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No GST liability on any portion of income – ITC reversal not required in all cases
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...
Read moreApplication of the Curious case of Mineral Area Development Authority on GST disputes involving land
Recently, the Hon’ble Supreme Court, in a nine-judge constitutional bench has held that royalty is not a tax, and the State Government can levy tax on minerals under Entry 50 of List II or on mineral bearing land under Entry 49 of List II of the Constitution of India.
Whilst the above order would see demand notices for payment of tax under reverse charge mechanism on royalties and dead rent paid by the taxpayers to the Government
w.r.t mineral rights, the judgement has also set a...
Response to GST notice for GSTR-2A v. GSTR-3B difference
GST has recently completed 7 years of implementation since its inception on 1st 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...
Read moreBonuses, Online Money Gaming, and GST: DGGI’s Increasing Curiosity
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...
Read moreOwnership and bearing of cost - whether relevant for availing ITC under GST?
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...
Read moreGST impact on Corporate Guarantee (incl. Perosnal & Bank)
Introduction
The 53rd GST council has recommended clarity w.r.t valuation of corporate guarantee by following 52nd 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...
Read moreWhether ITC is eligible on Plant being an immovable property? Based on Circular 219/13/2024-GST
There have been various disputes w.r.t credit eligibility on a ‘Plant’ being in the nature of an immovable property. In GST regime the issue remains, with various interpretations arising out of Section 17(5)(c) & (d) of CGST Act 2017 along with relevant explanations in the law.
We have seen disputes raised in the form of credit restriction on expenses relating to construction of commercial building under section 17(5) in M/s.Safari Retreats case which is now pending with the...
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