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This is the fourth in the series of articles to understand the GST Model Law. The purpose is mainly to create an awareness and enable one to look at the unintended impact on his her sector. It would aid in making representations to make this law tax payer friendly, simple and transparent.  

The GST Model Law has been put in public domain to get the feedback for amendments. This law requires in the opinion of the paper writers large number of amendment to even make it...

This is the second in the series of proposed articles on the GST Model law. The purpose is mainly to create awareness and enable one to look at the unintended impact as maybe applicable for each sector/ person. It could also aid in representation needed for amendment of the Model GST Law to make it tax payer friendly and meet the objective of clarity, certainty and transparency.  

Background  

Under present indirect tax laws, the taxable event attracting the levy varies under...

1. Input Tax credits can be claimed based on invoice value even though goods sold to consumer at discounted price by dealer (Jyoti electronics 2016(336) E.L.T. 517 (Raj)
   • Background: Assessee, dealer of electronic goods, received quantity discount from manufacturer. Goods so purchased were sold at discounted price to the consumer. Assessee took credit of tax charged by manufacturer on gross amount i.e. before discount. Department contended that credit cannot be taken on invoice amount...

1. Compulsorily availment of exemption not made applicable to service tax (CCE Vs. Federal Mogul TPR India Ltd., Bangalore 2016 (42) S.T.R. 427 (Kar.)
   • Background:Assessee engaged in activity of chrome plating on job work basis. Job work charges exempted from ST if excise duty paid on final products by principal manufacturer. The assessee did not claim ST exemption, availed credit and charged service tax on job work charges. Manufacturer claimed credit of service tax charged by job...

Introduction  

Cenvat scheme is a beneficent piece of legislation and unless it is shown that the items are specifically excluded from the definitions of the terms “inputs”, “input service” or “capital goods”, Cenvat Credit cannot be denied to a manufacturer of final products or provider of output service.   

The cenvat credit cannot be availed on inputs, input services, capital goods which are used to provide exempted services. Rule 2(e) of Cenvat Credit Rules...