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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...

“The essence of law lies in the spirit, not its letter, for the letter is significant only as being the external manifestation of the intention that underlies it” – Salmond

Introduction

Interest in taxation matters is an automatic levy and compensatory in nature, for withholding the money of the Government by delay in payment of tax within due date. It is a mechanism to compensate the revenue for the loss caused to it due to the late payment[1]. The overall context of levy...

GST is a tax levied on supply of goods or services or both. The definition of ‘goods’ in the CGST Act, 2017 means every kind of movable property other than money and securities. So, from a small pencil to a huge bulldozer, everything is included in the category of goods. However, in case of food it cannot be considered as goods always. Why is it so?

Before directly getting to the conclusion, we would have to see the history regarding the taxability of food i.e. how food was taxed in...

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...

Introduction:

With the introduction of GST, there has been a huge chaos among SEZ Developers/ units as to the procedures to be followed w.r.t procurement of goods/ services. As the supplies to SEZ Units/Developers are declared as ‘zero rated supplies’, the suppliers to SEZ units were puzzled about the procedure to be followed for supplying the goods/services to SEZ units and SEZ Developer/units are puzzled about the procedure to be followed for procuring the goods or services.

The...

Advance Authorisation (AA), is one of the schemes under Foreign Trade Policy, 2015-20 (hereinafter referred to as the ‘FTP’) which allows the manufacturer exporter or merchant exporter to import inputs without payment of customs duties in terms of chapter 4 of FTP read with Notification No.18/2015 Cus dated 01.04.2015 as amended. The AA holder has to fulfill prescribed export obligation(EO) corresponding to the duty free imports made. The duty exemption claimed needs to be paid back...

Introduction: Banquet hall services are usually provided by hotels and it consist of supply of food and supply of other services i.e., renting the hall, serving, ambiance, etc. Restaurant services are also provided by hotels and it involves supply of food and Supply of other services i.e. serving, ambiance, etc. In Banquet, renting the hall could be the main element (as there could be a case where only the hall is rented whereas food could be procured from elsewhere, but there can never be...

Introduction:

The shipping industry is a vital part of global freight transportation which caters global trade supply-chain. More than 90% of the world trade is through oceans as it is the most affordable and efficient mode of transporting goods, where a large volume of goods can be carried on vessels for long distances at a fraction of a cost when compared to other modes of transport like rail, roads, air, etc.  Before, going to analyze the applicability of GST on inward ocean freight...

This article would help persons who have large number of foreign clients, persons who attend foreign business events held outside India, or have holding company outside India including procurement of services from outside India.

Service sector plays an important role in technology diffusion especially in areas such as financial services, software, information technology, computing and information process or management consultancy. In GST regime read with article 269A of Indian...

GST has introduced quite a few concepts which were new or unheard by Indian taxpayers. Few such concepts are levy of tax on stock transfer of goods, taxation of gifts distributed to employees etc. In terms of Section 7 read with schedule I to CGST Act 2017, there are specified activities which would be subject to GST even though there is no consideration in return for such activities / supplies. One such activity is supply of goods/ services to related persons which includes employees and to...