Refund has always been considered as the most peculiarized feature of GST regime. The mechanism of sanctioning refund is an essential process as it facilitates trade through release of blocked funds. Refund of ITC is an integral part of GST. Due to technicalities involved, numerous efforts have been made to streamline and standardize the whole…
Category: GST related services
Applicability of GST on Sale of Land
In an application filed before AAR under GST, Gujarat by Shree Dipesh Anilkumar Naik [2020 (6) TMI 448] Applicant is the owner of the land, who develops the land with an infrastructure such as drainage line, water line, electricity line, land levelling, etc. as per the requirement of the approved Plan Passing Authority (i.e. Jilla…
GST on Liquidated Damages
Liquidated damages are means of compensation for the breach of a contract. In literal sense, ‘Liquidate’ implies the winding up of affairs of a business and on the other hand the word ‘Damages’ denotes a sum of money claimed or awarded in compensation for a loss or an inquiry. Example: There is a forfeiture clause to…
GST on Tobacco Leaves Procured
Tobacco is obtained from various cultivated varieties and has multiple varieties based on size and shape. Tobacco may be cured either as whole plant (on the stalk) or as separate leaves. Before packing for shipment, the dried leaves are treated in order to ensure their preservation. Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 Rates Effective…
Joint Development Agreement (JDA) under GST
JDA is always considered as a grey area under GST, as many experts have different view on this transaction. But sale of land is very clear aspect, covered under schedule III of CGST Act,2017, which specify that selling of land does not attract GST as it is treated neither treated as supply of goods nor…
GST on Supply of Water
Water is classified as an essential & supply of the same is exempt through notification no 2/2017- Central Tax Rate dated 28th June,2017. The relevant extract is as under: S. No. Heading Description of Goods Rate (%) Condition 99 2201 Water (Other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralised and water sold in…
Synopsis Of Proposed Changes In GST Act
Addressingto challenges faced by taxpayers, FINMIN has proposed some changes in GST provisions through Finance Bill,2020 which majorly relates to restrictions in respect of availment of input tax credit (referred to as ‘ITC’) and cancellation of voluntary registration. To make headway against refinement of GST Act, following are amendments proposed in finance bill 2020: Entry…
New GST Return Format
1.1 Applicability: Major outcome of the 31st Council meet was to introduce new return system under GST. New return system will contain simplified return forms, for ease of filing. An insight of the new tool was provided in May 2019 with a prototype of the offline tool being shared on the GST Portal. The Ministry…
Analysis of Central Goods and Services Tax (Fifth Amendment) Rules, 2019: Part-1
The Central Government exercising the powers conferred by section 164, has made an amendment to CGST Rules 2017 ,which is termed as CGST (Fifth Amendment) Rules, 2019. Rule 12 (1A): Grant of registration to persons required to deduct tax at source or to collect tax at source- A person applying for registration to [deduct or]* collect…
GST E-invoice on Government Portal
GST was implemented with several unique provisions which intended to reduce the complexities of pre-GST era. One of such provision stated in rule 46 of CGST rules, 2017 which conferences about unique series of invoice under GST. As per law,a valid invoice is required to claim ITC absence of which results is inadmissibility of credit….