Knowledge Base

Section 16(4) prescribes one of the conditions to make a registered person entitled to take ITC. Therefore, right of a registered person to take ITC under Section 16(1) becomes a vested right only if such condition is fulfilled.

M/s AVEVA Software Private LImited (“The Applicant”) is a subsidiary of AVEVA Plc. AVEVA Group has a Central Hub, located outside India, which is an IP Owner and manages and grants the license of the AVEVA software products to the group entities. Such entities further sub-licence the same software to the end user on his own account (i.e., in his own capacity without acting as a agent). The Applicant receives the sub-licensing fees from the end user. In turn, the applicant pays operating fees to the Central Hub on quarterly basis after retaining the he cost and guaranteed margin from the value of sales. In case, the Applicant is unable to retain the agreed cost and guaranteed margin, the Central Hub makes a payment to ensure that the Applicant retains the guaranteed margin.

CBIC has clarified the manner of dealing with differences in ITC available in GSTR-3B and ITC available as per GSTR-2A vide Circular No. 183/15/2022-GST dated 27th December, 2022 for FY 2017-18 and 2018-19 in various situations.

Employee Stock Option Plans (ESOPs) is also one of the most common methods of payment of employment considerations under which a company issues its shares to the employees at a discounted rate.

CBIC received various issues related to GST refunds such refund should be granted in accordance with invoices appearing in GSTR-2A or GSTR-2B, whether exporter is entitled to claim refund of IGST paid under Rule 96A(1), manner of computation of adjusted total turnover etc.

CBIC has issued circulars to clarify on various issues suggested by the GST Council such as taxability of services provided by one office to another office within same organization and manner of valuation, e-invoices of supplies made to government entities, applicability of GST on shares held by holding company for its subsidiary company.

The applicant transfers gold bars to jewel makers for making ornaments and then purchases such ornaments from them. Jewel makers raise invoices for making charges and transaction value of ornaments sold to the applicant.

GST Council meetings have completed its half century with 50th GST Council meeting held on 11th July 2023 at New Delhi under chairmanship of Hon’ble Union Finance & Corporate Affairs Minister.

GST Department issues advisory on a time-to-time basis on various issues faced by the industries on GST related matters. Recently GST department has issued advisories on the following issues:

As per Common trade practice, export and import transactions are carried out as per INCOTERMS, i.e., a set of internationally recognized rules which define the responsibilities of sellers and buyers in the export transaction.