• The Hon’ble Bombay High Court in Sunil Kumar Jha and Akshay Chhabra v. Union of India & Ors. [Writ Petition (ST) No. 5484 of 2021 & Writ Petition (ST) No. 5486 of 2021, decided on March 11, 2021] granted bail to the accused arrested under Section 69 of the Central Goods and Services Tax Act, 2017 (“CGST Act”) for committing offence of availing ineligible Input Tax Credit (“ITC”) of INR 9,04,89,054 and issued notice to the revenue department. Held that the arrest made without any formal accusation and continued detention for alleged fake ITC availment, would not be justified when accused is cooperating in investigation.

    The Hon’ble Gujarat High Court, in M/s Surat Mercantile Association v. Union of India [R/Special Civil Application No. 13289 of 2020 with Civil Application No. 1 of 2020 in R/Special Civil Application No. 13289 of 2020, decided on December 18, 2020] issued notice to the revenue department with respect to the writ challenging constitutional validity of Rule 36(4) of the Central Goods and Services Tax Rules, 2017 (“CGST Rules”).

    In this article, we have discussed about the ITC compliances and procedure that has to be followed by the registered taxpayers under the provisions of the GST Law as on March 31, 2021.

    The Hon’ble AAAR, Uttar Pradesh in the matter of SPFL Securities Ltd. [Order No. 06/AAAR/18/4/2019, dated April 18, 2019] held that Goods and Services Tax (“GST”) is not liable to be paid on delayed payment charges recovered from the client towards trading of securities upon payment made by them beyond the time stipulated by the stock exchange and SEBI and for which payment is deducted by the stock exchange from the broker’s account.

    The Hon’ble Gujarat High Court in M/S Deepak Print v. Union of India [R/Special Civil Application No. 18157 of 2019, decided on March 9, 2021] directed the revenue department to allow the rectification of entries in the Form GSTR-3B return for the Month of May, 2019, on account of genuine bonafide human error.

    The Hon’ble Bombay High Court in Abhi Engineering Corporation Pvt. Ltd. And Anr. v. Union of India and Ors. [Writ Petition (L) No. 5842 of 2020 decided on February 9, 2021] held that where the proceedings under Section 74 of the Central Goods and Services Tax Act, 2017 (“CGST Act”) have been initiated against the principal contractor only, the sub-contractor’s share in escrow account cannot be attached since no action was taken against the sub-contractor and the sub-contractor was not the taxable person.

    The Hon’ble AAR Gujarat in M/s Gujarat Industrial Security Force Society [Advance Ruling No. GUJ/GAAR/R/100/2020 decided on October 14, 2020] held that the security services would be taxable to GST @18% on the entire amount received including the wages for the guards. Input Tax Credit (“ITC”) would be available if the procedure of paying GST is followed on the entire amount received by assessee, subject to the fulfillment of the conditions as envisaged in the relevant sections and rules of the Central Goods and Services Tax Act, 2017 (“CGST Act”) and Central Goods and Services Tax Rules, 2017(“CGST Rules”).

    The Hon’ble Finance Minister, in Budget 2021-22, hailed as a ‘development-oriented’ and ‘visionary’ budget amid the pandemic-induced disruptions, inter alia, announced multiple changes to the Goods and Services Tax (“GST”) framework. The changes have been proposed vide the Finance Bill, 2021, that amends the Central Goods and Services Tax Act, 2017 (“CGST Act”) and the Integrated Goods and Services Tax Act, 2017 (“IGST Act”), in order to ease doing of business, curb input credit frauds, safeguard Government revenues and to provide statutory backing to debated Rules.

    The Hon’ble Finance Minister, in Budget 2021-22, hailed as a ‘development-oriented’ and ‘visionary’ budget amid the pandemic-induced disruptions, inter alia, announced multiple changes to the Goods and Services Tax (“GST”) framework. The changes have been proposed vide the Finance Bill, 2021, that amends the Central Goods and Services Tax Act, 2017 (“CGST Act”) and the Integrated Goods and Services Tax Act, 2017 (“IGST Act”), in order to ease doing of business, curb input credit frauds, safeguard Government revenues and to provide statutory backing to debated Rules.

    The Hon’ble Finance Minister, in Budget 2021-22, hailed as a ‘development-oriented’ and ‘visionary’ budget amid the pandemic-induced disruptions, inter alia, announced multiple changes to the Goods and Services Tax (“GST”) framework. The changes have been proposed vide the Finance Bill, 2021, that amends the Central Goods and Services Tax Act, 2017 (“CGST Act”) and the Integrated Goods and Services Tax Act, 2017 (“IGST Act”), in order to ease doing of business, curb input credit frauds, safeguard Government revenues and to provide statutory backing to debated Rules.

    The Hon’ble CESTAT, New Delhi in M/s. South Eastern Coalfields Ltd. v. Commissioner of Central Excise and Service Tax [Service Tax Appeal No. 50567 of 2019, decided on December 22, 2020] set aside the order holding that the amount received towards penalty, earnest money deposit forfeiture and liquidated damages would be tantamount to a consideration, for which service tax would be levied, passed by the Commissioner and held that, it is not possible to sustain the view taken by the Commissioner.

    GST Charcha on Union Budget 2021 GST Audit by professionals scrapped? The Hon’ble Finance Minister, in Budget 2021-22, hailed as a ‘development-oriented’ and ‘visionary’ budget amid the pandemic-induced disruptions, inter alia, announced multiple changes to the Goods and Services Tax (“GST”) framework. The changes have been proposed vide the Finance Bill, 2021, that amends the […]

    The Hon’ble Finance Minister, in Budget 2021-22, hailed as a ‘development-oriented’ and ‘visionary’ budget amid the pandemic-induced disruptions, inter alia, announced multiple changes to the Goods and Services Tax (“GST”) framework. The changes have been proposed vide the Finance Bill, 2021, that amends the Central Goods and Services Tax Act, 2017 (“CGST Act”) and the Integrated Goods and Services Tax Act, 2017 (“IGST Act”), in order to ease doing of business, curb input credit frauds, safeguard Government revenues and to provide statutory backing to debated Rules.

    Introduction E-filing   of   appeals   before   CIT(Appeals)   has   already   been   enabled through e-Filing portal. However, the process that follows after filing of such  appeal  is  neither  electronic  nor  faceless.  In  order  to  further harness  the  power  of  technology  and  to  achieve  the  motto  of  faceless assessment   at   CIT(A)   level,   an   appellate   system,   with   dynamic jurisdiction  in […]

    Virtual gaming brings nostalgia for the video games we used to play in our childhood. Now, as we have advanced, the technology has advanced, the gaming system has too. From Super Mario in our box televisions to the fantasy games in our super-fast smartphones and laptops, the gaming system has evolved to a new level. Players are now even earning money from the very fun idea of playing online games. The games like PUBG, Call of Duty, Dream 11 and Cricket 11 are played by crores of young individuals who are attracted towards becoming professional players in the online gaming. The live streaming of PUBG, the tournaments in call of duty, the skilled team composition in dream 11, etc., has been a great source of income for youngsters and many others. The players and the companies have generated millions of rupees from these platforms. However, with income comes the liability to pay taxes, as where there is an income, there comes the vigilance of the Income Tax Department.

    The Hon’ble Prime Minister launched the ‘Faceless Assessment Scheme’ on the 13th of August 2020 with an aim to call for reduced Red-Tapism and corruption, better accountability from the department’s side and enhanced transparency and efficiency. The underlying objectives of the scheme could be summarized in the following points:

    I. Prefatory Note: With ever evolving technological advancements and the much latest Covid-19 pandemic, businesses have found unique ways to ensure continuity in their business operations through digital technology. As a result of rapid technological development, new business models have emerged with their own set of tax challenges in terms of connection, characterization and valuation […]

    Recently, I came across an educational institution, a law college, which had procured online books, periodicals and certain other online information services for its college library from different vendors. It was noticed that one vendor had not collected any GST from this college citing that it is an online educational journal whereas second vendor collected GST @ 5% considering the service to be an e-book whereas the third vendor collected GST @ 18%. Considering this instance, I think that taxation in this regard could pose certain issues and controversies. In this article, we deal with these issues.

    Section 16 of CGST Act, 2017 read with Rule 36 of CGST Rules, 2017 provides for eligibility and conditions for taking ITC.

    With an objective to curb fictious availment of ITC by taxpayers in GSTR 3B Return, the Government being unable to implement GSTR 2 & GSTR 3 Returns or New Returns systems, eventually introduced Rule 36(4) w.e.f. 09th October 2019 providing restriction on availment of ITC based on uploading of invoices by Supplier in GSTN Portal i.e., should appear GSTR 2A of taxpayer.

    The history of selling of space for advertisement in print media in a foreign country under services tax law has always been seen wandering in the court of law where various facets has been analysed till date. There are several judgments that are essentially associated with the nitty-gritty of this taxation rather cogent judgment of Hon’ble CESTAT, Mumbai in case of Fertiplant Co.CCE (P.) Ltd. [order No A/856/17/STB, dated 18-1-2017] wherein it has been held that magazine is covered under the definition of “book” and an advertisement placed by the appellant in the magazine being in print media is excluded from the service tax liability under the category of “sale of space or time for advertisement”.

    In the wake of COVID-19, corporate and companies have started distributing essential commodities like face masks, sanitizers, food packets, and have donated in other forms. Activities which are undertaken or donations made to eliminate social insecurity and COVID-19 has been agreed to fall under donations in Schedule 7 as Corporate Social Responsibilities.

    The Hon’ble Delhi High Court in the case of M/s Vianaar Homes Pvt. Ltd [ W.P.(C) 2245/2020 & CM APPL. 7832/2020 dated November 3, 2020] has held that Section 174(2)(e) of the Central Goods and Services Tax Act, 2017 (“CGST Act”), specifically empowers the authorities to institute any investigation, inquiry, verification, assessment proceedings, adjudication, etc. including service tax audit under Rule 5A of the Service Tax Rules, 1994 (“Service Tax Rules”), as said Rule framed under the repealed or omitted chapter V of the Finance Act, 1994 (“Finance Act”), is saved.

    In Common parlance the concept of E-invoicing (Electronic invoicing) is the exchange of the invoice document between a supplier and a buyer in an integrated electronic format. This is slightly different from the current Digital Invoice which is shared in a PDF/ Web or other formats. Infact traditional invoicing is heavily paper-based process and also manually intensive prone to human error resulting in increased costs and processing lifecycles for companies. Read on …

    With the revolution of Industry 4.0 and the technological advancements, the scope of digital trade is expanding. In trade context, electronic transmissions are generally understood to cover cross-border digital delivery rather than delivery through physical mode. Growing digitalisation is expected to give further boost to trade by electronic transmissions for example, online delivery of music, e-books, films, software and video games. Most of the digital technologies like Big Data analytics, 3D printing (Remote Additive Manufacturing), Robotics, Artificial intelligence, Internet- of-Things, etc. require software to operate, which are increasingly leaving their physical “carriers” when they cross the borders. It is much simpler to download an e-book or music or software from the internet than import these digitisable products in physical form. Read on

    The decisions of the Bombay and Rajasthan High Courts in Sesa Goa Ltd. v. Jt. CIT [2020] 117 taxmann.com 96and in Chambal Fertilizers & Chemicals Ltd. v. Jt. CIT [ ] 102 CCH 202 respectively have sparked a new polemic in tax law with reference to deductibility of education cess as business expenditure. The judgments effectively tend to reduce the size of the education cess pie, which was levied as a public policy imperative to finance educational requirements of the underprivileged. The object of this article is to examine the legal issues vis-à-vis the judgments of the two High Courts and to place them in perspective in the context of law as it exists today.

    The GAAR (General Anti Avoidance Rules) provisions were introduced in the Income Tax Act, way back in Later, on it was postponed till March 2017. Ultimately, this was made effective from 01st April 2017 by adding new sections, i.e., section 95 to 102 in the Act.

    Contributed by CA Bimal Jain Synopsis: The AAR, Tamil Nadu in the case of M/s Chennai Port Trust has held that the amounts received on or after July 1, 2017 towards interest, late fees, penalty relating to services of lease/rent, due to delayed payment of consideration for those services rendered by Applicant before July 1, […]

    Contributed by CA Bimal Jain

    Ms. Nirmala Sitharaman today presented the full budget of 1st Year of 2nd term of Modi Government amid subdued economic growth and challenging fiscal situation. Taking into consideration, the need of time, with a vision to become $5 trillion economy by 2025, various sectors including social sectors were generously rewarded in this Budget.

    8 things to be done under GST before March 31, 2019 – Last chance to avail any pending ITC of FY 2017-18 –
    In terms of sec 16(4) of the CGST Act, 2017 (“the CGST Act”) a registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both, after the due date of furnishing of the return under sec 39 for the month of September following the end of financial year to which such invoice or invoice relating to debit note pertains or furnishing of the relevant annual return, whichever is earlier.

    What are your views about the current status of GST implementation in India?

    It is daunting task to replace multiple taxes and synchronizing various state and central bodies in a single tax system. GST is going to be an evolving tax system. It has been over 10 months since GST has been implemented in India. We can say that the law has come to a certain stability. To a certain extent, technology has also been tested at GSTN portal, practitioners, service providers and client end. Everyone has adopted to changes.

    Contributed by CA Bimal Jain

    Considering the first year of implementation of GST, major challenge is being faced by the Industry Inc in availing GST input tax credit (“ITC”) for the financial year 2017-18 after implementation of GST (i.e. July 2017 to March 2018) and lot of divergent views are floating with respect to the last date till which such ITC can be availed.

    Contributed by  CA Bimal Jain

    Finally, after facing every step of hurdle during past one year of journey of GST, passing through more than 400 changes in form of Notifications, Circulars, Press Releases and Orders, the final goal of every taxpayer is to assess their business records and analyse the mistakes done during the past financial year through the mode of GST Audit (GSTR – 9C) and Annual Return (GSTR – 9) for FY 2017-18.

    Contributed by  CA Bimal Jain

    After getting deferred till September 30, 2018, the Central Government vide
    Notification No. 50/2018 – Central Tax dated September 13, 2018 and Notification No. 51/2018 – Central Tax dated September 13, 2018, has appointed the 1st day of October 2018, as the date on which the provisions of Section 51 of the CGST Act, 2017 (i.e. Tax deduction at source) and Section 52 (i.e. Tax collection at source) shall come into force.

    Contributed by  CA Bimal Jain

    The recently concluded 28th meeting of GST Council has recommended changes in the GST rates on several goods and brought down the GST rates on number of products bringing as many as 88 products in lower tax slab. This is being seen as a major relief for the consumers and shall provide impetus to the relevant industries. However, lowering of tax rates always brings along with it the fear of profiteering by the Industry and the consumers for whom the taxes are brought down are deprived of these benefits.

    Contributed by CA Bimal Jain
    As seen recently after implementation of E-Way Bill, effectively from April 1, 2018, multiple cases of seizures of the goods/conveyances in transit by the department by way of Order passed under Section 129(1) of CGST Act, 2017 (“CGST Act”), has raised concerns as to whether the order of seizure of goods under Section 129(1) of CGST Act is appealable or not?

    Contributed by CA Vikash Parakh

    At present the need of the hour under the GST regime is the availability of INPUT TAX CREDIT to the registered person on 1st July 2017 and the procedure to claim such ITC under the GST regime.

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