GST Circulars

Browse Categories
Issues Related to SEZ and Refund of Unutilized ITC to fabric processors
Blog
CA. Sachin Jindal

Circulars Clarifying Issues Related to SEZ and Refund of Unutilized ITC for Job Workers Circular No. 48/21/2018-GST

Representations have been received seeking clarification on certain issues under the GST laws. Further clarification has been asked with respect to Refund of Unutilized ITC to fabric processors. The same have been examined and the clarifications on the same are as below: Whether services of short-term accommodation, conferencing, banqueting etc. provided to a Special Economic Zone (SEZ) developer or a SEZ unit should be treated as an interState supply (under section 7(5)(b) of the IGST Act, 2017) or an intra-State supply (under section 12(3)(c) of the IGST Act, 2017)?  1.1 As per section 7(5) (b) of the Integrated Goods and

Read More »
Minor Mistake in eway bill
Blog
CA. Kapil Mittal

No Detention and seizure of goods for minor mistake in eway bill

Sec 129 provide for detention and seizure of goods and conveyances and their release on the payment of requisite tax and penalty in cases where such goods are transported in contravention of the provisions of the CGST Act or the rules made thereunder. Now, for minor mistake in eway bill, action under section 129 will not be taken. It has been informed that proceedings under section 129 of the CGST Act are being initiated for every mistake in the documents. It is clarified that in case a consignment of goods is accompanied by an invoice or any other specified document

Read More »
Principal Agent relationship under GST
Blog
CA. Sachin Jindal

Clarification on Principal Agent relationship under GST

The supply of goods by an agent on behalf of the principal without consideration has been deemed to be a supply. In this connection, various representations have been received regarding the scope and ambit of the principal-agent relationship under GST. Relevant entry of Schedule 1 – 3. Supply of goods— by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.  Hence, all the activities between the principal and the agent and vice

Read More »
Refund of Input Tax credit on account of Inverted Duty Structure to Textile sector
Blog
CA. Sachin Jindal

Refund of Input Tax credit on account of Inverted Duty Structure to Textile sector

Clarification has been brought with respect to provision ITC refund to textile sector and for lapsing of input tax credit accumulated on account of inverted duty structure on fabric for period upto 31st July 2018 as per notification no- 20/2018 dt. 26th July 2018. Following clarification has been provided in circular 56/2018 dated 24th August 2018 In terms of amendment notification, the input tax credit only on account of inverted duty structure lying in the balance after payment of GST for the month of July (on purchase made on or before the 31st July 2018) shall lapse. Determination of ITC amount to be lapse

Read More »
Manner of Utilisation of ITC
Blog
CA. Sachin Jindal

Order of Utilisation of Input tax credit

Input Tax Credit (“ITC”) is a fundamental concept of Goods and Service Tax (“GST”). GST is levied in 3 forms viz. Integrated Goods and Service Tax (“IGST”), Central Goods and Service Tax (“CGST”) and State/Union Territories Goods and Service Tax (“SGST/UTGST”). GST portal maintains separate ITC accounts for all such forms of GST, i.e., GST input on account of IGST gets credited into ITC ledger of IGST. Similar process is applicable for CGST & SGST/UTGST also. As separate accounts are maintained for all type of GST, it is pertinent to get clarity about order and manner of utilisation of ITC.

Read More »
Cancellation of GST by Officer and Revocation of GST Cancellation
Blog
CA. Kapil Mittal

Cancellation of GST by Officer and Revocation of GST Cancellation

Incorporation of penal provision in any kind of statute is a mandate to ensure that applicable person make compliance thereof. Similarly, Goods and Service Tax (“GST”) law provides for various penal action for non-compliance of GST provisions. One of such action is suo-moto cancellation of GST registration by proper officer. 1. Cancellation of GST Registration by proper officer 1.1 Grounds of Cancellation of GST Registration Section 29(2) of Central Goods and Service Tax Act, 2017 (“CGST Act, 2017”) provides for various grounds of suo-moto cancellation of GST registration by proper officer such as: Registered person contravenes provisions of GST Law

Read More »
Refund of ITC to Merchant Exporter
Exports of Goods and Services
CA. Kapil Mittal

GST on supplies by Merchant Exporter and Refund to Merchant exporter

Recently CBIC has released clarification on how merchant exporter can claim refund of accumulated ITC where supplies has been mad by him taking benefits vide notification no. 40/2017-Central Tax (Rate), Dated: October 23, 2017 & Notification No. 41/2017-Integrated Tax (Rate), dated the 23rd October, 2017 1. GST on supplies by Merchant Exporter Central Board of Indirect Taxes (“CBIC” or “Department”) has exempted supplies to merchant exporters from Goods and Service Tax (“GST”) leviable in excess of 0.10% vide notification no. 40/2017-Central Tax (Rate), Dated: October 23, 2017 & Notification No. 41/2017-Integrated Tax (Rate), dated the 23rd October, 2017 subject to

Read More »
refund of ITC to fabric manufacturer
Goods and Service Tax
CA. Sachin Jindal

Refund of ITC to fabric manufacturer and textile job worker

Refund of accumulated Input tax credit to fabric manufacturer and fabric processor in textile sector on account of inverted duty structure has been disallowed initially. Such dis-allowance was in pursuant to power vested under section 54(3), department issued Notification No. 5/2017-Central tax (Rate) dated 28th June, 2017 wherein it specified list of items on which no refund will be allowed on ground of inverted duty structure. There after some major circular and notification have been issued by department to allow refund of ITC to fabric manufacturer and textile job worker on account of inverted duty structure. Accordingly latest CBIC has

Read More »
Transfer of ITC in case of Death of Sole Proprietor
Goods and Service Tax
CA. Kapil Mittal

Transfer of ITC in case of Death of Sole Proprietor

Provisions for Transfer of Input tax credit to new business in case of transfer of business has been given under Section 18, Section 29 and Rule 41(1) of CGST Act 2017. Provision under these sections and rules provide transfer of ITC on account of sale, merger, demerger, amalgamation, lease or transfer of the business. However these provision does not clearly specify transfer of ITC in case of death of sole proprietor. Several doubt has been raised in case of transfer of ownership on account of death of sole proprietor and consequently transfer of ITC to new business. To clarify this

Read More »
Verification of GST Registration
Goods and Service Tax
CA. Sachin Jindal

Verification procedure before granting new GST Registration

Recently Central Board of Indirect Taxes and customs (“CBIC” or “Department”) via circular no. 95/14/2019-GST dated 28th March, 2019 has issued verification procedure before granting new GST registration. Such verification procedure can be taken in following cases. Where the tax payer is seeking another registration within the State although he has an existing registration within the said State Where earlier GST registration has been cancelled by department. 1. Procedure of Verification While granting GST registration, proper officer is required to exercise due care in following lines: Proper officer should compare information given in new registration with particulars of earlier registration

Read More »



Want to talk to us

Leave your Name, email, Phone number along with what you are looking for in message box or you can call us at 011-41715118

V J M & Associates LLP

Contact Us

X