Inability to file GST TRAN1 due to technical glitch / error
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.
GST Liability on Goods Scrapped on Direction of Customer
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 […]
Failure to File GST TRAN-1: Any Relief in Sight?
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 […]
Issues in Refund Circular 135/05/2020-GST
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 […]
Is there a time limit to avail Input Tax Credit of GST paid under Reverse Charge?
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 […]
GST Reverse Charge on Renting of Motor Vehicle – Amendment Clarificatory or Expansive!
[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 […]
GST Reverse Charge on Renting of Motor Vehicle – Demystifying
[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 […]
Refund of ITC Not Appearing in GSTR-2A – Is it Without Riders?
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 […]
Services to Foreign Customer with Location of Supplier & Place of Supply in same State: Inter v. Intra-State Supply – Stalemate!
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 […]
Input Tax Credit on Purchase of Car for Rent-a-Cab Service – Marred by Conflicting Advance Rulings
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, […]
Exempt, Nil-Rated, Zero-Rated, Non-GST & Non-Supplies: Understanding the Differences
[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 […]
Order Extending Time for ITC Claim & Rectification of Errors in GSTR-1: Points to Ponder
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 […]
Time of Supply in case of Change in GST Rate
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 fastened to earth – Movable or Immovable Property from CENVAT / ITC Perspective?
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 […]
Is levy of GST Compensation Cess Constitutional?
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 […]
GST | Is supply & erection of solar power system a composite supply?
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 […]
Is Imposition of Time to Avail GST Transitional Credit under Section 140(3) CGST Act unjust?
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 […]
GST | Should levy of liquidated damages be a taxable supply of services?
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 […]
Coal Importers boxed by amendment barring credit of Clean Energy Cess on transitional stock
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 […]
GST | Facilitating Student Enrolment to Foreign University – Taxable or Zero-Rated?
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 […]
Service Tax on Director Remuneration – Applicability & Planning
[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 […]
Service Tax on Import Sea Freight: Amendments Overdone
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 […]
Service Tax – Important Case Laws
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 […]