in their GSTR-1 statement, for the said tax period.
Provision to make amendment, multiple times, in Table 4 of Form GSTR-8 Earlier, if no action was taken on TCS details, auto-populated in TDS/TCS credit form, by the supplier or if the same were rejected by them in the said form, the TCS (e-commerce operators) could amend the details only once. Based on requests received from stakeholders, the restriction of amending the transaction details only once, in the table 4 (i.e. a
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 an auto-drafted input tax credit (ITC) statement which would aid in assisting/determining the input tax credit that is available for every
CBIC vide Notification No. 63/2020 – Central Tax dated 25th August, 2020 has notified that interest on late payment of GST liability will be payable on net cash liability basis i.e. after deduction of available input tax credit from gross tax liability. This notification is applicable from 1st September, 2020. In the said notification section 100 of the Finance (No. 2) Act, 2019 (23 of 2019) shall come into force and Section 100 of the
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 now decided to make it mandatory for various authorities, such as Commissioner (Appeals), original adjudicating authorities and Compounding Authority to conduct per
Delhi High Court has dismissed a petition asking the court to classify mask and sanitisers as essential commodities and reduce gst on alcohol-based sanitisers to either 12% or 5%. Dismissing the plea, the high court said that masks and sanitisers are now easily available and there is no need to control such commodities or to regulate supply. The court observed that inclusion of commodities in the list of essential commodities under the Essential Commodities Act , 1955 is a complex decision ba
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 taxpayer in reconciling the values appearing in Table 8A of Form GSTR 9, thus facilitate filling the Form GSTR-9. Table 8A of Form GSTR 9 is populated on basis of doc
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 pertaining to applications, verifications, inspections and grant of license for manufacture and sale of alcohol-based hand sanitisers, g
The government plans to improve existing GST return filing system instead of rolling out a new model. The new system was supposed to be launched on 1 October this year. Yogendra Garg, Principal Commissioner, GST Policy at CBIC, while speaking at a webinar hosted by Assocham, said that the move is aimed at making compliance much easier. The GST Network, the IT support of the GST regime, is working on modif
The Goods & Services Tax Network (GSTN) Portal has now enabled facility of filing GSTR-4 Annual Return by Composition Taxpayers. What is GSTR-4 (Annual Return)? GSTR-4 is an Annual Return which is required to be filed by Taxpayers who have opted for Composition Scheme. Such Taxpayers are required to file Annual Return under form GSTR-4 from FY: 2019-20. How is it different from GSTR-4 Quarterly Return? Form GSTR-4 Quarterly Return was applicabl
The Central Board of Indirect Taxes & Customs (CBIC) has notified vide instruction no.CBEC-20/06/11/2020-GST dated 17th July 2020 to dispose of all pending applications of Registration on or before 30th July 2020 as a "special drive". Sub-Section 10 of Section 25 of CGST Act, 2017 read with Rule 9 of CGST Rules, 2017 provides that Application of Registration shall be deemed as approved after a period of three working days if the proper officer fails
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, Return of Turnover and Inward Supplies in Form GSTR-4, Validity of E-Wa
The Central Board of Indirect Taxes & Customs (CBIC) has extended the due date for filing of GSTR-4 required to be filed by registered persons opting for composition scheme under GST vide its Notification no.59/2020-Central Tax dated 13th July 2020 for FY:2019-20. This Notification seeks to amend the
Ministry of Finance (MoF) vide its Press Release dated 15th July 2020 issued "Clarification on the issue of GST Rate on Alcohol-based Hand Sanitizers". This Clarification seeks to declutter the issues surrounding the Alcohol-Based Hand Sanitizers since many representations were made to MoF seeking exemption from GST for
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 the foreign company and the project office is just a temporary extension in India, such employees should be considered as employees of the project office as well. This in turn i
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 the anti-profiteering authority of the GST department to focus its scrutiny o
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:- 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 supplies on which tax is to be charged on
In a major move towards GST taxpayers’ facilitation, the Government has decided to provide the facility of SMS filing of NIL statement of FORM GSTR-1 from 1st week of July 2020. GST taxpayers with NIL outward supplies would not be required to log on to the GST Portal and would be able to file their NIL statement in FORM GSTR-1 through just an SMS. The status confirmation of the filed statement or return application can be tracked
A New Tab “Help and taxpayers Facilities” has been enabled on GSTN portal by this facility the taxpayers can avail various benefits such as:- Taxpayers Services:- Free Accounting and Billing Services: List and details of empanelled accounting and billing software solutions. GST Suvidha Providers: List and details of GST Suvidha Providers. Site Map: List of website’s content to help the users navigate the GST Port
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 21st day of April, 2020 to the 30th day of June, 2020, al
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. As per the GST framework, companies have to first pay GST on raw materials or servic
The Central Board of Indirect Taxes and Customs has issued Notification no. 47/2020 – Central Tax dated 9th June, 2020 which states that the E- Way Bills which were generated on or before 24th March, 2020 under rule 138 of the Central Goods and Services Tax Rules, 2017 and their period of validity has expired on or after 20th March, 2020, then the period of validity of such E-Way bills will be deemed to have been extended
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 has been extended till September, without any interest or late fee, Finance Minister Nirmala Sitharaman said after a meeting of the council. Asked about revenues in the two months of lockdown, Sithara
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 be decided is whether or not a “Director” is an employee of the company. In this regard, from the perusal of the relevant provis
MUMBAI: A non-finicky eater couldn't care less if he or she is having rotis or parotas for dinner. After all, they are a kind of Indian bread, typically dunked into gravy or even savoured with grilled or fried food such as kebabs. But, in the realm of Goods and Service Tax (GST), there can be a huge chasm. In a recent GST ruling, Authority for Advance Rulings (Karnataka bench) distinguished between the two
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. The Council has made the following recommendations: Measures for Trade facilitation: a. Red
The CBIC has issued a Press Release vide June 08, 2020, to roll out the facility of filing of Nil GST Return through SMS facility. The government has allowed taxpayers filing of Nil GST monthly return in FORM GSTR-3B through SMS. This would substantially improve ease of GST compliance for over 22 lakh registered taxpayers who had to otherwise log into their account on the common portal and then file their returns every month. Now, these taxpayers with nil liability need not log on to the GST Por
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 Process (CIRP) & whose management affairs
NEW DELHI: The GST Council in its next meeting will discuss waiver of late fee for non-filing of GST returns for August 2017 to January 2020 period. In a tweet, the Central Board of Indirect Taxes and Customs (CBIC) said, "Issue of GST late fee for the past period (August 2017 to January 2020) to be discussed in the next GST Council meeting." The next meeting of the GST Council is likely to be held on June 14. The CBIC said there have been demands for waiver of late fee for returns whic
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, in terms of Notification No. 11/2020-CT, dated 21st March, 2020 and as amended vide Notification No
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 improve on all fronts, not just on essential items. Who are we to decide what is non-essential? However, the GST Council will take a final call on the matter,” said a senior fina
GSTN has enabled form ITC-02A by which registered person can transfer the unutilized ITC lying in Electronic Credit Ledger to newly registered place of business within same state or Union Territory Rule 41A of The CGST Rules, 2017 was inserted vide Notification no. 03/2019-CT dt. 29.01.2019 w.e.f. 01.02.2019 which deals with Transfer of credit on obtaining separate registration for multiple places of business within a state or UT: “(1) A registered person who has obtained separate re
The government could allow companies to claim input tax credit for personal protective equipment (PPE) kits, sanitisers, masks and other such goods distributed free for battling Covid-19. Officials in Central Board of Indirect Taxes and Customs (CBIC) aware of the development said the issue was being examined and a decision is expected shortly. One of the officials quoted above said the government had received several representations seeking relaxation in Sec 17(5)(h) of CGST Act 2017, which
High Court of Orissa passed a judgement on 09th January, 2020 in the case of Serajuddin and Co. (Petitioner) Vs. Union of India stating that no order for recovery of tax amount can be passed in violation of the statutory requirement of law. The case is described as under: Facts of the Case The petitioner was issued a Show cause notice (SCN) on 04th November 2019 for non-payment of tax for quarter 4 of FY 2018-19 with conditions th
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, 2017. In the light of the situation arising and the Instruction under reference, it has been decided to conduct ‘Personal Hearing
High Court denies request for bail in a case of GST evasion to the tune of Rs. 20 crores (approx.) under section 132 of GST Act 2017, in light of the prevalent conditions of spread of COVID-19 virus, in a case of Rajinder Bassi and others vs. State of Punjab dated April 17, 2020. The spirit of directions as issued by Supreme Court vide order dated 23.02.2020 and as clarified vide order dated 13.4.2020 is as follows:
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 demanding interest amount of Rs.19,59,721/-on the ground of delay in submit
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 https://www.ascgroup.in/wp-content/uploads/2020/05/MHA-order-dt-15.04.2020-with-Revis
Government of Kerala has issued a Notification No. 7/2020-State Tax dated April 28,2020 in which Kerala Govt. notifies extension for filing 'Flood Cess Return' for period Feb to May. Commissioner of State Tax hereby extends the due date for filing Kerala Flood Cess return as per the dates below: S. No. Class of
The CBIC has issued Notification no. 39/2020 – Central Tax dated 5th May, 2020 by which following amendments are made in the earlier issued Notification no. 11/2020-Central Tax, dated 21st March, 2020: In earlier issued notification it was not clear that whether the Insolvency Resolution Professionals / Resolution Professionals (IRP/RP) who have been following the provisions under GST Law for their Corporate Debtor (i.e. with old GSTIN) are again required to take new
In a significant ruling, the Karnataka Advance Ruling Authority has said that LIC’s maturity sum will not attract GST as it is not a service, putting an end to the ambiguity over the issue among taxpayers. “The insurance premium of policies is taxable under GST, being the consideration for the services provided by the insurance companies. Therefore, on completion of the said contract/maturity of the policy, there would not be any service involved between the policyholder and the insurance
The Governor of Bihar empowered under sub-section (3) of Section 1 of The Bihar Settlement of Taxation Disputes Act, 2019 issued the notification to extend “Bihar Settlement of Taxation Disputes Act, 2019? for the period of 3 months from April 15, 2020, to July 14, 2020, with the immediate effect. Government of Bihar on December 12, 2019, has enacted the Bihar Settlement of Taxation Disputes Act, 2019 for speedy and amicable settlement of taxation disputes. A dispute pending under the law may
The CBIC has issued Notification no. 40/2020 – Central Tax dated 5th May, 2020 which states that the E- Way Bills which were generated on or before 24th March, 2020 under rule 138 of the Central Goods and Services Tax Rules, 2017 and their period of validity has expired between 20th March, 2020 to 15th April, 2020, then the period of validity of such E-Way bills will be deemed to have been extended till 31st May, 2020.
The CBIC has issued Notification no. 41/2020 – Central Tax dated 5th May, 2020 which states that the time limit for filing of Annual Return specified under Section 44 of the Central Goods and Services Tax Act, 2017 has been extended till 30th September, 2020. The return is to be filed electronically through the common portal. Earlier Notification no. 15/2020 – Central Tax dated 23rd March, 2020 was issued where the time limit for filing of
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 Credit on or before 30th June, 2020. The briefs of case are described as under: Facts of the Case
The CBIC vide Instruction No. 450/153/2017 – Cus IV dated April 30, 2020 has state that LUT which is required to be submitted by exporter at the time of clearing export shipments for FY 2020-21 stand extended to 30.06.2020. 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,
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 follow
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 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 are analyzing the eligibility of input tax credit paid on medical insurance prior to and after this amendment. For this let’s first discuss Section
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, Interest, Penalty, Fee and Others, they can then utilize this amount for discharging their liabilities only under that major head and minor head. Sometimes, inadvertently, the taxpaye
GST payment freeze - India is considering a goods and services tax (GST) relief package to counter the impact of Covid-19 and help prop up the economy, said people with knowledge of the matter. The package being considered could include a six-month suspension of GST payments for the worst-hit sectors such as restaurants, aviation and hospitality as well as a lower rate for the real estate sector. Other proposals include a switch to a cash-based principle of levying tax from the current invoic
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 letter from the purchaser informing that as per the pr
The Government has made section 99 of Finance (No. 2) Act, 2019 applicable from 1st January 2020 via Notification No. 01/2020 – Central Tax dated 01.01.2020. In this the Government has introduced PMT-09 by which registered person is able to shift any amount of tax, interest, penalty, etc. that is available in the electronic cash ledger, to the appropriate tax or cess head under IGST, CGST and SGST in the electronic cash ledger. Now, PMT-09 has been enabled on GST portal. The taxp
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 like ventilators, personal protective equipment (PPEs), masks, test kits and sanitisers that are essential items for treatment of COVID-19
Government of India, Ministry of corporate affairs, has issued a notification dated April 01, 2020 regarding the impact of GST on unsold stock of pre-packaged commodities. Manufacturers or packers or importers of pre-packaged commodities are required to declare the revised retail sale price (MRP) on the unsold stock manufactured/ packed/ imported prior to revision of GST, after inclusion of the increased amount of tax due to GST, upto September 30, 2020 or till such date the stock is exhauste
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
After the biggest tax reform in India jolted every possible market in 2017, the ensuing ride has not been any less than a rollercoaster. While some industries have been wary of it, others have welcomed it with open arms. Whatever the case, the transformation of the country’s indirect taxation system has not been bereft of advantages for SMEs and Small Businesses: Cascading of taxes has been eliminated Since GST was designed to bring all the indirect taxes under a single umbrella, the earli
Anti-Profiteering has issued Order No. 13/2019 dated 01st March, 2019 in case of Kerala State Screening Committee on Anti-profiteering (Applicant) Vs. M/s Velbon Vitrified Tiles Pvt. Ltd (Respondent). Fact of the case The applicant had stated in their complaint that the respondent had resorted to profiteering in respect of supply of “Ceramic Vitrified Tiles” on the ground that the respondent had not passing on the benefit of reduction i
Changes are being made in the credit utilization criteria in Form GSTR-6, filed by Input Service Distributors (ISDs). These changes are likely to be implemented on the GST portal with effect from 14.04.2020. During the implementation of this change, any data which is lying in Form GSTR-6 of ISDs, in saved stage, will be lost. Thus, if there is some data, filled up in Form GSTR-6 and is in saved stage (which is not Submitted so far), that data will not b
In a major relief to Hindustan Coca Cola, the Kerala High Court recently quashed the notices issued by the Goods and Service Tax (GST) department and directed to release the seized goods which were detained on the ground of bonafide misclassification of goods. High Court has directed the officers to release the seized goods on the grounds that there was a bonafide miscalculation as to whether the goods would be taxable at 12% or 28% of GST. The petitioner, Hindustan Coca Cola Private Limit
AAR recently has given an important ruling dated 22 January 2020, where applicant is a receiver of supply of services from VFS Global in case of Municipal Corporation of Greater Mumbai [2020] 114 taxmann.com 238 (AAR - MAHARASHTRA) which is discussed as below: Facts of the Case The Applicant (MCGM) is availing services from VFS Global, by way of provision for Citizen Facilitation Centres (CFC), where a window for payment of Tax from th
Authority of Advance Ruling (AAR) in Karnataka for Goods & Service tax gave advance ruling on 18th March, 2020 in the case of M/s Kardex India Storage Solution Private Limited stating that Importer of Goods is not required to take registration in the state where Port of Import of goods is located. The case is described as under: Facts of the Case ? Applicant is
Brief: Companies will have to pay GST on the remuneration they dole out to directors, the Authority for Advance Ruling (AAR) has said. In an application filed before the Rajasthan bench of the AAR, Clay Craft India Pvt. Ltd had sought clarification on whether salaries paid to directors would attract Goods and Services Tax. Issue: In an application filed before the Rajasthan bench of the AAR, Clay Craft India Pvt Ltd had sought clarification on whether sala
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 A
Maharashtra Finance Minister Ajit Pawar on Friday wrote to Union Finance Minister Nirmala Sitharaman asking for exemption of Goods and Service Tax (GST) on medical equipment required to combat Covid-19. He asked for exemption for equipment like 3-ply mask, N95 mask, personal protective equipment(PPE), testing kits and ventilators. In his letter to Sitharaman, Ajit Pawar said that the state government ha
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 on availing input tax credit during February-August, which would then be cumulatively adjusted in September. With hundreds of trucks getting stranded across t
Notification No. 31/2020–Central Tax & 32/2020–Central Tax: The Government vide Notification No. 31/2020–Central Tax & 32/2020–Central Tax dated 3rd April, 2020 has extended the time limit of filing GSTR-3B return with some conditions which are as below: S.No. Class of registered persons Rate of interest Tax Period
CBIC has issued Notification no. 35/2020 – Central Tax dated 3rd April, 2020 which has provided various relief to taxpayer which are as follows: If an E-way bill has been generated under rule 138 of the Central Goods and Services Tax Rules, 2017 and its period of validity expires during the period 20-03-2020 to 15-04-2020, the validity period of such e-way bill sh
High Court of Karnataka gave an important judgment dated 27th November, 2019 regarding legality of order passed by single judge on 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 TRAN-1 did not mention quantity of goods held in stock in Column 7B of Form. It made an
CBIC stated via different notification issued on 23rd March, 2020 that Aadhaar authentication is mandatory for GST registration from 1st April 2020. 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
CBIC has issued Notification No. 03/2020- Integrated tax (Rate) dated 25th March 2020 regarding amendment in IGST rate of goods. HSN code Description Tax rate till March 31, 2020 Tax rate from April 1, 2020 3605 00 10 Handmade safe
Interpretation of statute - Detention / Confiscation of goods along with conveyance - exercise of power arbitrarily and without any application of mind. - Sections 129 and 130 respectively of the Central Goods & Services Tax Act, 2017 - whether the two provisions overlap or are independent of each other? - truck detained by the officer concerned on the ground of absence of the e-way bill in respect of the goods - It is the case of the writ applicants that having come to know about the detent
The functionality to track the status of refund application has been available on the GST portal. By utilising this functionality, the taxpayers can know the stage at which the refund application is pending with the tax-officer/ taxpayer. A tax officer can issue payment order only after Public Financial Management System (PFMS) has validated the bank account mentioned in the refund application (RFD-01). Similarly, final disbursement of refund amount sanctioned by the 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 Rules, 2017 Rule 96B is inserted after R
The Central Board of Indirect Taxes and Customs ( CBIC ) has notified the extension of due date for filing GSTR-9 (GST Annual Return) for the Financial Year 2018 – 19 till 30th June 2020. The Notification issued by CBIC said that, the time limit for furnishing of the annual return specified under section 44 of the said Act read with rule 80 of the said rules, electronically through the comm
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 June 30, 2020. Interest rate on delayed payment of tax reduced from 12 per cent to 9 per cent; Interest on delay in deposit of TDS h
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 Chief Commissioner, Meerut, Data Analytics team analysed suspected firms. They passed on an information on the basis of which CGST Meerut unearthed a case of issuance of
The 39th GST Council met 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 seniors officers of the Ministry of Finance. The Council has made the following recommendations: Interest on delayed payment: Interest for delay in payment of GST to
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 return filing system and e-invoicing in its meeting on March 14. The Council, chaired by Finance Minister Nirmala Sitharaman, would also discuss operational glitc
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 a drop in the prices of these bonds issued by other banks, analysts said. As prices of these bonds drop, investors will see the value of their investme
The Central Goods and Services Tax (GST) Delhi North Commissioner rate Saturday arrested one person who received fake invoices valued at Rs 71.22 crore involving fraudulent Input Tax Credit (ITCNSE -2.06 %) of Rs 12.82 crore from 30 bogus firms. The finance ministry said in a statement that the modus operandi was to create various fake firms in the name of employees of the operator of fake firms and oth
GST laws now permit interest calculation on delayed GST payment on the basis of gross tax liability Interest payable on delayed payment of GST will henceforth be calculated on net tax liability and the law is being amended to give effect to it, the Central Board of Indirect Taxes and Customs (CBIC) said on Saturday. Amid concerns over its recent directive to field formations to begin recovery of about ?46,000 crore of unpaid interest on delayed GST payment, the CBIC, in a series of tweets,
In a move that will surely address the growing concerns among states, the centre released Rs 19,950 crore as GST compensation to states and Union Territories ahead of the GST council meet, thereby taking the total amount released to them to over Rs 1.2 lakh crore. In a statement, the finance ministry said Rs 19,950 crore was released to states and union territories on last Monday. Finance Ministry officials said total GST compensation cess of Rs 62,611 crore was collected in the FY 2017-18
GST paid on Life - The season for submitting proof of investments in tax-saving products has already set in and, in all probability, your employer would have already asked you to furnish them. While it’s common knowledge that premiums paid for life as well as health insurance give tax benefits under Sections 80C and 80D, respectively, did you know that you can also claim deduction on the tax paid on these premiums? When you pay a premium for a life or health policy, you also have to pay goo
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 is unthinkable in India, which has announced a new tax amnesty scheme, ‘Vivad Se Vishwas’ — literally, ‘from dispute to trust’ — which offers s
NEW DELHI: The GST Network on Sunday said around 92% per cent of large taxpayers with turnover of over Rs 2 crore have filed annual returns for 2017-18 fiscal. With Goods and services tax launches on July 1, 2017, this is the first time when businesses registered under GST have to file annual return GSTR-9 and reconciliation statement GSTR-9C. "Statistics show that out of eligible large taxpayers, 91.3 per cent had filed their annual return by February 12, 2020. Similarly, 92.3 per cent el
New Delhi: The Central Board of Indirect Taxes and Customs (CBIC) has directed principal chief commissioners and chief commissioners to begin recovery of nearly Rs 46,000 crore of unpaid interest on delayed goods and services tax (GST) payments. The direction which requires officials to report on the recovered amount within a week starting February 10, comes at a time when GST collection target for Febr
New Delhi: The Goods and Services Tax Network (GSTN) has set up a consultation committee to provide feedback on new functionalities in the GST system. Suggestions will be related to policy and technology. The committee, which will include representatives from selected states recommended by the GST Council, member secretary of GSTN, representatives from the Central Board of Indirect Taxes and Customs (CBIC)
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. [caption id="attachment_8121" align="aligncenter" width="307"] GST on non-compete fee
GST Lottery offers - The Centre is planning to introduce lottery offers between Rs 10 lakh and Rs 1 crore under the GST to encourage customers to take bills while making purchases. Central Board of Indirect Taxes and Customs (CBIC) member John Joseph said every bill under the goods and services tax (GST) regime will provide a chance to the customers to win a lottery and that would act as an incentive for them to pay the tax. "We have come with the new lottery system. Every bill under
CBIC has extended the time limit for submitting declaration in Form Tran-1 under sub rule (1A) of rule 117 of Central Goods and Services Tax Rules, 2017 for the class of registered persons who could not submit the said declaration by the due date on account of technical difficulties on the common portal and whose cases have been reco
NEW DELHI: Hacking into the government’s India's goods and services tax (GST) database and its associated infrastructure dependencies installed at GST Network (GSTN) can now lead to 10-year imprisonment, as the assets have been declared as 'protected systems' by the finance ministry, under the IT Act. Protected systems are part of critical information infrastructure and their destruction can have a debilitating impact on national security, economy, public health or safety. Since the informa
The Central Board of Indirect Tax and Customs (CBIC) has extended due date for filing annual return (GSTR-9 & 9C) for FY 17-18 in a staggered manner by its tweet on 31st January 2020. Now CBIC has issued Notification No. 06/2020 – Central Tax dated 03-02-2020 by which they have extended the due date of filing GSTR-9 and GSTR-9C by a registered tax payer and they have also reshuffled the states list. Last date of filing annual return is 5th and 7th Februa
City-based garment and textile manufacturers are anxiously waiting for February 1 when union finance minister Nirmala Sitharaman will announce her second budget in parliament. As far as their expectations are concerned, they want immediate revamp of Goods and Service Tax (GST), simplified process to apply for funding for technological up-gradation and reduction in income tax rates. According to Bhushan Abbi, president o
FM Nirmala Sitharaman says have added 60 lakh new taxpayers and households saved 4% on monthly spending after GST implementation. Union Budget 2020-21 Latest Updates: Finance Minister Nirmala Sitharaman is set to table the Budget in Parliament today. This will be her second Budget presentation. With the economy reeling under one of its worst slowdowns in decades, she is expected to pull out all available measures to give a boost to flailing consumer demand and investment. Meanwhile, person
GST Audit Reconciliation Report - Three out of four Goods & Services Tax (GST) assessees have yet to submit audit conciliation statement for fiscal year 2017-18 (FY 18). The due date for submitting it is January 31. It is mandatory to file an annual return. There are three annual return forms, GSTR 9, GSTR 9A and GSTR 9C. Every GST assessee (those who submitted all the monthly return forms of GSTR 3
Returns Mismatch: The Central Board of Indirect Taxes and Customs (CBIC) has frozen tax credits of around Rs 40,000 crore as the returns did not match, exposing alleged fraud by close to 2,000 entities, apart from cases where returns were not filed. Last week, the indirect tax wing of the revenue department blocked the credits within four hours, CBIC chairman John Joseph said at an event on Monday. Companies are entitled to credits on tax paid on inputs in the production chain so that there
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 revenue. For the taxation purpose, a concept called ‘Place of Supply’ is used and accordingly CGST (Central Goods & Services Tax) and SGST (State
Cabinet Approves Amendments - The Union Cabinet on Wednesday approved amendments/extension/repeal in the Acts and regulations dealing with Goods and Services Tax (GST) and Value Added Tax (VAT). The Central Goods and Service Tax Act, 2017 is to be amended as Central Goods and Service Tax (Amendments) Regulation, 2020, while the Union Territory Goods and Service Tax Act, 2017 will be amended as Union Ter
The Ministry of Finance in its press release dated 22nd January 2020 has taken steps against difficulties faced by industry in filing of return. Now, taxpayers can file their return in staggered manner without paying late fee. Due date of filing GSTR-3B for various categories of tax payer without paying late fee is as follows: Annual Turnover of 5 Crore and above in previous financial year: 20th of every month
NEW DELHI: The government's tax collection is likely to fall short of its estimate by Rs 2.5 lakh crore or 1.2 per cent of GDP in 2019-20, former finance secretary Subhash Chandra Garg said on Sunday while calling for scrapping of dividend distribution tax. Garg in a blog said that from the tax revenues perspective, 2019-20 is proving to be a dysfunctional year. "Tax revenues to see shortfall of Rs 2.5 trillion (1.2 per cent of GDP). Time to junk DDT and reform personal income tax," he said.
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 of the businesses are denied input tax credit (ITC) under the indirect tax regime when the counterparty does not file tax returns and tax has not been deposited. This problem was prevalent during the Value Added Tax (VAT) regime and many cases on this issue are still pending in various courts.
Revenue Department using its data analytics has discovered a fraud in GST refunds with as many as 1,200 exporters, who have have claimed Rs 350 crore refunds, are now untraceable. The department has reasons to consider that nefarious elements among the customs broker community may be connected with these frauds, involving fictitious entities, existing only in virtual space through identity thefts with fake and morphed documents, according to sources. The detection of fraud has resulted in
Not filing goods and services tax (GST) returns could cost you your property and money. According to a TOI report, a new set of rules have given the green light to GST authorities as a strategy to ensure better compliance. With over 1 crore GST-registered entities failing to file return on time, the new set of rules enable goods and services tax GST-authorities to attach your property and banks accounts
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 be considered composite or mixed under the GST system. If these are considered composite,
NEW DELHI: The government is likely to make fraudulent claims for input tax credit a non-bailable offence in the hands of recipients of goods and services in the February 1 budget by tightening the GST law, as it seeks to plug leakages. CXOs, directors or employees directly responsible for making such claims can also be penalised as per the proposed changes aimed at tackling evasion. “Changes are b
New Delhi: India Inc is set to face first ever tax audit under the goods and services tax (GST) regime. The GST authorities have begun issuing notices for the tax audit exercise, which involves detailed scrutiny of the accounts and records for FY18. Tax authorities have issued notices seeking audit of accounts and records from July 2017 till March 2018, the first year of GST implementation. India had ro
The government on Friday extended the deadline to avail waiver of fee chargeable on GSTR-1 from July 2017 to November 2019 from January 10 to January 17. In December 2019, the GST Council Council extended the deadline for filing Form GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) for FY18 to January 31, 2020 as against December 31, 2019 earlier. “The response to this waiver has been very encouraging and since announcement on 18.12.2019, 54 lakhs GSTR-1 have gotten filed till
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 of the CGST Act, 2017. This comes at a time when the government seeks to curb GST evasion and improve tax revenue. A panel would be set up
IGST Refund fraud - NEW DELHI : During a crackdown to check the misuse of IGST (Integrated Goods and Service Tax) funds by star exporters, the Central Board of Indirect Taxes (CBIC), through a sample study of 241 cases, has identified at least 9 star export houses that are untraceable and 82 such exporters whose declarations before income tax and GST have significant variance. The CBIC has extensively u
The Government has made section 99 of Finance (No. 2) Act, 2019 applicable from 1st January 2020 via Notification No. 01/2020 – Central Tax dated 01.01.2020. Section 99 of Finance (No. 2) Act, 2019 state that in section 49 of the Central Goods and Services Tax Act, 2017, new sub-section 10 has been inserted to provide facility to the registered person to transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under this Act,
Poor tax Revenue - Flaws in the Goods and Services Tax (GST) rate structure and the economic slowdown are burning a big hole in the finances of central and state governments this fiscal. The Central government this year is staring at a 40% shortfall in the funds raised through a cess on sale of luxury and sin goods that is used for compensating states. Also, Union and state governments are collectively facing revenue losses from tax refunds claimed by businesses due to flaws in GST rate struc
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 January 2020 from the earlier date of 31 December 2019. It was done to consent more time for taxpayers to use the offline tool of GSTR-9C that will be m
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 taxed at 28 percent. The council also rationalized tax rate on woven and non-woven bags to 18 percent, he said, adding exemption has been given on long-term lease for industrial plot
The Centre and state governments seem to be on a collision course amid a sharp economic downturn that has eroded their financial positions. 15th Finance Commission (FFC) chairman N.K. Singh on Friday sought a leverage with the Goods and Services Tax (GST) Council, arguing that tax rate cuts and grant of exemptions decided solely by the council affects the FFC’s goal of optimizing revenue targets of the Centre and states. Finance commissions look at projections of revenue and spending, but G
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 the Central Processing Centre (CPC) starts processing it only when the ITR is e-verified. If you do not e-verify your ITR, the filing process is treated as incomplete and
The government has allowed businesses to do self-assessment while claiming credits for the Goods and Services Tax (GST) paid on raw materials and services in cases where their suppliers have not uploaded invoices. Businesses can claim only 20% of the total tax credits due to them if suppliers have not uploaded invoices and not paid taxes to the government, as per rules notified in October. A Finance Ministry circular on
Document Identification Number (DIN): GST Taxpayers alert - In order to protect GST taxpayers from any harassment at the hands of errant tax officials, the Central Board of Excise and Customs (CBEC), is going to use a unique number in every communication with taxpayers from Friday. Initially, the department will use this unique document identification number (DIN) mostly for investigation related communications such as arrest warrants and search authorizations and it will be lat
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 cases, the various activities of the officer have led to harassment of assesses. Some recent
GST health check-up is a recent initiative to protect an organization and fulfilling GST compliances to run the business of en entity seamlessly. GST health check-up includes Routine GST compliances, identifying GST data with books, analyzing the transactions and compliances relating to GST laws, tracking and executing the ways through which an organization can derive benefits. Essentials of GST Health Check-up
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 state levies, five commodities - crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) - were kept out of its purview given the revenue dependence of state
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 on self-analysis of the invoices. This latest amendment will result in the creation of c
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 for registered persons whose aggregate turnover is less than Rs. 2 crores. CBIC offe
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 distance to travel. The introduction of GST was meant to help businesses more easily access the true market potential that India has to offer by introducing a single indirect tax framework
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 economy triggered by shrinking consumer demand. This is the second straight month of decline in the GST collections, according to official data released by the finance ministry. The tax collections at Rs 91,916 crore in September was lower than Rs 98,202 crore collected in August and Rs 94,442 crore mop-up in the same month a year back. GST, wh
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 taxpayers and tax officers will also be online. The online refund process has become effective on the GST portal from 25 September 2019. Earlier, t
With an aim to simplify and rationalise taxation, GST Council on Friday announced a host of measures ranging from increasing rates on caffeinated drinks to reducing tariff on hotel rooms. The GST Council on Friday announced a host of measures ranging from increasing rates on caffeinated drinks to reducing tariff on hotel rooms with an aim to simplify and rationalise taxation. The rates on caffeinated drinks such as coffee were hiked to 28 per cent from 18 per cent, while the rates on hotel ro
37th GST Council meeting held on the 20th of September 2019 in Goa. Which was headed by Smt. Nirmala Sitharaman, the Union Finance Minister. Here are 7 major changes incorporated post Council meeting bringing suitable changes in Goods and Services Tax. Annual return– Filing of GSTR 9 is optional for taxpayers having a turnover up to Rs. 2 crores for the financial year 2017-2018 and 2018-2019. Waiver of GSTR-9A for composit
New Delhi: Federal indirect tax body, the Goods and Services Tax (GST) Council, is set to meet in Goa on Friday amid demands from the industry for a fiscal stimulus. Here are the five things to expect from the meeting to be chaired by union finance minister Nirmala Sitharaman. 1) Tax rate cut on luxury hotels The Council is expected to cut tax rates on hotels that charge room tariff of ?7,500 or more per night
NAVI MUMBAI: The CBD police have registered a case of cheating and forgery against a trader, who uploaded forged documents on government portal and obtained GST identification number (GSTIN) for his fake trading firm. Acting on a compliant by Dilip Ahire (49), the state tax officer at GST officer in Konkan Bhawan, Belapur, the accused, Ajit Kamble, has been booked under relevant sections of the IPC. In December 2018, Kamble had registered for
The finance ministry fears a shortfall of Rs 50,000 crore in GST collections this fiscal, given a lower than expected mop-up so far, even as the automobile sector raises its pitch for a rate cut after suffering its worst monthly fall in sales in August. The GST Council is due to meet next week in Goa, and the auto sector is expecting some relief, with vehicles sales crashing to a 22-year low in August and the industry resorting to unprecedented shutdowns and layoffs that have seen 3.5 lakh wo
1) Single authority mechanism for processing GST refunds to exporters soon The upcoming Goods and Services Tax (GST) Council meeting on September 20 is likely to approve the mechanism to allow a single authority — state or Central — to sanction and process GST refunds for exporters in a faster and simpler manner. Refunds of around Rs 10,000 crore have piled up. The move is expected to give a fil
Kerala would oppose any proposal by the Centre to cut GST rate on cars and bikes in the next meeting of GST Council scheduled later in September. Speaking to IANS, Kerala Finance Minister Thomas Issac said that lowering of tax on automobile would not help and instead result in revenue loss for the states. He said that the Centre needs to go for fiscal expansion like the one in 2009 to revive the economy and lif
Sitharaman said a decision on reducing GST on automobiles was not entirely in her hands as matters of indirect taxation were now entrusted to GST Council Sitharaman said that the govt’s efforts to promote electric mobility should not be misconstrued as promoting EVs at the expense of others
Tax returns filed on the final date surged 41% to 4.9 mn filings in 2019-20 assessment year from a year ago There has been a sharp increase in filing returns closer to and on the due date, thus leading to 56.5 mn returns filed so far for assessment year 2019-20 New Delhi: Filing of income-tax returns hit a new record, with a peak filing rate of 196 returns per second on Saturday, the final due date for filing, the Central Board of Direct Ta
As a consumer, it’s important to know what’s the right GST amount you need to pay, and which items are exempt from GST altogether Here are a few everyday items, across three categories, on which you don’t need to pay GST Last month, Bollywood actor Rahul Bose tweeted how a Chandigarh-based five-star hotel billed him a staggering ?442, including GST (goods and services tax), for just two bananas.
GSTR-9C is filed by those whose annual turnover exceeds ?2 crore Earlier, GST taxpayers were to file required returns by 31 August NEW DELHI : The finance ministry on Monday said the last date for filing annual GST returns has been extended by three months to November 30 as taxpayers were facing techn
Await FM’s word post GST council meet The automotive sector is hopeful of a reduction in the Goods & Services Tax (GST) rate from 28% to 18%, which it believes, could help revive the industry and create demand. Welcoming Finance Minister Nirmala Sitharaman’s decisions in Friday’s announcement, Rajan Wadhera
New Delhi: Finance Minister Nirmala Sitharaman's next pit stop to assess the opinion of tax officials at all levels as well as local businessmen and individuals will be in prime minister Narendra Modi’s parliamentary constituency — Varanasi. In line with PM Modi’s assurance of a taxpayer-friendly tax administration, suggestions from these interactions will be taken up to improve services, a source told ET
Since the inception of Goods and Services Tax (GST), the main intention of the government was to have a robust system for allowing invoice level reconciliation of transactions. It was envisioned in the form of the returns- GSTR-2 and GSTR-. However, the government had to replace them since it was cumbersome for the taxpayers, especially small businesses to file multiple returns on a monthly basis. Hence, a temporary summary return (GSTR-3B) with a self-assessed input tax credit claim and tax
North eastern states registered over 30 per cent growth in GST collection during the first four months of the current fiscal 2019-20, much more than the increase witnessed in larger manufacturing states. Growth in Goods and Services Tax (GST) collection recorded by most of the seven sister states is over three times the national average of 9 per cent. In absolute terms, the total tax collection during April-July of this fiscal year rose to Rs 3.56 lakh crore, as per the data accessed by Am
The Comptroller and Auditor General (CAG)’s report on Goods and Services Tax (GST) has raised many concerns. But it seems that the government auditor has not taken cognisance of many facts, according to tax experts. Talking about rates, the CAG had observed that in GST, goods and services of same nature have been subjected to multiple tax rates. For example, different rates have been levied on hotels and lodges for different room rents. There is no GST for rent up to
The Central Board of Indirect Taxes and Customs Chairman Pranab K Das in a letter to all top officials across the country is said to have encouraged them to initiate an outreach. Only 19.3 lakh out of the 90 lakh taxpayers, who had to file their GST returns (forms 9, 9A and 9C) have done so by the August 3 deadline, reports The Times of India. This means 80 percent tax filers did not file their GST returns for FY18 despite repeated deadline extensions. The latter has
Tax on discounts that manufacturers and wholesalers extend to retailers for passing on to consumers is becoming an area of confusion and possible litigation, say experts. The government’s recent decision to tax such discounts has put retailers in a difficult situation, they say. The Central Board of Indirect Taxes and Customs (CBIC) had in June clarified that discounts that dealers get from manufacturers and wholesalers help in boosting sales and therefore amount to a taxable consideration
With the last date to file GST Annual Return and GST Audit report fast approaching, a complex filing process and numerous data requirement has meant very few taxpayers have been able to comply with the filing process In a letter to all Principal Chief Commissioners and Chief Commissioners of Central Tax, CBIC Chairman Pranab K Das writes that data available till August 3 shows that only 14,85,863 GSTR-9 has been filed, while all non-composition taxpayers are supposed to file annual returns. T
The Finance Ministry on Monday said entities taking goods abroad for exhibitions or other export promotion events will not have to generate tax invoice for those goods which are brought back to India within six months. Issuing a clarification in respect of goods taken out of India for exhibition or on consignment basis for export promotion, the ministry said exporters were facing problems due to
The State government of Kerala will start levying 1% flood cess on goods and services transacted within the State from August 1. The proceeds from the cess will be used for funding the post-flood rebuilding projects. The GST Council had permitted the government to levy 1% cess on goods and services within the State to mobilise resources for rebuilding the State. Opp
The key highlights of the recent 36th GST council meeting are as under: • GST rate on electric vehicles proposed to be reduced from 12 percent to 5 percent • GST rate on chargers or charging stations of electric vehicles proposed to be reduced from 18 percent to 5 percent • Exemption from GST on hiring of electric buses (carrying capacity of more than 12 passengers) by local authorities has also been proposed • The above rate changes would come into effect from 1 A
A co-operative society is not liable to deduct tax at source (TDS) from its vendors for supply of taxable goods and services, Rajasthan’s Authority for Advance Rulings (AAR) has said. Though AAR rulings are applicable only on the applicant and jurisdictional officer, they have a persuasive value in similar matters. Also, many recent circulars by the
GSTN has enabled new functionality in which taxpayers filing Form GSTR 3B will have to utilize IGST credit towards payment of Integrated tax, and the amount remaining, if any, may be utilized towards the payment of Central tax and State tax or Union territory tax, in any order. This can be done provided that the input tax credit on account of Central tax, State tax or Union territory tax shall be utilized towards payment of Integrated Tax, Central tax,
Certain registered persons, while filing the return in FORM GSTR-3B for a given tax period, committed errors in declaring the export of services on payment of IGST or zero-rated supplies made to an SEZ unit/developer on payment of IGST. They showed such supplies in the Table under column 3.1(a) (outward taxable supplies) instead of showing them in column 3.1(b) (zero-rated supplies) of FORM GSTR-3B. Such registered persons were unable to file the
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 key clarifications issued are as under: No intermediary services even whe
Expressly stating that return in Form GSTR-3B is only a stop-gap arrangement and not a return in lieu of Form GSTR-3, the Gujarat High Court today held as illegal Centre's Press Release dated October 18, 2018 to the extent that it clarified that the last date for availing input tax credit relating to the invoices issued during the period from July, 2017 to March, 2018 is the last date for the filing of return in Form GSTR-3B A bench of Justice J B Pardiwala and Justice A C Rao held, "the impu
Government of Kerala has decided to levy and collect Cess in the name of Kerala Flood Cess (KFC) with effect from 1st August, 2019 vide notification # S. R. O. No. 436/2019 dated 29th June 2019. Ambiguity regarding whether to charge GST on KFC is also now cleared by a notification # 31/2019-Central Tax dated 28th June, 2019 issued by CBITC. A new CGST rule 32A is inserted wef 1st July 2019, whereby there
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 department also pointed out that medium and large taxpayer to continue with the premise-based audit. Moreover, Premise-based audit must be commenced
The Larger Bench (LB) of Bombay HC rules in favour of Revenue, holds that cash refund u/s 11B of the Central Excise Act, 1944 (“the Excise Act”) is not permissible when CENVAT Credit on inputs remains unutilized on account of closure of manufacturing unit or inability to utilize input credit. Issues: Whether cash refund is permissible in terms of clause (c) to the proviso to section 11B(2) of the Excise Act where an assessee is unable
Directorate General of Audit Indirect Taxes vide F. No. 381/49/2019 dated June 25, 2019, has released strategy pertaining to the audit of GST Taxpayers commence from July 1, 2019, in respect of those taxpayers who have filed their Annual Return in GSTR Form 9 / 9A. However, in the recent GST Council Meeting held on June
GSTN has clarified vide dated June 27, 2019 that taxpayers could have amended their invoices, reported in Form GSTR-1, pertaining to the Financial Year 2017-18, till the due date of filing of Form GSTR-1 of March, 2019. Since, due date of filing of Form GSTR-1, for the month of March, 2019 has already passed, no amendmen
CBIC has released Revised procedure for making e-payment of Central Excise ("CE") and Service Tax ("ST") arrears under the new CBIC (ICEGATE) E-payment portal from July 1, 2019.
The Finance Ministry has put out a draft circular clarifying the taxability of services provided by head office, located in one State, to the branch office located in another. Technically, it is called cross charges and the issue is how tax can be calculated in such a case. According to the draft, circulated during the GST Council Meeting on June 21, the Ministry said it received various representations seeking clari
Nirmala Sitharaman, who took over the reins of Finance Ministry from Arun Jaitley last month, presided over the 35th meeting of the GST Council on Friday (June 21, 2019). The FM called for integration between the centre and states to achieve a simpler resolution. All the state members were present except Karnataka, Mizoram and Telangana. FM Sitharaman addressed the press after the meeting concluded and said, "The environment was conducive, good meaningful discussions, heartening to be here.
The GST Council meet on Friday consider slashing GST rate on electric vehicles to 5 percent, from 12 percent currently, along with an extension of the tenure of the anti-profiteering authority by a year till November 2020, an official said. The 35th meeting of the GST Council and the first under Finance Minister Nirmala Sitharaman will also consider a couple of anti-evasion steps such as integration of e-way b
Issues related to the tax structure for solar projects, reduction in the tax rate on electric vehicles, and more are expected to be discussed during Sitharaman's first GST Council meeting. Goods and Services Tax (GST) GST Council is unlikely to reduce tax on cement and automobile parts from the peak rate of 28 percent in its meeting on Friday despite intense lobbying by the industry. Facing a severe sl
Union Finance minister Shrimati Nirmala Sitharaman in the presence of minister of State Finance Shree Anurag Thakur chaired the 35th GST Council meeting today at New Delhi which was attendded by finance ministers of States/UTs and senior officers of the ministry of Finance and State Government among others. Speculations are rife that the Cou
Some newspapers have today highlighted a perceived set-back to the automated process of refunds for exporters under GST on account of the introduction of manual checks to curb large scale frauds in IGST refunds. These news items regrettably create a misleading impression that genuine exporters would suffer on account of the newly introduced verification process. The CBIC has recently instr
Presiding over her first GST Council meeting, Finance Minister Nirmala Sitharaman-led GST Council on June 21 extended the deadline to file annual returns by a month to August 31. Sitharaman, who took over as Finance Minister last month, presided over the 35th meeting of the GST Council. All states expect Karnataka, Mizoram and Telangana were represented in the meeting. In a major move, the Council has
GST Council has also the extended date for filing annual returns under GST by two months to 30 August 2019 from the earlier June 30. GST Council agrees to use Aadhaar for registration to the Goods and Services Tax Network (GSTN). The tenure of National Anti-profiteering Authority (NAA) extended for two years, and the penalty provision has been made more stringent. A new single
CBIC has issued a Circular No. 16/2019-Customs dated June 17, 2019, which laid down certain revised procedures for claiming IGST refunds mechanism as per the Instruction No. 15/2017 - Customs dated October 9, 2017, to verify the IGST payments through the respective GST field formations.
Extend GST Annual Return - Tax practitioners from Gujarat have written to central and state governments that it is not possible to file GSTR-9, the annual return of GST within the set deadline of June 30 and so the deadline for filing the return should be extended. There are close to 6.7 lakh registered traders in Gujarat, of which only a handful of them have filed returns and the rest are not able to file
Goods and Services Tax (GST) Council, the federal indirect tax body, is set to take several steps to curb tax evasion in its first meeting to be chaired by new finance minister Nirmala Sitharaman on June 21. The government plans to increase scrutiny on businesses amid lower-than-expected GST collections after hand holding them through the first two years of the tax reform. The 35th meeting of the GST Council
Certain issues Form GSTR-9 - GSTN has clarified certain issues in filing of Annual Return i.e. Form GSTR-9 by the taxpayers. Following are the clarifications made here under: Some taxpayers have reported that figures of Input Tax Credit (ITC), as pre-populated in table 8A of Form GSTR-9, do not match with the figures as appearing in their Form GSTR-2A. Please note that this may happen due to the following reason
GSTR-9C filing issues - GSTN has clarified certain issues reported by the Taxpayer in filing the Reconciliation Statement i.e. Form GSTR-9C. Following are the clarifications made hereunder: Turnover for filing Form GSTR-9C: Form GSTR-9C is to be filed by all those taxpayers whose aggregate turnover has exceeded Rs 2 crore in a financial year. Turnover of the complete year i.e. from 1st April 2
The Goods and Service Tax Network (GSTN) has released a new website namely https://demoofflinetool.gst.gov.in for offline demonstration of new GST return process for the taxpayers. > Taxpayers can access the offline tool of New GST Return process, and provide their feedback for improvisation purpose. > Process to access the new
CBIC has enabled new facilities by fixing the defects with respect to filing of refund application by the taxpayers. Following are the key facilities: 1. Refund amount entered, while filing refund application for excess payment of tax, will get rounded of now. 2. The correct financial period will now be displayed in ARN receipt & Track ARN Status of Refund. 3. Refund filed by UN users, downloaded in PDF format, will now show period as quarterly (July-Sept/ Oct-
CBIC has enabled new facilities to fix the defects with respect to various return filing process for the Taxpayer. Following are the key facilities: 1. A taxpayer who has not filed their Form GSTR 1 for the month of March 2019 can now amend invoices of July 2017 also, a drop-down will appear for making amendments in the invoices of the July 2017 month. 2. A numeric character only in Shipping bill field: Shipping bill field in Form GSTR 1 will now accept only numeric chara
The GST Council has decided that a new GST return system will be introduced to facilitate taxpayers. “In order to ease transition to the new return system, a transition plan has been worked out,” an official release said. In May, 2019 a prototype of the offline tool has already been shared on the common portal to give the look and feel of the tool to the users. The look and feel of the offline tool would be same as that of the online portal. Taxpayers may be aware that there are three
Amid concerns of an economic slowdown, the first GST Council meeting under the re-elected Modi government may look at further pruning the highest tax slab of 28 per cent, which currently comprises 28 goods. In December, the council had cut rates on 23 items effective January 1, 2019 , including seven from the top bracket leaving mainly luxury and sin goods - apart from automobiles and cement - in that category. The upcoming GST Council meeting is scheduled for June 20
GSTN enable utilization of ITC as per newly inserted Rule 88A of the CGST Rules for the purpose of payment of taxes at the time of filing GSTR 3B likely to be implemented from next month i.e June 11, 2019. CBIC vide its Circular No. 98/17/2019-GST dated April 23, 2019 inserted Rule 88A of the CGST Rules allows utilization of IGST credit towards the payment of CGST and SGST/ UTGST, in any order subject to the condition that the entire ITC on account of IGST is comp
Kerala Government has imposed Kerala Flood Cess through Notification No. G.O (P) No.80/2019/TAXES dated 25th May, 2019 with effect from 1st June, 2019. However, the government has decided to defer the levy of the Kerala Flood Cess to July 1, 2019.
The Supreme Court suggested to the high courts on Wednesday not to grant anticipatory bail to those who default on the goods and services tax, reminding them that the SC has upheld the Telangana HC’s decision not to grant bail to such defaulters. A division bench of the Telangana HC had on April 18 upheld the authority and power of the commissioner of the central goods and services tax (CGST) to arrest, and rejected any interim relief to those accused of violating the CGST Act
The Government of Kerala has appointed 1st June, 2019 as the date with effect from which the Kerala Flood Cess (KFC) shall be levied and collected. Not applicable to composition dealers. Not applicable on B2B supplies. Shall be levied on intra-state (within Kerala) supplies of goods or services or both made by the taxable person to unregistered person(B2C Local). Shall be collected on taxable value of supplies.
Background The GST Law brought with it a fresh tax rate structure and the availability of additional input tax credit. Section 17(5) of the CGST Act, 2017 (“the CGST Act”) and the respective state GST Acts have led to a paradoxical situation by denying credits as the objective of the GST is free flow of credits when the output is in the course or furtherance of business. Many hotels, malls and real estate companies have been denied input tax credit on construction
The Orissa High Court has resolved an important issue of blocked credit under the goods and services tax (GST) regime for real estate companies constructing commercial spaces for the purpose of letting it on rent or lease. The court has allowed input tax credit to a shopping mall construction company. Meanwhile, real estate companies moved Delhi High Court over a similar issue. The issue revolves around Section 17 (5) (c) and (d) of the CGST Act and similar sections unde
The Goods and Service Tax Network (GSTN) has released a new website i.e. https://demoofflinetool.gst.gov.in for offline demonstration of New GST Return process for the taxpayer. Therefore the taxpayer can access the offline tool of New GST Return process, and provide their feedback for improvisation purpose. The process to access the new GST return offline tool by the taxpayers are as hereunder:- 1. Go to the homepage: https://demoofflinetool.gst.gov.in/homepag
Facts: M/s Medivision Scan and Diagnostic Research Centre Pvt. Ltd. (“the applicant”) is engaged in diagnostic services such as clinical biochemistry, microbiology, Chemotology, clinical pathology, radiology, ECG, radiometry, pulmonary function test, etc. They were rendering services through qualified laboratory technicians, paramedical technicians, doctors, and radiologist. Applicant’s Interpretation of Law: The applicant took a view that medical
Importers can breathe easy as the Gujarat High Court has stayed the levy of Integrated Goods & Service Tax (IGST) on ocean freight. IGST is levied on all Inter-State supplies of goods and/or services. It is also applicable on any supply of goods and/or services in cases of import into and export from the country. Under the GST, there is specific provision with respect to taxability on the component of ocean freight. The law specifically provides that the importers are
The details as per Part V of Form GSTR - 9 consists of Particulars of transactions for the previous financial year but paid in the FORM GSTR-3B of April to September of current FY or date of filing of Annual Return for previous financial year whichever is earlier. However, now it is replaced with "Details of the Previous Financial Year's transaction reported in next Financial Year i.e. April 2018 to March 2019"
The GST portal has enabled a new window for claiming TDS/TCS credits while filing GST returns. A taxpayer can accept or reject these credits, after which they get moved to the cash ledger. These credits can then be used for making GST payments. This function helps the taxpayers in identifying the credits available and taking the required action. ‘TDS/TCS credit received’ tab is provided for all taxpayers from whom tax has been deducted or collected at
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 be consid
Facts: M/s. Kerala State Construction Corporation Ltd. (“the Applicant”) is engaged as Construction Agency/Program Management Consultant/ Special Purpose vehicle for the work of construction of model residential school, building for pre-examination training, pre-metric hostel for Boys, sub-registrar office for registration department. Issue Involved: Whether GST would be applicable on consultancy charges? Observation
Kerala AAR holds that the materials like carpets, coir, etc. supplied by the principal for executing job works along with moulds in required designs are covered under Chapter 50 to 63 of Customs Tariff Act, 1975; Therefore, job-work services on such goods squarely come under Sl. No. 26(i)(b) of Notification No. 11/2017-Central Tax (Rate), taxable at 5% GST. Facts: M/s. Irene Rubbers (“the applicant”) is a job worker engaged in the production of rubber backed and rubb
Proceeding to the digitalization of GST, Businesses have to generate e-invoices or electronic-tax invoices from September 2019 that records the entire value of sales. GST officers are planning on a system where businesses with more than a certain income edge have to generate ‘tax e-invoice’ or ‘e-invoice’ on Government portal to record every sale. This will enhance the GST system, thus reduces the chances for tax evasion effectively. The officers are also deciding to provide soft
The income-tax department on Tuesday deferred for the second time the requirement for companies to include in their tax audit report the details of Goods and Services Tax (GST) and GAAR. The reporting requirement of these details in income tax audit form has been kept in abeyance till March 31, 2020 meaning that all I-T audit reports need not include details on GST and General Anti-Avoidance Rules (GAAR) till March 2020. Business entities having
Facts: M/s Super Wealth Financial Enterprises Pvt. Ltd. (“the Appellant”) filed an appeal before the Appellate Authority for Advance Ruling, Odisha aggrieved by advance ruling Order No. 04/Odisha-AAR/2018-19 dated October 31, 2018 passed by Odisha Authority for Advance Ruling. The Appellant is engaged in providing energy efficient street lighting services to Bhubaneshwar Municipal Corporation (“BMC”). The contract was awarded to the appellant o
CBIC has Released Excel based Form GSTR-9 Offline Tool. The excel based GSTR-9 offline utility is designed to help the taxpayer to prepare the GSTR-9 return offline. GSTR-9 Offline Tool (v1.0) The excel based GSTR-9 offline utility is designed to help the taxpayer to prepare the GSTR-9 return offline. The utility can be downloaded from this link. Installation 1. Access the GST Portal http://www.gst.gov.in. 2. Go to Downloads > Offli
Fact: Senco Gold Ltd. (“the Applicant”) is engaged in the manufacturing and retailing of jewellery and articles made of gold, silver, platinum, diamonds and other precious stones under the brand name "Senco Gold & Diamonds". Apart from his own retail stores, the Applicant also maintains a network of franchisee-operated stores. He grants such a franchisee the right and license to operate a showroom and to use, in connection therewith, certain Proprietary Marks and System in
Facts: Kumar Auto Agency (“the Petitioner”) filed writ of mandamus seeking appropriate directions from the High Court to the GST Authorities for enabling them to file Form GST TRAN-01 manually. The Petitioner approached the High Court on grounds that it was entitled to the benefit of Input Tax Credit (ITC) to be availed of by filing Form GST TRAN 1. However, on account of certain technical difficulties, the Petitioner was unable to upload the same. Resultantly, he is unable
Exporters of goods and services as well as suppliers to SEZ units are likely to get GST refunds automatically from June as the revenue department plans to introduce faceless scrutiny of refunds and faster claim settlement, an official said. Under GST, every person making a claim of refund on account of 'zero-rated' supplies has two options. Either he can export without payment of integrated tax under Bond/ LUT and claim a refund of accumulated Input Tax Credit (ITC) or he may export on payment o
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 20
Facts: M/s. Mak Plywood Industries Pvt. Ltd.
Revenue from goods and services tax (GST) witnessed 10% growth from the year-ago period at ?1.13 trillion in April, the highest ever since the implementation of the indirect tax system on 1 July 2017, the finance ministry said on Wednesday. The rise in tax collections in April (for domestic sales in March) can also be partially attributed to the year-end phenomenon, when taxpayers pay their arrears. Of the gross GST collection of ?
Provisions of section 129 (Detention, seizure and release of goods and conveyance in transit) and 130 (Confiscation of goods or conveyances and levy of penalty) of CGST Act and UPGST Act (“said Act”) can be made applicable even against truck owner (
Providing service of construction of a dwelling unit in a residential complex, bundled with services relating to the preferential location of the unit, which includes services of floor rise and directional advantage amounts to composite supply under GST.
CBIC vide Circular No. 101/20/2019-GST dated April 30, 2019 had clarified that GST exemption on the upfront amount (called as premium, salami, cost, p
Important dates of May, 2019 for compliance under GST are as follows:- Due date Forms Period Description May 10, 2019 GSTR-8 April 2019
Facts: Wardha Power Company Ltd. (“the assessee”) filed refund application in respect of service
To crack down Goods & Services Tax (GST) evasion, the Finance Ministry of India has introduced the e-way bill system. The E-way bill is an electronic document to be created online under Goods & Services Tax system when the value of the goods of more than Rs.50,000 is shipped. However, failure to generate an e-way bill can lead to a penalty of Rs 10,000 or amount of tax required to be evaded whichever is higher. The changes include auto calculation of distance depending on PIN codes for generat
More than 50 property developers, including some of India’s top builders, are being investigated for profiteering under the goods and services tax (GST) regime, said a person aware of the development. The investigat
In this sweltering heat, who can resist a scoop of ice-cream? Interestingly, the issue of whether serving a scoop of ice-cream would be a supply of services or goods or whether it would be a composite supply
The Hon’ble AAR Uttarakhand exempts business transfer agreement as going concern on slump sale basis from GST, in terms of Sr. No 2 of Notification No 12/2017 Central Tax (rate) dated June 28, 2017 (“Notification No. 12/2017”).
The Hon’ble High Court of Punjab and Haryana directed competent authority by passing speaking order w.r.t refund online application of M/s. Data wind Innovations (P.) Ltd., that decision regarding refund applications should be taken within one month. Facts: M/s. Data wind Innovations (P.) Ltd. (“The Petitioner”) was engaged in manufacturing and selling of automatic data processing machines and units thereof, l
The National Information Center (“NIC”) has released new functionality in E-Way Bill system to know the distance between two PIN codes. To access this functionality the process to know the distance between two PIN codes is explained as hereunder:- First, the taxpayer has to go to the “E-Way Bill System homepage i.e. http://ewaybillgst.gov.in., then click on to the
The Hon’ble Hyderabad HC dismisses writ, holding that interest u/s 50 of CGST Act, 2017 (“the CGST Act”) @18% is payable on total gross tax liability including a portion of which is liable to be set-off against Input Tax Credit (ITC) where the GST returns were filed belatedly. Facts: Megha Engineering & Infrastructures Ltd. (“The Petitioner”) was engaged in the manufacture of MS Pipes and in the execution of infrastru
The Telangana High Court has ruled that no input tax credit (ITC) is available unless GST returns are filed and a taxpayer is liable to pay penalty on the entire liability. The ruling is expected to have a significant impact on all businesses that use tax credits available on inputs and raw materials to reduce payment in cash. “…until a return is filed as self-assessed, no entitlement to credit and no actual entry in the electronic credit ledger takes place. As a consequenc
The CBIC vide its Notification No. 21 /2019 – Central Tax dated April 23, 2019 has notified the procedure for quarterly tax payment and annual filing of return by registered persons paying tax under the provisions of composition scheme under Section 10 of the CGST Act, 2017, or availing the benefit of Notification No. 02/2019– Central Tax (Rate) dated March 7, 2019 [prescribes composition scheme for
Interest-free security deposit, given for leasing a commercial property, will not attract Goods & Services Tax (GST), according to a ruling by the Maharashtra Authority for Advance Ruling. However, if at the time of completion of lease tenure, the entire deposit or a part of it is withheld and not paid, as a charge against damages etc., then such amount withheld will be liable to GST as per the present GST laws, it said. AAR helps the taxpayer by giving
The Central Government vide its Notification No. 01/2019 – Central Excise Dated April 09, 2019 has imposed some conditions and procedure for availing exemption in respect of scrips issued on or after April 10, 2019 electronically where such scrip has been registered with the Customs Authority.
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 button. 3. Unzip the download
Builders and home buyers are trying to understand the best deal for them under the new Goods and Services Tax (GST) rates for ongoing projects and it seems to be turning into a double-edged sword for some. Real estate developers have time until May 10 to decide on whether to stick to the old 12 (residential) or 8 per cent (affordable housing) rate with input tax credit or the new 5 per cent (residential) and one per cent (affordable housing) rate with no credits. H
The Central Board of Indirect Taxes and Customs has issued a Notification No. 18/2019 - Central Tax dated April 10, 2019 which extends the due date for filing return by a registered person required to deduct tax at source in FORM GSTR-7, for the month of March, 2019 till April 12, 2019.
The Central Board of Indirect Taxes and Customs has issued a Notification No. 17/2019 - Central Tax dated April 10, 2019 which extends the due date for filing the details of outward supply of goods or services or both in FORM GSTR-1 for the month of March, 2019 till April 13, 2019.
The Goods and Service Tax Portal ("GST Portal") has enabled a new functionality for GST practitioner to file Form GST REG - 21 on behalf of NRTP/TDS/TCS/OIDAR taxpayer. Therefore now NRTP/TDS/TCS/OIDAR Tax payers can select a GST Practitioner to apply for Revocation Application of registration, in Form GST REG-21, to be filed by them. The taxpayer and GSTP would be able to work on the saved drafts of the application, saved by either of them.
Facts: Mandeep Dhiman (“the Appellant or the Petitioner”) was detained by the Revenue Department. Lower Court dismissed bail application of the Petitioner. In addition, bail application was dismissed by Jurisdictional Magistrate along with review petition by Sessions Judge. Feeling aggrieved the Petitioner filed writ petition in the nature of habeas corpus under Article 226/227 of the Constitution on grounds that mandatory procedure as laid down under Section 69 of the CGST
The Central Board of Indirect Taxes and Customs had issued an Order No. 04/2019-Central Tax dated March 29, 2019 which clarified that the amount of ITC attributable to taxable supplies including zero rated supplies and exempt supplies, in respect to construction services covered under clause (b) of paragraph 5 of Schedule II of CGST Act, 2017, shall be determined on the basis of the area of construction of complex, building, civil structure or a part thereof, which is taxable a
The Central Board of Indirect Taxes and Customs ("CBIC') vide its Circular No. 97/16/2019-GST dated April 05, 2019 which clarifies that applicability of Notification No. 02/2019-Central Tax (Rate) dated March 07,2019 which prescribes the rate of central tax of 3% on first supplies of goods or services or both upto an aggregate turnover of fifty lakh rupees made on or after the 1st day of April in any financial year, by a registered person whose aggregate annual
The Goods and Service Tax Network ("GSTN") has issued an advisory dated April 04, 2019 which state that all taxpayers is invited to Rule 46 (b) of the CGST Rules 2017, which specifies that the tax invoice issued by a registered person should have a consecutive serial number, not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters - hyphen or dash and slash symbolized as “-” and “/
Facts: Kerala Forest Development Corporation Ltd. (“the Applicant or the Service Provider”) is conducting Eco-Tourism activities in the reserve forest at various locations in Kerala with an aim to provide the guest the experience of the wild life in natural habitat and create awareness for conservation as well as protection of forest wild life. Earlier, the charges for tour package depended upon the type of accommodation chosen by customers. Now the Applicant wishes to chan
Recently, the issue of levibility of Service Tax on reimbursements on electricity expenses received from the occupants of a complex came before a Single Member Bench of the Hon’ble Calcutta High Court, wherein the Hon’ble High Court has upheld the levy of Service Tax on such transactions. [Srijan Realty (P) Ltd. v/s Commissioner of Service Tax, Service Tax Commissionerate II - Kolkata & Ors. W.P. No. 770 of 2015]. Issue: Whether the supply of electricity by the petiti
Facts: M/s Ecosan Services Foundation (“the Applicant”) is an entity registered under section 12AA of the Income-tax Act, 1961 engaged in providing services relating to sanitation to various entities inducing Non-profit Organization (NGO) registered as trust having registration under section 12AA of the Income-tax Act, 1961. It is a non-profit organization with a vision to promote ecological sanitation and sustainable sanitation practices along with efficient water & waste
The pilot project envisaged for rolling out simplified monthly GST return forms from April 1 has been deferred and the new forms would be made available once they the notified and the software is ready. The GST Council
The Central Board of Indirect Taxes and Customs ("CBIC") vide its Circular No. 94/13/2019 -GST dated March 28, 2019 has clarified few issues related to the grant of refund which was not granted due to various reasons shall now be available by following the procedure as mentioned in this circular. The issues pertaining to refund and its relevant clarifications are explained as here under:- Certain registered persons have reversed, through return
The Central Board of Indirect Taxes and Customs (“CBIC”) has issued a Notification No. 07/2019 – Central Tax (Rate) dated March 29, 2019 which notifies the specified class of registered person who will receive the supply of goods or services or both from an unregistered supplier shall pay tax on reverse charge basis as recipient of such goods or services or both. The following are the list of goods or service on which liability to be paid on rever
The Central Board of Indirect Taxes and Customs (“CBIC”) has issued a Notification No. 03/2019 – Central Tax (Rate) dated March 29, 2019 which notifies the rate of various service by amending Notification No. 11/2017 - CT(R) dated June 28, 2017 by giving the effect of recommendation made by Goods and Service Tax Council on Real State Sector. This notification shall come into force with effect from April 01, 2019, further the same notification has been
The Central Board of Indirect Taxes and Customs ("CBIC") has issued a Notification No. 15/2019 - Central Tax dated March 28, 2019 which extends the time limit
The Central Board of Indirect Taxes and Customs ("CBIC") vide its Circular No. 95/14/2019-GST dated March 28, 2019 which has clarified that applicati
The Central Board of Indirect Taxes and Customs ("CBIC") vide its Circular No. 96/15/2019-GST dated March 28, 2019 has clarified that
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 PIN code for generation of EWB: Now, E-waybill system is being enabled to auto calculate the route distance for movement of goods, based on the Postal PIN codes
Fact: Shubhlaxmi Cold Storage & Ice Factory (P.) Ltd (“The Applicant”) having a cold storage for storing of agriculture produce out of cultivation of plants and poultry eggs which are produce of rearing of life animals/poultry farming. Presently, the Applicant is paying tax on storage charges of the processed agriculture produce and other products. The Applicant took a view that eggs are produce of live chicken farming and are not further processed, therefore service of storing fresh eggs sh
Faced with the big challenge of tackling fake invoicing in GST regime, tax officials are looking at different strategies to curb this menace and shore up revenue collections. Central Board of Indirect Taxes and Customs (CBIC) Member (Investigation) had recently said that between April and February 2018-19, GST evasion to the tune of Rs. 20,000 crore was detected, of which Rs. 10,000 crore was recovered. Officials estimate that evasion through fake and under invoicing could be pegged at anywhere
Facts: Telstra Telecommunication (P) Ltd (“The Applicant”) is engaged in providing internet connectivity services. As a part of the internet connectivity services, the Applicant leased customer premises equipment’s like routers, modems etc. In addition, the Applicant would provide various Point of Presence (PoP) across different states in India. To provide last mile connectivity services the Applicant contracted with third-party vendors such as Tata Teleservices, Bharti Ai
Facts: M/s Kara Property Ventures LLP (“The Applicant”) is engaged in the business of construction activities. The Applicant undertook a residential project by the name of “One Crest” by entering into a separate agreement with the customers for the sale of undivided share in the land (“Land Agreement”) and construction of a super-structure (“Construction Agreement”) on the said land. Further the Applicant has approached the AAR to obtain clarity on valuation of s
Facts: M/s. Premier Solar (P) Limited (“the Applicant”) is engaged in the manufacturing of “Solar Power generation system” including services viz. designing, erection, commissioning & installation for the same. Issues Involved: Whether the supply of solar rooftop power plant and solar irrigation water pumping system along with design, erection, commissioning & installation is a “composite supply” or “mixed supply” and what will be the rate
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 house. The council decided the modalities of the transition as follows. Option in respect of ongoing projects: The promoters shall be given a one -time option to continu
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 Uttarakhand Goods and Services Tax (AAAR-UK) has set aside the ruling of AAR which allowed a restaurant-cum-sweetshop to levy one rate of 5 per
The anti-profiteering authority is set to fine coffee chain Starbucks for not reducing prices of its products after the Goods and Services Tax rate cut. The tax authorities had questioned Starbucks about its prices and had issued two sets of letters seeking data after GST was reduced. Starbucks shared data of its prices and costs in a detailed reply to the National Antiprofiteering Authority (NAA), people aware of the matter said.Seattle-based Starbucks, the world’s biggest coffee retailer, op
The GST Network on Tuesday said businesses registered under GST can now compare the tax liability declared as well as input tax credit claimed in their final and summary sales returns forms. The GSTN, which handles the technology backbone for the new indirect tax, has provided a facility to the taxpayers to view and download a report on tax liability as declared in their form GSTR-1 (final sales return) and as declared and paid in their return filed in form GSTR-3B (summary sales return).
Facts: M/s. Biostadt India Limited (“the Applicant or the Company”) engaged in the business of developing, manufacturing and distributing crop protection chemicals and hybrid seeds and in order to achieve sales and marketing objectives, they have launched various target based - sales incentive schemes for their distributors and retailers (customers) to achieve a specified target and in turn helps the company to achieve their targets. The subject application is in respect of
Facts: M/s. Steel Hypermart India (P.) Ltd. (“the petitioner”) company is a private limited company incorporated under the Companies Act, 2013 and a dealer registered under the provisions of the GST Act. The petitioner holds controlling shareholding in another company M/s. Singhi Buildtech Pvt. Ltd which is promoted by the same individuals though belongs to same family. It transpires that the respondent officers along with team of officers visited the registered office of th
The decisions taken by the Goods and Services Tax (GST) Council for Micro, Small and Medium Enterprises (MSMEs) will prove to very effective and positive for Small and Medium Enterprises (SMEs) especially in Jammu and Kashmir, said a MSME association in Jammu. GST Council has notified earlier this month that the decisions it took for the MSMEs at its 32nd meet in January to be effective from 1st April. The council had announced number benefits to the MSME sector including a hike in the tu
The Government of India (“GOI”) vide its Circular No. 93/12/2019 – GST dated March 08, 2019 which clarifies the nature of Supply of Priority Sector Lending Certificates (PSLC) by bank on E-Kuber portal of RBI. Earlier it was clarified vide Circular dated September 12, 2018 that GST on PSLCs for the period July 01, 2017 to May 27, 2018 will be paid by the seller bank on forward charge basis and GST rate of 12% and after May 27, 2018 the levy of GST on PSLC trading on
The Central Board of Indirect Taxes and Customs (“CBIC”) vide Removal of Difficulty Order No. 3/2019-Central Tax dated March 08, 2019 has clarified that any registered person supplying exempted goods or services, paying tax under composition scheme or paying GST @ 6% under notification no 02/2019- Central Tax (Rate) dated March 07, 2019 shall issue Bill of Supply instead of Tax Invoice.
The Government has provided a new functionality for “Furnishing of Letter of Undertaking for export of goods or services”. From now onward taxpayers will be able to furnish Letter of Undertaking for export of goods or services without payment of integrated tax for FY 2019-2020 on the common portal. Dashboard -------->Services ------->User Services ------>Furnish Letter of undertaking (LUT)
The Central Board of Indirect Taxes and Customs ("CBIC") vide its Notification No. 10/2019 - Central Tax dated March 07, 2019 notified that every registered person furnishing the return in FORM GSTR-3B for each of the months from April, 2019 to June, 2019, shall be furnished his liability towards tax, interest, penalty, fees on or before the twentieth day of the month succeeding such month the last date.
The government has provided clarification regarding the extent of tax liability and eligibility of Input Tax Credit on promotional offers such as free samples and buy one get one free schemes. It is made clear that tax would be applicable and ITC would be available for entire package sold including free items. In case of free samples such as the ones medical representatives of the pharmaceutical companies provide to doctors, they would not be considered as supply and would not attr
In exercise of the powers conferred under Section 23(2) of the CGST Act, 2017 (“CGST Act”), the CBIC vide its Notification No. 10/2019-Central Tax dated March 07, 2019 has notified that a person engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed Rs. 40 lakhs is exempt from taking registration under GST, except: (a) Persons required to take compulsory registration under Section 24 of the CGST Act; (b) Persons engaged
The Central Board of Indirect Taxes and Customs (“CBIC”) vide its Notification No. 02/2019 – Central Tax (Rate) dated March 07, 2019 which hereby notifies the rate of tax, on the intra-State supply of goods or services by the person specified in column (1) of the Table below, shall be levied at the rate specified in the corresponding entry in column (2), subject to the conditions as specified in the corresponding entry in column (3) of the said table below, namely:-
The Central Board of Indirect Taxes and Customs (“CBIC”) vide Central Tax notification specifies the time limit for furnishing the details of outward supplies in FORM GSTR-1 for such class of registered persons having aggregate turnover in the preceding financial year or the current financial year which are as follows: S.No Notification No. Class of Pers
In a move to boost industrial development in the state, the Punjab Cabinet on Wednesday approved an amendment to the Goods and Services Tax (GST) incentives notified under the Industrial and Business Development Policy 2017. The amendment enables industrial units to choose between net GST incentives or incentivised State Goods and Services Tax (SGST) on intra state sale, a government statement said. It gives units which have filed their common application form on the Invest Punjab B
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 to deal with the issue. Absence of compliance regulations prevents corporates from immediately passing on the benefits on the price front. The new framework
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 period post March 01, 2015, but the petitioner had paid such duty at the rate of 13.5% as prescribed. Initially, the petitioner had paid higher
The Gujarat State Government has to recover outstanding sales tax, Value Added Tax (VAT), and GST of Rs 40,221.73 crore as of March 2018,” deputy chief minister Nitin Patel, who holds the finance portfolio, said in the assembly in response to an unstarred question by Congress MLA from Siddhpur, Chandanji Thakor. The dues are to be recovered from 42,675 individuals, i.e. an average of Rs 94 lakh in each case. To put the outstanding dues in perspective, the amount is just lower than the estimate
Fact: M/s. Nipha Exports Pvt. Ltd. (“the applicant”) has factories in Howrah and Hooghly, which are engaged in manufacturing agricultural machinery. The applicant has purchased an ambulance for the benefit of the employees, as required under Section 45(4) of the Factories Act, 1948. Issue Involved: Whether the input tax credit is admissible on ambulances purchased for the benefit of the employees under legal requirement of the Factories Act, 1948? Applicant’sI
Recently, new functionalities were introduced on CBIC-GST Portal: Tax Officers can perform following new functionalities on GST Portal which are as follows: 1.File application for rectification of order passed by appellate authority (Section 161). 2.Allow or reject application for compounding of offence in CPD-02. Taxpayer can perform following new functionalities on GST Portal which are as follows: 1. Furnish details of security/ surety in AS
Fact: M/s. Ashok Rubber Industries (“the applicant”) is a manufacturer of rice polisher made of flexible and elastic rubber filed an application on November 22, 2018 before the Authority for Advance Ruling for seeking a ruling on classification of the goods. Issue Involved: Seeking an advance ruling forclassification of the goods. Applicant’s Contention of law: The Applicant submits that the question raised in the application has neither been decided by nor is pending before
Fact: M/s Optival Health Solutions Private Limited (“the Petitioner”) is a dealer/trader engaged in the business of operating retail pharmacy outlets. The petitioner claims transitional credit in Form TRAN 1 within time and further they had filed Form Tran 2. However, the petitioners had noticed that, there were certain mistakes in Form Tran 2, and they wanted to correct the same. Further, the present scheme does not allow rectification or revision of Form Tran 2, such a lacuna which violate
There have been rising issues regarding slowdown of the real estate sector and low off-take of under construction houses which needs to be addressed to boost the residential segment of the real estate sector, following recommendations were made by the GST Council in its 33rd meeting held today: GST rate: i. GST shall be levied at effective GST rate of 5% without ITC on residential properties outside affordable segment; ii. GST shall be levied at effective GST of 1% wit
The Central Board of Indirect Taxes & Customs ('CBIC') vide its Notification No. 08/2019 - Central Tax dated February 08, 2019 which extends the time limit for furnishing the return by a registered person required to deduct Tax at Source under section 51 of the CGST Act in FORM GSTR-7 for the month of January 2019 till February 28, 2019.
Tax authorities have made it clear that interest will be levied on both cash and input tax credit (ITC) component of GST paid after the prescribed due date. Although the standing order has been issued by the Principal Commissioner of Hyderabad GST Commissionerate, experts say the same will be applicable for all the regions as it draws inference from CGST (Central Goods & Services Tax)/SGST (State Goods & Services Tax) Act. The order also made it clear that recovery of such interest
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. Few important initiatives/improvements made for better User Experience are: 1. Questionnaire for filing GSTR-3B to avoid errors by taxpayers. 2. Option to generate pre-populated Challan by the system to avoid depositing Cash in wrong Head by the t
The Central Board of Indirect Taxes & Customs (“CBIC”) has issued its weekly update dated February 02, 2019 which enables a new functionality in GST portal i.e. while filing of Form GSTR-7 (i.e. Return for Tax Deducted at Source), earlier the system use to checks that the taxable value deducted is equal to 2% of the taxable value or not. But, now this check in Table 3 and 4 of Form GSTR-7 has been removed. Therefore it means that the TDS Deductor are free to report any value un
The Central Board of Indirect Taxes & Customs (“CBIC”) has issued its weekly update dated February 02, 2019 which enables a new functionality in GST portal i.e. at the time of generating E-way bill for outward supply, the taxpayers enter the details of outward supplies such as invoice number, date, quantity, value, Tax, HSN code and Consignee GSTIN etc. But, now the taxpayers can easily import these details of outward supply invoices, as indicated in the E-Way Bill, at the time of preparatio
The Central Board of Indirect taxes & Customs (“CBIC”) has notified that Exemption from tax under ‘Reverse Charge Mechanism (RCM)’ under GST stands rescinded w.e.f. February 01, 2019 in respect of Intra-state Purchases of Goods and Services from Unregistered Dealers (of value exceeding Rs. 5,000 per day), in view of bringing into effect, the amendments (regarding RCM on supplies by unregistered persons) in the Amended CGST/ IGST/ UTGST Acts 2018. Consequently Notification No. 8/2017- Un
A dealer of Patanjali Ayurveda has been held by the National Anti-profiteering Authority (NAA) for not passing on the benefits of duty reduction to his customers. The GST profiteering watchdog has asked the dealer to deposit the undue profit made with the Consumer Welfare Fund. The dealer has been asked to deposit Rs 6.06 lakh along with an interest of 18 per cent liable from the date this amount was realised by him from his customers till the date he deposits it in the Consumer We
The Central Board of Indirect taxes & Customs(“CBIC”) vide its Notification No. 03/2019 – Central Tax dated January 29, 2019
CBIC has issued 13 new notifications dated January 29, 2019, for bringing into effect the GST law amendments under CGST Act, IGST Act, UTGST Act and Compensation Cess Act w.e.f. from February 01, 2019.
Tyre suppliers and leading manufacturers – including JK Tyre, Apollo CEAT & MRF are under the scanner for possible misuse of provisions related to GST, with authorities also probing if there were instances of tax evasion. Sources said authorities are examining multiple issues, which include non-payment of tax on amount recovered through debit notes, excess claim of ITC and transactions between plants and depots. There was no estimate of violations involved, although some of th
The Tamil Nadu Goods and Service Tax Practitioners Association (TNGSTPA) has launched an exclusive website http://www.tngstp.com in Tamil to cater to the queries of traders and accountants pertaining to Goods and Service Tax (GST). This will help rural traders apply for appropriate documents and claims at ease. The website is also furnished with details about various tax slabs for commodities under GST, blogs explaining case studies and forums to discuss with established accounta
Author: Deepak Kumar Das Government has provided a new functionality for “Amendment of B2B Invoices”, which is made available on GSTN Portal. From now onwards taxpayers will be able to Amend B2B Invoices pertaining to the FY 2017-18 on GSTN portal. About the author Deepak Kumar Das
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 Adhia had said that 200-300 writ petitions had been filed against GST. By the end of the year, over 700 cases had been filed, according to Taxmann, India’s leading publisher on Taxation and Corp
The preventive wing of Kutch’s Central Goods and Services Tax (CGST) on Tuesday busted a nationwide racket of usurping input tax credit (ITC) to the tune of Rs 98 crore without actually carrying out any transaction by issuing bogus invoices to traders across the country. The CGST sleuths arrested 38-year-old businessman Gurkamal Singh, a native of Punjab, living in Adipur town of Kutch, who had issued fake invoices worth Rs 531 crore to nearly 700 traders all over the country who claimed Rs 98
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 fake invoices and illegal input tax credit scam which revealed that infra companies are the ultimate beneficiaries. The modus operandi was found to b
The Council for Leather Exports (CLE) has sought reduction of GST rate to 12 per on footwear priced above Rs 1,000, to boost manufacturing and exports. GST rate on footwear worth up to Rs 1,000 was reduced to five per cent, while those above this value still attract a GST rate of 18 per cent. "Footwear is not a luxury item and we urge the government to cut the GST rate on this to 12 per cent," CLE Chairman P R Aqeel Ahmed told PTI. As the sector holds huge potential both for manufac
Fact: M/s. Nova Iron and Steel Ltd. (“the Assessee”) was a manufacturer of sponge iron, who had stopped production due to financial losses, during the period from March 2010 to September 2011. After the management of the assessee was acquired by Bhushan Power & Steel Ltd., New Delhi. Consequently, the production activities recommenced but assessee failed to provide the said information to the Central Excise Department, regarding the change in management.
Fact: M/s. Asahi Kasei India Private Limited (“the applicant”) is a Indian subsidiary company of Asahi Kasei Corporation, Japan ("Asahi Japan"). Asahi Japan is the flagship company of the Asahi Kasei group. Asahi Kasei group S fibers and textiles, petrochemicals, pharmaceuticals, polymers, electronic devices, home products, construction materials, health care etc. The applicant provides sales promotion and marketing support to Asahi Kasei group as the services agreement date
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 bills, an official said. "As soon as the new IT system which will ensure barring of e-way Bill generation if returns are not filed for 6 months is put in place, the new
The Kerala High Court through an interim order has stayed the GST provision which mandates that tax collected at sources (TCS) by the supplier according to provisions of the Income Tax Act — must be included in the value of supply for levying the GST. The court said the provision would remain suspended until it decides the writ petition challenging the same. The GST provision has hit car dealers particularly hard as they collect 1% TCS from buyers purchasing cars worth over Rs 10
The Government of India vide its Circular No. 211/1/2019-Service Tax dated January 15, 2019 states that with reference to Circular No 83/02/2019-GST dated 01.01.2019 clarified that the services provided by International Finance Corporation (IFC) and Asian Development Bank (ADB) are exempt from GST in terms of provisions of IFC Act, 1958 and ADB Act. Further it was also clarified that the exemption will only be available when services are provided by ADB and IFC and not to any entity appointed by
Fact: M/s. Kiran Gems Pvt. Ltd. (“the assessee”) was engaged in providing taxable services under the category of ‘Renting or immovable property service’ for which they were registered and discharged service tax on such services. In the Course of Audit, Revenue noticed that the assessee had recovered reimbursement charges of Rs. 6,44,88,765/- from the customers towards electricity charges in addition to the rent amount and therefore demanded service tax of Rs. 88,02,613/-
- 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 notice that some transporters are doing multiple trips by generating a single e-way bill. Integration of e-way bill
The Delhi high court has stayed the Rs 462-crore demand made on Hindustan Unilever (HUL) by the National Anti-profiteering Authority (NAA). The HC has directed NAA that no coercive action be taken, and no penalty proceedings be continued against HUL until the final determination of the matter in the court. According to a statement by HUL, since the matter involves some issues that require a detailed examination of contentions of both the parties, the HC has asked the FMCG major to deposit Rs 90
In pursuance of 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 of Reference (ToR) for the GoM for boosting Real Estate Sector under GST regime shall be as follows: 1. Shri Nitin Patel Hon’ble Deputy Chief Minister, Go
• In a consumer-friendly measure, the revenue department is planning to make it mandatory for composition dealers and service providers to declare their GST registration status in invoices to ensure that they do not charge any tax from buyers. • The measure, once implemented, would check the widespread practice of composition dealers of charging GST from purchasers and not depositing it with the exchequer, an official said. • The revenue department is also plannin
The due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 – 2018 shall be further extended till 30.06.2019. Read more at:
The new return filing system shall be introduced on a trial basis from April 01, 2019 and on mandatory basis from July 01, 2019.Read more at: http://pib.nic.in/PressReleseDetail.aspx?PRID=1557060
The due date for furnishing FORM GSTR-8 by e-commerce operators for the months of October, November and December, 2018 shall be extended till January 31, 2019. Read more at: http://pib.nic.in/PressReleseDetail.aspx?PRID=1557060
SUMMARY OF PRESS RELEASE ISSUED ON 22.12.2018 The government has issued some clarificatory changes that shall be carried out in the formats/instructions according to which the annual return/reconciliation statement is to be submit - Amendment of headings in the forms to specify that the return in FORM GSTR-9 & FORM GSTR-9A would be in respect of supplies etc. ‘made
Prior to this clarification, solar power developers were paying tax at the rate of 18%. Solar Industry is in a state of relief after the GST council clarified that the devices and parts related to renewable energy will be taxed a 5% while the services related to the renewable energy industry will attract a GST of 18%. While providing clarity on the confusion, the
December 18, 2018 SUMMARY OF ADVANCE RULING Name of the Parties M/S. LEAR AUTOMOTIVE INDIA PRIVATE LIMITED
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. Since its introduction, the Government has made consistent efforts to reconcile the new additions and changes with the earlier regime. This also applies to the annual re
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 on the nature of business. In simple terms, GST return is a document which contains details of income which is mandatory for all taxpayers to file with the concerned authorities.
Summary of GST Notification No. Notification No. Description 1) Notification No. 60/2018 – Central Tax The government t
ASC GST UPDATES Summary of Advance Rulings/Rulings Name of the Parties Ruling M/s. Mary Matha Construction Company. (GST AAR Kerala) Facts: The applicant is a contractor of Government projects. Many of the works are undertaken by way of sub contracts. The sub-c
Foreign E-commerce companies need to apply for Goods and Services Tax registration 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 source (TCS) and tax deducted at source (TDS) have been made ap
ASC GST Updates of the 30 th Council Meet ASC GST UPDATES Summary of Key Decisions taken on 30th GST Council Meeting held on 28th September, 2018 Calamity Cess As per
The plethora of updates, notifications and announcements in the recent weeks have led to a more stabilized structure in respect to the Goods and Services Tax. Take a look at the various notifications below: ASC GST UPDATES Summary of Custom Notification issued on 24 September 2018 No. Notification No.
Recent Updates Goods & Services Tax Notification (Central Tax) Notification No. Notification Date Subject Description Notification No. 49/2018 – Central Tax 13.09.2018
GST Council Updates/ Highlights: (28th Meeting dated 21 July 2018 held at New Delhi) 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 States & Union territories for carrying out the am
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 a single tax value and decreasing transaction costs for concerned business owners.
Need more information on any of our services?
EN 
