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Goods and Service Tax
CA. Kapil Mittal

Clarification On Time Limit To Claim ITC In Respect Of RCM Supplies Received From Unregistered Persons | Circular No. 211/5/2024-GST Dated 26th June, 2024

In line with recommendations provided during 53rd GST Council Meeting, CBIC has issued clarification vide Circular No. 211/5/2024-GST date 26th June, 2024 regarding time limit under Section 16(4) of CGST Act, 2017 to claim Input Tax Credit of GST paid under reverse charge on inward supplies received from unregistered person. 1. Issue under Consideration Date of Import of Service: 01.10.2020 Date of Issuance of Invoice and payment of GST Liability under RCM: 1.10.2022 Date of claiming ITC: According to the date of Invoice, i.e., 01.10.2022 2. Stands taken by the Department 3. Contention of the Industry 4. Clarification issued by

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15/07/2024
Highlights Of 53rd GST Council Meeting
Goods and Service Tax
CA. Kapil Mittal

Highlights Of 53rd GST Council Meeting | Measures To Facilitate Trade And Related To Procedure

The most awaited 53rd GST Council meeting has held on June 22, 2024 and was chaired by the Hon’ble Finance Minister. Ths GST Council meeting aimed to enhance trade, simplify business operations, and enhance GST compliance. The GST Council has recommended a series of amendments and clarifications including: The GST Council recommendation belonged to following groups: This article discusses measures recommended for facilitation of trade and measures related to procedure and law. 1. Measures For Facilitation Of Trade: 1.1 Waiver of Interest and Penalty determined under form DRC-07: 1.2 Extended time limit to avail ITC, amendment in Section 16(4) of

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15/07/2024
Time Limit For Claiming ITC
Goods and Service Tax
CA. Kapil Mittal

Time Limit For Claiming ITC is 30th November of Following Year With Effect From 01.07.2017 and Section 16(2) and 16(4) Are Constitutionally Valid

Held by Hon’ble High Court of Kerala In the matter of M/s M.TRADE LINKS Vs Union of India (WP(C) NO. 31559 OF 2019) Summary: The Petitioner was denied the Input Tax Credit despite the availability of valid tax invoice, proof of payment of value and receipt of goods. In some cases, ITC was disallowed as the respective supplier failed to disclose the supply in GSTR-1 or failed to pay the tax in GSTR-3B. The petitioner contended filing of ITC in GSTR-1 by the supplier is a facility and it does not impact the entitlement of ITC of the taxpayer. Further,

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15/07/2024
ITC on inward supplies received from non-existent and bogus firm is fraud ITC against the department and the public exchequer
Goods and Service Tax
CA. Sachin Jindal

ITC On Inward Supplies Received From Non-existent And Bogus Firm is Fraud ITC Against the Department and the Public Excheque

Summary: The Petitioner was engaged in manufacturing and sale of Aluminum Casting and Machinery Parts. The petitioner claimed ITC on inward supplies received from the supplier. During the conduct of the survey at the location of the supplier, it was found that the suppliers were non-existent and bogus firms. Therefore, corresponding ITC was disallowed to the petitioner and corresponding demand was raised alongwith interest and Penalty. The petitioner produced all the documents pertaining to inward supplies such as Invoice, GRs, e-waybill, Ledger, Bank statement etc. The petitioner contended that he had actually received the inward supplies. The supplier firms were

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15/07/2024
Changes In GST Rates And Issues Of Clarification
Goods and Service Tax
CA. Sachin Jindal

53rd GST Council Meeting | Changes In GST Rates And Issues Of Clarification

The GST Council has met for the first time post election and the entire industry was keeping an eye on this meeting with high expectations. The council meeting discussed various crucial issues and made certain recommendations to resolve legal and technical issues being faced by the industry. The GST Council recommended about: This article discusses recommendations related to the changes in tax and the issues where necessary clarification is to be issued by CBIC to resolve the pending litigations. 1. Changes in GST Rates a. Changes in GST Rates of goods b. Exemptions from GST c. Change in GST rates

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15/07/2024
CBIC issued Guidelines on initiation of recovery proceedings before expiry of 3 months from the date of service of order
Goods and Service Tax
CA. Sachin Jindal

CBIC issued Guidelines on initiation of recovery proceedings before expiry of 3 months from the date of service of order

Due date of issuance of Assessment order under Section 73 has lapsed for FY 2017-18 and FY 2018-19 on 31st December, 2023 and 30th April, 2024 respectively. In the cases where demand is raised through DRC-07, the taxpayer may either prefer an appeal with Commissioner (Appeals) or opt to pay tax determined through demand order. As per Section 78 of CGST Act, the taxpayer is given a time period of 3 months to make payment of an amount determined to be payable by any order under GST.

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25/06/2024
ITC is inadmissible on inward supply used for construction of godown meant for commercial renting
Goods and Service Tax
CA. Sachin Jindal

ITC is inadmissible on inward supply used for construction of godown meant for commercial renting

The Applicant is constructing Industrial buildings which are to be rented out as godowns for commercial purposes. The Applicant is seeking advance ruling on the question that whether the Applicant is entitled to claim ITC on inward supply of goods or services used for construction of such godowns. The Applicant contended that Section 17(5)(d) of CGST Act is not applicable in the given case as the godowns are not to be used for furtherance of business. Rather, such godowns themselve are a source of income. Further, as per Article 14 of Constitution of India, ITC can’t be denied on ground of “equal protection of law”.

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18/06/2024
ITC is allowed on inward supply of cars used for demonstration purpose
Goods and Service Tax
CA. Sachin Jindal

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.

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04/06/2024
Penalty can’t be imposed on the employee as they are not registered or taxable person
Goods and Service Tax
CA. Sachin Jindal

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.

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21/05/2024
The demand order is set aside as issued post cancellation of GST registration and opportunity of being heard was not given
Goods and Service Tax
CA. Sachin Jindal

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.

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13/05/2024
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