GST Rate to be reviewed by GST Council

The GST Council is scheduled to meet on 18th December to review GST rates.

This is necessitated by the consistent fall in both the GST and Compensation Cess collections.

Also the States, particularly opposition ruled States have been applying pressure on the Centre to release GST payments immediately as Rs 50,000 cr cess lies unutilised.

This GST review more specifically covers exempted items, items with inverted rates, compensation cess rate. This may lead to GST rates on certain items being raised. 

 

Central Excise & Service tax Amnesty Scheme

  1. 1. Chapter V of the FA 2019 (full text of SVLDR Scheme)
  2. 2. SVLDR Rules
  3. 3. SVLDR Notification No 4/2019
  4. 4. CBIC Circulars dated 28.08.2019 and 25.09.2019
  5. 5. FAQs on SVLDR
  6. 6. SVLDR Departmental presentation
GST Optimisation Part 2

This is the 2nd Part of the set of videos on “GST Optimisation”. It explains how indirect tax cascading still continues in India even after implementing GST. The video covers specific situations in which tax cascading happens. This video is meant for the general public and not exactly the tax experts. So the language is simpler devoid of sections, rules, technical expressions and tax jargon.

https://www.youtube.com/watch?v=pohxDYOjLNU&t=226s

GST Optimisation Part 1

This is the first part of a three part video set on Tax Optimisation, more specifically GST Optimisation. Its created for those who are not too familiar with taxation and yet keen to understand and benefit by optimising on taxes. This can be useful for people handling indirect taxation too as the aim of these videos is to conceptually clarify the subject.

https://youtu.be/tWWb9ClOOZg

"The Indian GST Story" by Anthony Fernandes - Founder of Tax Quotient


1st June 2019

 

 
   

 

Recent Court / Tribunal Judgements

 CESTAT Decisions

 

18th October, 2018 : CESTAT Mum : UPS Jetair Express Private Limited   Vs Commissioner of CGST, Mumbai East 

Revenue denied CENVAT credit only on the ground invoices didn't mention the registration number of the service provider. No other allegations were made regarding receipt of input services, eligibility etc.

Held : This is merely a procedural lapse. It is settled that CENVAT credit can't be denied on mere technicalities or procedural lapses.

CENVAT credit allowed, extended period of limitation not applicable.

Ed's comment : Isnt it surprising that a Senior Officer like Prin. ADG, DGPM, WRU, still needs to catch up with decades old case law regarding Modvat and Cenvat? It's repeatedly held procedural lapses aren't reason enough to deny credit. How will the dept reduce litigation? Should Tribunal for fairness?

18th October, 2018 : CESTAT Ahd : M/s Auto Care Lubricant Vs C.C.E. & S.T.-Vapi
The Tribunal relying on an earlier decision in Castrol India Ltd, held :
“The authorities under the Standards of Weights and Measures Act are the best judge to decide as to whether a product is required to be affixed with a MRP under the said Act or not. If said authority has clarified that 210 ltr. barrel are not required to be affixed with MRP, it was obligatory on the part of the Excise authority to accept such decision of Controller of Legal Metrology authority….., it was not open to the Excise authority to doubt the decision of the authority under Standards of Weights and Measures Act and to proceed independently ….”

18th October 2018 : CESTAT Ahd : M/s Javiya Finance Services, Javiya Marketing Vs C.C.E.& S.T.- Surat-I
The appellant were providing service of identifying customers for car loans and receiving commission from ICICI Bank. This was to be taxed under Business Auxiliary Services (BAS).  

The appellants admitted taxability but argued they were under bonafide belief the services are not taxable and so extended period of limitation should not be invoked.
Held : "The definition of Business  Auxiliary  Services  is  very  clear  and  there  is  no  scope  of interpretation. The definition specifically includes the service of promotion or marketing of any service of the client within its ambit." Appeals dismissed.

 

 12th Oct : CESTAT Mum : Tahnee Heights CHS Ltd. Vs Commissioner of CGST, Mumbai South : Held : "The appellant also do not provide any service to its members, who pay the amount towards their share of contribution, for occupation of the units ....the explanation furnished under clause 3(a) in Section 65B of the Act will not designate the appellant as an entity, separate from its members....the case of the appellant is not confirming to the requirement of 'service', as per the definition contained in Section 65B(44) of the Act."

10th Oct : CESTAT Ahd :  L & T Ltd. etc Vs C.C.E. Ahd Appellants argued the law and IS specifications had changed for their product "concrete mix" made at site. It was eligible for the exemption making the earlier Supreme Court judgement in their own case irrelevant.

Tribunal ruled that there is no change in the  C.Ex Tariff Heading description as far as ready mix concrete is concerned. There is no mention of any IS Specification anywhere in the SC judgement. So changes in IS Specifications cannot be used to distinguish the decision of Hon’ble Apex Court. Demand beyond the period of limitation set aside. Personal penalty quashed as this is a case of interretation.

11th Oct : CESTAT Chennai : M/s. Pepsico India HPL Vs Commr of GST & CE, Chennai Outer : The appellants had paid excess central excise duty for which they utilised the CENVAT credit. On realizing this they suo moto took re-credit of the excess amount debited from the Cenvat account.

Held:  Following the said decisions of the High Courts, The impugned order and demand was set aside.

High Court Judgements

 

2nd July, 2018  : Allahabad High Court : Hamdard (Wakf) Labs Vs Commr Of Commercial Taxes : The High Court upholds the Tribunal order and holds that "Sharbat "Rooh Afza" is not unclassifiable under Schedule-V of the Act and liable to tax @ 12.5%. It is neither fruit juice nor fruit drink nor processed fruit.

 2nd July, 2018 :  Delhi High Court : JOYCE KAROUNG Vs NARCOTICS CONTROL BUREAU : Relying on the SC judgment in Babua v. State of Orissa, (2001) 2 SCC 566 the High Court concluded the petitioner is not prima facie not guilty. Also, liberty of a citizen must be balanced with the interest of the society especially where narcotic drugs and psychotropic substances are involved. It is alleged that this is not the first offence.
   
   

Click for earlier Judgements in 2018

Archived links to external articles - 2019-20

  1. GST returns can now be filed in a staggered manner - The Economic Times - 23rd January
  2. Cabinet approves amendments, extension in Acts dealing with GST, VAT - The Hindu BusinessLine - 22nd January
  3. Budget 2020: Date, time and expectations from Modi government on income tax rate cut - Live Mint - 20th January
  4. Gig economy workers may soon have to register under GSTN - The Economic Times - 20th January
  5. Opposition states on GST: Rs 50,000 cr cess lies unutilised, pay us immediately - Indian Express - 5th December
  6. "We Feel Embarrassed": States To Nirmala Sitharaman Over GST Compensation - NDTV - 4th December
  7. GST council begins review of rates, items to raise revenue - Times of India - 4th December
  8. Insolvency Code, GST implementation help law firms earn over $2 billion in FY19 - The Economic Times - 27th November
  9. GST authorities unearth racket involving Rs 140 cr tax fraud - The Economic Times - 26th November
  10. Customers' non-billed purchases biggest source of GST leak: Report - MoneyControl - 26th November
  11. Panel Said To Consider Rationalising GST Rate Structure To Three Slabs - Bloomberg Quint - 20th November
  12. McDonald’s India franchise drags government to court over GST credit - The Economic Times - 18th November
  13. FM meets with CAs, traders and others in a bid to simplify GST filing process - The News Minute - 18th November
  14. Non-filers of GST returns may face cancellation of registration - The Hindu BusinessLine - 17th November
  15. No GST returns, no E-way bills! Centre to crack down on non-filers - Business Today - 12th November
  16. Businesses allowed self-assessment for claiming GST credits - Lve Mint - 11th November
  17. GST: Cap On Input Tax Credit Without Invoice May Cause Working Capital Issues, Say Experts - BloombergQuint - 11th November
  18. Be careful when you file GST! This error can lead to a fine - Business Today - 11th November
  19. GST: Evasion, returns and revenue boosting measures to feature at officers’ meet Monday - Indian Express - 7th November
  20. Experts suggest Singapore GST model to ensure ease of compliance in India - Business Standard - 6th November
  21. Current economic downturn seems self-inflicted through GST, note ban: Report - Live Mint 4th November
  22. Low demand, high GST plague Kutch timber industry - Times of India - 3rd November
  23. Customs, GST relief to give Rs 60,000-cr boost to defence - The Economic Times - 2nd November 2019
  24. Food grain may be brought under GST, tax mechanism likely to be rejigged  - Business Standard - 31st October
  25. GST: Evasion, returns and revenue boosting measures to feature at officers’ meet Monday - Indian Express - 7th November
  26. Experts suggest Singapore GST model to ensure ease of compliance in India - Business Standard - 6th November
  27. Current economic downturn seems self-inflicted through GST, note ban: Report - Live Mint 4th November
  28. Low demand, high GST plague Kutch timber industry - Times of India - 3rd November
  29. Customs, GST relief to give Rs 60,000-cr boost to defence - The Economic Times - 2nd November 2019
  30. Food grain may be brought under GST, tax mechanism likely to be rejigged  - Business Standard - 31st October
  31. Losses due to GST in FY23 to be Rs 13K cr: UP to Finance Panel - The Economic Times - 31st October
  32. Govt plans to introduce e-way bill on gold movement to check GST evasion - Business Standard - 30th October
  33. Input Tax Credit: New GST refund rules create confusion as deadline to file first returns comes close - Financial Express - 29th October
  34. No GST on Reimbursement of Expenses to Employee by Employer - Tax Scan - 28th October
  35. Gujarat HC serves notices on govt, GST council for breach of refund norms - Business Standard - 28th October
  36. Now, officers to exclusively handle GST, Customs complaints - The Economic Times - 28th October
  37. ICICI Bank sells entire stake in GST Network to 13 state governments - The Economic Times - 25th October
  38. India should adopt Singapore's ‘GST voucher scheme' to help lower, middle income groups: Experts - Times of India - 25th October
  39. GST Superintendent Arrested Over Bribery Charges In Lucknow - NDTV - 25th October
  40. GST fraud of Rs 138 crore busted in Odisha, four arrested - Zee News - 25th October
  41. The ‘landmark’ Calcutta Club verdict changes GST norms for clubs - The Hindu Businessline - 24th October
  42. GST return filing: Businesses need to do this differently while filing GSTR-3B for September - Fiancial Express - 19th October
  43. Many companies in a fix as working capital may be stuck due to a GST regulation - The Economic Times - 18th October
  44. Rahul Gandhi hits out at govt, blames note ban, GST for joblessness - Times of India - 15th October
  45. Govt set to crack down on GST defaulters - Live Mint -13th October
  46. GST might have flaws but cannot damn it now: Finance Minister Nirmala Sitharaman - The Economic Times - 12th October
  47. Govt explores ways to revive GST collections - Live Mint - 12th October
  48. New proposal to claim GST input credit may have significant impact on cash flow - The Economic Times - 11th October
  49. Govt orders biggest review of GST since its launch - The Times of India - 11th October
  50. GST authorities arrest 2 for fraudulently availing ₹127 cr refund - Live Mint - 9th October 2019
  51. Govt set to crack down on GST defaulters - Live Mint -13th October
  52. GST might have flaws but cannot damn it now: Finance Minister Nirmala Sitharaman - The Economic Times - 12th October
  53. Govt explores ways to revive GST collections - Live Mint - 12th October
  54. New proposal to claim GST input credit may have significant impact on cash flow - The Economic Times - 11th October
  55. Govt orders biggest review of GST since its launch - The Times of India - 11th October
  56. GST authorities arrest 2 for fraudulently availing ₹127 cr refund - Live Mint - 9th October 2019
  57. Trucking industry in need of a lifeline, not just GST rate cut, say players - The Hindu BusinessLine - 8th October
  58. Indirect tax board removes circular on GST, but confusion remains - Business Standard - 6th October
  59. Post GST, prohibition could be an expensive experiment for states - Hindustan Times - 7th October

Tax Risk Management Part 1

An Introduction

 

Risk comes from not knowing what you’re doing. 
- Warren Buffet

Read the Article

 

Tax Risk Management Part 2

Tax Risks as Black Swan Events!

If you were asked "What 'tax risks' you perceive in your business?" What would be your answer?

Read the Article

 

 

Indirect Tax Risk Management

Indirect Risk Tax Management
 

 

 

 

Economic Survey of India 2017-18