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Taxpayers are now used to the frequent changes in the GST law, which may be either by way of a change in the provisions of the Act or the rules or by way of a change in the rate of tax, etc. Further, it has been seen that these changes take place due to various reasons, a few of which are listed below:

1. To clarify the intention of the lawmakers (eg: retrospective amendment made to the transition provisions, attempting to restrict the transition of cess credits into GST),
2. To cater to...

In the recent past, the matter of interest on Gross (before adjusting GST ITC) or Net liability (after adjusting GST ITC) is knocking the doors of every belated GST return filers. The Hon’ble HC of Telangana in case of Megha Engineering & Infrastructures Ltd. v. Commissioner — 2019 (26) G.S.T.L. 183 (Telangana) held that interest is liable on the Gross GST liability but the Hon’ble has admitted the review petition and granted an interim stay and the other HC’s are yet to deliver the...

1. Need for Valuation Rules for Transactions Within Company

During the pre-GST era, for inter-State stock transfers, the major concern of the Industry was with regard to the additional cost of CST and the compliance burden of submission of statutory forms. However, there was no concept of deemed service between branches located in two different States and hence there was no requirement to pay Service Tax on such activities. With the introduction of GST, by virtue of Schedule I, the...

Background

Under GST, tax is levied on the taxable supply of goods/services. Tax is applicable on the taxable goods/services supplied in India.

The manufacturing industries now a days they stick to their core competencies and get most jobs done on outsourced basis. In order to meet the several demands of the markets the manufacturing industry usually outsources part or whole of manufacturing process to another person namely job worker for the addition of the value of goods (such as...

Background

Under GST, tax is levied on the taxable supply of goods/services. Tax is applicable on the taxable services supplied in India.

In the GST regime, intermediary services by Indian suppliers to foreign principals are taxed to GST. In common parlance, any person who enables the supply of goods/services between two persons is considered as an intermediary.

There has been a lot of confusion regarding tax implications on the pre-sales and post-sales services vs intermediary...