Scope of remission of tax in GST where the supplies are found to be deficient in quantity
Query (Issue) Started By: – CA Surender Gupta Dated:- 11-9-2016 Last Reply Date:- 14-9-2016 Goods and Services Tax – GST
Got 6 Replies
GST
Section 11 of the First Draft Model GST Act states that:
11. Remission of tax on supplies found deficient in quantity
(1) The Central or a State Government may, by rules made under this sub-section, provide for remission of tax on such supplies which are found to be deficient in quantity due to any natural causes.
(2) Any rules made under sub-section (1) may, having regard to the nature of the supply, fix the limit or limits of percentage beyond which no such remission shall be allowed.
Now vario
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the event of supply occurs and before reaching the destination, it may have differently worded.
Since the issue of manufacturing loss, process loss, storage loss, transportation loss or any other loss due to natural event or any other reason before occurring of supply event, remain unaddressed and would lead to undue harassment.
To understand further, pl see an issue of 'Invisible Loss' in TNVAT – M/s. Sri Gayathri Enterprises Versus The Assistant Commissioner (CT) [ 2016 (8) TMI 635 – MADRAS HIGH COURT] wherein the matter was remanded back for ascertaining the factual position.
Demand of VAT – reversal of Input tax credit (ITC) – assessment, pertaining to 'Invisible Loss' during manufacturing activity – Held that:- matt
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sion among experts by which visitors shall enrich their knowledge. Ofcourse visitors may also cast their views etc.
Sir, all these concerns are very valid. The law should have clear direction. Thanks.
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
Your concern is good. We may not expect the remission is in line with Central Excise. The Actual provisions of Act and Rules and will make it clear. Now the drafting in law is not good having so many mistakes, the provisions of rules are inconsistent with main Act. If GST is to be introduced with effect from 01.04.2017 there will be hurry in drafting and there may be many chaos.
Reply By Ganeshan Kalyani:
The Reply:
Sir, in my view the GST provision is nothing but advance version of VAT. I mean
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