No.CCT-PEI-POL-0155-2021 7869/CT & GST Dated 10/05/2023
The main purpose behind implementation of GST was to put an end to cascading of taxes. In the old indirect tax regime, the taxes were multilayered as the Central Government levied excise duty,service tax, Central Sales Tax etc. Whereas the State Government levied taxes such as VAT , Entry Tax, Sales Tax, state excise and octroi etc. To eradicate this problem, the Government moved towards opting a new Indirect Tax Regime i.e. GST to reduce the extra tax burden on the ultimate consumers , to simplify the whole process of levying taxes and to lessen the duplicacy of taxes at every stage.
INTRODUCTION The lift is treated as Plant and Machinery fixed to earth under GST. There are some judgments related to GST which we will discuss further in the article.
Audit in layman language refers to the inspection of an organisation's accounts, usually by an Independent body. It is carried out with an aim to draw a true and fair view of the financial records of any organisation. Talking about the same in Legal Terms, Audit refers to the systematic examination of financial or accounting records by a specialised inspector, called an auditor, to verify their accuracy and truthfulness. A formal hearing during which financial data are investigated for purposes of authentication.
Since the rollout of GST on 1st July , 2017 , various amendments circulars and notifications have been issued to propose changes and to execute such proposed modifications in GST. The primary purpose of introducing changes is to make GST easier to understand , implement and smooth running of the businesses without much hassle. One of the game changing additions to the GST Act was the introduction of the E-Way Bill. The E-Way bill was implemented to ensure smooth movement of goods and reduction in average waiting time at the check posts for verification. In this article , we will have a complete overview of the provisions of the E-Way Bill under the GST Act.
In this article we will study about the Provisions of Power Arrest by the Proper Officer in detail. The power to arrest an assessee is prescribed under Section 69 of the CGST Act. The tax administration in India provides for provisions like Inspection, Search and Arrest in order to protect the interest of genuine Taxpayers. The options of Inspection, Search, Seizure and Arrest are exercised, only in exceptional cases and a last resort, to protect the government revenue.
Section 158 of CGST Act , 2017 lays down the provisions for disclosure of information by a public servant as also maintaining the confidentiality of the same and related penal provisions in the event of contravention of the same.
Section 145 of CGST Act explains the Admissibility of micro films, facsimile copies of documents and computer printouts as documents and as evidence. Section 2(41) of CGST Act has defined a document as, "document" includes written or printed record of any sort and electronic record as defined in the Information Technology Act , 2000.
For certain transactions like liquidation , amalgamation , merger of companies , partition of HUF etc.it becomes difficult to determine the liability to pay outstanding tax , interest or penalty.
It has become a common practice among businesses where goods are purchased by one person but delivered at different location other than the location of the actual buyer of such goods. Therefore , 2 separate invoices are required to be generated for seamless transfer of Input Tax Credit and appropriate compliance of the same in GST returns.
In this article we will study about E – Invoicing. E – Invoicing is a system which is for Registered Taxpayer under GST for uploading all B2B and export invoices to the Invoice Registration Portal (IRP), managed by GST Network (GSTN). The IRP generates and returns a unique Invoice Reference Number (IRN), digitally signed E – Invoice and QR Code to the user.
There are various disputed matters in GST which are to be sought with the help of the GST officials appointed under the GST Act or the Appellate Authority or the Appellate Tribunal. The topmost question which arises in minds of most of the taxpayers registered under GST is who exactly can represent their cases on their behalf before such appointed GST officials , GST Appellate Authority or Appellate Tribunal.If we talk in brief , the answer to this question is the *Authorised Representative.* In today’s article , we will cover Section 116 of CGST Act read with Rule 116 of CGST Rules 2017 which will help us in understanding the Concept of Authorised Representative under GST.
A works contract is essentially a contract of service which may also involve the supply of goods in the execution of a contract. It is basically a composite supply of both services and goods, with the service element being dominant in the contract between parties.
India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports. In the year 2000 , the concept of Special Economic Zone (SEZ) was introduced to encourage foreign investments and provide a hassle free and a competitive environment for the businesses to flourish.
GST is self-assessment tax, self assessment means when assessing our self-liability to take credit and pay our tax liability. In this article, we will study Inspection, Search, and Seizure in detail. These provisions are being used to protect the interest of the revenue, but they should be used and exercised only in exceptional cases and as last resort.
INTRODUCTION In this article we have tried to analyze the fact that Section 83 of CGST Act can be applied if the Commissioner can freeze your bank account and attach the property if the Taxpayer and Any Person who commits any offence and the Commissioner wants to protect the Interest of the Revenue of the government he has the power to attach the property and bank account of the taxpayer provisionally.
Tax is majorly classified into two parts - Direct Tax and Indirect Tax. Direct tax is defined as the tax which is levied directly on the income earned, for example, Income Tax. Whereas, indirect tax refers to the tax which is levied on goods and services, for example, Goods and Service Tax, Custom, etc. Here in this article, we will learn about Income taxes in detail. So let’s understand what Income tax is and how it works.
In this article we will cover the charging section i.e Section 9 of CGST Act and Section 5 of IGST Act. The charging section is the most important section in any law. Under GST the tax is liable to be paid on the taxable supply of Goods or Services. There are two types of Charges i.e Forward Charge and other is Reverse Charge Mechanism (RCM). Article 265 gives the power to impose and collect tax except by the authority of any law. Forward Charge: - Under GST law, generally supplier (seller of goods or services or both) collects tax from recipient (buyer/ customer of goods or service or both) and pay to the Government (net of ITC) (but ultimately GST is borne by end customer or consumer that is why it is called indirect tax) this mechanism is known as forward charge.
Before implementation of GST, there was VAT and VAT is the origin based tax for eg:- Goods were supplied from ‘X’ State to ‘Y’ State then the Tax benefit would be given to ‘X’ State, which totally changed in GST, GST became the destination based Tax for eg:- Goods were supplied from ‘X’ State to ‘Y’ State then the Tax benefit would be given to ‘Y’ State. Through this Place of Supply tax can be determined which tax is to be charged IGST (Supplied Inter-State), CGST + SGST (Supplied Intra-State/Within the State). In GST Place of Supply plays a vital role in determination of tax. It’s a vide topic which we will be discussing in different parts.
GST or Goods and Services Tax is a broad-based value-added tax. This means that the GST is collected on the goods or services at every stage of the supply chain where value is added. Because of this cascading effect, i.e. tax on tax, comes into force. To avoid such an effect, an input tax credit is provided to the recipient of goods and services throughout the value chain.
Composition levy scheme is an optional scheme available for small taxable person. The purpose of this scheme is to reduce compliance cost of small taxpayers
In the Finance Bill 2022-23 new condition for availing ITC has been introduced i.e Section 16(2)(ba) according to which requiring credit should not be restricted under Section 38 of the CGST Act, due to this two way communication between supplier and recipient will be removed.
Section 188 of Companies Act , 2013 (Related Party Transactions) , regulates the transactions (7 types of Contracts / Agreements) entered in by any company with Related Party as defined in the Section 2(76) of Companies Act , 2013.
Be it pre GST era or post GST era , scope of Intermediary and its services has always been ambiguous and thus created confusion among the taxpayers.The GST Council received various representations for issuing clarification regarding the scope of Intermediary under GST Law. Taking into account the difficulties faced by the trade and industry and to ensure uniformity of law across various fields , the GST Council in its 45th GST Council Meeting issued clarification in regards with the Scope of Intermediary in Circular No. 159/15/2021-GST dated 20th September, 2021.
Advance Ruling & its Roles Advance Ruling is a written interpretation of tax laws. It helps the applicant in planning its activities that are liable to payment of GST. It provides clarification regarding certain tax matters to Individuals , Firms & Corporates who seek help for such clarification. Advance Ruling is applied for , before starting the proposed activity. Thus , it helps in avoiding long drawn and expensive litigation at a later stage.Ruling given by the Authority is binding on the applicant as well as the concerned Government Authorities.
As per GST law, “aggregate turnover” refers to the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-state supplies of persons having the same Permanent Account Number, to be computed on an all-India basis but excludes Central tax, State tax, Union territory tax, Integrated tax and cess. Now, understanding the concept in simpler terms: Aggregate Turnover in common terms means total sales volume of the business in the entire financial year i.e. April to March. Inclusions and Exclusions under aggregate turnover in GST is as follows
SECTION 16(2)(C) is one of major and dangerous defining section to avail Input Tax Credit (ITC) or should I say one of most draconian (Harsh) section to avail ITC.
Income tax is the most significant direct tax. It is levied on total income of the person earned in the previous year. A person includes an individual, Hindu Undivided Family, Association of Persons, Body of Individuals, a firm and a Company. There is no shifting of burden of tax on other person and it is progressive in nature. List I in the Seventh Schedule to Article 246 of the Constitution has given power to make laws on taxes on income other than agricultural income.
In this article will study about Meaning of Input Tax Credit, Conditions for Eligible Input Tax Credit, What is Block Input Tax Credit, Items which are not allowed to take credit, and finally Author’s View
Assessment means determination of tax liability under GST law. This act includes Self-Assessment, Reassessment, Provisional Assessment, Summary Assessment, and best judgment assessment.
Refund of unutilised ITC and Notified Goods/Services on which refund not allowed.
No interest on reversal of wrongful availment of credit under GST
Time Period between 15 March 2020 to 14 March 2021 would be excluded while determining the time limitation for Revoation or Cancellation of Registration
