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Importers do not need state-wise registration under GST regime

Importers with godown or those which store goods at customs warehouses in different states got relief from the advance authority of ruling (AAR) under the goods and services tax (GST) regime.

The AAR, Maharashtra, in two recent rulings, said that these companies do not need a separate registration in each state and that a registration where their headquarters are located would be enough. These firms can sell products in different states and raise invoices against their head offices, it ruled.

Wednesday, June 26, 2019

Cross-country offices of companies to now come under GST: Report

The Center will soon bring services provided by the office of a company in one state to an office in another state under the purview of the goods and services tax (GST), the Economic Times reported.

Those eligible can claim the input tax credit and a circular sanctioned by the GST Council which would enumerate the particulars would be sent out soon, the paper stated. Companies from the power, healthcare, liquor, and education sectors would, however, be exempt.

Wednesday, June 26, 2019

The Government vide Press Release dated June 24, 2019 proposes to integrate a FASTag Bank Mechanism with e-way bill and Logistic Data Services to track movement of goods and check GST evasion. The Government is contemplating integration of E-Way Bill mechanism of GST with FASTag System of National Highway Authority of India (NHAI). The aspect of Logistic Databank integration with FASTag System is being examined.

A Committee of Officers comprising of officers from Central Government, State Governments, GSTN (Goods and Services Tax Network), NIC (National Informatics Centre), GST Council, to examine the issue of use of RFID data for strengthening of E-Way Bill mechanism under GST, was formed by GST Council. The representatives of NHAI and NPCI (National Payments Corporation of India) were also co-opted in the committee. The Committee of Officers has submitted its report to the GST Council, recommending integration of FASTag system with E-Way Bill mechanism. The recommendations of the Committee are under consideration by GST Council. Further, with regard to integration of FASTag with LDB, a committee comprising of Central Board and Indirect Taxes and Customs (CBIC), NHAI & its associates, NPCI, GSTN, NIC, Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) & its associates was formed to examine the feasibility of the same. The committee has submitted its report, which is being examined. This was stated by the Union Minister of Finance & Corporate Affairs, Smt. Nirmala Sitharaman in a written reply to a question in Lok Sabha.

Tuesday, June 25, 2019

Manufacturer of exempt supplies requires to take #GST Registration if liable to pay tax on reverse charge basis

M/s. Jalaram Feeds is engaged exclusively in manufacture and sale of animal feeds, making certain quantity of taxable supply of goods transport service by way of reverse charge mechanism would fall within scope of Section 24 of the #CGST Act for the purpose of registration and hence would be required to obtain registration under the #CGST Act in order to discharge his duty liability under reverse charge.

Facts

M/s. Jalaram Feeds (“the applicant”) is engaged exclusively in manufacture and sale of compound animal feeds vide HSN Code: 2309 which are exempt from tax vide Entry No. 102 of the Notification No. 2/2017 Central Tax (Rate) dated June 28, 2017. Further, the applicant also requires Services form Goods Transport Agency (“GTA”) like any other business.

Issue Involved

Whether the firm is liable to take registration under Section 24 or is exempted from registration under Section 23 of Central Goods and Services #Tax Act, 2017 (“CGST Act”)?

Applicant’s Interpretation of Law

The applicant is of the view that they are not required to obtain registration under the #CGST Act as they are engaged exclusively in the business of supply of goods or services or both that are not liable to tax or wholly exempt from tax as provided under Section 23 of the CGST Act.

Further, a person who is engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax is not liable for registration under Section 23 of the CGST Act.

Thus Section 23 is not contrary to Section 22 of the CGST Act but is clear expression of the intent of Section 23. Therefore, there is no force in the contention of the applicant that Section 23 is a specified Section and independent and not over ruled by Section 24 of the CGST Act.

Held

The Hon’ble AAR, Maharashtra vide Order No. GST-ARA-110/2018-19/B-38 dated April 10, 2019 held that the applicant is liable to take registration as per the provisions of Section 24 of the CGST Act.

Further the applicant would go out of the scope of Section 23 of the CGST Act due to making of certain quantity of taxable supply of goods transport service by way of reverse charge mechanism and would fall within scope of Section 24 for purpose of registration and hence would be required to obtain registration under CGST Act in order to discharge his duty liability under reverse charge notwithstanding the turnover limit specified in Sub Section (1) of Section 22 of the CGST Act.

Citation: [2019] 106 taxmann.com 241 (AAR - MAHARASHTRA)

 

Tuesday, June 25, 2019

The Hon’ble AAR, West Bengal vide Order No. 06/WBAAR/2019-20 dated June 10, 2019 held that GST paid on the purchase of motor vehicles for supplying rent-a-cab service is not admissible for credit in terms of Section 17(5)(b)(i) of the GST Act.

Citation: [2019] 106 taxmann.com 108 (AAR-WEST BENGAL)

Tuesday, June 18, 2019

 

The Telangana High Court has ruled that no input tax credit (ITC) is available unless GST returns are filed and a taxpayer is liable to pay penalty on the entire liability. The ruling is expected to have a significant impact on all businesses that use tax credits available on inputs and raw materials to reduce payment in cash. "...until a return is filed as self-assessed, no entitlement to credit and no actual entry in the electronic credit ledger takes place. As a consequence, no payment can be made from out of such a credit entry," Justices V Ramasubramanian and P Keshava Rao said in a case involving Megha Engineering & Infrastructures and GST Authorities.

The company had delayed filing the GST returns from July 2017 to May 2018 when its tax liability added up to Rs 1,014 crore. It had ITC of Rs 968 crore and it claimed that the shortfall was to the tune of Rs 45 crore. While the tax authorities demanded 18% interest on the entire amount, Megha Engineering argued that interest should only be calculated on the net tax liability, after deducting ITC from the total liability. The court upheld the department's view. "The ruling has very wide implication as almost all taxpayers, who delayed filing returns and have paid interest only on cash payment of tax and not on the GST amount set off by them through ITC. The issue will open floodgate of litigation and demands of interest by GST officials are imminent. Even CAs while auditing Annual GST Returns, which have to be filed by June 30, may be required to point out short payment of interest due to delayed set off," said tax lawyer RS Sharma.

 

Tuesday, April 23, 2019 Read More

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Thursday, November 9, 2017

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