GST on Director Remuneration

  • Category: Supply
  • Date: 08-04-2020
  • Writer: CA Sudhir VS

The recent article in the economic times reporting that the remuneration paid by the Company to its director would attract GST under reverse charge mechanism under RCM has created lot of confusion and unrest among the corporates, this article aims at giving an insight on this subject.

 

The levy of GST is governed by Section 9 of the Central Goods and Service Tax Act, 2017 (for brevity hereinafter referred to as ‘CGST Act’) and the respective Sate and Union Territory GST Acts on...

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Critical aspects of GST – Hotel Industry

  • Category: sector specific
  • Date: 08-04-2020
  • Writer: CA Rajesh Maddi

Hotel industry is one of the major impacted industries due to Corona virus (Covid 19) Pandemic. It is high time for the industry to reduce their costs and ensure that they are not hit with GST non-compliance notices. Since, the substantial business of the industry would be B2C (business to customer), any future demands by GST authorities would become cost.

Considering the vast experience in the hotel industry, the author wishes to explain the GST related burning issues faced by the hotel...

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Extension of due dates and other clarifications in view of COVID-19

  • Category: GST Updates
  • Date: 05-04-2020
  • Writer: Hiregange Team

APPLICABILITY OF GST ON EXTRA NEUTRAL ALCOHOL (‘ENA’) : THE MYSTERY CONTINUES

  • Category: Supply
  • Date: 03-04-2020
  • Writers: CA Madhukar N Hiregange, CA Vikram Katariya

It is now more than 1000 days of GST in India. The accepted fact by many was that the new law would have lot of challenges and uncertainty in the first two years, which would require numerous changes and amendments. Many issues have been resolved, some aspects have been deferred and some have been left in the balance. One issue which has been left in the balance, is the issue of taxability of Extra Neutral Alcohol (‘ENA’) under GST.

 

There is no dispute on the levy of GST on...

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GST - Key activities to be carried out at the Year End

  • Category: GST Updates
  • Date: 01-04-2020
  • Writer: Hiregange Team
  1. Procurement / Renewal of LUT for FY 2020-2021
  2. Following reconciliations to be maintained –
    • Outward supplies as per books and GST returns (Books vs GSTR-1 vs GSTR-3B)
    • ITC claimed in GSTR-3B vs ITC appearing in GSTR-2A
    • Reconciliation of balance of credit and cash as per GST portal with balance appearing in books.
  3. Check requirement for any ITC reversal or ITC to be reclaimed
    • Rule 37 – Any ITC reversal required on account of non-payment within 180 days or...
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Amendment in Rule 96(10) – Sigh of relief to Goods Exporters

  • Category: Latest updates
  • Date: 01-04-2020
  • Writers: CA Lakshman K, CA Venkata Prasad

Section 16 of IGST Act, 2017 entitles exporters to claim refund under either of the two options:

1. Export without payment of IGST under bond or Letter of Undertaking (LUT) and claim refund of unutilized Input Tax Credit (ITC) or

2. Export with payment of IGST and claim refund of such IGST paid.

The 2nd option is more viable & beneficial since the former option comes with certain restrictions & limitations viz.,

* ITC on Capital goods is not refundable.

* Transitional ITC is not...

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CV-5 Insights - Investigation, Search, Summons in GST

  • Category: CV Learning Series
  • Date: 29-03-2020
  • Writer: CA Madhukar N Hiregange

These are activities which fill the tax payers – even the compliant with dread due to past practice- unfortunately continued. This article provides some tips/ insights the knowledge of which maybe useful in dealing with such officers in a more confident manner. Adv. MS Nagaraja shared his views. Listed hereunder as per understanding:

1. To start investigation JCC or above needs to have reason to believe a) supressed / undervalued supplies, b) Excess claim of ITC, c) Contravenes Act/...

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CV-4 Finer Issues in Levy- supply

  • Category: CV Learning Series
  • Date: 28-03-2020
  • Writer: CA Madhukar N Hiregange

We had the learning presentation by CA Rajesh Kumar TR last week. Readers are advised to keep the bare act with them while reading the series of finer issues which would be discussed. It  is very important that when professionals advice on compliances or do audit then they need to be conservative. In case of dispute then the observations in this article would be useful.

The insights as understood were as under:

1. Need to understand the 3 baskets of levy Vs assessment Vs collection as...

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GST Updates - press release of FM on CV measures

  • Category: GST Updates
  • Date: 27-03-2020
  • Writer: Hiregange Team

CV-3 Tips for Reading GST - Relevant Decisions

  • Category: CV Learning Series
  • Date: 27-03-2020
  • Writer: CA Madhukar N Hiregange

The advice to clients in GST needs study and analysis of the judicial decisions in the earlier laws like Central Excise, Service Tax and Local VAT. The decision in Customs [ old and current] would also be relevant to understand some of the concepts. Some insights were provided by CA Rajesh Kumar TR which are shared hereunder:

1. Judicial precedents lay down the principle or rule to be followed by lower forums. Judicial discipline requires the hierarchy of courts to be followed.

2. In...

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