Goods and Services Tax

What does linking Income Tax and GST mean for you Explains – Keshav R Garg, Partner, K D & Associates The idea which we had been propagating since long has finally seen light by linking data between income tax department and GSTIN. We feel the next step would be to link banking sector also with data filed with tax authorities. If you are a genuine taxpayer who likes to declare his figures honestly, you may not find yourself in trouble but for others so called smart tax planners, tough times are awaiting. There had been lot of instances where in order to reduce complexity and evade tax, taxpayer preferred to file income tax returns and not GST returns. With instructions flowing to link income tax with GSTIN, those hidden figures would prove to be troublesome. Here are few issues which a taxpayer might have to face: 1.        In case of deviation in turnover as submitted in GST returns and Income Tax, taxpayer has to prepare the detailed reconciliations keeping in

GST Annual Return (GSTR 9) becoming a nightmare for Manufacturing industry Explains – CA Keshav R Garg, Partner,   K D & Associates India With about 60 days left for filing of annual return (GSTR 9 and GSTR 9C) by the taxpayers for FY 2017-18, it is turning out to be a nightmare especially for the manufacturing industry. There had been various substantial issues which are leading to total chaos while finalizing the figures for annual return. Here are some of the practical challenges, industry is facing which are not easy to resolve: 1.        Reconciliation of Input Tax Credit claimed with Input Tax Credit declared by the corresponding vendors. Most taxpayers have claimed ITC based upon the tax invoice in their possession. Since Government itself deferred matching concept during monthly filing for FY 2017-18, introduction of same in GSTR 9 is leading to lot of manual clerical work.   2.        Preparation of GSTIN financial statements including Balance Sheet,

Ice-Cream sold by Ice-cream parlour is sale of goods and not restaurant services . n   By Keshav R Garg, Partner, K D & Associates +91-98880-90008, keshavgarg@kdai.in In a very recent Advance Ruling by AAR, Maharashtra in case of Arihant Entreprises it has been held that serving of ice-cream in a parlour shall be trading of goods instead of restaurant services chargeable at 5% without ITC. The moot point before the Authority was whether the sale of ice-creams in small scoops would be treated as supply of goods or restaurant services. The authority held that since there is no change in the nature of goods being sold by the ice-cream parlour, merely because the good are sold in lesser quantity as per need of customer would not tantamount as a restaurant. The ruling held that the transaction of selling ice cream received in bulk and selling them in scoops is akin to sales made by grocery shops in the case of sale of edible oil wherein the grocer sells such oil in various