Blog | Srinivasan V, FCA

May 19, 2021May 19, 2021GST RulingsGST Refund

Can Refund of Incorrect Head of GST, owing to Technical Glitch in GSTN Portal, be Rejected?

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.

February 13, 2021February 13, 2021GST RulingsGST | Provisional Attachment

Can Bank Account Held Jointly with Third Party be Provisionally Attached?

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.

February 10, 2021February 10, 2021GST RulingsGST | Excess Payment, GST | Limitation Period, GST Refund

Can Refund of Erroneous / Excess Payment of Tax be Obtained Without Limitation?

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 […]

December 11, 2020December 12, 2020GST RulingsGST | Non-Supplies, GST Taxable Supply

Are Variable Payments to Whole Time Directors Liable to GST?

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 […]

December 10, 2020December 10, 2020GST RulingsGST | Appeal, GST | Provisional Attachment

GST Provisional Attachment: Can Entire GST Demand be Recovered During Limitation Period of Appeal?

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 […]

November 29, 2020December 10, 2020GST PostsGST | Service of Notice

Valid Modes of Service of GST Notice, Order, etc.

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 […]

November 19, 2020November 29, 2020GST RulingsGST | Unutilised ITC, GST Refund

Can SEZ Unit Claim Refund of GST Input Tax Credit on Exports?

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 […]

October 30, 2020GST PostsForm GSTR-1, GST Returns, Rectification of GST Returns

GST Credit / Debit Notes vs. Invoice Amendments – Do Taxpayers Differentiate?

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 […]

October 17, 2020September 12, 2021GST RulingsGST Input Tax Credit

GST Input Tax Credit on ‘Buy One, Get One Free’ Offer

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 […]

October 14, 2020September 12, 2021GST RulingsGST Exempt Supply, GST Exemption, GST Taxable Supply

Is GST Exempt on Leasing Out Building For Hostel Accommodation?

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 […]

October 5, 2020September 12, 2021GST RulingsGST | Taxable Value, GST | Valuation

Is GST Payable on Notional Interest Arising from Rent Deposit?

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 […]

October 3, 2020GST PostsGST | Taxable Value, GST | Valuation

Is Property Tax Deductible While Calculating Taxable Value on Renting Service under GST Law?

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 […]

September 29, 2020GST PostsGST Refund

Can GST Refund Be Withheld?

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 […]

September 26, 2020September 27, 2020GST PostsGST Refund

Can GST & Service Tax / VAT Dues Be Deducted From Refund Without Intimation?

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, […]

August 12, 2020August 12, 2020GST RulingsGST | Classification of goods, GST | Classification of Services

Non-Customised Software: Goods or Services under GST Law?

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 […]

July 16, 2020July 16, 2020GST RulingsGST | Classification of goods, GST Rate, GST Taxable Supply

GST Rate on Hand Sanitiser

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 […]

July 13, 2020July 14, 2020GST RulingsGST | Immovable Property, GST Taxable Supply

Is Sale of Developed Plots Liable to GST?

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, […]

July 11, 2020July 11, 2020GST RulingsGST | Agricultural Produce, GST | Immovable Property, GST | Logistics, GST | Storage / Warehousing, GST Exemption, GST Taxable Supply

GST | Renting of Cold Storage vs. Storage of Agricultural Produce

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 / […]

July 8, 2020July 8, 2020GST RulingsGST | Fixed Establishment, GST | Import of Service, GST Taxable Supply

GST Taxability of Repairs / Maintenance Service by Branch of Foreign Company

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 […]

June 25, 2020July 7, 2020GST PostsGST | Multiple Registrations, GST | Place of Business, GST Registration

Multiple GST Registrations under a PAN within the State / UT

[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 […]

June 15, 2020July 7, 2020GST RulingsGST Registration, GST Registration Limit / Threshold

Should value of loans & advances be included to determine GST registration limit?

It is erroneous to construe amount of deposits / loans / advances extended as value of service. Rather, interest earned is actual value of supply.

June 15, 2020July 7, 2020GST RulingsForm GSTR-3B, GST Returns, Rectification of GST Returns

When should rectification of GSTR-3B be effected?

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 […]

June 15, 2020July 2, 2020GST RulingsForm GST TRAN1, GST Transitional Credit

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.

May 31, 2020July 7, 2020GST RulingsGST | Disposal, GST Supply

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 […]

May 8, 2020July 2, 2020GST RulingsForm GST TRAN1, GST Transitional Credit

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 […]

Srinivasan V, Advocate

FCA, LL.B. (Hons.)