Goods and Service Tax

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. For 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

24/05/2019

Circulars

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

22/05/2019

Input Tax Credit

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”).

03/05/2019

Cancellation of GST by Officer and Revocation of GST Cancellation

Registration

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, the Goods and Service Tax (“GST”) law provides for various penal action for non-compliance of GST provisions. One such action is suo-moto cancellation of GST registration and Revocation of GST Cancellation by the 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

02/05/2019

GST Refund

GST on supplies by Merchant Exporter and Refund to Merchant exporter

Recently CBIC has released a clarification on how merchant exporter can claim Refund of accumulated ITC to Merchant Exporter where supplies have been made by him taking benefits to 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

10/04/2019

GST Refund

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, the latest CBIC

10/04/2019

Transfer of ITC in case of Death of Sole Proprietor

Circulars

Transfer of ITC in case of Death of Sole Proprietor

[toc] 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

02/04/2019

Registration

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 where Verification procedure for GST Registration is discussed in detail. Such Verification procedure for GST Registration can be taken in the 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. Verification procedure for GST Registration While granting GST registration, proper officer is required to exercise due care in

01/04/2019

Circulars

Impact of GST on Sales Promotion schemes

Applicability and Impact of Goods and Services Tax (‘GST’) on sale promotion schemes has always been a contention of litigation since the start of GST.

11/03/2019

How to report Interstate sales to unregistered person in GSTR-3B

Returns

How to report Interstate supply to unregistered person in GSTR-3B

Goods and service Tax (“GST”) is a consumption/destination based tax, i.e., GST revenue generated out of supply of goods/services accrues to that state wherein such goods/services gets consumed. Information about consuming states is collected by government from data provided by the taxpayers in their GST returns. Accordingly, in case of inter-state supply (from one state to another), to ensure correct allocation of revenue among states, details of consuming states (i.e., place of supply) is required to be correctly reported in GST returns. However, it has been noticed by the department under GST Audit that taxpayers have failed to report inter-state

21/02/2019

Archives

Clarification on Principal Agent relationship under GST

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

Order of Utilisation of Input tax credit

Cancellation of GST by Officer and Revocation of GST Cancellation

GST on supplies by Merchant Exporter and Refund to Merchant exporter

Refund of ITC to fabric manufacturer and textile job worker

Transfer of ITC in case of Death of Sole Proprietor

Verification procedure before granting new GST Registration

Impact of GST on Sales Promotion schemes

How to report Interstate supply to unregistered person in GSTR-3B

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