Blogs

1) Input tax credit of CGST & SGST is availed instead of IGST – A judicial view on how to Rectify:

To err is human and to make human err are the tax laws. CGST & SGST credit wrongly availed as IGST or vice-versa has been a common error by many taxpayers (Thanks to GST Common portal). Now, the law when read literally puts taxpayer in a fix in so much so that the incorrectly availed ITC is required to be reversed with no recourse of availing back the correct ITC due to time restriction...

Analyzed of Causes of Differences

The sharing of the income tax returns with the service tax, central excise and VAT authorities has been a long drawn exercise with last arrangement agreed in 2015, however lately CBIC and CBDT have entered into a MOU in 2o14 and again in 2020 to facilitate exchange of data on a regular and automatic basis.

This arrangement should have enabled the respective tax departments to look at the differences between taxable turnover reflected in service tax...

What is e-invoicing?

e-invoicing refers as per Rule 48(4) of CGST Rules, notified class of registered persons have to prepare invoice by uploading specified particulars of invoice (in FORM GST INV-01) on Invoice Registration Portal (IRP) and obtain an Invoice Reference Number (IRN)

Notified persons: A registered person, other than an SEZ unit*, Insurance Company, banking company, financial institution including non-banking financial institution, GTA, supplier of passenger...

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 intermediary.

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

There has been a lot of buzz with regard to applicability of GST notional interest. A recent Karnataka AAR in the case of M/s Midcon Polymers Pvt. Ltd. has been issued which discussed extensively in this regard and answered the question- “Whether notional interest on refundable security deposit would form part of value of supply?”

Let us first understand the concept of notional interest being discussed in the AAR. In a case where a house is given on rent, it is an industry...

Indian polity forced India to adopt the dual GST model where both the Centre and the State would collectively levy and collect GST. Before the insertion of Article 246A in the Constitution of India (COI), both the Parliament (P) and Legislature of the States (SLs) possessed independent powers to levy and collect taxes on different mutually exclusive aspects. Both the functionaries’ tried to maintain respectable distance with the legislative field belonging to the other. The conflicts, if...

This Article has been published in the Chamber's Journal Oct'20 Edition

The credits mentioned in section 17(5) of the CGST Act, 2017 are blocked and would not be eligible to the assessee even if used by him for business. All credits other than these, if used for making taxable supplies, would be eligible, provided the other conditions in the law are also satisfied. Hence it is important to understand the scope and ambit of these blocked credits to ensure that the assessee does not lose...

This article has been published in the Chambers' Journal Aug '20 edition.

The credit available under GST is seemingly much wider than what was available under the earlier laws for the mere reason that under GST, credit will be available if it is used for business. However, no tax law can exist without restricting any credit and GST is no exception, which blocks certain credits even if used for business.

It is thus important to understand the extent of the credits blocked under...

Introduction

In the light of introduction of Insolvency and Bankruptcy Code 2016 (Hereinafter, referred as IBC), there has been reduction in time for the process of carrying out insolvency/restructuring. IBC provides various options to draw resolution plans within a short period of time which renders the business to re-establish being a going concern during the process of resolution. Let us analyse a couple of decisions rendered with respect to the proceedings initiated and treatment of...

The Government’s slogan for the implementation of GST has always been ‘One Nation One Tax’, though none of the stakeholders have ever been able to relate GST to this slogan for the reason that GST has continued (as in the earlier regime of indirect taxes) to levy

1. A Centre’s Tax i.e. IGST
2. State Taxes i.e. each State having its own SGST like TNGST, MGST, etc.
3. Central Taxes i.e. each State having its own CGST (depicted by the fact that the CGST of one State is not available...