Goods and Services Tax

Big Relief to Industry Claiming Budgetary Support under GST n   By Keshav R Garg Notification No. 16/2019- Central Tax dated 29.03.2019 will prove to be a life saving drug for most of the industries claiming budgetary support under the scheme of   DIPP after GST was enforced. The industries which were enjoying excise exemption vide notification 49/50-2003 were offered budgetary support post GST implementation. As per this scheme these industries were eligible to claim 29% of IGST and 58% of the CGST actually paid by them to the government. Since most of the industries procured inputs/input services/capital goods from out side the state, they had huge IGST credit available with them. It was also true that majority of such industries sold their output within the state itself. This meant that their output liability resulted into CGST and SGST paid by them. Since as per the set-off mechanism the IGST credit accumulated on purchase was first utilised against CGST...

Tri-city Restaurants leaving Hole in your pocket by charging higher GST By: Keshav R Garg Since the day GST has been enforced in India, most of the business had remained in dilemma about the rate of tax applicable on the goods/services supplied by them. One such industry is the restaurant industry where food is served to consumers either on the table or packed for takeaway. There had been multiple rates and issues relating to non-passing of tax benefits to consumers was widely witnessed. GST ranges from 5% to 18% in this industry, but unfortunately most of the restaurants are intermingling the rate of tax applicable on wide range of food items being sold by them. There had been misconception between food and snacks supplied by the eateries. Most of them believe that snacks like tikki, samosa etc are the one pre-packaged items which are chargeable at 12%. Instead these over the counter dishes are prepared and served as per the order of the customer. There is an elemen...

*Chartered Accountants/Professionals not to gain much from composition scheme under GST* Government has vide *Notification No: 2/2019- CT(R) dated 07.03.2019* has provided for composition scheme for the service providers. As per the said notification service provider opting for composition scheme shall be required to pay tax at 3% Central GST and 3% State GST on the supplies made by him. The composition scheme for service providers is bound with certain conditions, of which one of them is that : *Person is not engaged in making any inter-state outward supply* In most of the cases involving Chartered Accountants they are engaged in one or the other audit/consulting assignments for persons situated in some other state. For Instance a CA firm registered in Chandigarh conducting audit for Bank registered in Delhi shall not be eligible to avail the benefit of composition scheme.   As per section 12 of the IGST Act the place of supply of services in case of supply to ...