Goods and Services Tax

Date: 12-10-2017 To Ministry of Commerce and Industry Department of Industrial Policy and Promotion New Delhi Subject: representation against the notification regarding budgetary support under Goods and Services Tax Regime to the units located in states of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North East including Sikkim Dear Sir, The Ministry of Commerce and Industry through Department of Industrial Policy & Promotion has released a notification dated 05.10.2017 wherein the procedure for claim of refund for units availing area based exemption under Central Excise.  In this regards we would like to raise the following objections: 1.                  It has been clearly stated as per para 5.1 that the reimbursement shall be granted only to the extent of 58% of CGST and 29% of IGST paid through cash ledger by the eligible units. In this regards, following ob...

With Diwali round the corner and GST being implemented, the businesses are in a state of confusion as to what would happen to tax paid by them during the purchase of Diwali gifts. Various questions like whether such gifts are eligible for claiming input tax credit? Are these gifts used in the course or furtherance of business? How the invoices should be taken for these gifts. These questions are but obvious because Diwali is one occasion where business tries to fulfil all its obligations towards vendors, customers, government officials, consultants etc. As per section 16 a taxpayer is entitled to take credit of input tax charged on any supply of goods or services to him which are used in the course or furtherance of his business.  Therefore at the very first instance, we need to understand, what is in the course or furtherance of business. Course of business means usual business practice such as manufacturing, trading etc. It implies those transactions which are directly r...

22 nd GST Council meet which concluded yesterday was nothing more than a political drama. Relief to small traders and taxpayers whose annual turnover is less than Rs. 1.5 crores is merely an eyewash. It is going to make the procedures more cumbersome and lead to more tax evasion. 1. The basic concept of invoice level matching has now been virtually abolished. The person buying goods from a small taxpayer (who is liable to file returns and pay tax on quarterly basis) shall claim the input tax credit on the basis of the invoice in his possession without matching it on monthly basis. Also government has agreed to provide input tax credit without payment of tax by the small taxpayer. It is illegal and against the provisions of section 16(c) of the Act. Law needs to be amended in this regards. The small taxpayers shall now become the den of tax evasion as people will start forming multiple entities and fraudulent acts such as bogus GSTIN shall now commence. 2. The turnover lim...