A writ petition can be entertained under exceptional circumstances like: (i) breach of fundamental rights; (ii) violation of principles of natural justice; (iii) excess of jurisdiction; and (iv) challenge to the vires of the statute or delegated legislation.
Even if it is obligatory (under law) for the employer to provide canteen facility to its employees, ITC cannot be availed citing the proviso under Section 17(5)(b)(iii). Provision of canteen facility by the employer to the employee is a “supply” within the meaning of CGST Act.
How can the cancellation proceedings be concluded if the registered person belatedly replies to the show-cause notice? What if the assessee altogether fails to reply to the show-cause notice? On purposive construction, it appears that if the registered person fails to reply within the stipulated time limit, the proper officer should conclude the cancellation proceedings within 30 days thereof.
If location of supplier of intermediary service is in India and location of recipient of such intermediary service is outside India, taxpayers find it hard to digest that such supply becomes taxable merely since the Place of Supply is in India.
If the claim of refund was erroneously consolidated under the head of SGST owing to technical glitch in the GSTN portal, petitioner cannot be expected to produce any proof. In case of refund of un-utilised ITC, the order of debit is specified under paragraph 37 of Circular No.125/44/2019-GST. Paragraph 38 thereto provides relief that for applications where such order is not adhered to, no adverse view may be taken by the tax authorities.
Section 83 of CGST Act permits provisional attachment of property belonging only to the taxable person. In instances where bank account (jointly held with third party) is attached, the aggrieved (third) party should duly file their objections under Rule 159(5) ibid and may seek judicial remedy if there is no response or belated response on the part of Revenue.
Background: The petitioner paid certain dues through web portal. However, due to failure of web portal system, receipt was not generated. Hence, it was forced to again pay the dues. It applied for refund of the dual payment. The statute (Section 19 of Lighthouse Act, 1927) provided that where Light Dues were paid more than […]
Whole-time directors were paid remuneration in the form of commission (based on percentage of profits). The Revenue demanded service tax on such variable pay. A whole-time director is one who is in full-time employment of the company, for which he is entitled to receive remuneration. Hence, it was held[1] by the Hon’ble CESTAT (Kolkata) that […]
The Revenue authorities instituted recovery proceedings and recovered the entire amount of demand within three months from the date of order of the first appellate authority (which had ruled in favour of the Revenue). It appears such recovery was on the strength of a subsisting provisional attachment. However, the assessee had the right to appeal […]
Any decision, order, summons, notice or other communication under the GST Act / Rules should mandatorily be served by any one of the following methods, according to Section 169 of the CGST Act, 2017: (A) Hand Delivery: It can be served by giving or tendering: either directly; or by a messenger (including a courier); Such […]
The appellant is a unit operating in the Special Economic Zone (SEZ). It is engaged in export of goods. It availed input tax credit (ITC) on inward supplies from entities in the Domestic Tariff Area (DTA). The SEZ unit applied for refund of un-utilised ITC. Such accumulation arose on account of export of goods. The […]
Taxpayers often mix up credit / debit notes with amendments to tax invoices under the GST regime. Hence, the object of this post is to understand the circumstances in which credit / debit notes can be issued and when amendments to tax invoices should be recorded in the GST returns. Credit notes with tax implications […]
Usually, business entities in the Fast-Moving Consumer Goods (FMCG) sector announce ‘buy one, get one free’ offers / schemes. These are directed towards better sales traction. Barring activities or transactions specified in Schedule I of the CGST Act, goods or services supplied free of cost (that is, without consideration) are not treated as ‘supply’ under […]
Service by way of renting of residential dwelling, for use as residence, is exempt from GST vide Entry 12 of Notification No.12/2017-Central Tax (Rate) dated June 28, 2017 (as amended). Where an owner leases out his property and the lessee sub-lets / sub-licences to students / workers for long-term hostel accommodation, can the property owner […]
Property owners collect security deposit from tenants while renting out immovable property. Such deposit is refundable (usually, with no interest) to the tenant at the end of lease term / while vacating the premises, subject to deductions as per the terms of agreement between the tenant and the property owner. Hence, the property owner enjoys […]
Even after crossing three years from the inception of GST law, some of the taxpayers assume that property tax can be deducted while calculating the taxable value. This post is intended to dispel such incorrect assumption. Under the Service Tax law, Notification No.29/2012-S.T. dated June 20, 2012 provided exemption by way of deduction of property […]
This post covers instances where GST refund can be withheld. The post, covering instances where tax and other dues can be adjusted from GST refund, is available at URL: http://vsrca.in/gst/can-gst-service-tax-vat-dues-be-deducted-from-refund-without-intimation/ GST refund can be withheld in either of the following situations: if the registered person defaults in furnishing GST return; No specific return has been […]
Tax and other dues payable by a registered person (viz., GSTIN holder) can be deducted by the Proper Officer from refund due to such person. This power is available under Section 54(10)(b) of the CGST Act. The following points are noteworthy in this regard: The amount payable by the taxable person could be tax, interest, […]
Background: The Company re-sells pre-developed or pre-designed software, which are made available through the use of encryption keys. Such off-the-shelf software is not developed for any specific client, i.e., it is not customised. Observation: The term “Computer Software” is not defined under the GST law. However, according to the FAQs issued by the Government relating to […]
Query/ies: Whether hand sanitisers can be classified under HSN 3004.90.87 (viz., Antibacterial formulations, not elsewhere specified or included)? Whether hand sanitisers are exempt from GST (since they are classified as an essential commodity under the Essential Commodities Act, 1955)? Observation: From the submissions made, the Authority has opined that the firm is engaged in manufacture […]
Background: The firm purchases land. It converts the land into integrated residential plots with the following facilities: external compound wall, main entry gate, walls separating internal plots, internal roads, plantation surrounding the plots, rain water harvesting system, common bore well, drainage, children play area, club house, underground water supply / electricity connection, swimming pool, garden, […]
Facts: The taxpayer provides the service of storage of agricultural produce. It has taken cold storage facility on lease / rent. Query/(ies): What is the GST implication on the outward supply of storage of agricultural produce? What is the GST implication on the inward supply of leasing / renting of cold storage facility? Observations / […]
Background: The local branch of a foreign company contracted to undertake repairs and maintenance of machinery for an Indian company. Query(ies): Who is liable to pay GST on the aforesaid supply? That is: Should this transaction be treated as supply of service by the foreign company to the Indian company? If so, the Indian company […]
[Law stated in this post pertains to the period effective February 01, 2019. For the period July 01, 2017 till January 31, 2019, the concept of ‘business vertical’ was in vogue.] Certain registered taxpayers may have multiple places of business within the same State / Union Territory (UT). Such taxpayers may apply for a separate […]
It is erroneous to construe amount of deposits / loans / advances extended as value of service. Rather, interest earned is actual value of supply.