Bail Denied in GST Fraud Case Involving Fake Invoices and Input Tax Credit u/s 132(1) of GST Act.
Case-Laws
GST
Grant of regular bail – offence punishable under Section 132 (1) (a), (b) and (
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Integrated Tax & GST Cess Exemption Rules Struck Down as Ultra Vires, Affecting Advance Authorisation Imports.
Case-Laws
Customs
Validity of Pre-import conditions – Exemption from integrated
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CHANGE IN INPUT TAX CREDIT ENTITLEMENT UNDER GST
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 9-3-2019
GST laws have been amended w.e.f. 01.02.2019 which inter alia includes amendment in manner of taking input tax credit amongst three formats of GST vis IGST, CGST and SGST. This has resulted in undue hardship to many taxpayers across the country.
Goods and services tax involves two equal components on any transaction, CGST and SGST / UTGST. Inter-state supplies attract integrated goods and services tax (IGST), which is eventually apportioned between the Union and state Governments.
Law Prior to 1st February, 2019
Section 49 of the CGST Act, 2017 contains provisions in relation to payment of tax, interest, penalty and other amounts. Sub-section 5 in relation to input tax credit states as under:
The amount of input tax credit available in the electronic credit ledger of the registered person on account of
* integrated tax shall first be utilised to
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lity, e.g IGST can be set off against IGST and then CGST and SGST, CGST can be set off against CGST and then against IGST, and SGST can be set off against SGST and then against IGST.
The Government has amended CGST Act, 2017 vide CGST Amendment Act, 2018 with various changes w.e.f 01.02.2019 and one of the important amendment was made in Section 49 of CGST Act by introducing new section 49A to the CGST Act, 2017.
Accordingly, the balance in credit ledger can be used only for making the payment of tax as CGST, SGST or IGST. Besides, the balance in such ledger will get reduced by amount of refund in case sought under the provisions of the Act.
The credit ledger shows the balance of credit lying in CGST, SGST or IGST. The amount under various heads of credit could be used in the following order of preference:
* IGST can be used:
* For payment of tax as IGST
* For payment of tax as CGST
* For payment of tax as SGST
CGST can be used:
* For payment of tax as CGST
* For payme
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n utilized fully towards such payment.
49B. The Government may, on the recommendations of the Council, prescribe the order and manner of utilization of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax
Accordingly, Government has changed the order of setoff of input tax credit by introducing section 49A w.e.f. 01.02.2019 according to which, IGST Credit shall be set off fully before taking any setoff of CGST or SGST, which means earlier CGST/SGST ITC was used to set-off CGST /SGST liability, as the case may be, but now IGST Credit has to be first utilized fully for payment of IGST then for CGST and then for SGST liability as the case may be, even before utilization of ITC of CGST or SGST.
The following matrix explains the manner of credit w.e.f. 01.02.2019 for any tax payments to be made:
Payment for
First set off from
Then set off from
SGST
IGST
SGST
CGST
IGST
CGST
IGST
IGS
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TC Available
IGST
CGST
SGST
To be paid by Cash Ledger
Tax liability
(200)
(50)
(50)
IGST
100
100
–
–
–
CGST
100
100
–
–
–
SGST
100
–
–
50
50
ITC Balance
–
50
–
–
As can be seen, that the amount is not different in both the cases. But the tax of the SGST should be paid from the cash ledger even when there is credit in the CGST head. ₹ 50 is to paid in cash.
Thus, IGST credit is to be used against IGST and also IGST first need to be set off against CGST and then only CGST credit can be set off against CGST. Also, the ITC of CGST can't be utilized against the SGST or vice-versa.
One of the major positive impact for the states and revenue (and adverse for assesses) of the change in matrix for claiming input tax credit w.e.f. 1st February, 2019 will be that it will force the taxpayers to pay IGST out of pocket inspite of there being unutilized credit of CGST or SGST or UTGST lying in their electronic credit ledger. They cant use such input tax credit
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he goods and service tax (CGST and SGST) unless credits for taxes paid on inter-state transactions are fully used. The amendment prescribes the order in which credits for past payment of various components of goods and services tax can be adjusted against the tax liability on the final output of a business.
This, in many cases would lead to a situation where the more flexible integrated goods and services credit is used up for paying CGST liability fully, forcing businesses to pay fully or partly SGST liability in cash, thus taking away the flexibility in utilization of tax credits. Unlike credits for integrated goods and services, the same for CGST and SGST can't be cross-utilized. This result in tax payment in cash while tax credits remain on the books of the company.
Reply By SESHU KUMAR as =
This whole article is mentioning about Taking credit while the same has to be read as utilization of credit.
Dated: 24-3-2019
Scholarly articles for knowledge sharing by authors, exper
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GSTR-1 DUE DATE 31.03.2019 ?
Query (Issue) Started By: – SUBRAHMANYAM S Dated:- 8-3-2019 Last Reply Date:- 9-3-2019 Goods and Services Tax – GST
Got 4 Replies
GST
Is GSTR-1 due date extended to 31.03.2019 for all assessees?
Who can take the benefit of Notification No. 48 /2018 and Order No. 01/2019 ?
Reply By Ganeshan Kalyani:
The Reply:
Notification No. 48/2018-CT dated 10.09.2018 provides extension of due date for filing GST TRAN-1 not beyond 31.03.2019 n respect of registered person who could not submit the said return by the due date on account of technical difficulties.
Reply By SUBRAHMANYAM S:
The Reply:
thank you Kalyani Ganeshan Ji for your reply.
So the date of tran-1 extended to all? or how do they identify the
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GST treatment and rate
Query (Issue) Started By: – Madhavan iyengar Dated:- 8-3-2019 Last Reply Date:- 9-3-2019 Goods and Services Tax – GST
Got 2 Replies
GST
a automobile component manufacturer has a committed volume of 10000 parts supply to a automobile company and if this voulme is not lifted by the auto company compensation is payable since the volume has not been committed by the automobile company and they agree to compensate the auto component supplier for a particular amount
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Impact of short receipt of material from job worker on GST Liability and ITC -04
Query (Issue) Started By: – ACCOUNTS MANAGER Dated:- 8-3-2019 Last Reply Date:- 9-3-2019 Goods and Services Tax – GST
Got 2 Replies
GST
Dear Experts,
Good Afternoon…….
I have query regarding short receipt of material against job work. For your reference I have provided you working table below.
Annexure No.
Date
From
To
Item sent
Item Name
Qty Sent
Value
UOM
Received Qy
Value
UOM
Remar
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OEM-Supplied Tools Excluded from Component Valuation for GST, Reversing AAR Decision on Free-of-Charge Basis.
Case-Laws
GST
Valuation under GST – the cost of the tools supplied by the OEM cus
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Marine Paints Not Integral Ship Parts: Necessary for Seaworthiness but Not Classified as Ship Components.
Case-Laws
GST
lassification of goods – marine paints – ‘marine paints’ are in no
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Reactor Product Ineligible for GST Classification Under Subheading 8413 91 for Hand Pumps and Parts.
Case-Laws
GST
Classification of goods – Reactor – the product manufactured by the Appellan
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Revenue Authority's Penalty Attempt u/s 130 Deemed Impermissible Without Section 129 Proceedings for E-way Bill Issue.
Case-Laws
GST
E-way bill – prima facie, revenue seeks to impose penalty,
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Court Considers Anticipatory Bail for Input Tax Credit Misuse u/s 132 of GST Act with Strict Conditions.
Case-Laws
GST
Bail application – input tax credit – obtaining invoices without deliver
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Distributor Penalized for Profiteering on Printing Cartridges; Must Pass Benefits Regardless of Supplier Actions.
Case-Laws
GST
Profiteering – printing cartridges – The passing of the benefit by the distributor or retailer does not rest on the fact that the manufacturer or his supplier should have passed on the same benefit to him first – Respondent has profiteered by increasing his base price. Hence he is liable for penalty.
TMI Updates – Highlights, quick notes, marquee, annotatio
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Reverse Charge Mechanism
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 8-3-2019 Last Reply Date:- 9-3-2019 Goods and Services Tax – GST
Got 3 Replies
GST
In case of purchase of notified goods from unregistered suppliers, Reverse charge mechanism shall be applicable to notified registered persons w.e.f. 01.02.19
Regarding the above GST Council will issue separate notification on those goods/services only RCM Applicable.
Is there any notification issue ?
If yes what is e
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Last Date for Filing of Annual Return in GST for the year 2017-18 extended up to 30th June, 2019
GST
Dated:- 8-3-2019
The GST law mandates filing of annual return in FORM GSTR -9 and FORM GSTR-9A. Vide Order No 3/2018-Central Tax, dated 31.12.18, the last date for filing the Annual Return for the Financial Year 2017-18 has been extended to 30th June 2019.
It is being informed to the trade and industry that the form is now available on the common portal for filing and taxpayers ar
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ITC of Canteen Exp.(Food & beverages) _in Factory
Query (Issue) Started By: – Prem Choudhary Dated:- 8-3-2019 Last Reply Date:- 13-1-2020 Goods and Services Tax – GST
Got 6 Replies
GST
Dear Expert
As per amendment in Section 17(5)(b) CGST Act, 2017 as amended by the CGST (Amendment) Act, 2018 w.e.f 1st February, 2019, allows input tax credit in respect of such goods or services or both, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.
The canteen is obligatory in Factories Act 1948 therefore We can take Credit of Canteen bills of food and beverages exp.
1. if Canteen is given on contract then Credit of contractor bills can take credit
2. if maintained by
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law for the time being in force.
However, the issue arises when you recover any charges from the employees. In terms of notification no.13/2018 C.T(R) dated 26th July, 2018 – the rate of tax is 5% with a condition that input tax charged on goods and services used in supplying the service has not been taken. Further such supply would be treated as exempted supply for the purpose of proportionate reversal of ITC under Rule 42 of CGST Rules, 2017.
Summary –
If you are not recovering anything from employees (i.e. you don't have any outward canteen supplies) you are eligible for input tax credit under recent CSGT Amendment Act w.e.f. 01.02.2019.
If you are recovering from employees then the ITC will be blocked through virtue of notificat
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not avilable to them for material consumed . it is correct ?
4. If Contractor is reg. as normal dealer, whether ITC is avilable to them(on material consumed ) ? normal rate of canteen will be levyable @5 %.
5. in case of catering business, the rate of tax is same @5% in both cases -Normal Registration or Composition scheme ?
Reply By KASTURI SETHI:
The Reply:
Dear Querist,
Supply of food to employees at subsidized rate means recovery from the pocket of the employees and further, no company runs canteen free of cost. Both the situations have been nicely explained above by the expert.
Further, Both the facilities ( supply of food free of charge and at concessional rate) are not obligatory as per Factory Act.
Reply By Manali Daiya:
T
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M/s. Vishnu Iron Corporation Versus Union Of India And 4 Others
GST
2019 (3) TMI 489 – ALLAHABAD HIGH COURT – 2019 (23) G. S. T. L. 445 (All.)
ALLAHABAD HIGH COURT – HC
Dated:- 8-3-2019
Writ Tax No. – 288 of 2019
GST
Bharati Sapru And Piyush Agrawal JJ.
For the Petitioner : Vishwjit
For the Respondent : A.S.G.I.,Ramesh Chandra Shukla
ORDER
Heard Sri Vishwjit, learned counsel for the petitioner, Sri Krishna Agrawal learned Counsel for the respondents no.1, 2 & 3, and Shri R.C. Shukla, learned Counsel for the respondent no.4 and 5.
The petitioner seeks a writ of mandamus directing the GST council respondent no.2 to make recommendations to the Commissioner to extend the time period for filing of GST Tran-1 in the cas
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Nature of Supply of Priority Sector Lending Certificates (PSLC)
93/12/2019 Dated:- 8-3-2019 CGST – Circulars / Ordes
GST
Circular No. 93/12/2019-GST
F. No. 354/124/2018-TRU
Government of India
Ministry of Finance
Department of Revenue
Tax research Unit
Room No. 156, North Block,
New Delhi, 8th March, 2019
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) /
The Principal Director Generals/ Director Generals (All)
Madam/Sir,
Subject: regarding
Representations have been received requesting to clarify whether IGST or CGST/ SGST is payable for trading of PSLC by the banks on e-Kuber portal of RBI.
2. In this regard, it is stated that Circular No. 62/36/2
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Central Goods and Services Tax (Third Removal of Difficulties) Order, 2019 – Issue of Bill of Supply in lieu of Tax Invoice in case of Service Provider availing benefit of composition.
Order No. 3/2019 Dated:- 8-3-2019 Central GST (CGST)
GST
CGST
CGST
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
Removal of Difficulty
Order No. 3/2019-Central Tax
New Delhi, the 8th March, 2019
S.O. 1218 (E). Whereas, clause (c) of sub-section (3) of section 31 the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act) provides that a registered person supplying exempted goods or services or both or paying tax under the provisions of
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Union Territory goods and Services Tax Act, 2017 (Second Removal of Difficulties) Order, 2019 – Issue of Bill of Supply in lieu of Tax Invoice in case of Service Provider availing benefit of composition.
Order No. 2/2019 Dated:- 8-3-2019 Union Territory GST (UTGST)
GST
UTGST
UTGST
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
Removal of Difficulty
Order No. 2/2019-Union Territory Tax
New Delhi, the 8th March, 2019
S.O. 1219 (E). Whereas, clause (vii) of section 21 of Union Territory Goods and Services Tax Act, 2017 (14 of 2017) read with clause (c) of sub-section (3) of section 31 the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referr
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SYNERGY FERTICHEM PVT. LTD Versus STATE OF GUJARAT
GST
2019 (3) TMI 541 – GUJARAT HIGH COURT – 2019 (23) G. S. T. L. 176 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 8-3-2019
R/SPECIAL CIVIL APPLICATION NO. 4730 of 2019
GST
MS HARSHA DEVANI AND MR BHARGAV D. KARIA
For The Petitioner (s) : UCHIT N SHETH (7336)
For The Respondent (s) : NOTICE SERVED BY DS (5)
ORAL ORDER
(PER : HONOURABLE MS.JUSTICE HARSHA DEVANI)
1. On 06.03.2019 this Court had passed an order in the following terms;
“1. Mr. Uchit Sheth, learned advocate for the petitioners invited the attention of the court to the provisions of sections 129 and 130 of the Central Goods and Services Tax Act, 2017, to point out the procedure which is required to be fol
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fiscation under section 130 of the Act without initiating any proceedings under section 129 of the Act, which is not permissible in law. It was further submitted that the integrated goods and services tax has already been paid on the goods in question at the time of import thereof and that the goods in question are perishable goods with a limited shelflife.
2. Having regard to the submissions advanced by the learned counsel for the petitioners, Issue Notice returnable on 8th March, 2019. Direct Service is permitted today.”
2. In response to the notice, Mr. Soham Joshi, learned Assistant Government Pleader, has appeared on behalf of the respondents.
3. The learned Assistant Government Pleader has invited the attention of the Court to th
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section (4) provides that no tax, interest or penalty shall be determined under subsection (3) without giving the person concerned an opportunity of being heard.
5. In the present case, the showcause notice dated 01.03.2019 has been issued under section 130 of the CGST Act calling upon the petitioner to show cause as to why the goods in question as well as the vehicle should not be confiscated for nonpayment of an amount of Rs. 60,72,639/, as detailed therein. On a query by the Court, the learned Assistant Government Pleader is not in a position to point out that the procedure, as contemplated under subsections (3) and (4) of section 129 of the CGST Act, has been followed. Thus, prima facie, it appears that the showcause notice under secti
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G.K. Winding Wires Limited Versus Union Of India And 10 Others
GST
2019 (3) TMI 542 – ALLAHABAD HIGH COURT – 2019 (23) G. S. T. L. 462 (All.)
ALLAHABAD HIGH COURT – HC
Dated:- 8-3-2019
Writ Tax No. – 268 of 2019
GST
Bharati Sapru And Piyush Agrawal JJ.
For the Petitioner : Kedar Nath Kumar,Vishnu Kesarwani
For the Respondent : A.S.G.I.,C.S.C.,Dhananjay Awasthi
ORDER
Heard Sri Vishnu Kesarwani, learned counsel for the petitioner, Sri Vaibhav Tripathi, learned Counsel for the respondents no.1, 2, 3 & 10 as well as learned Standing Counsel for the respondents no.6 & 8 and Shri Dhananjay Awasthi, learned Counsel for the respondents no. 5, 7 & 9.
The petitioner seeks a writ of mandamus directing the GST council respond
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Notification to prescribe the due dates for furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of more than 1.5 crores for the months of April, May and June, 2019 under the HGST Act, 2017
27/GST-2 Dated:- 8-3-2019 Haryana SGST
GST – States
Haryana SGST
Haryana SGST
HARYANA GOVERNMENT
EXCISE AND TAXATION DEPARTMENT
Notification
The 8th March, 2019
No.27/GST-2.- In exercise of the powers conferred by second proviso to sub-section (1) of section 37 read with se
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Notification to prescribe the due dates for furnishing of FORM GSTR-3B for the months of April, May and June, 2019 under the HGST Act, 2017
28/GST-2 Dated:- 8-3-2019 Haryana SGST
GST – States
Haryana SGST
Haryana SGST
HARYANA GOVERNMENT
EXCISE AND TAXATION DEPARTMENT
Notification
The 8th March, 2019
No. 28/GST-2.- In exercise of the powers conferred by section 168 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017) (hereafter in this notification referred to as the said Act) read with sub-rule (5) of rule 61 of the Haryana Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules), the Commissioner, on the recommendations of the Council, hereby specifies that the return in F
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Notification to give exemption from registration for any person engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed 40 lakhs under the HGST Act, 2017
29/GST-2 Dated:- 8-3-2019 Haryana SGST
GST – States
Haryana SGST
Haryana SGST
HARYANA GOVERNMENT
EXCISE AND TAXATION DEPARTMENT
Notification
The 8th March, 2019
No.29/GST-2.- In exercise of the powers conferred by sub-section (2) of section 23 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017) (hereafter referred to as the “said Act”), the Governor of Haryana, on the recommendations of the Council, hereby specifies the following category of persons, as the category of persons exempt from obtaining registration und
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Notification to prescribe the due dates for furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover upto 1.5 crores for the months of April, May and June, 2019 under the HGST Act, 2017
30/GST-2 Dated:- 8-3-2019 Haryana SGST
GST – States
Haryana SGST
Haryana SGST
HARYANA GOVERNMENT
EXCISE AND TAXATION DEPARTMENT
Notification
The 8th March, 2019
No.30/GST-2.- In exercise of the powers conferred by section 148 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017) (hereafter referred to as the “said Act”), the Governor of Haryana, on the recommendations of the Council, hereby notifies the registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current
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