GIFT City is a acronym for “Gujarat International Finance Tech-City”. GIFT City is a central business district established in Ahmedabad District in Gujarat, India. This is a government promoted greenfield project inaugurated in 2015. GIFT City is the India’s first Operational smart city.
During the year of the Central Election, Our present government has come up with an Interim Budget for FY 2024-25. All the financial schemes or Plans proposed in the Interim Budget are temporary until the final budget is presented by the new Government post elections.
Goods and Service Tax is a combined tax levied by both Center and state governments wherein the center and state get their share of tax depending upon the quantum of goods and services consumed in their jurisdiction. However, a transaction may involve more than one state such as the supplier is located in one state and the recipient is located in another state. In that case, how can it be determined where goods and services are consumed and to which government tax should be given.
the online module for scrutiny of returns is not yet available, as an interim measure, the Government of India has issued a Standard Operating Procedure (‘SOP’) on 22.03.2022 vide Instruction no. 02/2022-GST, in order to ensure uniformity in the methods of scrutinizing the returns by the GST officers and implementing the aforementioned provisions.
In this directions, CBIC has announced some major amendments in Goods and Service Tax which are to be made effective from 01.01.2022. Following are the key changes becoming applicable from 01.01.2022:
Considering queries from field formations and instructions of Hon’ble High Court, Central Board of Indirect Taxes and Customs (“CBIC”) has issued guidelines for disallowing debit in Electronic Credit Ledger under Rule 86A of CGST Rules vide CBEC-20/16/05/2021-GST/1552 dated 2nd November 2021.
A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other.
It shall not be a mixed supply if these items are supplied separately;”
Hon’ble High Court held that power conferred under Rule 86A is very drastic. Power under Rule 86A should be invoked only if fraudulent ITC or ineligible ITC has been claimed by the assessee and the authority has recorded the reasons for the same in writing. In this matter, Hon’ble High Court relied on precedence of apex court in the matter of GKN Driveshafts (India) Limited Vs. ITO reported in (2003) 259 ITR 19 (SC) wherein it was held that in case of reopening of assessment under Section 143(3) of Income Tax Act, the assessee should be afforded an opportunity of hearing and he is entitled to know the reasons for reopening and is also entitled to object to such reopening done by the Assessing Officer. Same analogy is applicable in the given case also, the authority is bound to record the reasons of invoking Rule 86A in writing and communicate such reasons to the assessee. On receipt of such reasons, the assessee is entitled to make his submission/objection requesting for lifting.
The Amneal Pharmaceuticals Private Limited (The Appellant), is providing food facilities to its 500 employees. Canteen is run by a third party, i.e., Canteen Service Provider, to provide food to the employees. The Appellant collects a portion of the price of the canteen service provider from the employees by way of deduction from their salaries. To determine whether GST is payable on the amount collected from the employee, the appellant filed an appeal before GAAR wherein Hon’ble GAAR held affirmative and decided that appellant is liable to pay GST on such amount.
In pursuance of the recommendation of GST Council, CBIC issued necessary clarification vide Circular No. 160/16/2021-GST dated 20th September 2021 on the following issues
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