Goods and Service Tax

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GST on monthly subscription received by RWA
Blog
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
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
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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Impact of GST on Post sales Discount
Blog
Sachin Jindal

Impact of GST on Post sales Discount

CBIC clarifies the if post sales discount has been given in pursuant to contract at or before sale, GST would not be applicable on such discount however if given discount require some action at dealer end, GST would be applicable on such discounts as separate supply. Applicability and impact of Goods and Services Tax (‘GST’) on sale promotion schemes has always been a complex and litigious issue. The Central Board of Indirect Taxes and Customs (‘CBIC’) had earlier issued Circular No. 92/11/2019-GST dated 7 March 2019 providing clarifications on sales promotion schemes under GST. Read more about GST impact on

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GST Treatment on Diamond imported to export back for cutting and polishing
Blog
Kapil Mittal

GST Treatment on Diamond imported to export back for cutting and polishing

CBIC clarifies on the place of supply in relation in case of services by ports and place of supply in case of supply of various services on unpolished diamonds which are temporarily imported in to India for re export. The Place of Supply (‘POS’) determines the incidence of taxation under the GST law. As GST is a destination based taxation regime, determination of POS is critical to the taxability of a given transaction. The determination of POS in the context of international trade assumes significance as the transaction could be subject to tax only if the POS is within the

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GST on additional/ penal interest under EMI schemes
Blog
Sachin Jindal

GST on additional/ penal interest under EMI schemes

CBIC clarifies on the applicability of GST on additional/ penal interest under EMI schemes An Equated Monthly Instalment (‘EMI’) is a fixed amount paid by the borrower to the lender on a specified date every month. The EMI includes month principal and interest components, which aggregate to an equal amount of outflow every month.  Over a specified period, the loan is fully paid off along with interest. In cases the EMI payment schedule is not complied, there could be levy of additional interest/ penal interest to compensate for the delay.  Clarifications were sought if GST was also applicable on additional/

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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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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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