Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 28-5-2018 Last Replied Date:- 3-6-2018 – Even after close to eleven months since GST was launched in India w.e.f. 1st July, 2017, trade & industry and taxpayers / professionals are confronted with various issues which are required to be sorted out, clarified by CBIC or redressed. Moreover, we have now Authority for Advance Ruling which is also contributing to the confusions. Here are few issues and concerns identified to be addressed/ redressed by appropriate forum, sooner the better. The last date for filing of TRAN 1 was 27.12.2017, but many of the taxpayers failed to file TRAN-1 due to genuine reasons other than IT glitches. Though for IT related compliance, additional window has since been opened vide Circular No. 39/2018 dated 03.04.2018, there are large number of cases wherein TRAN-1 could not be filed due to ignorance or other reasons. One more option may be provided to the assessees, as it causes undue hards
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which involves a huge risk of wrong calculation therefore, such penalty/ interest / debits may be generated by GSTN System only instead of doing manually. Currently the benefit of composition scheme is available to limited taxpayers, therefore, the composition scheme should be extended to service providers and for Inter-state supplies also. There are certain wherein Advance Ruling Authority (AAR) have ruled on taxability of those transactions, for e.g.: Supply of motor vehicles as scrap after its usage is considered as an activity of supply in course or furtherance of business and such transaction would attract GST (AAR). This should not be treated as supply or be exempted from GST. Recovery of food expenses by employer from the employees for the canteen services/working lunch provided by business entity is considered as 'Outward Supply' and hence taxable (AAR). It may be considered as part of CTC or as a perquisite & should not be taxed. The composite supply of works contr
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SEZ (AAR). Supplies related to SEZ are zero rated and since SEZ/SEZ units are artificial judicial persons, they will always be acting through natural persons and as such, keeping in mind the legislative intention of zero rating in case of SEZ s. A suitable clarification is immediately required. Query: Since there is no appellate mechanisms against AAR ruling at the moment assessee are stuck up for proper legal guidance & clarity Suggestion: GST Council should setup a review mechanism for review of such rulings and avoiding different rulings by different States AAR. The time life for pronouncement of advance ruling may be shortened. Credit of motor vehicle used for business purposes should be allowed to all business entities. Purchase of vehicle for business purposes is a capital asset and forms part of gross block. Like any other capital good, motor vehicles are also crucial as a huge amount of ITC lapses even when assets are used for business purpose. Restaurants located in the pr
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revenue earner for many States in many ways. To promote tourism in the State, GST Council may be approached to reduce the GST rates on admission tickets. Presently medical implants (e.g. Jaipur foot) are taxed @ 5%. Keeping in view noble services provided in the State; it deserves a better tax treatment by exempting the same. E-way Bill System Training in relation to e-way bill should be provided for smooth implementation. Majority of pending litigation is an account of seizure and detention of goods. In almost all cases, courts have ordered for release of goods / vehicle. Most of the transporters (GTA / GTO) are in unorganized sector and also not adequately educated. To ensure successful implementation of e-way bill system necessary training need to be imparted to transporters and drivers in Hindi / Regional Language. Since the implantation is new it should be ensured that atleast in this initial period : Penalties are not imposed Vehicles are not intercepted & detained Goods &
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