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ITC is allowed on inward supply of cars used for demonstration purpose
The applicant is an authorised agent of Mercedes Benz India and is engaged in supply of car, spare parts and services. The applicant purchases demo cars from MB India and such cars are kept for demonstration and test drive purposes for a specific period of time. After completion of specified cars, such demo cars are purchased by the applicant from MB India and sold further to the end customer. Loss on sale of such demo cars, if any, is reimbursed by the MB india to the applicant.
By CA. Sachin Jindal
Last update on June 4,2024
Penalty can’t be imposed on the employee as they are not registered or taxable person
The Petitioner is an employee of a Company M/s MLIPL, which is appointed as steamer agent of M/s Maersk. The petitioner was assisting M/s MLIPL against GST Compliance and was holding power of attorney to represent before tax authority on behalf of M/s Maersk. During the course of investigation, it was alleged that M/s Maersk has availed ineligible ITC and has made wrongful distribution of ITC. A SCN was issued to the petitioner asking to pay INR 1561 Crores equivalent to the tax alleged to be evaded by M/s. Maersk. Notice was issued under section 74 of CGST Act invoking Section 122(1A) and section 137 of CGST Act.
By CA. Sachin Jindal
Last update on May 21,2024
The demand order is set aside as issued post cancellation of GST registration and opportunity of being heard was not given
The Hon’ble High Court contended that as GST registration of the petitioner was cancelled therefore, the petitioner has little reasons to monitor the GST portal. As per principle of natural justice, the petitioner should be given a reasonable opportunity of being heard. Accordingly, the impugned order is liable to be set aside and the matter is remanded back for reconsideration.
By CA. Sachin Jindal
Last update on May 14,2024
Proceedings can’t be initiated under Section 74 when tax liability is already discharged along with interest
The petitioner is engaged in the business of generation of electricity through solar plants. The GST returns filed by the petitioner for the period of July, 2017 to March, 2019 were subject to audit. The petitioner was informed about tax liability during audit proceedings on account of wrong availment of ITC and ITC availed with respect to exempted supply. Upon receipt of initial audit observation, the petitioner discharged the entire tax liability alongwith interest. The final audit report was issued much after payment of GST liability. Post audit, the respondent issued show cause notice to the petitioner under Section 74 of CGST Act and confirmed the demand through DRC-07. The petitioner contended that it falls under purview of Section 73(1) and 73(5) of CGST Act and therefore, SCN under section 74 is not sustainable. Whereas, the respondent contended that this is the case of fraud and willful misstatement.
By CA. Sachin Jindal
Last update on April 23,2024
CBIC issued guidelines to be followed by CGST field officers while investigating to maintain ease of business
Investigations, summon, letters from GST Authority has become common in business from last sometime and there are many practical issues which comes alongwith these communication. GST investigations are at many times hampering regular business activities as well. Further, there are many practical issues being faced by the GST Authorities as well as taxpayer such as prior approval, simultaanoues investigation by more than one GST authority, uncessary information asked etc.
By CA. Sachin Jindal
Last update on April 16,2024
Instructions regarding rectification of assessment orders under GST| Department of Trade and Taxes, Delhi
GST Assessments, u/s 73, are already closed for FY 2017-18 and the due date of issuance of order for FY 2018-19 is 30th April, 2024. In many of the Assessment orders, the taxpayers have faced genuine hardship such as as the Assessment orders passed are not the speaking one or assessment orders contain clerical mistakes causing unnecessary increase in demand amount.
By CA. Sachin Jindal
Last update on April 16,2024
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.
By CA. Sachin Jindal
Last update on April 9,2024
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:
By CA. Sachin Jindal
Last update on April 9,2024
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.
By CA. Sachin Jindal
Last update on April 9,2024
Supply to goods for Job Work, have you filed your ITC-04
Job work is an indispensable part of the business and most of the manufacturing entities are required to get their work done from the job worker on a regular basis. However, whether it is Central Excise, Service tax or Goods and Service Tax, special provisions are always provided under the law for goods sent on job work basis.
By CA. Sachin Jindal
Last update on March 26,2024