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Issues in classification – Pharma Products

1. Chapter 30 of the Customs Tariff Act covers classification of pharmaceutical products. The most essential characteristic of any medicine is its curative effect i.e. therapeutic use. Curative effect means its ability to cure the disease or mitigate the disease. Another important characteristic is medicines should have the ability to prevent any disease i.e, prophylactic use. The therapeutic or the prophylactic values are the basic factors to...

The Customs Valuation Rules, 2007 [and earlier that of 1988] (“the CVR”) were formulated under the aegis of Customs Valuation Agreement (“the CVA”) in pursuance of GATT 1994. Largely the rules under the CVR mimics the Articles of the CVA to show India’s accord to the GATT. The value for imported goods under Article 1[1] of CVA is transaction value (TV) adjustable in accordance with provisions of Article 8[2] of CVA. The present piece examines the challenge faced by revenue in...

Introduction:

GST laws contain Transitional provisions inter alia Section 140 of CGST Act, 2017 (similar provision in State GST laws) enables the taxpayer to carry forward the unutilized input credit under the pre-GST regime and allow the credit of taxes paid on the stock as on 30.06.2017 as GST credit. For this, Rule 117 of CGST rules, 2017 as amended inter alia requires the taxpayers to file Form GST TRAN-1 electronically.

This was to ensure a smooth transition from old laws...

In this pandemic situation across the globe, the department is active in processing the refund applications to help the export community especially the MSME sector to combat the present situation. The next 3-6 months may be the golden period to get refunds expedited. However, at the ground level there are many issues which crop up while uploading the documents and also few clarifications which are restrictive compared to the GST law. In the articles let us discuss the issues and possible...

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...

The canteens are “CLOSED” as of now and the lunch box carried from home are the primary source of food for people who re-joined the office, still the queries related to the canteen remains “OPEN”. The persistence of complexity as to the GST treatment of subject transaction has prompted an attempt to add some clarity.

The facility of canteen is essential for many factories/ plants and that may be due to prevailing law or due to requirements of such industry or terms of employment....

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...

One of the major objectives of GST implementation in India was to ensure the seamless movement of goods and no-check posts in between the states. Further, it was expected that it would put an end to the prolonged road permit system and inspector raj in India.  In order to facilitate the same E-way bill mechanism was introduced.

However, the E-way bill mechanism has proved to be a continuous source of pain for businessmen and transporters where they are subjected to hefty penalties for...

Index:

1.  Delhi HC Ruling: Allows Taxpayers to avail Transitional Credit up to 30.06.2020. 

2.  Delhi HC Ruling: Allowed to rectify the errors in returns of the tax period in which such error pertains to.

3.  Jharkhand HC Ruling: Invoking Section 79 of CGST Act, for recovery of interest without following the adjudication proceedings of Section 73 or 74 of the CGST Act is not permissible.

1. Delhi HC Ruling: Allows Taxpayers to avail Transitional Credit...