Goods and Services Tax

Recovery from Employee – Now subject to GST In yet another ruling by AAR in case of M/s Caltech Polymers Private Limited, the scope of term “Supply” has been further widened. Even the companies running canteen as per statutory norms would also be required to pay GST on the amount recovered from the employees. The Ruling held that exemption in respect of canteen run as per Factories Act was available under Service Tax and not under GST. The authority emphasized that supply of food to the employees is covered under Schedule II of the CGST Act 2017, despite the fact that such service is provided with no profit. This means that reimbursement on actual basis will also considered as supply. The authority held that where the supply is made for a consideration it shall be chargeable to GST. It deliberated on the definitions of term “Supply” and “Consideration” and came to the conclusion that the recovery of food charges from the employees tantamount to consideration for the

Due Date for September 2018 GST Returns is here: What you can’t do after this Due dates of filing GST returns for month of September 2018 is here and there are few important things you need to keep in your mind. At the very outset lets first understand predominant use of GSTR 1 and GSTR 3B. GSTR 1 reflects your outward supplies which also forms part of GSTR 3B. What is different in GSTR 3B is the claim of Input Tax Credit based upon self-assessment and the tax invoice. So in short the claim of ITC is filed in GSTR 3B and outward liability is filed in GSTR 1 correspondingly in GSTR 3B. The returns for the month of September 2018 are crucial as these returns will freeze the figures for Financial Year 2017-18. There are few important adjustment which shall not be allowed after the filing of returns for the month of September 2018. 1.      No Input Tax credit in respect of an invoice pertaining to FY 2017-18 can be claimed. This means that the taxpayer needs to recon

The Ministry of Finance in its press release yesterday cleared the air around the notices being sent by the Tax department for matching of GSTR 2A with GSTR 3B. It said that the taxpayers can claim the input tax credit based upon the self- assessment and based upon the invoices. It has now clarified that there shall be no limitation for claim of Input Tax credit provided that the taxpayers has valid tax invoice and the same is not blocked as per the Act. The release emphasised that the taxpayer must fulfil the conditions of Section 16 to claim the input tax credit. Section 16 prescribes the following conditions for claim of ITC: i)           Taxpayer is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying document as may be prescribed; ii)        Taxpayer has received the goods or services or both; iii)     Subject to provisions of section 41, the tax charged in respect of such supply has been actual

24 FAQ on Punjab State Development Tax Act 2018 By CA. Keshav R Garg, +91-98880-90008 1.       Who is required to pay Punjab State Development Tax? The Tax is applicable on the person situated in the state of Punjab. The term person as per section 2(j) of the Act covers “person who is engaged in any profession, trade, calling or employment in the State of Punjab and includes a sole proprietor, a partnership firm, a Hindu Undivided Family, a Company, a Society, a Trust, a Club, an Institution, an Association, a local Authority, a Department of any State Government, Union Territory Government or Central Government, a Government enterprise, a statutory body or other body corporate, irrespective of the fact that the main place of business of such person is outside the State of Punjab and where the main place of business of any such person is not in the State of Punjab, the local manager or agent of such person in the State of Punjab in respect of such business. 2.       Wh