Paragraph 2.3 of Circular No.59/33/2018-GST dated September 4, 2018 allows refund of unutilised Input Tax Credit (ITC) in respect of invoices not available in GSTR-2A. This is permitted to alleviate difficulty on the part of recipient to obtain refund, where filing of GSTR-1 by the supplier is either delayed or not done. The intent of […]
There are instances where the ‘Place of Supply’ could be in India, even though the invoice is raised by an Indian entity on a foreign customer. Examples include: intermediary services provided to overseas customer for commission / brokerage; freight incurred in India and billed by a freight forwarder on a foreign customer; charges (for […]
Rent-a-cab (RAC) operators typically either purchase or take cabs on rent for providing the outward taxable supply of RAC service. Input Tax Credit (ITC) is eligible to operators who take cabs on rent for providing the outward taxable supply of RAC service expressly under Section 17 of the Central Goods and Services Tax (CGST) Act, […]
[Article published in the Salem Branch of SIRC of ICAI e-Newsletter, April 2019; Penned by CA. Srinivasan V and reviewed by CA. Saravana Prabhu] Although it has been more than one-and-half years since the GST law came into force, many users inter-changeably fill details relating to nil-rated supplies, exempt supplies, non-taxable supplies, transactions which are […]
As per Section 37 of the Central Goods and Services Tax (CGST) Act, 2017, any error / omission in GSTR-1 (pertaining to the period 01-Jul-2017 to 31-Mar-2018, hereinafter referred to as “relevant period”) could be rectified only up to the date of filing GSTR-1 of September 2018 – considering the non-availability of annual return for […]
The GST rates for certain goods have been amended with effect from 01-Jan-2019. When supply of goods / services happens during such change in tax rate, the ‘time of supply’ should be determined as per Section 14 of the Central Goods and Services Tax (CGST) Act, 2017 (and not as per the usual provisions of […]
Machinery is usually fastened to earth in factories. Whether it warrants classification as immovable property has always been a bone of litigation under the erstwhile CENVAT regime. Hence, the post delves into this topic in the context of recent decision of the Hon’ble High Court of Delhi in Vodafone Mobile Services Ltd. v. Commissioner of […]
Issues: Is the Parliament competent to levy GST compensation cess? Is it permissible to levy both CGST/SGST/IGST & GST compensation cess on the same taxable event? Can CEC paid by the assessee be allowed to be set off against GST compensation cess? Background: Assessee paid Clean Energy Cess (CEC) on coal imported prior to July […]
Background: Appellant proposes to enter into two agreements: (i) for supply of solar power generating system (viz., supply of goods); and (ii) erection, testing and commissioning (viz., supply of services for setting up the system). As per the service agreement, the appellant accepts responsibility for successful completion & commissioning of the plant and 5% of […]
Issue: Is imposition of time limit to avail credit under Section 140(3) of CGST Act harsh/unjust? Isn’t such a condition also arbitrary and discriminatory? Background: Assessee (who was a First Stage Dealer/”FSD” under the erstwhile Central Excise Law) could pass on the credit of excise duty paid on their purchases to the customers, who could utilize […]
Issue: Should the levy of liquidated damages be treated as supply of services by the appellant? Background: Appellant has awarded a contract to Bharat Heavy Electricals Limited for erection, testing & commissioning of a power plant. The contract provides for payment of liquidated damages if project completion is delayed beyond the scheduled date. Ruling: Appellant […]
With effect from July 01, 2010, Clean Energy Cess (renamed subsequently as Clean Environment Cess / “CEC”) was levied as a “duty of excise” on removal of raw coal, lignite and peat from the coal mine [vide Section 83(3) of the Finance Act, 2010]. This levy was primarily intended for financing and promoting clean energy initiatives […]
Issue: Whether facilitating recruitment or enrolment of students to foreign universities is a taxable or zero-rated supply? Background: Applicant facilitates recruitment / enrolment of students to foreign Universities. It is paid commission, based on performance in recruiting students, which is a percentage of tuition fee collected from students enrolled through applicant. Ruling: From the terms […]
[Published in Service Tax Review (a weekly journal on GST & Service Tax) – Vol.51 Part 3 dated May 18, 2017] By Srinivasan V, FCA & Prasanna Krishnan V, B.Com., FCA, DISA The season of finalisation of accounts for most companies for the year 2016-17 has commenced, which also means finalisation of directors’ remuneration (especially of private […]
The service of transportation of goods by a vessel from outside India to a customs station of clearance in India (i.e., import sea freight) has witnessed several sweeping amendments in less than a year. In this article, we delve on all amendments encompassing the person liable to pay tax, valuation / abatement and the point of […]
Fitness One Group India Ltd. v. Cus., C.Ex. & S.T. Sett. Comm., ChennaiBackground – Petitioner was aggrieved with a part of the Order passed by the Settlement Commission.Issue – Can a part of the Order passed by the Settlement Commission be disputed?Decision [by the High Court of Madras on Nov.01, 2016] – Petitioner cannot selectively accept a part of such Order […]