It is been said that, under the GST, credit would flow smoothly throughout the supply chain – meaning all taxes paid on inputs would be available as credit – and that would diminish tax costs. But that may not be entirely true. The Model GST Law aka MGL, prescribes various restrictions on input tax credit, and there is a lot less being said about them. Let us go through all… Read More »GST Input Tax Credit Restrictions
An amendment was made in the provision of section 50 of the Finance (No. 2) Act, 2019 to provide for charging Interest on the net cash tax liability, which was based on the recommendations of the 35th meeting of the GST Council which came into effect from September 1, 2020. This amendment has been made in the CGST act- section 50 for recovery of Interest only on net cash liability… Read More »Recovery of Interest u/s 50 on Net Cash Liability under GST
The government has blocked fraudulent Goods and Services Tax (GST) refund claims worth Rs 1,875 crore, involving 1,377 exporters- according to finance ministry official said. The CBIC (Central Board of Indirect Taxes and Customs) has already instructed officials to verify the correct availment of input tax credit (ITC) by such risky exporters based on pre-defined risk parameters, the official said. The Directorate General of GST Intelligence also known as DGGI… Read More »Fake ITC Claims: GST Departments Has Started Blocking Fake Claims
GSTR-3B is commonly termed as the monthly summary return filed by a taxpayer and discloses supplies made during the month along with GST to be paid, ITC claimed etc., and also makes a provision for tax payment(if any) for the relevant month. GSTR-1 is a monthly or you can say quarterly return filed by taxpayers to disclose details of their supplies which are outward for the month along with their… Read More »IGST Refund to Exported| Mismatch Between GSTR-1 & GSTR-3B
Circular No. 78/52/2018-GST was issued to clarify the issue on 31st December,2018. 1. Where a service exporter located in India is supplying certain services to a recipient located outside India, either fully or partly through any other supplier of services located outside India, the two supplies are taking place which are mention below: – For the full contract value, supply of services from the exporter of services present in India… Read More »GST Treatment on Export Of Services Partly Rendered By Third Parties Outside India
For the first time since the rollout of E-Way Bill in India, the Uttar Pradesh State had mandated for vehicles operating in the state to use the radio frequency identification device (RFID) tag along with an e-way bill from November 1, 2018. E-way rules decree that a vehicle carrying goods valuation over Rs 50,000 must provide the details electronically on the common portal and generate e-way bill. The portal grabs… Read More »RFID Tag Mandatory Along With E-Way Bill in UP From 1st Nov 2018
Electronic-way Bill – associate electronically generated document that is needed to be carried for movement of products price extraordinary Rs fifty,000. The validation of e-way bill is for a definite time-period, supported the sort of merchandise being transported and therefore the distance between supply and destination. Distance between supply and destination was perpetually major issue whereas making E-way bill among alternative issues. Now, E-waybill system is being enabled to machine… Read More »Auto Calculation of Route Distance for Generation of E-Way Bill
The calculation of compensation Cess under GST is very similar to calculating GST. Compensation cess is applicable above the amount of GST charged on a specific good or service. The stipulated rate is applied to the transaction value given under CGST Act 2017- section 15. According to this act, the centre needs to compensate the states for loss of their revenue due to the execution of GST because GST is… Read More »Refund of Accumulated Input Tax Credit of Compensation Cess
Interesting fact about GST is that the interest under GST is calculated on gross liability. The provision of interest on late payment of GST liability is prescribed in section 50(1) of CGST Act, 2017. The provision is reproduced hereunder for convenient reading. Section 50(1) states that Every person who is liable to pay tax as per the provisions of this Act or the rules made thereunder, but fails to pay… Read More »Interest Payable on Gross GST Liability, as Declared in GSTR-3B
There is a doubt raise by two self-contradictory notifications which are Notification No. 11/2017-Central Tax (Rate) and Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 Sl. No 66. This doubt is regarding the GST on Supply of Food & Beverage service by the Educational Institution to its students and the same is clarified in the current circular. A doubt comes that whether supply of food and beverages services by educational… Read More »GST Rate on Supply of Food and Beverage Service by the Educational Institution