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...

A year to remember, a year to cherish and a year which wrote history for India. India witnessed the major tax reform since its independence which replaced the traditional indirect tax law to modern GST. G overnment, S ystem, T axpayers are the three pillars of this modern tax law. Like a mother who goes under severe labour pain to give birth to her child, same way we all had similar pains to give birth to the child of the nation “GST”. Like a mother who faces what not while first year of her motherhood, we also had the same feeling grooming GST towards its first birthday – 1 st July 2018. We have seen a lot of ups and downs in past 52 weeks and every day was a new challenge for the taxpayer, be it technical glitches, change of tax rate, change of returns etc. etc. etc. But one thing is pretty sure that the way both taxpayers and government has responded to the problems, it was commendable. By the end of the year it seems that GST portal which is the backbone of the modern l...

After much thought and understanding its time to analyse the GST provisions on the real estate. Since the Real Estate sector is vast, we are starting a series of blog dedicated to the real Estate. Series would be name as GSTonRealEstate – Part 1. Real estate is one of the most tedious sector for discussion of applicability of GST. Various dimensions on which the applicability of GST on real estate can be discussed are as follows: 1)  Valuation : At the very outset it needs to be understood that the construction services provided by the developer shall be construed as services as per Schedule II of the CGST Act 2017. There is no concept of abatement as in the earlier laws. What is taxable is the sale of under construction property and not the one for which completion certificate has been obtained. The intent of the law is very clear, it wants to charge tax on the construction services per se and not the completed buildings. Once the property is complete and so...

In the case of Rishi Shipping – Gujarat Authority for Advance Ruling has cleared the air that Storing/warehousing and renting of immovable property are two different type of services. Merely because the agricultural produce is stored in an immovable property it would not classify it as Storage and Warehousing Services. Therefore the same shall not be covered under S. No. 54 of Negative List (Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017), hence taxable under the purview of CGST and IGST Act. The Authority held that in order to classify a service as Storage and Warehousing, it should be coupled with loading/unloading/packing services etc. The authority was of the view that where mere building is let out, it shall be classified as renting of immovable property which is chargeable to tax. It is the composite supply, principal supply being renting of immovable property for storage of agricultural produce which is exempt from tax. It further held that once the...

What to do if you have paid penalty under GST – Contest your case at Appeal Level Almost a year has gone, real work under GST begins now. It has been brought to notice that many taxpayers are being penalized for one or the other contravention of act. But since Goods and Services Tax Act is a new law and certainly has interpretational issues, a taxpayer who does not agree with the penalty charged or tax recovered by the proper officer can prefer an appeal with the Appellate Authority. As per section 107 of the Central Goods and Services Tax Act, 2017 an appeal can be filed within 3 months from the date of communication of order. There is no specific category of orders/intimation which are appealable, rather any order can be appealed by the taxpayer, except those specifically provided in clause (a) to Clause (d) of section 121. The orders not appealable as per section 121 are as follows: a)  An order of transfer of proceedings from one officer to other     ...