GST Impact on sale of used car

  • Category: Levy and supply
  • Date: 15-04-2020
  • Writers: CA Akshay M Hiregange, CA Mahadev R, Kishore Bandari

Introduction:

Since implementation of GST, there were confusion regarding rate of GST applicable on supply of motor vehicles. In this article, the GST implications on supply of old/used vehicles including following aspects have been discussed:

  1. General classification
  2. GST rate changes (including abatement) and value
  3. Special valuation
  4. Illustrations
  5. FAQs
  6. Upcoming/ related GST updates

General Classification of Motor Vehicle

HSN

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Impact on services provided to branches outside India under GST

  • Category: Levy and supply
  • Date: 14-04-2020
  • Writers: CA Vikram Katariya, CA. Pradeep

Many Companies in India have branches outside India. It is a common practice for such Companies to provide services to its branches outside India. However, such companies should be aware of the GST impact on the services provided to the overseas branches.

In this article the author has analyzed the impact of GST on such transactions with overseas branches.

Supply of services to overseas branches for the period 01.07.2017 to 25.07.2018:

Whether supply of services to overseas branches...

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GST on Director Remuneration

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

  • Category: Levy and 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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Continuous supply of goods – Reduction in other compliance

  • Category: Levy and supply
  • Date: 17-03-2020
  • Writers: CA Madhukar N Hiregange, CA Mahadev R

GST law has introduced a lot of new concepts in Indian indirect tax system such as levy of tax on inter-State stock transfers to branches, cross charge mechanism, taxation of gifts distributed to employees etc. One of such new concepts is a continuous supply of goods and its taxation. Most of us agree that the introduction of GST has resulted in increased (rather than reducing) compliance for the registered persons (SME) and the professionals (SMP). Few of the reasons are complicated...

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Impact – Wrong type of tax paid and wrong claim of ITC

  • Category: Levy and supply
  • Date: 16-03-2020
  • Writers: CA Madhukar N Hiregange, CA Mahadev R

The GST audit season for 18-19 has started and recently the due date also proposed to get extended till 30th June 2020 for filing the reconciliation statement in form GSTR-9C and annual return in form GSTR-9 and GSTR-9A for the FY 2018-19. GST being a new law, there were (are) lot of confusion in the understanding of the law which could have led to non-compliance, errors in payments, claim of ITC etc. Few of them could have get clarified. Now, during the audit or annual return process,...

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GST on discount given by the manufacturer to distributor for supplies made to the customers

  • Category: Levy and supply
  • Date: 14-03-2020
  • Writer: CA Shilpi Jain

There are different kinds of discounts that are offered by various suppliers, being manufactures, as per their marketing/business promotion requirements. In this article we are examining one such discount being offered by the manufacturers to its distributors, which is given on a condition that it has to be passed on to the customer. In some cases it is reimbursed by the manufacturers only after the proof of passing the discount to the customer is provided.

Say for instance, a...

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What is not “supply” under GST?

  • Category: Levy and supply
  • Date: 11-03-2020
  • Writer: CA Madhukar N Hiregange

Article 265 prohibits collection of tax except under the authority of law. Only supply as covered defined would be liable for GST. The applicability/coverage under “supply” need not be reasonable or logical. The entries for GST payable even without consideration or import of services even if it is for personal consumption and not for business indicate this.

The definition of the business appears to be all-pervasive and therefore many taxpayers/ professionals wonder what is that which...

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Valuation for services relating to JDA - commercial projects

  • Category: Levy and supply
  • Date: 21-02-2020
  • Writer: CA Shilpi Jain

The scheme of tax under GST for the real estate sector saw a sea change from 1st Apr ’19. The changes though were more for the residential projects. However, there were changes brought about in some of the provisions relating to the commercial projects as well and in this article we are specifically looking into the valuation provisions that have changed for the commercial projects.

Without getting into the provisions that existed prior to 1st Apr ’19, we would have a look at the...

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Notice Period Recovery – liable for GST?

  • Category: Levy and supply
  • Date: 30-01-2020
  • Writers: CA Rasika Kasat, CA Venkata Prasad

In recent years, the issue of Service Tax/GST liability on the Notice period recovery is a subject matter of dispute. While certain conservative employers have made a choice to pay service tax on such recoveries, certain employers have made bold choices of not paying taxes which were followed by the issuance of the demand notices/orders confirming the service tax demand by the Revenue department. The demands are agitated before various forums and very recently the...

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