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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...

As we switched from the nineteenth century to the twentieth century, everything in our homes and around us has gone digital which interalia includes our money, our wealth, our vacuum cleaners, our dating, our business and so does our gaming!

With gaming going digital, the challenges w.r.t. taxability of such online gaming are also now digital. Let’s try to understand this with an example,

Mrs. Rakhi logged in on a gaming portal, says Big Boss. Rakhi opened an account on Big Boss’s...

This article is published at https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=12805

Remember this phrase ‘Input tax credit (ITC) is as good as tax paid’? This has been held by many Courts in the past and is now a settled principle. Also, taxpayers today have understood that steps need to be taken to safeguard this ITC, since it is equivalent to cash balance, because in case there are no sufficient evidence available to prove eligibility of ITC, it would...

Introduction

The 53^rd GST council has recommended clarity w.r.t valuation of corporate guarantee by following 52^nd GST council where clarity was issued on personal guarantee given by a director and Corporate Guarantee including GST liability. This has been a long pending issue. It is relevant to note the very recent hon’ble Supreme Court’s decision on Edelweiss Financial Services Ltd under Service Tax regime which went in the favour of the assessee. However, the major difference...

There have been various disputes w.r.t credit eligibility on a ‘Plant’ being in the nature of an immovable property. In GST regime the issue remains, with various interpretations arising out of Section 17(5)(c) & (d) of CGST Act 2017 along with relevant explanations in the law.

We have seen disputes raised in the form of credit restriction on expenses relating to construction of commercial building under section 17(5) in M/s.Safari Retreats case which is now pending with the...

Background:

In joint development agreement (JDA) on area sharing basis, the landlord/LL enters into arrangement whereby developer is allowed to enter into the land or the possession is handed over, and developer given an irrevocable right to do development works.[nomenclated here as “development rights”/”DR”] of construction of complex/building. Land ownership continues with the owner of the land. In consideration of the DR given by landlord, a portion of built up area is...

Background

The list of services which are exempted under GST is enumerated in Notification 12/2017-CT(Rate). The relevant exemption entry, applicable to the education sector are portrayed below; We would examine the relevant extracted portions in this article.

Entry no. 66 of notification 12/2017-CT(R): Services provided by:

a. by an educational institution to its students, faculty and staff;

aa. by an educational institution by way of conduct of entrance examination against...

The applicability of GST on corporate guarantees has always been a contentious issue. The first issue was whether there was any service involved in the provision of corporate guarantees.

Judicially, under the erstwhile service tax regime, the courts have indirectly indicated that there is an element of service involved in the provision of corporate guarantees. The same view has also been coming forth from the jurisprudence established under the Income Tax Act, 1961.

Thus, as there is a...