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News Indirect Tax-GST

  • May 08, 2021
  • 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.

  • May 08, 2021
  • GST Exemption on Oxygen Concentrators: HC Appoints Senior Advocate To Assist Court

    The Delhi High Count on Friday appointed Arvind Datar, a senior counsel as Amicus Curiae to assist the court on plea seeking exemption on imposition of Integrated Goods and Services Tax (IGST) on the import of oxygen concentrators as gift for personal use. The appointment was made by a Divison Bench of Justices Rajiv Shakdher and Talwant Singh.

    Sudhir Nandrajog, senior counsel, who appears for the petitioner, sought ad-interim direction for enabling import of the subject oxygen concentrator, as, in its clearance, impediments are likely to arise at the customs barrier, on account of the impugned notification, according to ANI.

  • May 05, 2021
  • Extension in dates of various GST Compliances for GST Taxpayers

    Government has extended the dates of various compliances by Taxpayers under GST, through Central Tax Notification Nos. 10/2021, 11/2021, 12/20211, 13/2021, 14/2021, all dated 1st May, 2021. The details are summarized below:

    D. Filing of Form GSTR-1/IFF by Normal Taxpayers

  • May 04, 2021
  • E-way bills suggest GST receipts could see a decline in May

    Goods and services tax (GST) collections of the central and state governments could come off their peak in May after touching a record high of Rs.1.41 lakh crore in April, according to data on the number of e-permits generated for the movement of goods in April.

    Data showed that e-way bills generated for the movement of goods within and across states in April dropped by 31% to 48.9 million from 71 million in March. Movement restrictions are in place in several parts of the country as the authorities seek to contain coronavirus infections. Taxes for April sales are paid in May.

    The e-way bill generation data for April compares with the levels in July and August 2020, when monthly e-way bills generated were below 50 million and the economy was beginning to emerge out of the impact of the nationwide lockdown. The corresponding GST receipts for the months were below Rs.1 lakh crore— Rs.86,449 crore in August and Rs.95,480 crore in September.

    GST receipts in the following months were above Rs.1 lakh crore, reflecting the economic recovery and a host of measures by the tax authorities to check evasion, including the drive against the use of fake invoices by businesses.

  • May 04, 2021
  • Govt waives IGST on import of COVID-relief material received as donation for free distribution

    The government on Monday waived Integrated GST (IGST) till June 30 on import of COVID-relief material received as a donation, a move that will speed up customs clearances for such imports, including those by charitable organisations.

    The Finance Ministry in a statement said the government had received several representations from charitable organisations, corporate entities, and other associations outside India seeking exemption from IGST on the import of COVID-19 relief material donated/received free of cost from outside India for free distribution.
    “Accordingly, the Central Government has…granted exemption from IGST on import of such goods received free of cost for free distribution for covid relief,” it said, adding the exemption would be applicable till June 30.

    This exemption will also cover goods already imported, but lying uncleared at the Customs ports.

    Following this decision, Niti Aayog CEO Amitabh Kant, Revenue Secretary Tarun Bajaj and CBIC Chairman Ajit Kumar interacted with Chief Secretaries of States/UTs and briefed them on the exemption from Customs duty and IGST on specified COVID relief material.

  • May 03, 2021
  • GST revenue hits all-time high of Rs 1.41 lakh cr in April

    GST collections in April touched a record high of over Rs 1.41 lakh crore, indicating sustained economic recovery, the Finance Ministry said on Saturday.

    The revenues for the month of April 2021 are 14 per cent higher than Rs 1.23 lakh crore collected in March.
    During the month, the revenues from domestic transaction (including import of services) are 21 per cent higher over the last month.

    “GST revenues have not only crossed the Rs 1 lakh crore mark successively for the last seven months but have also shown a steady increase. These are clear indicators of sustained economic recovery during this period. Closer monitoring against fake-billing, deep data analytics using data from multiple sources including GST, income-tax and customs IT systems and effective tax administration have also contributed to the steady increase in tax revenue,” the ministry said.

  • May 03, 2021
  • Government slashes IGST on oxygen concentrators for personal use to 12%

    The government on Saturday slashed Integrated GST rate on oxygen concentrators for personal use to 12 per cent, from 28 per cent earlier, for two months till June 30.

    “IGST on Import of Oxygen Concentrators for personal use has been reduced from 28 per cent to 12 per cent to bring IGST rate on such personal imports at par with commercial imports of the same,” the Central Board of Indirect Taxes and Customs (CBIC) tweeted.
    This reduced IGST rate for imports of concentrator for personal use shall be applicable up to June 30.

    The government had last month waived customs duty on import of medical grade oxygen, oxygen concentrator and related equipment.

  • May 03, 2021
  • Govt waives late fee for delayed filing of March, April GSTR-3B, tax payment

    The government has waived late fee on delayed filing of monthly return GSTR-3B and tax payment for the months of March and April and also cut interest rate for late filers. Taxpayers with a turnover of over Rs 5 crore have been given 15 days extra time to file monthly summary return GSTR-3B and pay taxes without paying any late fees. They would be required to pay a lower 9 per cent for these 15 days, after which the rate would be 18 per cent.

    While those with a turnover up to Rs 5 crore in the preceding financial year have 30 days more time from their original due date for filing 3B returns for March and April, with late fee waiver. Interest rate would be ‘Nil’ for the first 15 days, post which it would be 9 per cent. After 30 days, a 18 per cent interest would be levied.

  • May 03, 2021
  • Modi govt’s relief on GST late fee, tax payment to help MSEs but further extension still needed: Experts

    Ease of Doing Business for MSMEs: Even as the MSME community continues to urge the government to extend GST payment and return filing deadlines by two-three months, the Ministry of Finance has offered taxpayers a late fee waiver for filing GSTR-3B monthly returns for March and April and reduced interest rates for late payments. While this would reprieve micro and small enterprises (MSEs) temporarily, there might be a need for further relaxation as Covid and its impact would be long drawn and take more than a while to settle down, according to experts.

  • May 01, 2021
  • How GST applies to flat owners, RWAs

    Goods and Services Tax (GST) is applicable when a home buyer buys a home. However, how many of the home buyers know that they may have to pay GST on maintenance charges they will be paying monthly to the Residents Welfare association or RWA? According to tax and investment experts, a flat owner and the RWA will have to pay GST subject to fulfillment of certain conditions. They said that after fulfilling the condition both RWA and flat owners will have to pay 18 per cent GST even when the RWA doesn't have GST registration.

    Speaking on the GST rules applied on RWAs and flat owners Mumbai-based tax and investment expert Balwant Jain said, "GST becomes applicable on both RWA and flat owner if the monthly maintenance charges being paid by the flat owner is ?7,500 or above and the annual collection of the RWA is ?20 lakh or more."
    Jain said that GST will be paid by both RWA and the flat owners or by none. He said that in case, the RWA's annual collection is more than ?20 lakh per annum but the monthly maintenance given by the flat owner is less than ?7,500, then GST won't get applied to any of them. Similarly, if the flat owner is paying ?7,500 or more but the annual collection of the RWA is less than ?20 lakh, in that case too, none of them would pay GST on maintenance.

  • Apr 29, 2021
  • Centre may waive GST on vaccines

    The government may waive Goods and Services Tax (GST) on Covid-19 vaccines to reduce their cost—up to ?1,200 a dose in private hospitals starting May 1 depending on the vaccine—in an attempt to ease the burden on people and encourage vaccination, people familiar with the matter said.

    The government has already waived import duty on most essential pharmaceutical raw materials required to manufacture drugs for the treatment of coronavirus disease,and is considering scrapping the 5% GST on Covid-19 vaccines on similar grounds, the people added on condition of anonymity.

    “The waiver will require approval of the GST Council. But, it is unlikely that any member will oppose the move that will provide relief to people in all states. Besides, it will not have significant revenue implication,” said one person.

    The Union finance ministry did not respond to an email query.

  • Apr 28, 2021
  • Covid relief: Government allows business to verify monthly GST returns through EVC till May 31

    The government has allowed businesses to verify through electronic verification code monthly GST returns filed till May 31.
    In a notification, the Central Board of Indirect Taxes and Customs (CBIC) said any registered person during the period from April 21, 2021, to May 31, 2021, will be allowed to furnish the return in Form GSTR-3B and details of outward supplies in Form GSTR-1 verified through electronic verification code (EVC).
    Currently, businesses are required to digitally sign the GSTR-3B form while filing the monthly return and paying taxes. However, with offices shut due to the lockdown, businesses are unable to generate a digital signature that has led to delay in filing returns.

  • Apr 22, 2021
  • GST law: Taxman must not proceed to attach property in haste, says SC

    The Supreme Court on Tuesday ruled that the power to order a provisional attachment of property, including a bank account, of an assessee under the GST law is “draconian in nature” and cannot be used as an “unguided subjective discretion” of the tax authorities.

    A bench comprising justices DY Chandrachud and MR Shah said a provisional attachment is contemplated during the pendency of certain proceedings, implying a final demand or liability is yet to be crystallised. So, an anticipatory attachment of assets must strictly conform to the requirements, both substantive and procedural, embodied in the statute and the rules, it said.
    The SC’s ruling comes at a time when the government is showcasing the recent months’ surge in GST collections as proof of effective anti-evasion steps. Earlier, during the hearing of the case, the apex court noted that “Parliament had aimed to give the GST as a citizen-friendly tax structure”.

  • Apr 19, 2021
  • GST officers to be soon armed with real-time data on vehicles moving without e-way bills

    The government is working on a system to soon provide report to GST officers on a real-time basis for those vehicles which are moving without e-way bills, to help intercept stuck trucks at toll plazas and check GST evasion. The tax officers would also be provided analysis reports on identifying e-way bill EWB with no movement of goods as it would help officials identifying cases of circular trading. It would also provide reports on recycling of e-way bills for tax evasion prone commodities to help officers in identifying tax evaders.

    Under the Goods and Services Tax (GST) regime, e-way bills have been made mandatory for inter-state transportation of goods valued over Rs 50,000 from April 2018. However, gold is exempted.

    In the electronic way (e-way) bill system, businesses and transporters have to produce before a GST inspector the e-way bill, if asked.

  • Apr 19, 2021
  • Flavoured milk taxable at 12% under GST: AAR rules in Amul dairy case

    Flavoured milk is basically ‘beverage containing milk’ and will attract 12 per cent GST, the Gujarat Authority for Advance Ruling (AAR) has said.

    Gujarat Co-operative Milk Marketing Federation Ltd, which markets dairy product under Amul brand, had approached the AAR on the taxability under the Goods and Services Tax (GST) of flavoured milk which the company sells under trade name Amul Kool /Amul Kool Cafe.
    The applicant had submitted before the AAR that the process of the flavoured milk is standardisation of fresh milk according to the fat contents and then heating at certain temperature followed by filtration, pasteurisation and homogenisation and then mixing of sugar and various flavours and finally bottling.

  • Apr 17, 2021
  • Due dates for filing of Form GSTR-3B from the Tax Period of January, 2021

    Government of India, Ministry of Finance (Department of Revenue), CBIC, vide Notification No 82/2020 – Central Tax, dated 10th Nov., 2020, has revised Rule 61 of the Central Goods and Services Tax Rules, 2017, to provide for staggered filing of Form GSTR-3B, for the tax periods from January, 2021, onwards, as under

  • Apr 14, 2021
  • Updates in Forms GSTR-1, GSTR-3B and Matching Offline Tool for taxpayers in QRMP Scheme

    With effect from 1st January, 2021, all taxpayers with Annual Aggregate Turnover up to Rs 5 Crore have been given an option to file their Form GSTR-1 Statement and Form GSTR-3B return on a quarterly basis. They also have an option to file B2B invoice details in Invoice Furnishing Facility (IFF) for months 1 and 2 (eg. Jan and Feb) of the quarter in order to pass on the credit, whereas the remaining invoices have to be declared in the Quarterly Form GSTR-1 of Month 3 (e.g. March).
    I.The salient points related to filing of Form GSTR-1 Statement & auto-population of liability in Form GSTR-3B for taxpayers under QRMP Scheme for the quarter Jan-Mar., 2021, are summarized below

  • Apr 13, 2021
  • Clarification on reporting 4-digit/6-digit HSNs

    GST helpdesk is in receipt of some tickets at helpdesk wherein it was reported that certain 6-digit HSN codes are not available in HSN Master/ not accepted on e-invoice/e-Way bill portals.

    Background: Notification No. 12/2017-Central Tax dated June 28, 2017, as amended vide Notification No. 78/2020 – Central Tax, dated October 15, 2020, mandates taxpayers to declare specified digits, as follows, of Harmonised System of Nomenclature (HSN) / Service Accounting Code (SAC) Code on raising of tax invoices, w.e.f. April 1, 2021.

  • Apr 09, 2021
  • Payment of Tax by Taxpayers under QRMP Scheme, for the month of March, 2021

    All taxpayers having aggregate turnover up to Rs 5 crores, under QRMP Scheme (w.e.f. 01.01.2021 onwards), are required to furnish return on quarterly basis, along with payment of tax on monthly basis.

    Persons availing QRMP Scheme are required to pay tax due, in each of the three months of the quarter, by depositing the due amount as discussed below.

    Payment of Tax for first two months of a quarter (M1 & M2 ie for January and February month for Jan-March Quarter):

    While generating the challan, taxpayers must select “Monthly payment for quarterly taxpayer” as reason for generating the challan.