Blogs

1. Background:

The entire world has been engulfed in tackling COVID-19 and so India. Declaration of COVID as pandemic by WHO has heightened the attention of the world on the serious ramification of the disease. This has also created obligations on the States to undertake necessary preventive and relief measures.

Indian has been proactively tackling this pandemic at the Centre and State level jointly. Union Government has invoked its powers under Epidemic Diseases Act, 1897...

Introduction:

The spread of Corona Virus (COVID-19) has caused immense loss to the lives of people and impacted the trade and industry very badly in an unprecedented manner. The Government has announced various relief measures relating to statutory and regulatory compliance matters across sectors. Under GST, the Government[1] inter alia

• Expediting the processing of refunds to the Exporters
• Deferment of Rule 36(4) for the period February 2020 to August 2020 and cumulative...

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 –...

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...

Credit Mechanism is the backbone of the indirect tax regime which allows the assessee to take credit of tax paid on purchase of goods and services availed, in the course of business, though with some conditions and restrictions. Credit under GST is available if used for business purpose and in proportion of its usage for making taxable supplies. Reversal of input tax credit (ITC) is required in respect of procurements that are commonly used for taxable and exempted & non-business supplies or...

The primary focus of the industry at the time of introduction of GST was on implementation/modification of ERP module to suit GST requirements, appropriate classification of goods/services and providing training to staff. Initially, the area of focus was more on the aspect of migration, correct levy of taxes, reverse charge liability and ensure timely compliances with return uploading requirements.

However, after about 12 to 15 months of GST implementation, the focus had shifted to...

Introduction:

It is common practice prevailing in many industries that certain materials are provided by the customer to the manufacturer or contractor. This is done for various business or economic reasons. For example, moulds, jigs and dies etc., are provided by the Original Equipment Manufacturers (OEM) to a component manufacturer in the automobile industry. Similarly, the client would be supplying the diesel and explosives to the mining contractor. Likewise, the recipient would be...

With a time limit being set in the law for availing credit (u/s 16(4) of the CGST Act, 2017) it is important to reconcile the tax credits as per books and that as claimed in Form GSTR-3B. During this reconciliation it would be fruitful to also review those tax payments of which credit has not been availed and tag them into those:

1. Actually ineligible (no further action required in this regard),
2. Which are doubtful due to which not availed (profession advice can be sought to decide the...