Goods and Services Tax

In the latest ruling in the case of M/s Ultra Tech Cement Limited, the authority for advance ruling Maharashtra has held that discount in any form shall have to pass the test prescribed under section 15 in order reduce the same from the transaction value. Two Primary questions before the authority were 1) Whether the “rate difference” be allowed to be adjusted from transaction value   and 2) whether the rate difference be allowed as per section 15(3) of the CGST Act 2017. In the case, taxpayer formed an opinion that till the time final consideration is not decided between the supplier and the recipient, the valuation shall be done as per section 15(1). Section 15(1) deems the amount actually paid or payable by the recipient as the transaction value. The taxpayer referring to section 15(1) submitted that once the post supply rates are settled, only upon then the consideration actually paid or payable is arrived at. Therefore the rate difference which is settled after the su...

Motor vehicles have remained a point of discussion from day 1 of new GST Law. The amendments proposed to be discussed at the monsoon session of parliament, would clear things to a very large extent. It is vide and clear that no Input Tax Credit shall be available on the cars and other motor vehicles being bought for the management personnel. The debate had always been whether input tax credit of GST paid on general insurance, repairs and servicing would be available or not. In Recently proposed amendments, a new section 17(5)(aa) has been inserted to CGST Act 2017 which clarifies that no input tax credit shall be available for GST paid on services of general insurance, repair and maintenance in so far they relate to the motor vehicles not eligible for Input Tax Credit.  Although the amendment (if passed by the parliament) would have prospective effects but “Remarks” Column of the amendment proposed certainly raise our eyebrows. It says that section 17(5)(aa) is bein...