Blogs

Prelude:

The success of GST would depend to a large extent on a robust GST Network as it will be the medium of sharing information between the tax department and tax payers and one of the important aspects of GSTN would be the registration process.

The assessees covered under the present Indirect Taxes regime require multiple registrations and interaction with multiple departments due to multiplicity of taxes. While everyone expected that these problems would be overcome...

It is very common that many factories and offices provide canteen facilities to their employees. Such facility may be provided as a matter of compulsion or as per the terms of employment or otherwise. The canteen facility may be provided to employees at free of cost or concessional rate or on chargeable basis.

The GST law with regard to food and beverages has created many confusions. Confusions prevail with regard to classification, rate as well as input tax credit.

Supply of food –...

Once a law is implemented, it is a known fact that Notifications, Circulars and Orders issued subsequently forms part of the Act to amend or to clarify procedures or ambiguity. Notifications are considered as delegated legislature and are generally issued to give effect to a legal provision or rule, whereas Circulars are normally explanatory or clarificatory in nature. In this article, we will have an in-depth analysis on purpose of circular issued under GST law and their binding value on...

Nowadays corporate restructuring has become a need for change in the organizational structure, or business model of a company. It is done majorly to revive a declining business, increase a company’s value or to gain a competitive advantage. Post this Covid-19 pandemic as well, we may notice major corporate restructuring because of the covid effect. One of the forms of corporate restructuring is the transfer of existing business/part of the business to a different entity. As it would be a...

Background

Food supplied by a restaurant is whether supply of goods or supply of services? This question has been hovering since last few decades. The Constitutional Amendment by inserting Article 366 (29A) (f) partially included it within the definition of deemed sale of goods. With introduction of service tax law, the service portion was separately identified in the restaurant services through deeming fiction provided in the Valuation Rule. Thus, both VAT and Service Tax were levied on...

Introduction:

Valuation of any supply is a critical aspect under GST. For that matter it is important in any tax law. After determining the levy and tax rate on any supply next question raises as to on what value tax should be paid. In GST it is called as transaction value.

Why it is critical?

Generally, the amount of tax paid is as a percentage on the value of supply. If there is any reduction in the value of supply, tax liability reduces and if there is any increase in the value...

Initially the imports by the EOUs were liable to IGST and compensation cess. However, from 13^th Oct ’17, the goods imported by them were also exempted from IGST and compensation cess (CC) by way of notification No. 78/2019-Customs. This notification provided exemption from IGST, CC in addition to basic customs duty (BCD) for the specified goods, which also included capital goods, i.e. EOUs could import the specified inputs and capital goods without payment of IGST, CC and BCD.

However,...

Goods and Service Tax (GST) is incorporated with an intention to provide a simple and streamlined tax flow structure. The intention itself provides a legal backing to section 67 to 72 of the Act that allows the enforcement machinery i.e. tax officers to inspect, search and seize records for proper ascertainment of payment of tax and prevent evasion of tax.

The article mainly focuses on two segments i.e. the power of inspection, search & seizure, the manner of its conduct, and the...

The GST audit under Section 35 (5) of CGST Act 2017 has to be done by a registered taxpayer whose annual turnover is more than Rs.5 Crores in a financial year (earlier threshold limit was Rs.2 Crores for FY 2017-18). However, the industry and trade need to carry out input tax credit review before the last date of filing of September return of the subsequent financial year. It is understood that there could be a number of errors of understanding, system errors and transactional mistakes. The...

Under GST, any registered person would be eligible to claim ITC of taxes paid on goods or services procured, which are used or intended to be used in the course or furtherance of business and to the extent used for effecting taxable supplies, unless specifically restricted u/s 17(5) of the CGST Act, 2017 (hereinafter referred to as the ‘Act’).

Apart from the restrictions specified in section 17(5) of the Act, there could be situations where credit would become ineligible, like...