January 6, 2019

GST on Asian Development Banks and International Finance Corporation

[toc]

Introduction

GST position of both the Asian Development Banks and the International Finance Corporation has been clarified by the board vide circular no. 83/02/2019-GST dated 1st January, 2019.

1. GST on Asian Development Banks (ADB)

The Asian Development Banks Act, 1966 specifically provides that notwithstanding anything to the contrary contained in any other law, the Bank, its assets, properties, income and its operations and transactions shall be exempt from all the taxation and from all the customs duties.
Further, the Act also exempts the Bank from any obligation for payment, withholding or collection of any tax or duty.
Clarification by the board –
In view of above, it has been clarified that the Asian Development Bank are exempt from GST. Further it has also been clarified that the exemption is available only to services provided by ADB, however, any entity appointed by or working on behalf of the ADB will be liable to pay GST.

2. GST on International Finance Corporation

The International Finance Corporation Act, 1958 also provides that notwithstanding anything to the contrary contained in any other law, the Corporation, its assets, properties, income and its operations and transactions authorized by the Agreement shall be exempt from all the taxation and from all the customs duties.
Further, the Act also exempts the Corporation from the liability for the collection or payment of any tax or duty.
Clarification by the board –
In view of above, it has been clarified that the International Finance Corporation (IFC) are exempt from GST. Further it has also been clarified that the exemption is available only to services provided by IFC, however, any entity appointed by or working on behalf of the IFC will be liable to pay GST.

Banking company is liable to pay GST on the entire value of service charges

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

GST Check-list you need to tick as stepping in new Financial Year

Cross-empowerment is without jurisdiction in absence of any notification under GST Law

Supply to goods for Job Work, have you filed your ITC-04

RoDTEP benefit is extended to EOU, AA Holders and SEZ Units

Streamlining filing of appeal by Department before ITAT, High Court and Supreme Court| Circular No. 5/2024 dated 15th March, 2024

Judgements

Streamlining filing of appeal by Department before ITAT, High Court and Supreme Court| Circular No. 5/2024 dated 15th March, 2024

Appeal against order of any authority can be filed by the party aggrieved by the order, i.e., the Assessee or the Department. Filing of appeal involves lots of cost and effort and also takes up the time of the judicial authority. Assessee files appeal after considering various factors such as amount of pre-deposit required, amount involved in dispute, time factor etc. However, for department appeal the CBDT specifies a monetary limit, i.e., upto specified monetary limit, no appeal shall be filed by the department.

09/04/2024 No Comments

GST Check-list you need to tick as stepping in new Financial Year

News and Announcements

GST Check-list you need to tick as stepping in new Financial Year

As we are stepping into the new Financial year, there are various compliance requirements which a taxpayer is required to do with the changing year. Any non-compliance on part of the taxpayer can lead to major disallowances or withdrawal of benefits from the taxpayer.
This article list down check-list which a taxpayer is required to tick as they enter into new financial year:

09/04/2024 No Comments

Cross-empowerment is without jurisdiction in absence of any notification under GST Law

Judgements

Cross-empowerment is without jurisdiction in absence of any notification under GST Law

The Writ petition was filed to challenge the proceedings initiated against the taxpayer by the central authorities where the taxpayer is assigned to the State authorities and vice versa. The Petitioner contended that power of cross-empowerment was given under Model GST Law. However, GST Law enacted is different from the Model GST Law.

09/04/2024 No Comments