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India has adopted the dual GST model, considering its unique federal nature, tax is levied concurrently by the Centre as well as the States on a common base, i.e. supply of goods or services, or both. Considering India’s GST framework result in duplication of proceedings, by Central and State Tax authorities, leading to parallel proceedings. Which would result in an unnecessary burden and cause adversity to the taxpayer. The issue of parallel actions by centre and state has momentous...

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In the recent decision in the case of Indian Medical Association, Kerala State Branch[1], the Kerala HC held that the amendment to the GST law for taxing the contributions received by clubs, associations, etc. from its members towards supply of goods and/or services, is valid.

Outcome of decision

However, point of relief in this case is that

1. The amendment is...

Background

There have been instances of tax payers who may have omitted/missed out to discharge GST on the specified services received from unregistered vendors, as recipient of service under reverse charge mechanism[RCM]. Such specified services could be legal services from advocate, import of services such as software licensing services by foreign vendors and so on. Such unpaid RCM liabilities may be reported to assessee during GST review by competent professionals[such as CA’s] or at...

This article is published in https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=12786

GST law as a concept provides input tax credit which is understood generally to be in such a way that any GST paid on the expenses incurred by any person will be eligible for set off against GST liable to paid on its taxable income.

However, in case there is any portion of income that the taxable person makes, on which there is no GST payable either because of complete...

GST has recently completed 7 years of implementation since its inception on 1^st July 2017. Amongst many hits and misses, one of the major issues concerning almost every taxpayer is input tax credit matching with GSTR-2A and GSTR-2B.

With the due dates approaching for completion of adjudication proceedings, for FY 2019-20 and FY 2020-21, we have been witnessing rise in issue of show cause notices. The majority of notices being issued alleging excess availment of input tax credit...

As we switched from the nineteenth century to the twentieth century, everything in our homes and around us has gone digital which interalia includes our money, our wealth, our vacuum cleaners, our dating, our business and so does our gaming!

With gaming going digital, the challenges w.r.t. taxability of such online gaming are also now digital. Let’s try to understand this with an example,

Mrs. Rakhi logged in on a gaming portal, says Big Boss. Rakhi opened an account on Big Boss’s...

This article is published at https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=12805

Remember this phrase ‘Input tax credit (ITC) is as good as tax paid’? This has been held by many Courts in the past and is now a settled principle. Also, taxpayers today have understood that steps need to be taken to safeguard this ITC, since it is equivalent to cash balance, because in case there are no sufficient evidence available to prove eligibility of ITC, it would...

Introduction

The 53^rd GST council has recommended clarity w.r.t valuation of corporate guarantee by following 52^nd GST council where clarity was issued on personal guarantee given by a director and Corporate Guarantee including GST liability. This has been a long pending issue. It is relevant to note the very recent hon’ble Supreme Court’s decision on Edelweiss Financial Services Ltd under Service Tax regime which went in the favour of the assessee. However, the major difference...