Goods and Service Tax

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Itc under gst
Blog
CA. Sachin Jindal

CBIC restricts availment of ITC in case of mismatch with GSTR – 2A

1. ITC mechanism under GST Input Tax Credit (‘ITC’) Mechanism under the Goods and Services Tax (‘GST‘) law is a critical success factor for the compliance and administration of GST law in India. Currently, taxpayers do not have a facility/ opportunity to review the invoices uploaded by their suppliers, corresponding to their ITC claims. Taxpayers are reliant on their financial records to collate the data and report the same in the Monthly Return GSTR – 3B. The mechanism of having an invoice matching with automatic comparison and reconciliation for ITC as initially envisaged under the GST law, could have been

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Processing of GST refund, where refund application allocated to wrong tax authority
Blog
CA. Sachin Jindal

Processing of GST refund, where refund application wrongly allocated

CBIC clarifications that processing of GST refund should not be held up and processed by authority where the application has been wrongly allocated by the system. The Central Board of Indirect Taxes and Customs (‘CBIC’) vide Circular No. 104/23/2019-GST dated 28 June 2019 has clarified the authority who is required to process the GST refund applications of taxpayers in cases of incorrect mapping. The division of taxpayer base between the Centre and States to ensure a Single Interface under GST is critical to ensure the smooth and seamless flow of business operations.  1. Issues The GST refund applications filed by

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gst cicular no 111
Blog
CA. Kapil Mittal

GST Refund subsequent to favorable order in Appeal or any other Forum

Goods and Service Tax (“GST”) provides an option to file appeal against order of lower authorities. Therefore, if refund application of any taxpayer gets rejected then he may file appeal with next appellate authority. Rejection order is passed in form GST RFD-06. CBIC received various representations asking to clarify procedure of claiming refund finalised through Appeals or any other Forum. Accordingly, CBIC has clarified such issue vide Circular No. 111/30/2019-GST about manner of handling such issue in following manner: 1. Pre-requiste of filing appeal against GST RFD-06 As of now, appeals against rejection of refund claims are handled in offline

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gst nil refund
Blog
CA. Sachin Jindal

Have you mistakenly filled NIL GST refund|Option to Re-file is available now

Being Goods and Service Tax (“GST”) is new so, possibility of errors in filing of refund application is high. Have you erroneously filed NIL GST refund application under GST though you had a genuine refund claim of such period? Till now, option to re-file refund application is not available. Understanding genuine hardship to taxpayers, CBIC has issued a Circular No. 110/29/2019 – GST dated 3rd October, 2019, wherein it provided an option to re-file refund application if taxpayer has inadvertently filed NIL GST refund application. 1. Erroneous NIL GST refund application Whenever a registered person proceeds to file GST RFD-01/01A

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Gst Council meeting
Blog
CA. Sachin Jindal

Key Highlight on 37th GST Council meeting

The Goods and Services Tax (‘GST’) Council in its 37th GST Council Meeting held on 20 September 2019 has taken several taxpayer friendly decisions. Amidst various economic measures announced by the Hon’ble Finance Minister from time to time during August and September 2019, the decisions taken during the meeting of the GST. Council were keenly awaited by various stakeholders. The decisions of the GST Council are aimed at tax rationalisation, providing additional exemptions, lowering the applicable GST rates, plugging loopholes and addressing administrative issues being faced by taxpayers. The decisions of the GST Council are summarised below: 1. Law and

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measures to boost exports
Blog
CA. Kapil Mittal

Measures to Boost Exports | Part 2 | Announcements by Finance Ministry

Announcements made by the Hon’ble Finance Minister during the Press Conference held on 14 September 2019 In order to address the concerns raised by global as well as domestic investors and provide assurance to the Industry at large on the Government’s commitment to steering the economy to growth, the Hon’ble Finance Minister Smt. Nirmala Sitharaman (‘FM’) has been holding Press conferences announcing various interim measures and relief in the nature of clarifications on existing concerns, prospective policy changes, proposed amendments in law and commitments for additional fiscal support by the Government. The Hon’ble FM has made detailed ‘corporate style presentations’

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Impact of GST on Post sales Discount
Blog
CA. Kapil Mittal

IGST Refund to exported| Mismatch between GSTR-1 & GSTR-3B

“Export” is considered as a major contributor to any economy and therefore, government makes all possible efforts to increase it. For this purpose, exports are kept free from any kind of taxes including Goods and Service Tax. To substantiate such principle, export of goods or services or both has been classified as “Zero Rated Supply” under Integrated Goods and Service Tax, 2017 (“IGST Act”) and accordingly, such supply is not liable to Goods and Service Tax (“GST”). To claim benefit of such “zero rated supply”, GST law provides for either of the following options: Exporter may export goods without payment

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GST on monthly subscription received by RWA
Blog
CA. Kapil Mittal

GST on monthly subscription received by RWA

CBIC clarified that monthly contribution received by RWA upto INR 7,500/- exempted  from GST, RWA is entitled to take ITC on Capital Goods, Input and input services Central Board of Indirect Taxes & Customs (“CBIC” or “Department”) received various representations regarding ambiguity in complying with provisions of Goods and Service Tax (“GST”) on monthly subscription received by Resident Welfare Association (“RWA”) from its members. Accordingly, CBIC issued circular No. 109/28/2019-GST dated 22nd July, 2019 to provide clarification on following issues related to monthly subscription being collected by RWA. 1. Are the maintenance charges paid by residents to the RWA in a

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GST on goods sent outside India under sale or approval basis
Blog
CA. Sachin Jindal

GST on goods sent outside India under sale or approval basis

CBIC clarifies on taxability of goods sent/ taken out of India for exhibition or on consignment basis for export promotion Indian exporters engage in several business promotion activities outside India in order to expand their outreach globally and increase volumes. Certain activities may require physically showcasing the goods to the potential buyers in order to strike deals and finalise sale orders. In this connection, the goods would have to be taken outside India for demonstration to the potential buyers either directly in exhibitions, trade fairs, business congregations, industry meets etc. or indirectly through distributors/ agents on consignment basis. The goods

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ITeS and backend support service, Intermediary or not
Blog
CA. Kapil Mittal

ITeS and backend support service, Intermediary or not

Supplier of ITes services will not be covered under the provision of Intermediary and quality for export of services however provide of certain backend support services to foreign customer will fall under the definition of intermediary and not qualified for export benefits under GST The Indian ITeS industry generates significant foreign exchange for India and is one of the emerging hubs of the world.  Nevertheless, the Indian ITeS industry has been facing significant competition from its Asian counterparts like Philippines, Vietnam etc.  In this context, the Government of India has provided various export incentives to make Indian ITeS services exports

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