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.
Held: Rectification of errors or omission in Form GSTR-3B should be allowed in the period to which it relates, and not in the period in which it is noticed. Comment(s): For example, if there is an error or omission in Form GSTR-3B filed for April 2019, it should be rectified latest vide Form GSTR-3B filed […]
Supreme Court declined to interfere with High Court’s Order, in favour of assessee unable to file TRAN1 due to technical glitch. However, it kept questions of law open.
Background: Applicant manufactures steel dies, as specified by foreign customer. Without movement of such dies, the applicant invoices the recipient abroad in foreign currency. At the end of useful life, the applicant may sell such dies as scrap in India, as directed by the foreign customer. Alternately, the applicant may export such dies to the […]
Issue: Whether transitional credit can be availed by the assessee, wherein the assessee failed to furnish Form GST TRAN-1 within the time prescribed under the GST law? Background: The Hon’ble High Court of Delhi had ruled in favour of the assessee vide its Order dated May 05, 2020. For a gist of the Hon’ble High […]
Circular No.135/05/2020-GST dated March 31, 2020 clarifies certain aspects related to refund of GST. However, the said Circular is riddled with certain issues, which this post delves into. Paragraph 6 of the said Circular has imposed a new requirement on the assessee to mention the HSN code for goods / services in the refund application […]
Many taxpayers discharge their Goods and Services Tax (GST) liability under the Reverse Charge Mechanism (RCM), on being pointed during audit. This could plausibly be attributed to lack of knowledge on the part of taxpayers. The immediate logical question is whether Input Tax Credit (ITC) can be availed on such GST paid under RCM, irrespective […]
[Reading this article in landscape mode (on mobile phone) is recommended for better experience] Reverse charge mechanism on ‘renting of motor vehicle’ service was introduced from October 01, 2019. Since the complex language used in the notification(s) confused many, the Government substituted the reverse charge entry effective December 31, 2019. To understand the position in […]
[Reading this article in landscape mode (on mobile phone) is recommended for better experience. Also, an update to this post is available at http://vsrca.in/gst/reverse-charge-renting-motor-vehicle-amendment/] Reverse charge mechanism on ‘renting of motor vehicle’ service was introduced with effect from October 01, 2019. Although it has been over 50 days since introduction, the complex and ambiguous language […]
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 […]