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Introduction:

Audit documentation is the written record (including electronic record) prepared during the course of audit which forms foundation for auditor’s in preserving the various observations identified during the audit, acts as a proof of performance of audit and safeguard the auditor at the time of dispute. Besides, documents are keys to determine the trail of any transaction, it plays pivotal role in all the audits under GST law and in general. Further, the audit documentation...

Introduction:

In a conventional sense, audit means scrutiny, verification of documents, events and processes in order to verify facts and to draw conclusions regarding the correctness of recording of facts and the efficiency of system under study. Today, the concept of audit in general has undergone change from a transactional audit to a risk based one. 

GST law mainly functions under the principles of self-assessment wherein the tax payers assess / determine the tax liability and...

Background

Input tax credit is sole of any indirect tax law. It is property of the assessee which accrues to him on fulfilment of conditions specified in the law for availment of ITC. It has been held in case of Eicher Motors by Honourable Supreme Court that the ITC is nothing, but tax paid to the Government and hence the same is legitimate right of the assessee.

However, the statute inbuilds some checks on the right to make sure that it is not abused. One of such checks is ensuring...

In these times of Global trade wars with President Trump taking aggressive stand and not making a differentiation between developing countries and USA, exporters of goods and services have to be competitive. 

The Ministry of Commerce and the Ministry of Finance sometimes may not be working in a well co–ordinated manner leading to some intended benefits not reaching the exporter. Delays in benefits as well as the denial of just refund or inordinate delay plays havoc with the working...

SEZ schemes are being promoted with an intention to create competitive environment for goods / services exported thereby to increase the foreign exchange inflow into India. The objectives of government for SEZs include allowing tax-free procurement of goods and services with support in basic essential infrastructure facility for production of goods or services. Such facilities have led to increase in foreign entities participation in India. Section 7 of the SEZ Act 2005 provides for an...

Background

Unlike in FY 2017-18 where the assesses were provided with extension of time limit for rectifying the errors or omissions and availment of input tax credit through removal of difficulties (ROD) order no. 02/2018, the time limits for FY 2018-19 have yet been extended. However, considering significant delay in FY 2017-18 GST compliances, in order to provide an opportunity to the assesses it would be expected to extend the time limit for ITC claim (probably upto 31st December...

Introduction and background

In August 2018, the State of Kerala faced a devastating flood due to high rainfall which was the worst flood in nearly a century. There was huge loss to the assets, revenue of the State. As a result, the State of Kerala proposed for levy of additional cess in GST which was approved by the GST council in its 32^nd Council meeting held on 10^th January 2019. The council approved the proposal of State of Kerala to mobilise the revenue through levy of additional cess...

On the introduction of GST, the credit of taxes under the existing law, predominantly Central Excise, Service Tax and Value Added Tax, was allowed to be carry forwarded vide the transitional provision either as Central Goods and Service Tax (CGST) or State Goods and Service Tax (SGST) as the case may be accordingly taxpayers did carry forwarded the credit by filing transactional credit by filing Form TRAN -01. The common observation of the department during the transitional credit...

Implementation of Goods and Services Tax (GST) was one of the long awaited fiscal reform and due to various reasons it was only hanging around and could not circumvent the obstacles for substantially long period of time so much so that people started saying that the reform may not see a light of the day. However, all that is history now and we are lucky to witness the eventual implementation of this tax reform and today we stand at a timeline of 200 days post GST implementation. At this...

BACKGROUND:  

Much expected and game changing indirect tax law was introduced in the form of GST with effect from 1st July 2017. This financial is unique from Indirect Taxes perspective as the erstwhile indirect taxes such as service tax, central excise and VAT were prevalent for the first quarter i.e. April 2017 to June 2017 and later GST is in place for the remaining three quarters. Therefore, as we come close to the end of the financial year 2017-18, it is important to revisit and...