Blogs
Continuous supply of goods – Reduction in other compliance
GST law has introduced a lot of new concepts in Indian indirect tax system such as levy of tax on inter-State stock transfers to branches, cross charge mechanism, taxation of gifts distributed to employees etc. One of such new concepts is a continuous supply of goods and its taxation. Most of us agree that the introduction of GST has resulted in increased (rather than reducing) compliance for the registered persons (SME) and the professionals (SMP). Few of the reasons are complicated...
Impact – Wrong type of tax paid and wrong claim of ITC
The GST audit season for 18-19 has started and recently the due date also proposed to get extended till 30th June 2020 for filing the reconciliation statement in form GSTR-9C and annual return in form GSTR-9 and GSTR-9A for the FY 2018-19. GST being a new law, there were (are) lot of confusion in the understanding of the law which could have led to non-compliance, errors in payments, claim of ITC etc. Few of them could have get clarified. Now, during the audit or annual return process,...
Reply to 16(4) Notice
Date: ________
To
The Jurisdictional Officer,
______ Division,
______ Commissionerate
Dear Sir,
Sub: Reply to the notice received for reversal of Input Tax Credit
Ref: Your letter dated __________ bearing DIN ___________________
1. We are in receipt of the above-referred letter dated _______ directing us to reverse the input tax credit availed for the month of March 2019 stating that such input tax credit is irregular under Section 16(4) of CGST Act, 2017...
Read moreGST on discount given by the manufacturer to distributor for supplies made to the customers
There are different kinds of discounts that are offered by various suppliers, being manufactures, as per their marketing/business promotion requirements. In this article we are examining one such discount being offered by the manufacturers to its distributors, which is given on a condition that it has to be passed on to the customer. In some cases it is reimbursed by the manufacturers only after the proof of passing the discount to the customer is provided.
Say for instance, a...
Read moreTime limit for availing credit – whether linked to invoice date or supply date
Similar to the restriction under the CENVAT Credit Rules, 2004, availing input tax credit (hereinafter referred to as ITC) under GST also is time-bound. The relevant provision in this regard is section 16(4) of the Central Goods and Services Tax, 2017 (hereinafter referred to as the Act) which reads as under:
“A registered person shall not be entitled to take the input tax credit in respect of any invoice or debit note for supply of goods or services or both after the...
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