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News Indirect Tax-GST

  • May 18, 2024
  • IT firms' work for int'l clients may not always attract IGST

    Services provided by Indian information-technology (IT), marketing, and consulting companies to foreign clients may not always draw integrated goods and services tax (IGST) if a ruling by the Authority for Advance Rulings’ (AAR’s) Telangana Bench becomes a precedent.
    The AAR gave its ruling on a specific case of referral services provided by the Hyderabad-based Center for International Admission and Visas (CIAV) to foreign universities and colleges for admitting Indian students.

  • May 17, 2024
  • GST AAR: Acting as a marketing, recruiting or referral consultant to foreign universities can qualify as exports

    In a recent ruling, the Telangana Bench of the Authority of Advance Ruling (AAR) clarified that the provision of services of marketing, recruitment, or referrals to foreign universities by the Center for International Admission and Visas (CIAV), the applicant, on a principal-to-principal basis does not constitute an ‘intermediary service’. Further, such services should be considered as exports, which are not subject to goods and services tax (GST), provided the payments are received in convertible foreign exchange.

  • May 17, 2024
  • Real-estate developers contest 18% GST on Joint Development Agreements

    Real estate developers are contesting the 18% Goods and Services Tax (GST) levy on the transfer of development rights within joint development agreements (JDA) between developers and landowners. They believe the JDA does not involve any sale of land and hence the transfer of the rights is not taxable.

    Earlier this week, a developer filed an appeal in the Supreme Court (SC) against a ruling of a Telangana High Court, which held that JDAs should be taxed. The apex court has issued a notice to Centre to seek its response and will hear the matter on September 9. As no stay has been given on the Telangana High Court order, landowners and the developers will have to pay the taxes after valuing the service till the matter is finally decided.

  • May 17, 2024
  • Information from manufacturers of Pan Masal and Tobacco taxpayers

    Government had issued a notification to seek information from taxpayers dealing in the goods mentioned therein vide Notification No. 04/2024 – Central Tax dated 05-01-2024. Two forms have been notified vide this notification namely GST SRM-I and GST SRM-II. The former pertains to registration and disposal of machines while the later asks information on inputs and outputs during a month.

    To begin with, facility to register the machines have been made available on the GST Portal to file the information in Form GST SRM-I. All taxpayers dealing in the items mentioned in the said notification may use the facility to file the information about machines. Form GST SRM-II will also be made available on the portal shortly.

  • May 14, 2024
  • Supreme Court seeks GST clarity on joint development agreements by real estate developers

    In what could soon get Goods and Services Tax (GST) clarity for the real estate sector, especially for the developers, the Supreme Court on Monday (May 13) in a Special Leave Petition (SLP) against Telangana High Court’s order issued notices to the Union of India, Union Finance Ministry and Central Board of Indirect Taxes & Customs (CBIC).
    The Supreme Court has asked for responses to the plea as to whether GST is applicable to the joint development agreement signed by the developer and the owner of the land parcel on which the real estate development is scheduled or planned.

  • May 14, 2024
  • Dark stores: E-commerce firms seek clarity on registration under GST regime

    With the rapid sprouting up of dark stores as part of their quick commerce strategies, e-commerce companies are seeking clarity from tax authorities for the registration process under the goods and services tax (GST) regime for their suppliers.

    A dark store typically is a large warehouse and is used by e-commerce and FMCG firms as a fulfilment centre where their suppliers store goods. The warehouse is generally taken on rent by the e-commerce company and their supplying partner stores goods there, which are then supplied to the end consumers who order it via their mobile app or the website.

  • May 11, 2024
  • All benches of GSTAT may start functioning by January 2025

    The government intends to operationalise all the benches of GST Appellate Tribunal (GSTAT) by January 2025, as it aims to alleviate the significant backlog of pending GST-related disputes at the appellate level, according to a source. The principal bench of GSTAT, in New Delhi, is expected to start functioning from July, the source added.

    On May 6, Finance Minister Nirmala Sitharaman administered the oath to Sanjaya Kumar Mishra, former chief justice of Jharkhand High Court, as the President of the GSTAT. A press release issued by the finance ministry had said: “Mishra’s appointment marks the beginning of the operationalisation of the GSTAT, a crucial body for resolving GST-related disputes.”

    As many as 14,227 appeals against disputed tax demands raised by Central GST authorities were pending as of June 2023, a response by the finance ministry to the Parliament had revealed.

  • May 10, 2024
  • Arrest under GST Act should not be on mere suspicion: SC

    The Supreme Court told the Centre on Thursday that any arrest under the Goods and Services Tax (GST) Act should not be on mere suspicion but has to be based on cogent material and adherence to proper procedure.
    A bench of Justices Sanjiv Khanna, M M Sundresh and Bela M Trivedi said the material upon which an arrest is made should be verifiable by a magistrate.
    “An arrest under the Act cannot be on mere suspicion but after proper inquiry and adherence to the procedure laid down under the law. It should be based on material that should be verifiable by the magistrate and certified by the commissioner,” the bench told Additional Solicitor General (ASG) S V Raju, who appeared in the court on behalf of the Centre.

  • May 10, 2024
  • After 7-year wait, GST Appellate Tribunal may finally be operational soon

    While legal experts commended the appointment of the first president of the GST Appellate Tribunal (GSTAT), they opined that the government needs to also expedite the appointment of judicial and technical members to operationalise the Appellate Tribunal. The government, on May 6 appointed Justice (retd) Sanjaya Kumar Mishra as president of the GSTAT.

    Rupender Sinhmar, central government standing counsel and Partner at BSM legal said, “This is certainly a welcome step, which was overdue for various legal and administrative reasons. GSTAT is still a bit far from reality as the appointment of other judicial and technical members is yet to be done. GSTAT’s judicial functions can only start after such appointments”.He noted that as an administrative head of the Appellate Tribunal, Mishra can push for appointments at GSTAT to give it full effect.

  • May 09, 2024
  • Don't use threats, coercion during search and seizure for recovering GST: SC tells Centre

    The Supreme Court on Wednesday directed the Centre to not use "threat and coercion" during search and seizure operations against traders for recovery of Goods and Services Tax (GST) and instead persuade them to clear the dues voluntarily.
    A bench of Justices Sanjiv Khanna, M M Sundresh and Bela M Trivedi, which is examining various provisions of the GST Act, said there is no provision under the law which empowers the authorities to exert force for payment of outstanding dues.

  • May 08, 2024
  • Govt mulls relief on retrospective GST on e-gaming

    The government is considering granting relief to the online gaming industry by exempting them from paying the Goods and Services Tax (GST) at the rate of 28% on the full face value of bets for the pre-October 1, 2023 period, official sources privy to matter told FE, on condition of anonymity.

    This would mean that the highly contentious “retrospective levy” of the tax would be annulled, irrespective of the outcome of the Supreme Court case in this regard.

  • May 07, 2024
  • HC relief for holding companies facing GST notices over corporate guarantees

    In a relief for India Inc, the Punjab & Haryana high court has stayed a circular that subjected corporate guarantees, given by holding companies for the benefit of their subsidiaries, to GST.
    In an interim order, the HC has stayed the circular issued last Oct by the Central Board of Indirect Taxes and Customs (CBIC). This circular had held that a corporate guarantee given by a holding company to a bank or financial institution for sanction of credit facilities to its subsidiary would be a 'supply of service' subject to GST.

  • May 03, 2024
  • GST National Coordination meeting on Friday may discuss tightening noose on fake registrations

    Central and state GST officers will meet on Friday under the chairmanship of Revenue Secretary Sanjay Malhotra and are likely to discuss various issues like stricter registration norms to deter fake companies set up to evade taxes, sources said.
    The meeting comes within days of GST collections scaling a record high of Rs 2.10 lakh crore in April on the back of strong economic momentum, increased domestic transactions and tighter audit and scrutiny.
    The third National Co-ordination Meeting of senior officers of Central and State Tax administrations would, among other things, discuss further tightening of registration under Goods and Services Tax (GST) to curb fake companies, set up only to claim an input tax credit (ITC).

  • May 02, 2024
  • GST collections top Rs 2 trn

    India’s gross goods and services tax (GST) collections rose 12.4% on year to hit a record high of Rs 2.1 trillion in April, due to a variety of factors, including streamlining of accounts by businesses for FY24, electoral expenses by political parties and a modest recovery in rural consumption. Previously, the highest-ever GST collection figure stood at Rs 1.87 lakh crore in April 2023.

    According to data released by the finance ministry on Wednesday, GST collections during April (mostly for March transactions) were driven by a stronger increase in domestic sales (up 13.4%) than imports (up 8.3%). This too cements the notion that consumption, which has remained subdued and skewed towards premium articles, may now have a tendency to be more broad-based. But this, according to economists, would still need to be borne out by other high-frequency data.

  • May 01, 2024
  • Gujarat High Court rules mango pulp attracts 12% GST since July 2017

    The Gujarat High Court has ruled that mango pulp attracts 12 per cent Goods and Services Tax (GST) since the introduction of the indirect tax regime in July 2017.
    Giving details of the judgement, Sandeep Sehgal, partner at tax and consulting firm AKM Global, said the court rejected the contention of companies concerned—Vimal Agro Products and others—that a 12 per cent tax was effective from July 2022 when a government notification clarified the position in this regard.

    It also rejected the position of revenue officials that mango pulp will draw 18 per cent GST as it falls under the residual entry.
    The court said that the item is covered by the category—mangoes other than sliced and dried.

  • Apr 27, 2024
  • Important Update: Enhancement in the GST Portal

    Dear Taxpayers,

    1. GSTN is pleased to inform that an enhanced version of the GST portal would be launched on 3rd May 2024. The effort is to improve user experience and ensure that the information you need is accessible and easy to navigate.

    2. Key Enhancements Include (PDF with screenshots attached):

    i. News and Updates Section: We have introduced a dedicated tab for all news and updates. This section now includes a beta search functionality, module wise drop downs and access to archived advisories dating back to 2017.

  • Apr 24, 2024
  • SEZ units exempt from IGST on certain services from DTA players: AAR ruling

    Units operating within special economic zones (SEZs) could potentially be exempt from paying the integrated goods and services tax (IGST) on specified services taken from the domestic tariff area (DTA) through the reverse charge mechanism, if a ruling by the Gujarat-based Authority for Advance Rulings (AAR) sets a precedent.
    To qualify for this exemption, these units will need to provide a letter of undertaking (LUT) or furnish a bond.

  • Apr 23, 2024
  • CBIC Goes Soft On GST Investigations

    The principal commissioner has been made responsible for developing and approving any intelligence, conducting search, and completing investigations and relevant subsequent actions, including at the lower field formations, points out T N C Rajagopalan.

  • Apr 10, 2024
  • Advisory on Reset and Re-filing of GSTR-3B of some taxpayers

    This has reference to the facility for re-filing of GSTR-3B for some of the taxpayers. It was noticed that there were discrepancies in the returns of some taxpayers during the filing process between the saved data in the GST system and actually filed data in the fields of ITC availment and payment of tax liabilities. The matter was examined and deliberated by the Grievance Redressal Committee of the GST Council and as a facilitation measure the Committee decided that these returns shall be reset, in order to give opportunity to such taxpayers to correct the discrepancy.

    Accordingly, only the affected taxpayers have been communicated on their registered email-ids and the affected returns are visible on their respective dashboards for the purpose of refiling with the correct data. The taxpayers who have received such communication, are requested to visit their dashboard and re-file their GSTR-3B within 15 days of receipt of such communication.

  • Apr 10, 2024
  • Auto-populate the HSN-wise summary from e-Invoices into Table 12 of GSTR-1

    GSTN is pleased to inform that a new feature to auto-populates the HSN-wise summary from e-Invoices into Table 12 of GSTR-1 is now available on the GST portal. This allows for direct auto-drafting of HSN data into Table 12 based on e-Invoice data.

    Please note that the HSN-wise summary data auto-populated into Table 12 is intended for your convenience. Please ensure that you reconcile the data with your records before its final submission.