Liabilities

No recovery of interest on Gross GST Liability
Liabilities
CA. Kapil Mittal

Recovery of Interest u/s 50 on net cash liability under GST

CBIC assured that no recoveries shall be made for the past periods as well, i.e., delayed GST payment made upto 31.08.2020, by any of the Central and State tax administration. Therefore, interest computation for earlier period shall be carried out in accordance with the decision taken in the 39th meeting of GST Council only.

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Reverse Charge under gst
Liabilities
CA. Sachin Jindal

A Close Insight into Reverse Charge Under GST (RCM)

Under Goods and Service Tax (“GST”), generally, a supplier of goods and services is liable to pay GST for the supplies, i.e., at the time of supply of goods or service supplier charges GST over sales consideration and collect the same from recipient and by due date deposit such GST amount to the account of government  On the contrary, in the case of Reverse Charge Mechanism (“RCM”) under GST, the recipient himself is liable to pay the tax for goods and services received by him instead of the supplier. Therefore, the recipient is liable for all compliance under GST. Here

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Interest on GST Delayed Payments
Liabilities
CA. Sachin Jindal

Interest Payable on Gross GST Liability, as Declared in GSTR-3B: CBIC

Taxpayers are liable to pay interest on delay in the deposition of GST liability, as declared in GSTR-3B. Section 50 of the Central Goods and Service Tax Act, 2017 contains interest related provisions. However, whether interest is payable on the gross amount of GST liability or net amount of GST liability (i.e., after setting off ITC Balance) is still under dispute. On 10th February 2020, the CBIC (Central Board of Indirect Taxes and Custom) issued a notice (F. No. CBEC-20/16/07/2020- GST) regarding the amount of payable interest on Delayed Tax.  The CBIC has declared that the taxpayers, who have filed

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GST on monthly subscription received by RWA
Liabilities
CA. Kapil Mittal

GST on monthly subscription received by RWA

CBIC clarified that monthly contribution received by RWA upto INR 7,500/- exempted  from GST, RWA is entitled to take ITC on Capital Goods, Input and input services Central Board of Indirect Taxes & Customs (“CBIC” or “Department”) received various representations regarding ambiguity in complying with provisions of Goods and Service Tax (“GST”) on monthly subscription received by Resident Welfare Association (“RWA”) or GST on RWA from its members. Clarification on issues related to GST on RWA Accordingly, CBIC issued circular No. 109/28/2019-GST dated 22nd July, 2019 to provide clarification on the following issues related to the monthly subscriptions being collected

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Failure to File GST Return in Time Can Mean Interest On Entire Gross Tax Liability
Liabilities
CA. Sachin Jindal

Failure to File GST Return in Time Can Mean Interest On Entire Gross Tax Liability

Recently a major judgment was passed in the High Court regarding the payment of interest under section 50 of CGST Act, 2017. The highlights of the judgement were: Interest on Gross liability in case of late return filling: In case of late GST returns filling, liability to pay interest accrues on Gross tax liability Interest u/s 50(1) – The liability to pay interest under Section 50 (1) is self-imposed and also automatic, without any determination by any one Interest u/s 50(3) –  Whenever an undue or excess claim of ITC is made or whenever an undue or excess reduction in

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Fair Price shop and Services by way of admission to a protected monument charged with NIL rate of Tax

As per Notification no. 47/2017-Central Tax(Rate) following services shall be charged with Nil rate of tax with effect from 15th November 2017. Service provided by Fair Price Shops to Central Government, State Government or Union territory by way of sale of food grains, kerosene, sugar, edible oil, etc. under Public Distribution System against consideration in the form of commission or margin Services by way of admission to a protected monument so declared under the Ancient Monuments and Archaeological Sites and Remains Act 1958 (24 of 1958) or any of the State Acts, for the time being in force NOTIFICATION NO.

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Exempt from payment of tax on advances received for supply of goods

Payment of GST liabilities shall be made at the time of supply of goods as specified in section 12(2)(a) (i.e earliest of date of invoice or the last date of issue of invoices) and section 14 (i.e. change in rate of Tax) of the said Act, and shall accordingly furnish the details and returns by all the registered person other than those opt for composition scheme. Earlier such provision were applicable where registered person meet following criteria: Aggregate turnover in the preceding financial year did not exceed 1.5 crore rupees. Aggregate turnover in the year of registration under GST is

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