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News Indirect Tax-GST

  • Sep 29, 2022
  • Govt working on decriminalising certain offences under GST, lower compounding charges

    The government is working on decriminalisation of certain offences under GST by raising the threshold limit for launching prosecution and also lowering charges for compounding of offence, an official said on Wednesday.

    Currently, the law provides for launching prosecution against offenders in cases where the amount of Goods and Services Tax (GST) evasion or misuse of input tax credit is more than Rs 5 crore.

  • Sep 27, 2022
  • Court stays ?21,000 crore tax demand on online gaming firm

    The Karnataka High Court has stayed an intimation from the Goods and Services Tax (GST) authorities advising gaming company Gameskraft Technologies Pvt. Ltd. to pay nearly ?21,000 crore and applicable interest till the case is decided on merit. Court documents seen by Mint showed that Karnataka HC has stayed the notice issued by the Directorate General of GST Intelligence (DGGI) advising payment of taxes and said that the matter will be heard after the festival Dusshera.

    The company said in a statement on Sunday that the tax demand was a departure from the well-established law of the land. The tax demand comes at a time a ministerial committee set up by the federal indirect tax body, the GST Council, is deliberating over what should be the tax rate for the online gaming sector and what should be the base on which the tax rate should be levied.

  • Sep 27, 2022
  • Enhance ease of doing GST

    The reforms in the goods and services tax (GST) hinge on the following policy measures:

    Revenue buoyancy: The buoyancy in GST revenues can be boosted if the incidence of duty is raised by rationalisation of GST rates, merger of tax rate slabs, phasing away exemptions, bringing in the excluded items into the GST net (like electricity and real estate) along with strengthening of the compliance system.

  • Sep 27, 2022
  • GST notice to Gameskraft: Analysts see long-drawn legal battle

    The hefty Rs 21,000 crore tax notice to Bengaluru-based online gaming company Gameskraft Technology (GTPL) for not collecting Goods and Services Tax (GST) on the entire consideration of betting at the rate of 28% may ultimately lead to prolonged litigation with little tax recovery, analysts have said.

    Already, GTPL has approached the Karnataka High Court, which, in an order dated September 23, has stayed the notice till the hearing in the case begins after Dussehra.

  • Sep 27, 2022
  • Punjab Cabinet decides to amend state GST law

    The Punjab Cabinet on Monday gave the approval to amend the Punjab Goods and Services Tax Act, 2017, to enable ease of doing business in the state and facilitating the taxpayers.

    The amendment will also help in streamlining provisions relating to refunds and rationalising those related to the furnishing of returns.

    This will also ensure levying of interest only on input tax credit wrongly availed and utilised, said an official release.

    The Punjab Cabinet held a meeting under the chairmanship of Chief Minister Bhagwant Mann at his official residence here, ahead of the state Assembly session, which has been convened on Tuesday.

  • Sep 26, 2022
  • Threshold for criminal offences under GST law may be raised

    The government is looking at decriminalising some provisions under the Goods and Services Tax (GST) by allowing compounding of offences and making arrests exceptional.

    "This is in the works... It would be taken to the GST Council," an official, aware of the deliberations, told ET. A final call would be taken after the council's nod.

    The proposal entails raising the threshold of cognizable and non-bailable offences under Section 132 of the Central GST Act to ?20 crore from ?5 crore now and attaching bank accounts only for serious and high value offences under Section 83.

    It would also look at revamping Section 138 of the Act, which deals with compounding of offences.

  • Sep 26, 2022
  • GST authorities issue notice to Gameskraft, seek Rs 21,000 crore

    The Goods and Services Tax authorities have served a show cause notice to Bengaluru-based online gaming company Gameskraft Technology Pvt Ltd, demanding Rs 21,000 crore in taxes, interest and penalty, the company said in a submission to the Karnataka High Court.

    The court has stayed the notice and will hear the matter after Dussehra holidays.

    Last year in December, the GST authorities had conducted a search on the premises of the company and attached its property and bank accounts, alleging a tax evasion to the tune of Rs 460 crore.

  • Sep 24, 2022
  • High Court rules mango pulp be taxed at 12%

    The Andhra Pradesh High Court has ruled that mango pulp be taxed at 12% under GST as per the existing regulations and framework. The court said that the Appellate Authority for Advance Ruling's decision to impose GST on mango pulp at 18% was incorrect.

    Earlier, exporters and businessmen faced problems due to confusion in rates on different forms of mango, like sliced, dried mangoes or mango pulp.

    "The court has rightly given weightage to the circular pursuant to the GST council meeting, where it was clarified that mango pulp is liable to GST at 12%," said Harpreet Singh, indirect tax partner at KPMG in India.

    The court also directed the revenue authorities not to take any "coercive action" for recovering 18% GST on mango pulp.

    Going ahead, fresh mangoes sold as a fruit will attract no GST. While sliced and dried mangoes will face 5% GST. "The interesting thing to note is that, under GST laws, a particular product in different forms can attract different GST rates. Similarly, there are varied rates for meat, i.e., raw meat, canned meat, etc. Another example could be milk; fresh milk attracts GST at nil rates, UHT (ultra-heat treatment) milk at 5%, and condensed or flavoured milk is chargeable at higher rates," said Singh.

  • Sep 23, 2022
  • No GST on sale of plots with basic infra: AAR

    The Karnataka bench of the GST-Authority for Advance Rulings (AAR) has held that goods and services tax (GST) is not applicable on sale of plots even if these are sold after completion of works related to basic necessities (such as land levelling, installation of sewage lines, et al).
    It was always clear that land is not subject to GST. However, an endless bout of litigation arose on whether sale of plots when some basic development has been carried out is subject to GST. This litigation is now easing.

  • Sep 23, 2022
  • Rajasthan Assembly passes GST amendment bill, Input Credit Tax reformed

    The Rajasthan Assembly on Thursday passed the Rajasthan Goods and Services Tax (Amendment) Bill, 2022, which proposes that the registration of companies would not be cancelled even if they fail to file the return for six months.

    Also, the system of issuing credit notes will also start.

    Education Minister B.D. Kalla introduced the bill in the house on behalf of the minister in charge. After the discussion on the bill, Kalla in his reply said that many facilities are being given to the traders in the bill, which will also increase the revenue of the state government.

    He said that the Input Credit Tax has been reformed in the Bill. Interest will now be payable after using the credit tax on an incorrect claim of input credit tax by the dealer.

  • Sep 22, 2022
  • Non-alcoholic malt drinks may attract 28% GST, 12% cess

    Non-alcoholic malt drinks could soon attract GST on par with carbonated drinks. According to Zee Business analyst Ashish Chaturvedi, Karnataka GST Authority of Advance Ruling has said that GST on malt-based drinks should be increased to 40 per cent.

    Soft drinks, at present, attract 40 per cent GST which includes 28% GST along with a cess of 12%.

  • Sep 21, 2022
  • Govt working on GST on crypto transactions, defining legal framework

    The government is working on a comprehensive indirect tax regime for crypto assets, which will check revenue loss to the exchequer due to the uncertain nature of these assets, reported Livemint on Monday.

    Nirmala Sitharam-led finance ministry is planning to define the characteristics of cryptocurrencies, their use, and how they fit into the existing legal framework, people aware of the development told Livemint. The ministry, after deciding its legal nature, will fix the GST rate for cryptocurrencies, as it could be in a new GST slab rate, between 18 per cent and 28 per cent, reported Livemint, quoting its sources.

  • Sep 20, 2022
  • GST on cosmetic ayurved products: 12% or 18%? Here’s what AAR said

    Will cosmetic ayurved products attract a 12 per cent GST or a higher 18 per cent GST? The Telangana bench of the GST-Authority for Advance Rulings (AAR) has held that an 18 per cent GST will be levied on cosmetic ayurved products.
    The body maintained that merely because ayurvedic products such as hair oil, conditioners, face serums, etc. are manufactured under licences issued by AYUSH, these cannot be classified as medicaments, which are subject to a lower GST of 12 per cent. Cosmetics, on the other hand, attract 18 per cent GST, according to a ToI report.

  • Sep 15, 2022
  • GST collection may top Rs 1.5 lakh cr from Oct: Revenue secretary

    Revenue secretary Tarun Bajaj on Wednesday said he expects GST collection to top the Rs 1.5-lakh-crore-mark from October.

    Revenue collection from goods and services tax (GST) has been trending at over Rs 1.4 lakh crore in the past six months consecutively but has not crossed the Rs 1.5-lakh-crore-mark yet on a consistent basis.

  • Sep 13, 2022
  • Module wise new functionalities deployed on the GST Portal for taxpayers

    Various new functionalities are implemented on the GST Portal, from time to time, for GST stakeholders. These functionalities pertain to different modules such as Registration, Returns, Advance Ruling, Payment, Refund and other miscellaneous topics. Various webinars are also conducted as well informational videos prepared on these functionalities and posted on GSTNs dedicated YouTube channel for the benefit of the stakeholders.

  • Sep 12, 2022
  • CBIC issues guidelines for claiming GST transitional credit

    The Central Board of Indirect Taxes and Customs (CBIC) has issued a set of guidelines for businesses to claim credit for the taxes paid in the pre-GST era, which will be processed from 1 October.

    An official order from CBIC said taxpayers can file fresh forms or revised earlier forms for the GST transitional credit on the common portal. Taxpayers will be allowed to download previous copies of transitional forms.

  • Sep 09, 2022
  • Flavoured milk's a drink, will be taxed, says AAAR ruling

    Flavoured milk is not milk; it is in fact a drink that has milk as an ingredient, the Appellate Authority of Advance Ruling (AAAR) has said.

    Milk is outside the gamut of goods and services tax but flavoured milk attracts 12% tax.

    Vadilal, the ice cream major, had approached the apex appellate authority for clarity on the matter.

    The company had approached the AAAR after an Authority for Advance Ruling (AAR) had said that GST should be applicable on flavoured milk.

    Gujarat AAAR affirmed the AAR ruling on classification and said that flavoured milk is not milk but a beverage containing milk.

    The AAAR ruled that the flavoured milk is not the natural form of milk but was obtained after application of specific processes on the milk.

  • Sep 06, 2022
  • GoM for different GST on sports betting, casinos and horse racing

    The group of ministers tasked by the Goods and Service Tax (GST) Council to recommend ways to tax online gaming and betting, casinos and horse racing will take further legal opinion and try to differentiate between the three entertainment sectors before making its final recommendations to the council.

    It is understood that if the base on which GST is taxed for the three sectors is different for each, then the rates may also be different. For now, the GoM has suggested a uniform 28 per cent rate for the three sectors.

  • Sep 06, 2022
  • ‘Do not insist for GST from nursing colleges’

    Telangana High Court on Monday passed an interim direction to the State and Central governments not to insist for payment of Goods and Service Tax (GST) by nine colleges offering courses in nursing.

    A bench of Chief Justice Ujjal Bhuyan and Justice C.V. Bhaskara Reddy passed this interim order, after hearing a writ petition filed by 10 colleges of nursing challenging a demand notice issued by Kaloji Narayana Rao University of Health Sciences (KNRUHS) for payment of 18% GST on the affiliation and inspection fee. The bench, passing the interim direction, said the petitioners should not be insisted for payment of GST till next date of hearing.