This is a recent ruling regarding, the matter of M/s S.B. Traders. v. The Superintendent [W.P. Nos. 39498 & 39502 of 2022 dated October 28, 2022] dated 28.12.2022 wherein it was held that GST registration could not be cancelled on the basis of the direction of Head Office without assigning any reason by the Hon’ble...
This a recent notification regarding, “Changes in the CGST Rules w.r.t. the recommendations of the 48th GST Council Meeting” dated 27/12/2022 Official source CBIC. The CBIC vide Notification No. 26/2022 – (Central Tax) dated December 26, 2022, has issued ‘the Central Goods and Services Tax (Fifth Amendment) Rules, 2022’ to further amend the Central Goods and...
Tata Group has approached the Bombay High Court to contest a Rs 1,500-crore GST notice issued by the Directorate General of GST Intelligence (DGGI). The notice is related to Tata's 2017 dispute settlement with Japanese telecom operator NTT Docomo, according to an Economic Times report. In 2017, Tata had to make settlements worth $1.27 billion with...
Central Board of Indirect Taxes Chief Vivek Johri said on Saturday that online games where winning depends on a certain outcome would attract 28 % GST on the full bet value. Though the report of the Group of Ministers on online gaming did not come up for discussion at the GST Council meeting, the department would...
In a momentous move, the GST Department has issued around 50,000 show-cause notices (SCN) to several companies and firms across sectors, including jewelry and real estate, following the findings of a GST audit exercise they started earlier this financial year in the first comprehensive audit exercise since the inception of the GST regime. It has covered...
Experts also noted that the establishment of the GST Appellate Tribunals agenda is pending for a long, given that the indirect tax regime has now completed 5 years. A number of other cases are also pending in the High Courts. The GST Council is likely to meet in-person in next year February, after the Union Budget...
The 48th GST Council met under the Chairmanship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman via virtual mode in New Delhi on December 17, 2022. The meeting was also attended by Union Minister of State for Finance Shri Pankaj Choudhary besides Finance Ministers of States & UTs (with legislature) and senior...
This is the recent news regarding, “18% GST is payable on works contract service of constructing warehouse and cold storage godown for Govt. entity which will be rented out” dated 16/12/2022 Official source Live Law.in. The Telangana AAR ruled that work contract services for constructing warehouses and cold storage for Telangana State Industrial Infrastructure Corporation Limited...
Earlier, the CBIC vide Notification 83/2020-Central Tax dated November 10, 2020 (“the Notification”) extended the time limit for furnishing the details of outward supplies in Form GSTR-1 of the Central Goods and Services Tax CGST Rules, 2017 (“the CGST Rules”) for each tax periods till 11th day of the month succeeding such tax period. Now, the...
In Firozabad, the GST department is running a vigorous raid campaign in the matter of tax evasion, due to which the traders are very scared. On the call of Mukund Mishra, the provincial president of the UP-Industry Trade Board, the trade board officials took out a procession from Gandhi Park at ten in the morning...
The Central Board of Indirect Taxes and Customs Legal Cell has issued Letter vide F. No. 275/11/2022-CX.8A dated November 04, 2022 informed that the Board has decided that the GST department will not challenge the Supreme Court decision in Mohit Minerals case. SC ruling on Mohit Minerals case The ruling pronounced by the Supreme Court on May...
The GST Council said "The 48th Meeting of the GST Council will be held on 17th December, 2022 by video conference”. The agenda of the 48th meeting of the GST Council is expected to be finalized in the coming days. Still, the meeting also assumes significance as it comes just ahead of the 2023-24 Union...
Pointing out some emerging issues in income tax and GST, Revenue Secretary Tarun Bajaj said there is a need for reforms in both direct and indirect taxes. He mentioned “We have to rationalise rates under the Goods and Services Tax,…reduce the number of slabs and relook at exemptions. Then there are some issues like online gaming,...
Amidst an ongoing tussle between the Karnataka government and cab aggregators, the state government has reportedly sought to cap the convenience fee at 5% for auto rickshaw rides. However, senior officials told the Economic Times that the convenience fee was exclusive of GST, meaning users will have to pay an additional 5% GST on an aggregate...
To discourage gambling and betting-related games, the GST Council is likely to hike the tax rates for online gaming from 18% to 28%. A Group of Ministers, set up by the Ministry of Finance to look into matters related to the GST regime covering online gaming, casinos, and race courses, may suggest a flat GST...
The Union Finance Minister Nirmala Sitharaman met infrastructure industry experts at the customary pre-budget meeting, the latter sought rationalisation of GST, easier bank credit and a hike in public expenditure. Cellular Operators' Association of India (COAI) in its demonstration to the Finance Minister has presented a reduction of levies and taxes on the telecom sector amidst...
The government is considering removing the penal offences which are already covered under the IPC from the GST Act to make it more taxpayer-friendly, an official said. The part of the exercise to decriminalise GST law is supposed to be taken up in the next GST Council meeting. The Finance Ministry will propose amendments to...
The central government has made a significant step to boost the health insurance sector. The government aim to reduce the GST on health insurance on premium package. However, a deadlock persists on the input tax credit. People are becoming more aware of health insurance after Covid pandemic and this move aims to boost insurance penetration. Insurance companies...
Principal Chief Advisor Amit Mitra to the Chief Minister of West Bengal wrote Union Finance Minister Nirmala Sitharaman in a letter on Wednesday to call an urgent GST Council meeting which was not met for over four and half months. In a letter to the Finance Minister, Amit Mitra who was the former chairman of the...
This is news regarding Maharashtra businessman nabbed as GST sleuths bust Rs 45 cr fake bills scam on 4th November 2022. An official said here on Friday, the Maharashtra Goods & Services Tax Department has busted a GST scam involving fake invoices worth Rs 45 crore and arrested a businessman for the alleged fraud. Launching a...
This is news regarding low number of E-way bills in India despite high GST revenue. The GST regime covers e-way bills for the transport of goods, which went down during October, even as the tax inflow was high. For the month of October India's GST collection has surpassed the INR 1.5 lakh Cr. mark for the...
This is the recent news regarding Chandigarh GST revenue sees 28% rise in October, dated 02/11/2022 Official source Indian Express. The Chandigarh administration collected Rs.203 crore GST in October, which is the first month of this financial quarter, an increase of 28% from Rs.158 crore in October last year. They also reported that they had also seen a...
This is the recent news regarding GST slabs rejig unlikely before 2024 general elections, dated-28/10/2022 Official source Financial Express. According to official sources, with inflation likely to remain elevated for a longer period and key state elections due in 2023, the Narendra Modi 2.0 government may choose not to restructure the GST slabs before it demits...
The GST Council is prone to meet within the first half of November to debate the reviews of the panel of ministers on establishing the GST Appellate Tribunal and levy of tax casinos and online gaming, an official mentioned. As well as, the standing on the lot awaited full report of the committee tasked with the...
This is in regard to recent news in one of the Official sources dated 19.10.2022 for an opportunity that could be given to businesses to settle minor GST offences in works. This is to highlight that the Government is considering a GST dispute settlement scheme offering a time-bound scheme covering only minor GST offences while a...
This is to highlight that now businesses with an annual turnover of over Rs 5 crore will have to move to e-invoicing under goods and services tax (GST) from January 1, 2023. The GST Network has asked its technology providers to make the portal ready to handle the increased capacity by December, a government official...
The Goods and Service Tax Network has issued a new module for GST stakeholders. These functionalities pertain to different modules such as Registration, Returns, Refund and other miscellaneous topics. Below is the summary of the New functionalities made available on the GST portal 1. Registration Functionality to add new fields while submitting a response to a notice, in...
According to Government sources, it is informed that Delhi's Goods and Services Tax (GST) collection in the second quarter of 2022-23 has dipped by more than 6 per cent in comparison to the first quarter of the fiscal. However, the combined GST collection of the first two quarters of 2022-23 was 28% higher than the corresponding...
The Punjab finance, planning, excise and taxation minister Harpal Singh Cheema has stated that the state had collected INR 10,604 crore GST during the first 6 month of this year, stating a growth of 22.6% in GST collection against the same period last year which was INR 8,650 crore. He also added that the state government...
This is to update you regarding a press release dated 04-10-2022 issued by the Ministry of Finance. Vide Notification no.18/2022 Central tax dated 28.09.2022, from 01.10.2022 the provisions of Sec 100-114, except clause (c) Sec 110 and Sec 111, of Finance Act 2022 shall come into force. The time limit of particular compliance has been extended to...
Amendments made in Finance Act 2022 notified w.e.f 1st October 2022 vide Notification No. 18/2022 – Central Tax, F.No.CBIC-20013/1/2022-GST, Dated 28th September 2022 Finance Act 2022 made around fifteen amendments which include omissions, insertions, and substitutions made in the CGST Act 2017. They were covered by section 100 to section 114 of the Finance Act, 2022...
The Central Government has appointed 1st October 2022 as the date on which the provisions of sections 100 to 114 of the Finance Act, 2022 shall come into force. Precisely, the amendments in section 16(2), 29(2), 34, 37, 38, 39, 41, 47, 48, 49, 52, 54, and 168, and omission of sections 42, 43, 43A of...
This is regarding news dated 25-09-2022. As per a press report, the Directorate General of GST Intelligence has issued show cause notice (‘SCN’) to Gameskraft Technologies Pvt. Ltd. (‘Gameskraft’) for INR 21,000 crores (USD 2.6 billion), the biggest ever in history of Indian indirect taxation. Gameskraft engages in hosting of online games on its platform...
The National Informatics Centre("NIC") has issued an Update on the E-way bill generation for the movement of Gold. As per the Government's approval, E-way bill generation has been provisioned for the movement of Gold (HSN Chapter 71) for all Intrastate and Interstate shipping. The inhabitant of the state may generate the E-way bill for Gold as...
The Government has enabled the option of payment through credit card, UPI, and internet banking on the income tax e-filing portal. However, if an individual opts for payment of income tax on the e-filing portal for the 'payment gateway' method, he may be charged certain charges if he opts for such a payment method. In addition...
Currently, many taxpayers only record the ITC on an eligible inbound supply in their ITC ledger, and the ITC is required to be respected in the following scenarios: If cancellation of ITC is requested on account of ordinary inward supply used for both taxable and exempt outward supplies in terms of rules 42 and 43; or Cancellation...
Clause 44 of Form 3CD Tax audit Report contains a pool of various clauses that keep on amending owing to the disclosure requirements and transparency. New clause 44 of Form 3CD was introduced requiring entities to disclose the break up of total GST and non-GST expenditure irrespective of whether they are registered under GST or...
The limit for e-invoicing is now being reduced from 20 crores to 10 crores from 01.10.2022. It means if aggregate turnover has exceeded 10 crores in any preceding F.Y i.e 17-18, 18-19, 19-20, 20-21, or 21-22, then E-Invoicing will be applicable from 1st October 2022. The authorities have ensured the smooth implementation of the e-invoicing module....
This is in regard to the recent updation that have been made by CBIC in regards to the e-invoice applicability, and some functionality in the GSTN Portal, which are listed as under: A. E-Invoice Vide Notification No. 17/2022 – Central Tax, dated 01.08.2022, the Central Government has made it mandatory for a taxable person whose aggregate turnover...
The renting of a residential dwelling for use as residence is exempt from the levy of GST vide S. No. 12 of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017. Now, in the 47th GST Council meeting, it was decided to introduce RCM on renting residential dwellings. The CBIC vide Notification No. 4/2022 Central Tax (Rate)...
GSTN portal to open common portal for all assesses to claim transitional credit for 60 days from 01.09.2022 till 30.10.2022 All assesses can claim benefit whether they have filed Writ or not GSTN to make sure no technical glitch during this time 90 days given to officers thereafter to verify the claim of credit on merits and pass...
The GSTN has issued an advisory dated 21.07.2022 regarding the implementation of mandatory mentioning of HSN codes of GSTR-1. Vide Notification No. 78/2020 – Central Tax dated 15.10.2020, it is mandatory for the registered persons to mention the HSN codes in Table 12 of GSTR – 1. The reporting digits shall be a minimum of 4/6 digits...
The GST Council made a recommendation to the Government to impose GST on “a person has given residential property to the registered person (GST Registered Person) to renting of residential dwellings (Living) with effect from 18.07.2022 in its 47’th meeting at Chandigarh on 28th &29th of June’2022. Prior to 18.07.2022, A person who has given a residential...
The changes in reference to the GST rates, as recommended under the 47th GST Council Meeting will come into effect from today, i.e. 18.07.2022. One such recommendation relates to the imposition of GST on specified goods when “pre-packaged and labelled”. Certain doubts/queries have arisen regarding the GST levy on “pre-packaged and labelled” goods (particularly in respect of...
To further ensure better compliance and plug leakages, the GST e-invoicing to be expected to be mandatory for firms having turnover of INR 5 crores from January 1st, 2023, as per the Chairman of Central Board of Indirect Taxes Vivek Johri. Johri further told Financial Express that expanding the coverage to over Rs. 5cr will give...
Vide, CBIC notification no. 13/2022 – CT, dated July 5th, 2022, the issuance of the order under section 73(9) of the CGST Act, 2019 for the following w.r.t. the F.Y. 2017-18, shall be upto 30th September 2023: Recovery of taxes not paid; Recovery of taxes short paid; Recovery of Input Tax Credit wrongly availed or utilized. Furthermore, the period...
Vide, CBIC notification no. 09/2022 – CT, dated July 5th, 2022 the amendments in Section 50 and Section 52 of the CGST Act, 2017 shall come into effect from July 5th, 2022. After the amendment the aforementioned sections would be as follows: Section 50(3) - Interest on delayed payment of tax: “Where the input tax credit has been...
As per the recent news, the Government is planning to bring down the current mandated threshold of INR 20 crore or above for e-invoicing to INR 5 crore or above. Revenue Secretary Tarun Bajaj shared, the plan is to bring down the applicability of e-invoicing to INR 10 crore and then to INR 5 crore, from...
The 47th Council meet was held during 28th-29th June, 2022. The meeting was chaired by our Finance Minister Nirmala Sitharaman. Certain recommendations have been made by the GST Council relating to the GST Law and procedure. NOTE: All rate changes recommended will be made effective from 18th July, 2022. Such recommendations are as follows: Recommendations relating to GST...
Finance Minister Nirmala Sitharaman chaired the 47th GST council meeting taking place in Chandigarh yesterday i.e. 28th June 2022. GST Council is meeting to deliberate on a number of GST-related issues such as GST compensation, GST rate rationalisation and other critical aspects. Yesterday, during the GST Council Meeting, Nirmala Sitharaman came up with a range...
The GST Council in its meeting during the 28 – 29th June, is likely to consider giving relief to the tourism and hospitality industry. The relief can be given in the form of introducing a new margin scheme. As per the news, the applicable effective rate of GST on the tour operators is currently too high according...
GST Council likely to consider clearer framework to curb fake invoices GST Council in its meeting to be held during 28-29 June 2022, will possibly consider the plan to bring out more clarity on what actions to be taken against the entities which are involved in claiming Input Tax Credit (ITC), which has become a major...
As per the news, the Goods and Services Tax (GST) Council is set to discuss a number of changes in the law it is looking forward to presenting. Among others, the same would also include amendments to GSTR-3B (Monthly GST Return). By allowing the composition scheme to the e-commerce suppliers the GST Council will reportedly ease...
As per the GST Council’s tweet on Saturday, June 18th, 2022, the location of the 47th meeting of the GST council has been moved from Srinagar to Chandigarh. The meeting is to be held during June 28th-29th. The meeting of the appointed Group of Ministers (GoM) has already been conducted. Karnataka Chief Minister Basavaraj Bommai leads...
Instruction No. 03/2022, dated June 14th, 2022 Under the mentioned Instruction, reference has been drawn to the following: As per Section 107 (2) of the CGST Act, 2017, the commissioner has the power to review, if he may, any decision/order (including an order of refund, w.r.t. its legality or propriety). Also, the commissioner may direct any subordinate...
A Circular (No. /DCCT(E-G)/CR-07/2022-23) has been issued by the Government of Karnataka, relating to the issue regarding the revocation of the cancelled GSTIN beyond time period prescribed. As per the GST laws [Section 29(2)(c )], where the registered person has not furnished proper returns, for a continuous period of 6 month, the GST officer has the...
The Goods and Services Tax (GST) Council will likely meet in the second half of June, amid a new debate on the way taxation powers are shared between the Centre and states. As per the recent Supreme Court (SC) ruling, the recommendations of the council are not binding on the Union Government and the States, but...
The entire amount of GST compensation (Up to 31st May, 2022) payable to the States amounting to Rs. 86,912 cr has been released by the Government of India (GOI). Despite the fact that about only Rs. 25,000 cr is available in the GST compensation fund, the decision has been taken. The Centre has released the balance of...
Haryana Revenue Department to start regular data sharing of Commercial Rent and Lease Deed with the Haryana Excise and Taxation Department to curb GST Evasion. On 23rd May 2022, a meeting was held between Sh. Anurag Rastogi, ACS (E&T) and Sh. Pranab Kishore Das, ACS and FCR to discuss the problem associated with GST evasion in renting...
GSTR-3B for the month of April-2022 is due on 20th May 2022. However, there have been some technical issues pertaining to GSTR-2B of April 2022 that directly affect the ITC you claim in GSTR-3B. As per the GST Network’s clarification, certain records are not reflected in the GSTR-2B statement for the tax period of April 2022....
GST reconciliation has been one of the major concerns of the taxpayers. GST compliances involve the filing of multiple returns. For instance, for reporting sales, we have GSTR-1 and GSTR-3B. For reporting purchases, we have GSTR-3B which involves auto-population of details from GSTR-2B. Further, the details reported in the GST returns shall match with the...
As per the press release posted on April 25th, 2022 by PIB Delhi, the Finance Ministry has clarified that reports of purported feedback sought on raising GST Rates on 143 items are misleading. The media reported that feedback has been sought from the States relating to suggestions for raising the Good & Services Tax (GST) rates...
When it comes to practical implementation, the GST portal consists of three pillars that provide a snapshot of the transactions undertaken on the GST portal. These are the electronic ledgers of GST which include: Electronic Credit Ledger Electronic Cash Ledger Electronic Liability Register In this guide, we will be discussing the meaning of electronic credit ledger in GST and...
1. Extension in time-limit to claim ITC under GST - It seeks to amend section 16(4) of the CGST Act, 2017 so as to provide that a registered person shall not be entitled to take input tax credit in respect of any invoice or debit note after the thirtieth day of November (Earlier this date...
The CBIC has issued Notification No. 39/2021–Central Tax on 21-12-2021 through which Section 16 of CGST Act, 2017 has been amended. A new clause has been inserted in section 16 of CGST Act, 2017 after sub-section (2), clause (a), which reads as: “(aa) the details of the invoice or debit note referred to in clause (a) has...
Concessions on drugs used for COVID-19 treatment have been extended until 31st December 2021. Further, the list has been expanded to include more drugs which are now taxed at 5% GST. The council recommended changes in rate in respect of the supply of various goods and services. Various clarifications have been provided in respect of the applicable...
The Gujarat Authority of Advance Ruling in case of M/s WAGO PRIVATE LIMITED vide Advance Ruling /SGST&CGST/2020/AR/54, dated 30th July 2021 on an application filed by applicant passed his ruling after considering the issues involved, on which advance rulings are sought by the applicant, relevant facts and interpretation of the law. Fact: The applicant M/s. Wago Private...
The West Bengal Authority of Advance Ruling in case of M/s TERETEX TRADING PRIVATE LIMITED [Advance Ruling No. AD190321001275L, dated 28th June 2021] on application field by applicant passed his ruling after considering the issues involved, on which advance rulings are sought by the applicant, relevant facts and interpretation of law. Fact: Application is filed by M/S...
THE MAHARASHTRA AUTHORITY FOR ADVANCE RULING vides NO.GST-ARA-65/2020-21/21-22/B-3 Dated 27.07.2021 on an application field by M/s NAGPUR WASTEWATER MANAGEMENT PVT LTD passed its advance ruling after considering the issues involved, on which advance rulings are sought by the applicant, relevant facts, and interpretation of the law. FACTS:- The Nagpur Municipal Corporation (NMC) in order to manage the...
Karnataka AAAR in case of M/s PAGE INDUSTRIES LTD [ORDER NO.KAR/AAAR/05/2021, dated: 16.04.2021] on appeal field by the appellant under section 100 of CGST Act 2017 against the Advance Ruling Order No. KAR ADRG 54/2020 passed his ruling after considering the issue involved, on which advance ruling is sought by the applicant, relevant facts, and...
GST is a historic tax reform introduced on the 1st of July 2017. Over the years there has been a reduction in the tax rates, simplification of procedures and a growing economy has also led to an exponential increase in the tax base. GST revenues have steadily grown and have been above the 1 lakh...
The Central Board of Indirect Taxes and Customs (“CBIC”) has issued Circular No. 150/06/2021-GST dated 17th June 2021 to provide clarification whether GST applicable on annuities paid for the construction of road where a certain portion of the consideration is received upfront while remaining payment is made through deferred payment (annuity) spread over years. As per...
The Central Board of Indirect Taxes and Customs (“CBIC”) has issued Circular No. 149/05/2021-GST dated 17th June 2021 to provide clarification whether serving of food in Anganwadis and schools under Mid-Day Meals Scheme would be exempt if such supplies are funded by government grants and/or corporate donations. As per Entry No. 66 clause (b) (ii) of...
The 44th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through video conferencing held on 12th June, 2021. The Council in its meeting has decided to reduce the GST rates on the specified items being used in Covid-19 relief and management till 30 September, 2021. The details of...
The 43rd GST Council Meeting was held on 28-05-2021, Friday via video conferencing chaired by FM Nirmala Sitharaman, held at New Delhi. Finance Ministers of States & UTs and Senior officers from Union Government & States are also present in the meeting. The GST Council has made the following recommendations relating to changes in GST...
The 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...
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: Facts of the Case Petitioner...
The Karnataka Authority of Advance Ruling in case of M/s Guitar Head Publishing LLP [Advance Ruling No. KAR ADRG 23/2021, dated 16th April 2021] on application field by applicant under section 97 of CGST Act, 2017, in Form GST ARA-01 passed his ruling after considering the issues involved, on which advance rulings are sought by...
All goods imported into India have to pass through the procedure of customs for proper examination, appraisal, assessment and evaluation. This helps the custom authorities to charge proper tax and also check the goods against the illegal import. Imports through courier mode have registered a healthy rate of growth in recent years in India. The facility...
Lowering Interest Rate: The CBIC vide following notifications: Notification No. 08/2021 – Central Tax dated 1st May, 2021 Notification No. 01/2021 – Integrated Tax dated 1st May, 2021 Notification No. 01/2021 – Union Territory Tax dated 1st May, 2021, has provided relief to taxpayers by lowering interest rate for the period March 2021 to April 2021...
The Hon’ble Supreme Court of India in the Commissioner of Commercial Taxes and Anr. etc. VS the Ramco Cements Ltd. etc. [Petition(s) for Special Leave to Appeal (C) No(s) .15785-15788/2020, dated March 24, 2021] declined to interfere in Revenue’s Special Leave Petitions, for use of ‘C’ Forms of the Central Sales Tax Act, 1956 (“CST...
The CBIC has issued Advisory No. 8 /2021- Refunds dated 20th April 2021 related to the implementation of PMT-03 to re-credit the ITC sanctioned as a refund. Kind reference is invited to the notification No.16/2020-Central Tax dated 23.03.2020, vide which sub-Rule (4A) has been inserted in Rule 86 of the CGST Rules, 2017 (Rule 86 of...
The budget was presented on 01-02-2021 and amendment was carried out in the Finance Bill, 2021 which will come into effect from the date when the same will be notified, as far as possible, concurrently with the corresponding amendments to the similar Acts passed by the States and Union Territories with Legislature. AMENDMENTS IN THE CGST...
CBIC vide Notification No. 94/2020 – Central Tax dated 22nd December 2020 has amended CGST Rules, 2017. These rules may be called the Central Goods and Services Tax (Fourteenth Amendment) Rules, 2020. The various amendments are as follows: The time limit for system-based GST Registration increased The time for system-based registration has been enhanced from 3 days...
A facility of ‘Communication Between Taxpayers’ has been provided on the GST Portal, for sending a notification by recipient (or supplier) taxpayers to their supplier (or recipient) taxpayers, regarding missing documents or any shortcomings in the documents or any other issue related to it. This facility is available to all registered persons, except those registered as TDS,...
Who can opt for the scheme: Following registered person can file quarterly returns and pay tax on monthly basis w.e.f. 01.01.2021 : A registered person who is required to file Form GSTR 3B with aggregate turnover (hereinafter AATO) of up to INR 5 Cr. in the previous financial year is eligible to opt in this scheme....
In terms of Rule 138E (a) and (b) of the CGST Rules, 2017, the E-Way Bill (EWB) generation facility of a taxpayer is to be blocked, in case the taxpayer fails to file their returns in Form GSTR-3B or Statement in Form CMP-08, for two or more consecutive tax periods. For unblocking of this facility,...
The government’s efforts to check evasion of Goods and Service Tax (GST) and step up the indirect tax system’s efficiency is set to reach the next level soon with officials being able to intercept suspicious transactions on a real time basis and pre-empt fraud. The idea is to enable tax officials to block generation of electronic...
A Composition taxpayer may now file NIL statement in Form GST CMP-08 for a quarter, through an SMS, apart from filing it through online mode, on GST Portal. To file NIL Form GST CMP-08 through SMS, the taxpayer must fulfil following conditions: The taxpayer must be registered as composition taxable person (by filing Form GST REG-01) or...
E-Invoicing’ has been one of the most discussed topics for the past month and it has made its way to the to-do lists of all large corporates having GST aggregate turnover of more than ?500 crores. The Government notified the implementation of e-invoice from 01 October 2020, which will mandate registration of all tax invoices*...
‘E-invoicing’ for certain classes of taxpayers has come into effect from 1-10-2020. Keeping in view the hardships faced by the taxpayers due to COVID-19 lockdown and as some of these taxpayers are still not ready, as a last chance, Government had given relaxation that invoices raised by notified taxpayers during October, 2020 without following e-invoice procedure...
GST Council is likely to approve a two-year extension of compensation cess levy on goods and services to allow Centre to pay entire shortfall in GST tax collection by states expected till June 2022. Sources in the government said that with 21 states expressing their preference for the Borrowing Option-1 proposed by the Centre to meet...
1. An offline tool has been made available to the taxpayers to match Input Tax Credit (ITC), as auto populated in their Form GSTR-2B, with their purchase register. This tool will help the taxpayer to compare their ITC as per their Purchase Register, with the ITC as shown available in their auto drafted Form GSTR-2B...
The GST Council, in its 39th meeting held on 14th March 2020, had recommended to adopt and implement the incremental approach of linking the present system of filing of GSTR-3B and GSTR-1 and other significant changes like enhancements in GSTR-2A and its linking to GSTR-3B. One such enhancement that the Council recommended was the introduction of...
The Central Board of Indirect Taxes and Customs (CBIC) vide Instruction No. 390/Misc/3/2019 – JC dated August 21, 2020 issued the revised guidelines for conducting the personal hearing by virtual mode under CGST Act, 2017, IGST Act, 2017, Customs Act, 1962, Central Excise Act, 1944 and Chapter V of Finance Act, 1994. The Board has...
A facility has been provided to the taxpayers to download document wise details of Table 8A of Form GSTR-9, from the portal in excel format. This can be done by using a new option of ‘Document wise Details of Table 8A’ given on the GSTR-9 dashboard, from Financial Year 2018-19 onwards. This will help the...
The Suvarna Karnataka Chemists and Distribution Association (SKCDA) has sought clarification from the State drug controllers about the procedures followed by the authority in granting manufacturing as well as sale licenses to manufacturers of hand sanitisers in the State. It has written a letter to the drug controlling authority with a request for detailed data...
The Goods & Services Tax Network (GSTN) Portal has now enabled 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...
CBIC has extended timelines for Compliances such as filing of Details of Outward Supplies reported under Section 37 in form GSTR-1, Return of Inward and Outward Supplies, Input Tax Credit availed, tax payable and paid under Section 39 in Form GSTR-3B, Return of Inward Supplies of Services and Input Credit Distribution by Input Service Distributor in Form GSTR-6,...
A recent observation by Maharashtra Authority of Advance Rulings (AAR) resulted in the ruling that GST will not be applicable if the Indian project office (PO) of an MNC is accounting for the salary of an expatriate employee. The AAR also observed that considering, the expat employee, in such cases, is on the payrolls of...
Ahmedabad: The Gujarat high court has said that only the ‘Veggie Supreme’ of Pizza Hut can be a matter of investigation in an anti-profiteering case. Pizza Hut has been fighting a legal battle after a customer accused its SG Road outlet of overcharging though GST rates had been slashed. On Wednesday, the Gujarat HC directed...
GSTN has issued Frequently Asked Question on filing of nil GSTR-1 through SMS on GST Portal. Some of the important questions for the understanding of the taxpayers are as under:- 1. Ques: When can Form GSTR-1 be filed as Nil? Ans: Form GSTR-1 can be filed as a nil return if there are no outward supplies (including...
The CBIC vide Notification No. 48/2020 – Central Tax dated 19th June, 2020 has amended Central Goods and Services Tax Rules, 2017. Earlier Rule 26 sub rule (1) second proviso states: “Provided further that a registered person registered under the provisions of the Companies Act, 2013 (18 of 2013) shall, during the period from the...
Many FMCG and pharma companies that had paid Goods and Services Tax (GST) on raw materials and services used to manufacture perishable goods are staring at a situation where they will have to reverse input tax credit (ITC) availed, as these goods could never be sold before their expiry date due to the nationwide lockdown....
In a relief to small taxpayers with turnover up to Rs 5 crore, the GST Council on Friday halved the interest on delayed filing of GST returns for February, March and April to 9 per cent, provided the returns are filed by September 2020. Also, the deadline for filing returns for May, June and July...
CBIC vide Circular No. 140/10/2020-GST issued clarification in respect of levy of GST on director remuneration. CBIC has examined the subject matter in two category which is: Leviability of GST on remuneration paid by companies to the independent directors or those directors who are not the employee of the said company The primary issue to...
The 40th GST Council met was held on 12-06-2020 under the Chairmanship of Union Finance and Corporate Affairs Minister Smt Nirmala Sitharaman. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and seniors officers of the Ministry of Finance....
As per the reports, the Goods & Services Tax Network (GSTN) on Sunday, 31st May, 2020 said that it has enabled new registration functionality on the GST portal for registered entities who are now corporate debtors under the provisions of the Insolvency & Bankruptcy Code (IBC). This will benefit companies undergoing the Corporate Insolvency Resolution...
The Insolvency Resolution Professionals/ Resolution Professionals (IRPs/RPs), appointed to undertake corporate insolvency resolution proceedings for Corporate Debtors, can apply for new registration on GST Portal, on behalf of the Corporate Debtors, in each of the States or Union Territories, on the PAN and CIN of the Corporate Debtor, where the corporate debtor was registered earlier,...
The finance ministry is not in favour of raising the goods and services tax (GST) rates even on non-essential items at a time its revenue collections are expected to be badly hit by the nationwide lockdown to contain the spread of Covid-19. “Post the lockdown, demand has to be induced and economic activity has to...
The Commissioner of CGST Thane, Mumbai vide F.No. V(Misc)/AdjudicationPH/Thane/2020 dated May 18, 2020, issued guidelines for conducting a personal hearing in the virtual mode in respect of pending show cause notice/ appeals etc. under the provisions of erstwhile the Central Excise Act, 1944, the Finance Act, 1994 & the Central Goods & Services Tax Act,...
High Court of Jharkhand passed a judgement on 21st April, 2020 in the case of Mahadeo Construction Co. (Petitioner) stating that without initiation of any adjudication proceedings, no recovery proceeding under CGST Act can be initiated for recovery of the interest amount. The case is described as under: Facts of the Case The petitioner stated that...
The pandemic situation of COVID-19 has created an obligation for the Government to take necessary preventive steps. In this context Ministry of Home Affairs (MHA) has issued various orders and guidelines from time to time. MHA in its order dated 15th April 2020 has provided measures to be implemented in all offices, factories, and other establishments....
The High Court of Delhi on 5th May, 2020 passed a judgement in the case of four Petitioners namely Brand Equity Treaties Limited, Micromax Informatics Ltd., Developer Group India Private Limited, Reliance Elektrik Works vs. Union Of India & ORS (Respondent) stating that the taxpayers can file TRAN-1 to avail the CENVAT or Input Tax...
Ministry of Home Affairs (MHA) in wake of COVID 19 has made medical insurance mandatory for the workers of offices, workplaces, factories, and establishments. This decision of the Government has brought great relief for the organization as now organizations can take the benefit of input tax credit paid on medical insurance premiums. In this article, we...
Taxpayers deposit money using challan and the paid amount gets credited in the particular head in the Electronic Cash ledger and the same can be utilized in settling liabilities of that head only. In case a taxpayer deposited any amount under a major head i.e. IGST, CGST, SGST/UTGST and Cess or minor head i.e. Tax,...
HC of Gujarat gave an important judgment dated 16th December, 2019 regarding procedure for acquiring GST Number (registration) of company in case of OL of Sterling Basic Organics Ltd.(In Liqn) [2020] 114 taxmann.com 498 (GUJARAT) which is discussed as below: Facts of the Case Company is in liquidation and official liquidator has filed a writ. Official Liquidator...
NEW DELHI: The government is unlikely to exempt GST on medical items like ventilators, PPEs, masks, test kits and sanitisers, as it would lead to blocked input tax credit (ITC), thereby increasing the cost of manufacturing and increase the price for consumers. There have been demands from certain sections to exempt GST on certain items...
The following amendments will be needed to be passed or notified through the issuance of the legal circulars and legislative amendments, after being approved by the Goods and Services Tax (GST) Council which are as follows: Read more: https://www.ascgroup.in/highlights-of-38th-gst-council-meeting/ Taxpayers having an annual aggregate of up to Rs. 5 Crore: The due dates for filing of GSTR-3B...
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...
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...
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...
Due to COVID-19 pandemic and challenges faced by taxpayers, Government has extended dates for GST filings. These are notified in Notifications 30/2020 to 36/2020 dated 03.04.2020. Circular No. 136/06/2020-GST dated 3rd April, 2020 has been issued. Normal Taxpayers filing Form GSTR-3B a. Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY Tax period Late fees waived if return filed on or...
The government has retrospectively extended the validity of e-way bills under the Goods and Services Tax (GST) regime that would have expired between March 20 and April 15 to April 30. Also, in a move that will ease the working capital requirements for businesses, the government has deferred the implementation of 10 per cent restriction...
High Court of Karnataka gave an important judgment dated 27th November, 2019 regarding 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...
CBIC stated via different notification issued on 23rd March, 2020 that Aadhaar authentication is mandatory for GST registration from 1st April 2020. The detailed notification is as under: - Notification No. 17/2020 – Central Tax Dated 23rd March, 2020 G.S.R. 200 (E).- In exercise of the powers conferred by sub-section (6D) of section 25 of the Central Goods and Services Tax...
The CBIC on recommendations made in 39th GST Council Meeting vide Notification No. 16/2020 Central Tax dated 23rd March,2020 has amended Central Goods and Services Tax Rules, 2017 (“CGST Rules, 2017”) to provide for recovery of refund on export of goods where export proceeds are not realized within the time prescribed under FEMA. In CGST...
In wake of complete lockdown due to fast spread of COVID-19 in India, our Finance Minister today held a Press Conference in New Delhi. Following are the key decisions taken in the aforesaid Press Release that have impact on Corporate India: Income Tax Changes: Last date of filing ITR for FY 2018-19 has been extended to...
In an investigation led by CGST Meerut team has prima facie revealed issuance of GST invoices of Rs. 1,708 crores from a chain fake firms/companies operating from Delhi, Moradabad and Meerut, involving fraudulent ITC of about Rs 281 crores. The fraud amount may exceed on further probe. On the basis of initiative taken by the...
The 39th GST Council meeting was held on 14-03-2020 under the Chairmanship of Union Finance and Corporate Affairs Minister Smt Nirmala Sitharaman. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance....
The Council would also discuss the integration of the GST e-way bill system with the NHAI's FASTag mechanism from April to help track the movement of goods and check GST evasion. The GST Council is likely to rationalise tax rates on five sectors, including mobile phones, footwear, and textiles, and defer implementation of the new...
MUMBAI: The Reserve Bank of India’s (RBI) decision to extinguish Additional Tier 1 (AT1) bonds of Yes Bank will hurt a large number of retail and other investors (through write-offs in mutual funds and insurance funds), bank treasuries and HNIs. In addition, RBI’s decision has also increased uncertainty about these bonds, which are leading to...
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,...
Tax Regime - Four years ago, Indonesian finance minister Mulyani Indrawati had invited captains of industry and CEOs to banquets.As they would be having sumptuous meals, she reportedly would give presentations listing out who among them had — and, by omission, who had not — signed up to the tax amnesty offered by the government. This...
Mumbai: GST on non-compete fee - Non-compete agreements during acquisitions that restrict the seller from starting a new venture for some time or poaching employees and customers, have attracted the taxman’s attention. Several private equity firms, strategic investors and others that have bought businesses and entered into these contracts with the sellers have received notices...
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...
The inability of the Goods & Services Tax (GST) Administration to determine the ‘Place of Supply’ for over the counter (OTC) sales can potentially result in more and more litigations. GST is a destination-based tax in which a consumer will bear the final tax and the State where consumption has taken place will get the...
A buyer cannot be penalized in case a seller does not deposit tax collected from her/him, a High Court has ruled. This order could become precedent in a number of similar cases all over India as many businesses are denied input tax credit (ITC) under the indirect tax regime when the counterparty does not file...
Issue of Composite Supply - The Kerala high court has tried to clear the air over the contentious issue of composite supplies under the Goods and Services Tax (GST) which experts say may become guiding principles to decide cases in litigation. If more than one good or service are supplied by a company, these could...
The Central Board of Indirect Taxes and Customs has issued notices to some businesses for initiating audit under the said period, a government official told BloombergQuint on the condition of anonymity. The businesses, the official said, have been asked to share accounting details and income tax returns, among other particulars, in accordance with Section 65...
38th GST Council meeting took place on 18 December 2019, Wednesday. It was presided by our Honourable Union FM Nirmala Sitharaman and conducted in New Delhi. Following are the highlights of the meeting: 1. Due dates extended for GSTR-9 and GSTR-9C for FY 2017-18: The due date of GSTR-9 and GSTR-9C are extended further till 31...
NEW DELHI: The goods and services tax (GST) Council on Wednesday fixed a uniform tax rate of 28 percent on both state and private lottery which will come into effect from March 2020. At present, lotteries run by state governments attract 12 percent GST while those authorized by them and sold outside the state are...
NEW DELHI : If you have been wondering why your income tax return (ITR) has not been processed yet or why there has been a delay in getting tax refund, first check whether you have e-verified your ITR. Although when you file your ITR on the income tax department's e-filing portal the taxman receives it, but...
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...
What Law provide? As per section 67 of CGST Act, 2017 Power of inspection, search and seizure have been given to proper officer not below the rank of joint commissioner when he has reason to believe that assesse has acted in such a way which will lead to evasion of tax. What happened in a few cases? In some...
GST health check-up is a recent initiative to protect an organization and 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...
Natural gas in GST - Oil Minister Dharmendra Pradhan on Monday made a vehement appeal to Finance Minister Nirmala Sitharaman for bringing jet fuel and natural gas under the ambit of GST to reduce multiplicity of taxes and improve business climate. When GST was introduced on July 1, 2017 amalgamating over a dozen central and...
The government recently declared to limit input tax credit under the goods and services tax to 20% of the eligible amount for a business if its supplier has not uploaded appropriate invoices specifying the payments made. There exists no limitation on unreconciled GST Input Tax until now and input tax credit was requested by taxpayers...
CBIC issues 6 New GST Notifications on 09th October 2019 to give outcome to decisions of 37th GST Council Decisions and also to make alterations in Central Goods and Services Tax Rules 2017. Through these Notifications CBIC Notifies Due Date of GSTR 3B And GSTR 1, CBIC further informs that GST Annual Return is voluntary...
It has been just under 36 months since the parliament passed the amendments required to bring in the promise of a simpler and more effective indirect tax system, GST. In the 24 months since its implementation, there have been many promises that have been made, many that have been met, and for some, still, a...
The Goods and Services Tax (GST) collections dropped sharply to a 19-month low of Rs 91,916 crore in September, mirroring a widening slowdown in 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...
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...
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...
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...
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...
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 automobiles would not help and instead result in revenue loss for the states. He...
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...
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...
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...
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...
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...
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 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...
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...
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...
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...
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...
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....
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...
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...
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...
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...
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...
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...
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...
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...
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...
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....
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...
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...
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 and Findings: The Applicant being...
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...
After reviewing a petition filed by the Solar Power Developers Association (SPDA) that challenges the new tax formulation structure for solar projects, a bench of the Delhi High Court has asked GST Council to review the newly-introduced taxation formula. In December 2018, the GST Council, in its 31st meeting, had given its recommendations on solar power generating projects. In...
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. Facts: Bengal Peerless Housing Development Company ltd. (“the Applicant”) is engaged in developing real estate projects in West Bengal....
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...
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 investigation by the Directorate General of Anti-Profiteering (DGAP) is trying to find out if the builders made undue profits by failing to pass on to...
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”). Fact: M/s. Innovative Textile Ltd (“the applicant”) is engaged in manufacturing and selling of textile yarns, fabrics, and garments. The...
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...
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...
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...
CBIC has Released Excel based Form GSTR-9C Offline Tool on April 14, 2019. GSTR-9C Offline utility is designed to help the taxpayer to prepare the GSTR-9C return offline. Your downloaded (GSTR9C Offline Tool) zip file contains: • GSTR_9C_Offline_Utility (Excel Macro) • Release Notes Installation 1. Access the GST Portal http://www.gst.gov.in. 2. Go to Downloads > Offline tools > GSTR-9C Offline Tool > Download...
The 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...
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...
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 had in July last year decided that the simplified GST return forms Sahaj and Sugam would be...
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...
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...
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...
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”...
The GST Council in the 34th meeting held on 19th March 2019 at New Delhi discussed the operational details for implementation of the recommendations made by the council in its 33rd meeting for lower effective GST rate of 1% in case of affordable houses and 5% on the construction of houses other than the affordable...
Restaurant-cum-sweet shops are better off maintaining two books of accounts for the Goods and Service Tax (GST) regime. Besides, billing and taxation on the same items sold through restaurants and sweet shops located in same premise will be different. In one of the rare cases, the Appellate Authority for Advance Rulings for the State of...
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...
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...
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...
The Finance Ministry may explore a clearly-defined broad framework to ensure that cuts in GST rates benefit consumers. The fresh initiative is being considered in the wake of rising number of complaints against companies that are found tweaking rules to avoid lowering retail prices. At present there is no prescribed method under the GST law...
Fact: M/s. Micromax Informatics Limited (“the petitioner”) had imported mobile handsets under various bill of entries filed during the period between July, 2014 to June, 2015. On such imports, the petitioner had made payment of additional duty of customs commonly referred to CVD at the rate of 7.21% till February 28, 2015 and for the...
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...
GSTN will focus, amongst others, on the development of new return filing, further improving the user interface, and Business Intelligence and Analytics. Improvement in User Interface on the basis of feedback is a continuous process. A few important initiatives/improvements made for better User Experience are: Questionnaire for filing GSTR-3B to avoid errors by taxpayers. Option to generate pre-populated...
While the government has amended the GST law a few times since its rollout, a lot of the changes in the provisions and concepts of the new indirect tax regime came about due to court rulings. Last June, when the Goods and Services Tax (GST) was about to complete a year, former revenue secretary Hasmukh...
Several major infra companies which are into government projects like irrigation and other works in Telangana and Andhra Pradesh along with iron and steel companies that are supplying fake invoices to them are now under the scanner of GST Intelligence sleuths. Two cases one by GST Intelligence and another by GST Hyderabad commissionarate — linked...
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...
Non-filers of GST returns for 6 consecutive months will soon be barred from generating e-way bills for movement of goods. The Goods and Services Tax Network (GSTN) is developing such IT system that businesses who have not filed returns for two straight return filing cycle, which is 6 months, would be barred from generating e-way...
The GST e-way bill system is likely to be integrated with NHAI’s FASTag mechanism from April to help track movement of goods and check GST evasion. The revenue department has set up an officers committee to integrate e-way bill, FASTag and DMIC’s Logistics Data Bank (LDB) services, after consultation with transporters. “It has come to our...
In pursuance of the decision in the 32nd Meeting of GST Council held on 10th January 2019 at New Delhi, a Group of Ministers (GoM) for boosting the Real Estate Sector under the GST regime has been constituted. The ‘GoM for boosting Real Estate Sector under the GST regime’ shall consist of the following members: The Terms...
December 18, 2018 SUMMARY OF ADVANCE RULING Name of the Parties M/S. LEAR AUTOMOTIVE INDIA PRIVATE LIMITED (AAR Maharashtra) Ruling Facts: The Applicant manufactures automotive seats for various customers, such as Ford Motor Private Limited, Volkswagen India Private Limited, M/S Mahindra & Mahindra Ltd, General Motors, etc. by using tools/ moulds either provided by them or owned by them. Generally,...
The Goods and Services Tax was introduced with the aim of bringing India’s scattered and somewhat complicated tax structure under a single umbrella. GST came into effect on 1st July, 2017 and while there was much anticipation about the Act, it has in fact proven to be a binding force for the Indian tax structure....
Goods and Services Tax was introduced in an effort to bring all taxes under one uniform structure. In this article, we will throw light on who needs to file GST returns, the process of filing GST returns and the schedule. All registered businesses have to file monthly as well as quarterly and annual returns depending...
Summary of GST Notification No. Notification No. Description 1) Notification No. 60/2018 – Central Tax The government through this notification amends Rule 109 A, inserted Rule 83A Examination of Goods and Services Tax Practitioner; Rule 142A Procedure for recovery of dues under existing laws, Amends Form Reg 16; GSTR 4; APL 04; PMT 01. 2) Notification No.-E-way bill-R.F.I.D./sachaldal/2018-19/1025/commercial tax The State...
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...
Recent Updates Goods & Services Tax Notification (Central Tax) Notification No. Notification Date Subject Description Notification No. 49/2018 – Central Tax 13.09.2018 Notification amending the CGST Rules, 2017 (Tenth Amendment Rules, 2018) The government has amended the CGST Rules, 2017 to notify the Form GSTR-9C for furnishing certified copy of audited annual accounts and a reconciliation statement in terms of Section 35(5) of the...
The GST council in its 28th Meeting held at New Delhi on July 21st, 2018, has made various recommendations in GST laws which is summarized below. These are the proposed recommendations which have been discussed in the 28th GST Council Meeting. However, these recommendations shall be placed before the parliament and the respective legislatures of...
The hotel industry is one of the fastest-growing domains in India, and, together with the travel segment, it was valued at $136.2 billion by the end of 2016. The implementation of Goods and Services Tax (GST) will help the hotel and travel industry largely by bringing down costs for customers, consolidating the multiple taxes into...
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