Section 17(5) of the Central Goods and Services Tax (CGST) Act, 2017 outlines the scenarios under which Input Tax Credit (ITC) is blocked and not available to a taxpayer. This provision restricts the claim of ITC on certain inputs, goods, and services. The exhaustive list of cases where ITC is blocked under Section 17(5) includes: …
The ITC rules for zero-rated supplies are as follows: Claiming ITC: Registered taxpayers making zero-rated supplies can claim a refund of the GST paid on inputs, input services, and capital goods used in the course of making such supplies. The ITC can be claimed through the electronic refund application. Export of goods or services: If …
Section 80JJAA of the Income Tax Act, 1961 is a provision that allows eligible businesses to claim a deduction for additional employee cost incurred for the purpose of promoting employment. Here are the key details of this provision: Eligible Businesses: Section 80JJAA applies to Indian companies and partnership firms engaged in the manufacturing sector. Deduction …
As per 2(76) of Companies Act: a. a director or his relative; b. a key managerial personnel or his relative; c. a firm, in which a director, manager or his relative is a partner; d. a private company in which a director or manager or his relative is a member or director; e. a public …
What is related party as per various laws? – Companies Act, Ind AS, GST, Income Tax Read More »
Section 18 (3) of the CGST Act as well as rule 41 of the CGST Rules stipulates that in case of change of constitution of a registered taxable person on account of sale, merger, demerger, amalgamation, lease or transfer of business, the registered person would be allowed to transfer the unutilized input tax credit to …
GST law wrt M&A, Demergers, effect of ITC on such case. Read More »
I would advice the client for settlement or litigation based on what the matter is about. Does it really amount to non-compliance? Are there interpretation issues involved? I would refer other case laws with similar matter. I will see the materiality of the amount and case. I will look at the cost of litigation. There …
How would you advise the client on whether to go in for Litigation or settle the matter? Read More »
Application for Refund by Unregistered Persons CBIC has prescribed the manner of filing of application for refund by unregistered persons, i.e., manner in which an unregistered person, who has suffered the burden of GST, but the contract has been cancelled later (e.g. Construction contract or long-term Insurance policy, where the supplier is bound by the …
Being a new law, the scope for professional advice as well as litigation is vast. There are lot of avenues for tax planning under GST – which will involve the advisory function. There are several unresolved interpretation issues – this will involve the litigation function Favorite
If there is no barrier on transportation of goods from one place to another tax will be easily evaded, so for blocking this E-way bill was introduced. Whenever goods moved from one place to another E– Way bill will be generated, it is a proof that tax will be paid on such goods. No one …
Submit application within 6 months of communication of order or decision in GST APL-03 along with relevant documents as follows:- 1. Grounds of Appeal 2. Form of verification 3. Certified copy of demand order or decision. (Within 7 days of filing of appeal) The person making an appeal before tribunal should pre-deposit full amount of …
How to file appeal before GST appellate tribunal and what is the pre deposit amount? Read More »
Yes, a manufacturer of goods can avail composition scheme provided he is not a manufacturer of goods notified by Govt. If a person opts for the composition scheme in violation of the conditions he shall be liable for a penalty equivalent to the amount of tax payable. Favorite
Section 122- Penalty for certain offences under the GST Act. Section 122. (1) Where a taxable person who––This section declares the offences that attract penalty as a consequence, apart from the requirement to pay the tax and applicable interest In other words, the first sub-section (1) prescribes 21 types of offences, any one of which, if committed, can …
No. The input tax credit of input services shall be distributed only amongst those registered persons who have used the input services in the course or furtherance of business Favorite
If return is not filed within the prescribed date, as per section 234A, a person is required to pay interest at the rate of 1% per month, or part of a month, on the unpaid tax amount. Person is also required to pay penalty. Favorite
An Input Service Distributor (ISD) is a taxpayer that receives invoices for services used by its branches. It distributes the tax paid known as the Input Tax Credit (ITC), to such branches on a proportional basis by issuing ISD invoices. No. Excess credit distributed can be recovered along with interest only from the recipient and …
Where there is a change in the constitution of a registered person on account of sale, merger, demerger, amalgamation, lease or transfer of the business with the specific provisions for transfer of liabilities, the said registered person shall be allowed to transfer the input tax credit which remains unutilized in his electronic credit ledger to …
Section 18 of CGST 2017 provides for availability of credit in special circumstances. Section 18(1): Subject to such conditions and restrictions as may be prescribed— a) a person who has applied for registration under this Act within thirty days from the date on which he becomes liable to registration and has been granted such registration …
Different types of refund includes refund due to zero rated supply, inverted duty structure, balance in E-cash ledger, tax wrongly collected and paid, to UN Bodies, to Tourist, Deemed Export. No, generally refund is not avaiable on capital goods. But in case of zero rated supplies with payment of output tax, refund can be availed …
What are the types of Refund? Is refund available on Capital goods? Read More »
Rule 42 of Central Goods and Services Tax (CGST) Rules, 2017 relates to Manner of determination of input tax credit in respect of inputs or input services and reversal thereof. Rule 36 (4) provides a restriction to claim input tax credit. The taxpayer can claim input tax credit on the invoice which are appearing in …
Documents required at the time of refund filing: In case of Export of Goods • Print out of GSTR RFD-01A& ARN. • GSTR-3B/ GSTR-3/GSTR 1 of particular month • Undertaking as per para 2.0 of circular 24/2017 • Undertaking of no prosecution as per Rule 91 (1). • Statement 3 (Rule 89 (2) (b) & …
What do we provide at the time of refund application Read More »
Show cause notice is a formal communication to a person, asking to explain his side for the issue mentioned in the notice. It is generally issued in case of a breach or misconduct at the part of the recipient. The deficiency memo is issued in Form GST RFD-03 instructing the applicant to rectify the deficiency …
With LUT, an exporter can export goods or services without paying the taxes. This prevents a blockage of working capital. So LUT is advisable. But this is only if it does not have a significant amount of capital inputs. In that case, without LUT is better Refund of Capital Goods is not available under Rule …
Whether it is advisable to file LUT for Zero rated supplies or pay tax on it? Read More »
Wherein the rate of tax on procurements / inward supplies is higher than the rate of tax paid on outward supplies such case fall under inverted duty structure. A registered person can claim the refund of unutilized Input tax credit on account of IDS at the end of a tax period where credit has accumulated …
Any business entity located in the taxable territory is liable to pay RCM in case of Govt Services. Exceptions to this are – a) renting of immovable property; b) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central …
Discuss about the RCM applicability in case of Govt Services. Read More »
Schedule I deals with certain activities which are treated as supply even if made without consideration. Schedule II deals with activities or transaction to be treated as supply of goods or services. Schedule III deals transactions not to be treated as supply Favorite
Deemed Distinct persons (DDP) are persons with different GSTINs belong to one legal entity (single PAN) situated within the same State or in two different States. Different GSTIN is mandatory for different states but optional for different business lines within same state. GST is applicable for supply between DDP. Transfer Pricing is also applicable Favorite
If the supply of goods happens within the same state, CGST and SGST will be applied by the supplier. Similarly, if the supply happens between two different states, the supplier charges IGST. More formally, if the state of “place of supply” is same as state of “location of supplier”, CGST and SGST (or UTGST), if …
With the scrapping of GST Audit, the professionals will have less work in GST. This will increase the frequency of audits and scrutiny by GST authorities since the middle layer of checks through independent audit by professionals has been removed. Litigations may increase since businesses will take any favourable or twisted interpretation of law that …
What is the impact of scrapping of GST audit on professionals & litigations in future? Read More »
Time of supply decides when the supplier or recipient is liable to pay GST for goods or services or both. The time for issuing an invoice would depend on the nature of supply viz. whether it is a supply of goods or services. A registered person supplying taxable goods shall, before or at the time …
What is the relevance of time of supply and last dates to issue invoices? Read More »
As per Section 16 of Integrated Goods and Service Tax Act, zero-rated supplies mean: – Export of goods or services or both; or Supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit. For example, export of mobile phones to Australia. Supply of goods or services …
Place of supply of goods under GST defines whether the transaction will be counted as intrastate or interstate, and accordingly, levy of SGST, CGST & IGST will be determined. The state where they are consumed will have the right to collect GST – the place of supply state gets the revenue. In case of SGST, …
GSTR-2B is a new static month-wise auto-drafted statement which is generated for every normal tax payer on the basis of information furnished by his supplier in the respective GSTR. Form GSTR 2A is a purchase-related dynamic tax return that is automatically generated for each business by the GST portal. The information is captured in GSTR …
GSTR 01 – 11th of the next month, GSTR 3B/5/5A – 20th of the next month, GSTR4 – 30th April of next F.Y., GSTR9/9A & 9C- 31st Dec. of the next F.Y. Favorite
Article 246A of the Constitution, which was introduced by the Constitution (101st Amendment) Act, 2016 confers concurrent powers to both, Parliament and State Legislatures to make laws with respect to GST i. e. central tax (CGST) and state tax (SGST) or union territory tax (UTGST). Favorite
No, RCM is applicable on goods too and not just on services. The reason for having Reverse Charge Mechanism is that – it was observed that many unorganised sector suppliers are either unregistered or very small business entities facing tax compliance issues and were unable to pay taxes intentionally or unintentionally. In such scenarios government …
Is RCM applicable only on Services? Why there is a mechanism of RCM? Read More »
If a taxable person transfers his business, either wholly or partly, to another, then the taxable person (transferor) and the person to whom the business is transferred (transferee) will be liable, jointly and severally, wholly or to the extent of such transfer, to pay the GST due. If a registered taxpayer transfers his business he …
Section 17(5) of CGST Act refers to a specific provision under GST covering blocked credits or ineligible ITC. The taxpayer cannot claim ITC while paying output tax when they make purchases listed in this provision. You cannot claim ITC on vehicles purchased for passenger transportation such as- Four-wheeler motor cars or Three-wheelers or auto rickshaws …
The GST Registration process is a simple 2-stage process. The registration form comprises 2 parts – A and B. Part A of the GST registration form includes basic information of the applicant and helps generate Temporary Reference Number (TRN), which is valid for 15 days. This TRN can be then used to fill out Part …
As per the latest notification, Zomato, Swiggy, etc. shall be responsible for charging, collecting, and paying GST at the rate of five percent on supply of “restaurant services” made by such restaurant through the e-commerce platform. The CBIC (Central Board of Indirect Taxes and Customs) has reduced the turnover limit for mandatory issuance of e-invoice …
Latest amendments in GST relating to E-commerce operator, E-invoices, ITC rulings. Read More »
The Punjab Authority of Advance Ruling (AAR) has held that the GST is not payable on notice pay recovered from outgoing employees. The CBIC issued a circular dated August 3, 2022, clarifying that the charges paid by an employee when he or she leaves without serving the mandatory notice is not taxable. A few crucial …
What do you know about the GST applicability on notice period recovery? Read More »
A. The recognition of revenue in case of FOB (Free on Board) and CIF (Cost, Insurance and Freight) basis is determined by the point at which the ownership of the goods is transferred to the buyer. In case of FOB (Free on Board) basis, the ownership of the goods is transferred to the buyer once …
