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News Indirect Tax-GST

  • Nov 14, 2018
  • Over 2 lakh assessees who migrated from VAT regime opt out of GST net

    Over 2 lakh assessees have opted out of the Goods and Services Tax (GST) registration as their turnover is below the prescribed threshold. This will benefit both the taxpayers and the GST Network, the IT back-bone of the new indirect tax regime. These are assessees who migrated from the VAT (Value-Added Tax) regime to the GST regime. A senior Finance Ministry official told BusinessLine: “Turnover of these assessees are below the threshold of ?20 lakh (?10 lakh in some States), which means they are not required to continue under the new regime, though they think otherwise.

  • Nov 12, 2018
  • GST compensation paid to states declines to Rs 11,900 cr in Aug-Sept

    GST compensation paid to states by the Centre has declined to over Rs 11,900 crore during August-September, an official said. The bi-monthly GST compensation paid during the June-July period was Rs 14,930 crore, nearly four-fold jump from Rs 3,899 crore paid in April and May. "Over Rs 11,900 crore has been released to the states from GST compensation fund during August-September after regular and ad-hoc settlement of IGST fund," an official told PTI.

  • Nov 12, 2018
  • GST collections cross Rs 1-trillion mark for second time in FY19

    Goods and services tax (GST) collections crossed the Rs1-trillion mark for the second time in 2018-19. As seen in Chart 1, collections rose to Rs1.01 trillion in October, up from Rs944 billion in September. Collections had previously touched Rs1.04 trillion in April. The disaggregated data shows that Central GST (CGST) collections continue to remain well below state GST (SGST) collections (Chart 2). One possible explanation is that credit allowed for capital goods under the previous indirect tax regime could still be weighing down CGST collections.

  • Nov 05, 2018
  • Pending VAT comes to haunt companies claiming input tax credit

    State tax authorities have begun blocking input tax credit claims of companies that have any value-added tax (VAT) demand in the erstwhile tax regime pending against them. This has led to some worry in the industry which had hoped that input tax credit settlements in the goods and services tax (GST) regime would be seamless. Large multinational companies in some states such as Punjab, Maharashtra, Delhi and Uttar Pradesh are facing this issue.

  • Nov 05, 2018
  • Toll reimbursements attract GST, says West Bengal AAR

    Reimbursement of toll charges will attract Goods and Services Tax (GST), according to the West Bengal Authority for Advance Rulings (AAR). While there is no GST on toll, but when someone pays toll and recovers it from a company or dealer as a part of services, such reimbursement will be a part of the value of supply and hence liable to GST, according to an order by West Bengal AAR in the matter involving applicant Premier Vigilance & Security Pvt Ltd. The company provides security and transportation services to banks for ferrying cash in customised cash vans.

  • Nov 02, 2018
  • GST collection crosses Rs 1 lakh crore for second time since launch

    Monthly goods and services tax (GST) collections breached the Rs 1-lakh-crore mark for the second time since its launch in July last year for September (collected in October), giving the Centre some hope that the wide revenue gap against its budget target could be narrowed in the second half of the fiscal. While the latest figure is about 4% higher than the average of the first seven months of the fiscal and analysts said it may have reflected the tax’s stabilisation and increased compliance due to anti-evasion steps like e-way bill, the fact that September was the deadline for final settlement of last year’s tax liabilities might have also boosted collections. It remains to be seen if the latest spurt heralded a sustainable trend.

  • Nov 02, 2018
  • Haryana tax dept issues circular, asks officers to block input GST credit

    The indirect tax department in Haryana has issued a circular, asking field officers to block input tax credit on certain conditions drawing tax experts’ flak. Though the reasons cited in the circular issued by the excise and taxation commissioner of Haryana to block the credit may be genuine such as unutilisation of inputs for furtherance of business, an expert said input tax credits are self-certified under the GST regime as of now and should not be interpreted this way. The other reasons for blocking credit given in the circular are bogus, or fake taxpayers, non-functional firms, excess transitional credit and inadmissible credit under the GST law.

  • Nov 02, 2018
  • GST audit deadline’s close! When is taxpayer chosen for audit? What are kinds of audit? All you need to know

    After one year of Goods & Services Tax (GST) regime, it is now critical for the taxpayers to start focusing on various GST compliances such as reconciliations, annual return and GST audit certification. All of these compliances will form an important basis for the first audit/scrutiny/assessment under the GST law .The law prescribes multiple audits conducted by or on behalf of the authorities or audit certification by a professional appointed by the company. It is interesting to note that the GST law for the first time has defined the term “audit” as an examination of records, returns and other documents maintained or furnished by the taxpayer to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder.

  • Oct 31, 2018
  • Centre, states apportion Rs 32,000 crore IGST in October

    As much as Rs 32,000 crore lying in the integrated goods and services tax (IGST) pool has been apportioned between the centre and states in the month of October. The states' share would be over Rs 15,000 crore, the official said. The apportionment would add to the goods and services tax (GST) revenue of both the centre and states for October. The total revenue collection figures for the month would be released on November 1.

  • Oct 30, 2018
  • GST: CBIC prescribes procedures for returning expired drugs

    The Central Board of Indirect Taxes and Customs (CBIC) has laid down detailed procedure for returning time-expired drugs or medicines under the Goods & Services Tax (GST) regime. The same procedure can be used for other sectors too, where goods are returned under similar situations. The common trade practice in the pharmaceutical sector is that the drugs or medicines are sold by the manufacturer to the wholesaler and by the wholesaler to the retailer on the basis of an invoice or bill of supply.

  • Oct 27, 2018
  • GST relief for oil companies on outsourced work

    In what could come as urgent relief for oil companies, revenue authorities have allowed refineriesNSE 0.00 % to pay GST only on value addition done by job workers against on the total valuation. Many oil refineries outsource some of the processes to job workers. These refineries provide the raw material to the job worker and a final product is then delivered. There were concerns that the tax authorities would impose GST on the total valuation of the final product against value addition by the job worker.

  • Oct 23, 2018
  • Vehicle owners to pay 18% under GST on pollution check

    Vehicle owners will have to pay a GST of 18 percent to get their vehicles checked for pollution, the Authority for Advance Ruling (AAR) has said. The Goa bench of the AAR passed the ruling on an application filed by Venkatesh Automobiles on whether the service provided for issuing 'Pollution Under Control' (PUC) certificate on behalf of the state government is exempted from the Goods and Services Tax (GST).

  • Oct 22, 2018
  • Finance Ministry extends deadline for filing September GST returns to October 25

    The Finance Ministry on Sunday extended the deadline for filing summary sales return GSTR-3B for the month of September by five days to October 25. With this extension, businesses which wish to claim Input Tax Credit (ITC) benefit for July 2017-March 2018 period can do so till October 25. The Central Board of Indirect Taxes and Customs (CBIC), under the Finance Ministry, said trade and industry had expressed apprehension relating to October 20 due date for claiming ITC under GST for July 2017-March 2018.

  • Oct 18, 2018
  • Composition scheme biz need not file purchase details while filing GST quarterly returns

    Businesses opting for composition scheme under GST need not file details of purchases made from their vendors at the time of filing quarterly return GSTR-4, the Finance Ministry said Wednesday. In a clarification, the ministry said there have been doubts regarding the manner of filing the quarterly return by composition dealers in Form GSTR-4 in the absence of auto-population of the details of inward supplies received from registered suppliers.

  • Oct 18, 2018
  • Guidelines for deductions & deposits of TDS by DDO under GST

    Section 51 of the NGST Act 2017 provides for deduction of tax by the Government Agencies (Deductor) or any other person to be notified in this regard, from the payment made or credited to the supplier (Deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees. The amount deducted as tax under this section shall be paid to the Government by deductor within ten days after the end of the month in which such deduction is made along with a return in FORM GSTR-7 giving the details of deductions and deductees. Further, the deductor has to issue a certificate to the deductee mentioning therein the contract value, rate of deduction, amount deducted etc.

  • Oct 17, 2018
  • Companies rush to match input tax credit with vendor returns

    Indian companies are scrambling to retain hundreds of crores of input tax credit for last financial year under the Goods and Services Tax (GST) regime that it could lose if it fails to substantiate the claim with vendor returns. The deadline to file this claim is October 20, while vendors can file their sales return till October 31. This has created a situation where vendor returns are not available for reconciliation.

  • Oct 17, 2018
  • Free IPL tickets to attract GST! 3 recent rulings by AAR on Goods and Services Tax you must know

    Even a year after the implementation of the Goods and Services Tax (GST), the rulings of the quasi-judicial body — Authority for Advance Ruling (AAR) — continue to clear the confusion over several provisions of the new indirect tax regime. Whether GST will be applicable to coaching classes or to cars used for demonstration purposed, the AARs, which are present in every state, have given rulings on these kinds of stand-alone cases.

  • Oct 13, 2018
  • Why the GST audit can be seen as an opportunity, not just a futile compliance exercise

    The goods and services tax (GST), which was implemented on July 1, 2017, has been one of the biggest indirect tax reforms India has ever seen. The initial year of GST has not been smooth. Typically, as a part of the GST implementation process, taxpayers across the nation carried out series of activities, including taking tax positions, extensive upgradation of ERP, and alteration of processes around transactions to be GST compliant.

  • Oct 12, 2018
  • Some GST-laden private banks up charges on remittances

    Private banks that are being charged goods and services tax on transactions undertaken by their business correspondents are starting to increase their charges on remittances, two people aware of the development said. At least two large private sector lenders in the domestic money remittance business have increased charges by at least 20 basis points, they said, declining to name the banks.

  • Oct 11, 2018
  • No centre-state wall: Officials handling GST can assess all

    The government has clarified that both the state and central authorities handling the goods and services tax have enforcement powers over all assessees in a state, triggering fears that the industry may get caught in a crossfire between the two. The central tax and state tax authorities are allowed to initiate intelligence-based enforcement action on the entire taxpayer base, irrespective of the administrative assignment of the taxpayers to any authority, Central Board of Indirect Taxes and Customs member Mahendra Singh wrote to officials, citing the minutes of a meeting of the Goods and Services Tax Council.