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The concept of Input Service Distributor (hereinafter in this article referred as “ISD”) is not new in Goods and Service Tax law. It carries the legacy from the Service Tax law.

The Concept

The need for ISD arose for providing a chance to the businesses who have multiple units in different locations to receive common invoice for the services attributable to different units at centralised location, in doing so the input credit is accumulated at the centralised unit. The ISD...

It is now more than 1000 days of GST in India. The accepted fact by many was that the new law would have lot of challenges and uncertainty in the first two years, which would require numerous changes and amendments. Many issues have been resolved, some aspects have been deferred and some have been left in the balance. One issue which has been left in the balance, is the issue of taxability of Extra Neutral Alcohol (‘ENA’) under GST.

There is no dispute on the levy of GST on...

1. Procurement / Renewal of LUT for FY 2020-2021
2. Following reconciliations to be maintained –
   • Outward supplies as per books and GST returns (Books vs GSTR-1 vs GSTR-3B)
   • ITC claimed in GSTR-3B vs ITC appearing in GSTR-2A
   • Reconciliation of balance of credit and cash as per GST portal with balance appearing in books.
3. Check requirement for any ITC reversal or ITC to be reclaimed
   • Rule 37 – Any ITC reversal required on account of non-payment within 180 days or...

Section 16 of IGST Act, 2017 entitles exporters to claim refund under either of the two options:

1. Export without payment of IGST under bond or Letter of Undertaking (LUT) and claim refund of unutilized Input Tax Credit (ITC) or

2. Export with payment of IGST and claim refund of such IGST paid.

The 2nd option is more viable & beneficial since the former option comes with certain restrictions & limitations viz.,

ITC on Capital goods is not refundable.

Transitional ITC is not...

These are activities which fill the tax payers – even the compliant with dread due to past practice- unfortunately continued. This article provides some tips/ insights the knowledge of which maybe useful in dealing with such officers in a more confident manner. Adv. MS Nagaraja shared his views. Listed hereunder as per understanding:

1. To start investigation JCC or above needs to have reason to believe a) supressed / undervalued supplies, b) Excess claim of ITC, c) Contravenes Act/...

We had the learning presentation by CA Rajesh Kumar TR last week. Readers are advised to keep the bare act with them while reading the series of finer issues which would be discussed. It  is very important that when professionals advice on compliances or do audit then they need to be conservative. In case of dispute then the observations in this article would be useful.

The insights as understood were as under:

1. Need to understand the 3 baskets of levy Vs assessment Vs collection as...

The advice to clients in GST needs study and analysis of the judicial decisions in the earlier laws like Central Excise, Service Tax and Local VAT. The decision in Customs [ old and current] would also be relevant to understand some of the concepts. Some insights were provided by CA Rajesh Kumar TR which are shared hereunder:

1. Judicial precedents lay down the principle or rule to be followed by lower forums. Judicial discipline requires the hierarchy of courts to be followed.

2. In...