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Reply to the notice to show cause

Reply to the notice to show cause – GST CMP – 06 – Final Rules (Draft) – Forms – GST – Composition Rules – Final Draft Rules 18-5-2017 – GST CMP – 06 – Form GST CMP – 06 – Statutory Provisions, Acts, Rules, Regulations, Taxation

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Case Studies on Supply Definition

Goods and Services Tax – GST – By: – Alok Agarwal – Dated:- 24-5-2017 Last Replied Date:- 29-5-2017 – Case Studies on Supply under GST Question 1 Mr. Happy (an unregistered person) plans to pursue his higher education in UK. He receives career consultancy services from a UK based consultant for ₹ 1, 20,000. Does it qualify as a supply? Answer: Yes. Importation of services for a consideration whether or not in the course or furtherance of business is covered under supply. Hence, in the above case it will be treated as supply. The UK based consultant would be required to register as Non Resident Taxable Person and shall discharge GST liability. Question 2 Happy Ltd provides management services without charge to Joy Ltd. Happy Ltd has a 30% shareholding in Joy Ltd. Does it qualify as a supply? Answer: Supply of goods or services between related persons is treated as supply even if it is without consideration (Schedule 1). However, as per the definition of related person, 2 persons

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customers premises. During one weekend, the van was used by its CFO for his relatives for a family outing. Is it a supply? Answer: Supply of goods or services by employer to employee when made in the course or furtherance of business shall be treated as Supply even if made without consideration. However, if the value of gifts is not exceeding ₹ 50,000 in a financial year by an employer to an employee shall not be treated as supply of goods or services or both. Question 5 Happy Ltd is a man power supply agency. They have supplied man power for cleaning a lake after the Ganesh immersion without charging any consideration. Is it a supply? Answer: A supply without consideration does not fall within the purview of supply unless made to a related person or is covered in any of the clause of Schedule 1. Question 6 Archean Constructions Ltd (A registered taxable person) receives architectural design supplied by a foreign architect to design a residential house to be built in Hyderabad f

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going concern (TAGC). Question 8 Transfer/Exchange of shares of a company on account of amalgamation/demerger/acquisition/restructuring without change in the legal entity Answer: A transaction in securities is neither supply of goods nor services. Securities are excluded from the definition of both goods as well as services. Question 9 Mudhra Ltd, an NBFC transfers bad loans (unsecured) to Vsupport Capital Advisors Ltd. Answer: Actionable claims are covered in definition of goods. However, Schedule III excludes actionable claims other than lottery, gambling and betting from the scope of supply. Transfer of unsecured loans, therefore, would not amount to supply. Hope this article is of help in your professional work. In case of any query/feedback please write us at alok@alokfoundation.com, Satish.vattam@gmail.com – Reply By sunil jagtiani – The Reply = Q-A No. 4 – A small doubt kindly clarifyWhether facilitate to employee to be consider as gift. Because there is no definition of gift in

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RG-1 (Daily Stock Account) is applicable on GST

Goods and Services Tax – Started By: – Rajan Rajan – Dated:- 23-5-2017 Last Replied Date:- 24-5-2017 – Dear All,Whether RG-1 (Daily Stock Account) is applicable on GST regime. – Reply By Ganeshan Kalyani – The Reply = The said register is not required but the content as available in the register suffice the detail that are prescribed under accounts and records rules under GST. – Reply By KASTURI SETHI – The Reply = RG.1 register was dispensed with in year 2000. Now also proper accountal of the

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GST on Sales Return

Goods and Services Tax – Started By: – Saurav Mallick – Dated:- 23-5-2017 Last Replied Date:- 23-5-2017 – Hi All,Company A sells product to distributor(registered) B where the price is INR 100 and GST is INR 12.When the distributor returns the product within 6 months from invoice date within state will GST be applicable if so at what rate?If this is an interstate return will GST be applicable is so what will be the GST rate?If the distributor returns after 6 months from invoice date will GST be

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Entertainment, cable, DTH to attract lower taxes under GST

Goods and Services Tax – GST – Dated:- 23-5-2017 – New Delhi, May 23 (PTI) Taxation on entertainment, cable and DTH services shall come down under the Goods and Services Tax regime as the 'entertainment tax' levied by states has been subsumed in the GST, the government said today. The Finance Ministry in a statement said services by way of admission to entertainment events or cinematography films in cinema theatres will attract 28 per cent GST with effect from July 1. Currently, states impose entertainment tax of up to 100 per cent in respect of exhibition of cinematography films in theatres/cinema halls. Under GST, the entertainment tax has been subsumed, and hence only the taxes levied by a panchayat or municipality on entertainm

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ideration for admission of ₹ 250 per person. These services currently attract entertainment tax levied by the states, the statement said. Presently, such service providers are not eligible to avail of input credits in respect of VAT paid on domestically procured capital goods and inputs or of Special Additional Duty (SAD) paid on imported capital goods and inputs, the statement added. Thus, while GST is a value added tax, entertainment tax, presently levied by the states is like a turnover tax, it added. The government has estimated that the incidence of taxes on smartphones, medical devices and cement will come down post GST rollout from July 1. Last week, the GST Council had finalised the fitment of over 1,200 goods and 500 services

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Lower Tax Incidence on Entertainment Services under Goods and Services (GST) Tax

Goods and Services Tax – GST – Dated:- 23-5-2017 – Lower Tax Incidence on Entertainment Services under Goods and Services (GST) Tax Service providers shall be eligible for full Input Tax Credits (ITC) of GST paid in respect of inputs and input services Taxes on entertainments and amusements (covered by the erstwhile entry 62 of State List of the Constitution) have been subsumed under Goods and Services Tax (GST) except to the extent of taxes on entertainments and amusements levied by a Panchayat or a Municipality. The rate of GST approved by GST Council on services by way of admission to entertainment events or cinematography films in cinema theatres is 28%. However, the entertainment tax rates in respect of exhibition of cinematography fi

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Goods and Services Tax (GST) will lead to lower tax burden in several commodities including packaged cement, Medicaments, Smart phones, and medical devices, including surgical instruments

Goods and Services Tax – GST – Dated:- 23-5-2017 – The roll out of Goods and Services (GST) Tax will bring benefits to the consumers due to reduced tax rates on various commodities such as packaged cement, medicaments, smart phones, and medical devices, etc. Packaged cement attracts central excise duty of 12.5% + ₹ 125 PMT and standard VAT rate of 14.5%. At these rates, the present total tax incidence works out to more than 29%. If we include tax incidence on account of CST, octroi, entry tax, etc., the present total tax incidence would work out to more than 31%. As against this, the proposed GST rate for cement is 28%. There will be lesser tax burden in case of Medicaments, including Ayurvedic, Unani, Siddha, Homeopathic or Bio-chem

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Deduction u/s. 80-IAB – The head of income under which the said income is assessable, which is on the basis of the source – from amongst the specified sources under the Act, most appropriate for the said income, so that it is not assessable as b

Income Tax – Deduction u/s. 80-IAB – The head of income under which the said income is assessable, which is on the basis of the source – from amongst the specified sources under the Act, most appropri

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E-way Bill – movement of goods under GST

Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 23-5-2017 Last Replied Date:- 24-5-2017 – Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees – (i) in relation to a supply; or (ii) for reasons other than supply; or (iii) due to inward supply from an unregistered person, shall, before commencement of movement, furnish information relating to the said goods in Part A of FORM GST INS-01, electronically, on the common portal. Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, generate a new e-way bill. Thus every movement may it be from factory place to the place of transporter, or

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sporter and even the recipient, who have to communicate its acceptance or rejection of the consignment covered by the e-way bill within a very short period. This will cause myriad of inconveniences and cumbersome digital work for small time businessmen. Further transporters generally belong to a class that is unorganized and is not well versed with digital equipments, thus it will be a challenge to implement this system smoothly. Also the assessee will be left burdened with generating the E Bills for every single movement of goods. The proposed E-way bills, which will be required for movement of goods will make transport of goods a cumbersome, delayed and pricey affair under the GST regime. You can visit us at www.capradeepjain.com – Reply

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Provisional Input Credit

Provisional Input Credit – Goods and Services Tax – Started By: – puneet virmani – Dated:- 23-5-2017 Last Replied Date:- 24-5-2017 – What is provisional Input Credit under GST. For what period it'

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GST rate 5 % with No ITC

Goods and Services Tax – Started By: – yateen vyas – Dated:- 22-5-2017 Last Replied Date:- 23-5-2017 – Experts,1. Whether 5 % rate on GTA with no ITC,so this ITC not be available to service Receiver

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Education Cess & SHEC balance

Transfer of EC SHEC balance in GST is possible or not. If not the what we will do of balances. Rgds, MJ – Reply By Vishnu Dutt Gupta – The Reply = Awaited your valuable comments. – Reply By GOKARNESAN.S SUBRAMANIAN – The Reply = Sri Vishnu Dutt Gupta According to me you are entitled to transfer the closing balance of credit declared in your June 2017 ER-1 return or ST-3 service tax return for the quarter ending June 2017 to the GST credit account on the following grounds:- a) In 2015 Budget, the Finance Minister has stated in his Budget Speech that the rate of duty for excise is fixed as 12.5% from 12.36% (12% basic + 2% Edu cess on Basic duty + 1% She Cess on Basic duty) since Education and SHE Cess have been subsumed in the basic rate of duty. Similarly for service tax from 12.36% to 14% . b) Further, Cenvat credit Rules have been amended in 2015 to allow to take credit Edu Cess and SHE Cess on goods received on or after 1.3.2015 with invoice dated prior t

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period when the same is allowed to be taken, the Department cannot deny such credit subsequently when exemption is given. e) Because of the Policy of Government that both Cesses have been subsumed with Basic Rate, one could not utilise the same . As such, the credit can be eligible for utilisation against basic duty. f) Further, Government allows the credit of Edu cess / SHE Cess on goods received on or after 1.3.2015 and also allow the same to utilise against basic duty. This clearly proves the intention of Government that since both Cessess have been subsumed with Basic rate, the said credit of cessess have been allowed to be utilised for payment of basic duty. The same analogy is applicable to closing balance lying in ER-1 as on 1.3.2015. g) Further, the Department has never insisted the manufacturers to reverse the credit lying in closing balance as on 1.3.2015 and even till the return for JUNE 2017, manufacturers are showing the same as closing balance unutilised and th

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existing Law and is also admissible as input tax credit under this Act. Further the Explanation says that …..unavailed credit means the amount that remains after substracting the amount of credit already availed in respect of capital goods by the taxable person under the existing law from the aggregate amount of cenvat credit to which the said person was entitled in respect of the said capital goods under the existing law. There is no doubt that the Education Cess / SHE cess were allowed as eligible credit in terms of the provisions of Rule 3 of Cenvat Credit Rules, 2004 till June 2017. Since the Transitional Provision clearly says that the credit was allowed under the existing Law , there is no problem in transferring such unavailed credit of Edu Cess and SHE cess along with basic credit. I request the Expers to given their views on this for the benefit of readers. S. Gokarnesan Advocate, Chennai 16.7.2017 – Reply By Vishnu Dutt Gupta – The Reply =

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GST to have minimal impact on CPI Index

Goods and Services Tax – GST – Dated:- 22-5-2017 – Mumbai, May 22 (PTI) The Goods and Services Tax (GST) is likely to have minimal direct impact on the consumer price index (CPI) basket, a report said. This is because most of the tax rates for the items in the CPI basket are likely to be taxed at a lower rate under the GST as compared to the existing levy, it said. However, assuming that GST does have the intended effect of increasing tax compliance, the tax burden would increase. This could lead companies to pass the costs of higher tax compliance on to the consumer at a later stage, said the report by Morgan Stanley. The impact, if any, on underlying inflationary pressures is likely to be transitory. The final impact will depend on the t

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Maharashtra Assembly passes State GST Bill

Goods and Services Tax – GST – Dated:- 22-5-2017 – Mumbai, May 22 (PTI) The Maharashtra Assembly passed unanimously the State Goods and Services Tax (GST) Bill today, the last day of a special session of the state Legislature. After the passage of the bill in the Lower House, Chief Minister Devendra Fadnavis thanked everyone for their cooperation. All political parties had unanimity over the GST Bill. Today, this supreme House has unanimously passed this bill. I thank the House for this, Fadnavis said. The three-day special session to discuss and ratify the bill, to pave the way for the national roll-out of GST on July 1, began on Saturday. During the session, the Assembly passed three bills, including the State Goods and Services Tax Bill

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GST RATES FOR LUBRICATING OIL & GREASE

Goods and Services Tax – Started By: – GORAKHNATH KHARADE – Dated:- 22-5-2017 Last Replied Date:- 30-12-1899 – Sir, we are manufacturer of lubricating oil & grease currently in Excise chapter head no is 27101980 & 27101990 Respectively rate of Excise Duty is 14% 1. what will be SGST, CGST & IGST rate for our product and what will be billing structure. 2.01.07.2017 ONWARDS Commercial Invoice will countinue Please Explain Gorakhnath Kharade 9920200983 – Discussion-Forum – Knowledge Sh

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What is impact of Exempted unit in Uttaa Khand

Goods and Services Tax – Started By: – Swapneswar muduli – Dated:- 22-5-2017 Last Replied Date:- 24-5-2017 – Dear Sir,We are a manufacturer situated in utarakahand presently we are in Exempted from Excise as well as CST & VAT so don't take Cenvat credit and also don't charge the Excise in Sales Invoice.But in GST how we will do our transaction whether we will Illegible for present Exemption or we need o pat tax under GST Please provide your valuable reply.RegardsSwapneswar – Reply B

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