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GST Refund and Drawback
Blog
Kapil Mittal

Can IGST Refund be seek, where Higher drawback has been claimed on Exports

Gujarat High Court rules that claim of higher rate of duty drawback is not a valid reason for rejection of IGST refund on exports Unreasonable delays in grant of refund of Integrated Goods and Services Tax (‘IGST’) has impacted several exporters in the recent past.  There have been several instances where taxpayers had to resort to litigation in the High Court in order to obtain specific relief and direction for grant of IGST refunds. Duty drawback is one of the export incentives provided by the Government of India under the Foreign Trade Policy.  As per the policy decision taken by

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UNION BUDGET 2019
Blog
Kavit Vijay

Key highlights on UNION BUDGET 2019

After interim budget in February, 2019, Hon’ble Finance minister Nirmala Sitharaman presented her first union budget, 2019 on 5th July, 2019. While presenting budget, Hon’ble FM focused around promoting investment in infrastructure, higher surcharge for super riches, reduction in corporate tax rate, reduction in taxes of electric vehicles etc. Budget also focused on promotion of digital transactions by way of reduction in charges for digital payments, TDS on cash withdrawal etc. Finance Bill, 2019 proposed various amendments in Income Tax Act, 1961, Central Goods and Service Tax Act, 2017 etc. Gamut of various changes proposed is as follows: Table of

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GSTR-3B is not valid return
Blog
Sachin Jindal

Gujrat High court ruled that GSTR-3B is not valid return

Gujarat High Court rules that part of Press Release on last date for availing ITC for FY 2017-18 is illegal At the beginning of the GST-era, Form GSTR – 3B was introduced to taxpayers for ease of convenience in the initial phases and the filling of Forms GSTR – 2 and GSTR – 3 were deferred indefinitely.  Further, the GST law provides for the last date for availing ITC pertaining to previous financial year i.e., due date for filing return of September of the following financial year. The Central Government had issued a Press Release dated 18 October 2018 clarifying

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State-wise GST registration may not require where importer store goods in multiple states
Blog
Kapil Mittal

State-wise GST registration may not require where importer store goods in multiple states

Authority for Advance Ruling, Maharasthra (“AAR”) discussed in the matter of M/s Gandhar Oil Refienery (India) Limited (“Applicant” for brevity) that whether separate registration under GST is required in all such states where applicant is storing goods after import and therefrom applicant is supplying such goods to ultimate customer? Applicant is not having any godown in such states as he is storing goods in port warehouse. He is only having a head office at Mumbai, Maharasthra from where all related activities are carried out such as entering into agreement with supplier, issuance of Letter of credit, receipt of commercial import

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Government of India reduces the social security contribution under ESIC Act from 6.5% to 4%
Blog
Kavit Vijay

Government of India reduces ESIC contribution from 6.5% to 4%

The Government of India has reduced the rate of contribution under the Employees’ State Insurance Act (‘ESI Act’) from 6.5 percent of the total wages to 4% of the total wages. The reduced rates are effective 1 July 2019. The Ministry of Labour and Employment of the Government of India has issued a gazette notification int his regard. The ESI Act is one of the social security laws in India which provides for medical, cash, maternity, disability and dependent benefits to the eligible employees covered under the ESI Act. All employees with a gross pay of less than INR 21,000

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Turnkey project under GST - Composite supply vs Works Contract
Blog
Sachin Jindal

AAR rules on classification of Turnkey project under GST – Composite supply vs Works Contract

Classification of large infrastructure projects involving both goods and services portions is a complex task. There has been a debate on classification of turnkey projects as composite supplies as against works contracts.  The Hon’ble Authority for Advance Ruling, Maharashtra (‘AAR’) in the case of In Re: Ms/ Jalaram Feeds (GST-ARA-83/2018-19/B-03) vide order dated 8 January 2019 had an opportunity to examine such a factual situation.  On facts, the AAR ruled that the turnkey project should be classified as composite supply of naturally bundled goods and services and not as a works contract. Table of Content1. Facts of the case2. Submissions

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GST Registration mandatory in case of liability under RCM, even if supplies are exempt
Blog
Kapil Mittal

GST Registration mandatory in case of liability under RCM, even if outward supplies are exempt

Registration requirement under GST law in case supplier only supplying exempted goods and services, where they are taking services liable to tax under Reverse Charge Mechanism (‘RCM’) has always been a contentious issue. The Hon’ble Authority for Advance Ruling, Maharashtra (‘AAR’) in the case of In Re: Ms/ Jalaram Feeds (GST-ARA-110/2018-19/B-38) vide order dated 10 April 2019 had an opportunity to adjudicate this contentious issue.  The AAR has undertaken a harmonious interpretation of the law and held that liability to pay tax under RCM was a taxable supply and requires registration under GST law, even if there are only exempt

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GST Audit Plan 2019-20
Blog
Sachin Jindal

Know all about GST Audit Plan for 2019-20

The GST authorities have rolled out the GST audit plan and strategy for FY 2019-20 in respect of the GST audit to be conducted for FY 2017-18. The objective of rolling this strategy plan is to standardise the procedure among all GST Audit Commissionerate(s) pan-India and provide guidance to the audit teams on the entire workflow and related processes. The Directorate General of Audit, Indirect Taxes (‘DG Audit’) has rolled out an internal communication in this regard. The GST audit plan and strategy have been designed in a way to target high-risk Taxpayers and avoid causing any inconvenience to small

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35th GST Council Meeting
Blog
Kapil Mittal

Keynote on 35th GST Council meeting held on 21 June 2019

The Goods and Services Tax (‘GST’) Council in its 35th GST council Meeting held on 21 June 2019 has taken several taxpayer friendly decisions. It is noteworthy that that is the first GST Council meeting chaired by the new Finance Minister Miss Nirmala Sitharamn after the formation of the government in May 2019. The decisions of the 35th GST Council meeting are aimed at fostering growth in business, rationalising tax rates, addressing administrative issues being faced by taxpayers and paving the way for future-ready compliance mechanism. The decisions of the 35th GST Council meeting are summarised below: Table of Content1.

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