Goods and Services Tax

Since the advance ruling in case of M/s Rajashri Foods Private Limited has been announced by Authority of advance Ruling- Karnataka, we have been discussing that the transfer of business unit as a going concern shall be considered as supply of services which is exempt as per entry No. 2 of Notification No. 12/2017 dated 28.06.2017. In the discussion we have forgot the most important   dispute/argument this ruling has raised. As per Para 7.3.1 of the ruling, the authority held that Section 7 of the CGST Act 2017 is giving an inclusive definition of supply, which means that a transfer can still be treated as supply even if there is no consideration or it is made other than in the course or furtherance of business. Authority held that Transfer in course or furtherance of business is not an essential condition for considering it as a supply. This means that the supplies made on personal account which has no relation with the business shall also be treated as supply within the ambi

Off late at the end of the financial year 2017-18 it has been seen that most of the taxpayers have committed two mistakes 1) either they have not declared the invoice in their returns filed during previous financial year or 2) they have failed to claim Input Tax Credit with respect to invoices received by them in last financial year i.e. 2017-18. Most of them are worried about the consequences. In the first case where the taxpayer has not discharged any tax liability pertaining to the previous year, they can do so anytime after the end of the financial year and pay GST along with interest. Even in case where the taxpayer has issued a debit note and tax liability is still to be discharged, there is no outward time limit for paying the tax on such debit notes. The liability can be discharged any time along with the interest. But this might have negative consequences as well. Not discharging the tax liability would mean that the customer of such taxpayer shall not be able to av