Blogs

Background:

In the recent times, GST Department by exercising the powers bestowed on them by way of Section 65 of the CGST Act 2017, has been raising the audit observations stating that GST shall be paid on the inter-company loans given amongst the related person under the GST.

It can be re-called at this juncture, in the past GST Department has been raising the similar demands alleging that the activity of holding shares by a holding company of the  subsidiary company will be...

GST related issues – EV segment

1. GST Implication on Government Subsidy (FAME)
2. GST on Passenger Transportation Sector – EVs
3. GST on sale of used/old Electric Vehicles

Introduction – EV Segment & GST links

The electric vehicle (EV) industry in India is experiencing a significant boom, driven by various factors including government initiatives, technological advancements, and increasing consumer demand. We will look into issues concerning GST aspects of it,...

Background:

Section 109 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the ‘CGST Act’) provides for constitution of Appellate Tribunal and its Benches thereof. The Goods and Service Tax Appellate Tribunal (GSTAT) is the second appellate authority within the GST framework and all the appeals against the orders of the appellate/ revisional authorities under Central as well as State GST Act lie with the GST Appellate Tribunal constituted under the CGST...

Background:

In the recent past, multiple initiatives are taken by the Government in consultation with the GSTN to streamline the GST return filing. The auto-population of details in GSTR-3B which is earlier loaded in GSTR-1 is one such classic example. As on date, the auto-populated figures in the GSTR-3B are editable by the taxpayers. This flexibility allows the taxpayers to file GSTR-3B with the tax liability different from what has been already declared in the GSTR-1. Lately for...

India has adopted the dual GST model, considering its unique federal nature, tax is levied concurrently by the Centre as well as the States on a common base, i.e. supply of goods or services, or both. Considering India’s GST framework result in duplication of proceedings, by Central and State Tax authorities, leading to parallel proceedings. Which would result in an unnecessary burden and cause adversity to the taxpayer. The issue of parallel actions by centre and state has momentous...

^{This article is published at https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=12833}

In the recent decision in the case of Indian Medical Association, Kerala State Branch[1], the Kerala HC held that the amendment to the GST law for taxing the contributions received by clubs, associations, etc. from its members towards supply of goods and/or services, is valid.

Outcome of decision

However, point of relief in this case is that

1. The amendment is...

Background

There have been instances of tax payers who may have omitted/missed out to discharge GST on the specified services received from unregistered vendors, as recipient of service under reverse charge mechanism[RCM]. Such specified services could be legal services from advocate, import of services such as software licensing services by foreign vendors and so on. Such unpaid RCM liabilities may be reported to assessee during GST review by competent professionals[such as CA’s] or at...

This article is published in https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=12786

GST law as a concept provides input tax credit which is understood generally to be in such a way that any GST paid on the expenses incurred by any person will be eligible for set off against GST liable to paid on its taxable income.

However, in case there is any portion of income that the taxable person makes, on which there is no GST payable either because of complete...

GST has recently completed 7 years of implementation since its inception on 1^st July 2017. Amongst many hits and misses, one of the major issues concerning almost every taxpayer is input tax credit matching with GSTR-2A and GSTR-2B.

With the due dates approaching for completion of adjudication proceedings, for FY 2019-20 and FY 2020-21, we have been witnessing rise in issue of show cause notices. The majority of notices being issued alleging excess availment of input tax credit...