Supreme Court dislodges Rajasthan HC judgement and denies IT exemption to Urban Improvement Trust
SC has dislodged a Rajasthan HC judgement saying the Urban Improvement Trust set up under the State law is neither a "municipality" nor a "municipal board". The SC inter alia holds:
"The word “Municipal Committee” occurring in Clause (iii) Explanation, thus, has a definite purpose and object.
Purpose and object was to cover those bodies, which are discharging municipal functions but are not covered by the definition of municipalities as was required to be constituted by Article 243Q of the Constitution of India. Urban Improvement Trust constituted under the Rajasthan Urban Improvement Act, 1959, thus, cannot be held to be covered by the definition of Municipal Committee as contained in Clause (iii) of Explanation to Section 10(20) of the I.T. Act......"
Read the full text of the judgement.
Ministry of Statictics seeks GST data to improve Accounts
It has been reported that the Ministry of Statistics & Programme Implementation (MSPI) has sought quarterly GST data (output, input and revenue) on tax paying units from the Ministry of Finance.
This data is expected to improve the quality, timeliness and credibility of both National Accounts Statistics and state-level accounts. Also this step is expected to reduce data collection cost. Apparently, the Finance Ministry will share this data one the GST system stabilises.
Fraudulent GST invoices to the tune of Rs 245 Crores and evasion of Rs 42 Crore detected by Bengaluru State GST Authorities
A businessman name Mangilal was arrested and later remanded to judicial custody on Tuesday 16th October.
The State GST authorities after preliminary investigations alleged that Mangilal issued fake invoices to the tune of Rs 245 Crore. They also alleged that he evaded GST of Rs. 42 crore.
His modus operandi included obtaining a GST registration in the name of a deceased person and issuing invoices in that name or of fictitious persons.
Goods in the factory can't be offending goods. When physical control operates, goods outside the factory must be presumed duty paid
17th October, 2018
Goods "lying within the factory premises were not contravening goods and had not violated any provision of Central Excise Act and, therefore, their confiscation is set aside."
"...goods which were confiscated such as at the transporter premises of Baba Roadlines.... the redemption fine cannot be directed to be paid by the appellants because said goods were proceed to have been manufactured by the appellant.
"...2,88,000 sticks of Captan brand cigarettes stated to have been found in excess at the residential premises of Shri Roop Singh .....cannot be contravening goods because the manufacturers factory was under physical control and it was not possible to remove manufactured goods without payment of duty...." Musk Tobacco & Ors Vs CCE, Lucknow
Another "disaster cess" in the offing to manage natural calamities?
16th October, 2018
A panel of State Finance Ministers headed by Mr Sushil Modi, Deputy CM, Bihar, has examined the possibility of imposing "disaster cess" as an additional indirect tax and will be seeking the views of the Attorney General on such a levy.
It will be recalled that post the recent floods in Kerala, and losses caused by it to the State, the aspect of relief to affected areas/States has come into sharp focus.
There can be no dispute about the purpose or intention of providing such relief. It’s legitimate, of course. However, the method of raising revenue is questionable. Whether an over-riding cess like the erstwhile “Education cess” (EC), “Secondary and higher education cess” (SHE), “Swach Bharat cess” and “Krishi kalyan cess” should be re-introduced into the indirect tax system? Is that the best option we have?
Read the full article
Punjab Authority for Advance Ruling : K.P.H. Dream Cricket Pvt. Ltd.
15th October, 2018
The questions before the Authority for advance ruling were :
a. Whether free tickets given as "Complimentary Tickets" falls within the definition of supply under CGST Act, 2017 and thus, whether the applicant is required to pay GST on such free tickets?
b. Whether the applicant is eligible to claim Input Tax credit (for short "ITC") in respect of complimentary tickets?
The relevant extracts of the ruling reads :
"the applicant is also agreeing to the obligation of doing the act of allowing entry to the complementary ticket holder to enjoy services .... is covered under each limb of para 5(e) of Schedule II of the CGST Act, 2017.....
The activity of the applicant of providing complementary tickets free of charge to some persons would be considered supply of service .....
.....Since all tickets supplied by the applicant including complementary tickets would be taxable, the applicant would clearly be eligible for claim of Input Tax Credit....".
Read the AA Ruling