Analysis of ITC utilization in DRC-03 for GSTR-9 & GSTR-9C

  • Category: Input Tax Credit
  • Date: 10-12-2020
  • Writers: CA Akshay M Hiregange, Varsha Vasante Gowda

We are at the flag end of filing the annual return and audit certification (GSTR 9 & 9C) For FY 2018-19 (courtesy of multiple extensions) i.e. on 31st December 2020.

Taxpayers have an option to pay additional liability not declared in GSTR-1 or GSTR-3B, in GSTR-9 through Form DRC-03 based on Para 4 of GSTR-9 instructions for FY 2017-20.

This article enumerates utilization of ITC against GST liability for payment through DRC-03 during GSTR-9 filing which would be beneficial to many...

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H&A update Summary of Notifications issued on 29th Nov'20 and 1st Dec'20

  • Category: GST Updates
  • Date: 03-12-2020
  • Writer: Hiregange Team

Legal Updates from the Judiciary – Nov 2020

  • Category: assessment and litigation
  • Date: 02-12-2020
  • Writer: CA Ravi Kumar Somani

1) Input tax credit of CGST & SGST is availed instead of IGST – A judicial view on how to Rectify:

To err is human and to make human err are the tax laws. CGST & SGST credit wrongly availed as IGST or vice-versa has been a common error by many taxpayers (Thanks to GST Common portal). Now, the law when read literally puts taxpayer in a fix in so much so that the incorrectly availed ITC is required to be reversed with no recourse of availing back the correct ITC due to time restriction...

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GST Case Law Updates – November 2020

  • Category: GST Updates
  • Date: 01-12-2020
  • Writer: CA Sudhir VS

1. Interest for delayed payment – Tolerance of an Act Vs. Addition to Consideration

The Maharashtra Appellate Authority For Advance Ruling in Bajaj Finance Ltd 2020-TIOL-64-AAAR-GST has ruled the additional/penal interest recovered by the appellant from customers against delayed payment of monthly instalments of the loan extended to the customers would be exempt from GST.

Issue: Schedule II of the CGST Act, 2017 provides “agreeing to the obligation to refrain from an act, or...

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Difference – ST vs. IT returns (AS26)

  • Category: assessment and litigation
  • Date: 21-11-2020
  • Writers: Adv Surabhi Parihar, CA Madhukar N Hiregange

Analyzed of Causes of Differences

The sharing of the income tax returns with the service tax, central excise and VAT authorities has been a long drawn exercise with last arrangement agreed in 2015, however lately CBIC and CBDT have entered into a MOU in 2o14 and again in 2020 to facilitate exchange of data on a regular and automatic basis.

This arrangement should have enabled the respective tax departments to look at the differences between taxable turnover reflected in service tax...

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E-invoicing and its applicability with illustration

  • Category: sector specific
  • Date: 20-11-2020
  • Writer: Harish P Devda

What is e-invoicing?

e-invoicing refers as per Rule 48(4) of CGST Rules, notified class of registered persons have to prepare invoice by uploading specified particulars of invoice (in FORM GST INV-01) on Invoice Registration Portal (IRP) and obtain an Invoice Reference Number (IRN)

 

Notified persons: A registered person, other than an SEZ unit*, Insurance Company, banking company, financial institution including non-banking financial institution, GTA, supplier of passenger...

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GST on Intermediary, its Constitutional validity & proposed changes to term intermediary as exports

  • Category: sector specific
  • Date: 20-11-2020
  • Writer: Harish P Devda

Background

Under GST, tax is levied on the taxable supply of goods/services. Tax is applicable on the taxable services supplied in India.

In the GST regime, intermediary services by Indian suppliers to foreign principals are taxed to GST. In common parlance, any person who enables the supply of goods/services between two persons, is considered as intermediary.

There has been a lot of confusion regarding tax implications on the pre-sales and post-sales services vs intermediary...

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GST on Notional interest

  • Category: Others
  • Date: 02-11-2020
  • Writer: Aporna Das Gupta

There has been a lot of buzz with regard to applicability of GST notional interest. A recent Karnataka AAR in the case of M/s Midcon Polymers Pvt. Ltd. has been issued which discussed extensively in this regard and answered the question- “Whether notional interest on refundable security deposit would form part of value of supply?”

 

Let us first understand the concept of notional interest being discussed in the AAR. In a case where a house is given on rent, it is an industry...

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GST Case law Update – October 2020

  • Category: GST Updates
  • Date: 02-11-2020
  • Writer: CA Sudhir VS
  1. Supply of goods and supply of service made form different registration of the same taxpayer is neither a works contract nor composite supply?

Maharashtra Appellate Authority for Advance Ruling in the case of Vertiv Energy Pvt Ltd 2020-TIOL-50-AAAR-GST has ruled when the goods are supplied from one registration and the installation of such goods has been made from different registration would not be a composite supply.

Facts:

  1. Single contract for supply and installation of...
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Professional Empowerment Series – Growth & Sustenance – Art- 13

  • Category: Empowering Student
  • Date: 30-10-2020
  • Writer: CA Madhukar N Hiregange

The world is changing and if one is not aware of what the future is and what major changes are taking place in the future, one may not be able to sustain the practice. The users, needs of users, method of delivery, form of delivery among many others would change. The speed of change is amazing. Yesterday we were talking of what the millennials need today, we have started on the Gen Z. Technology and automation is increasingly replacing the professional’s routine jobs (reconciliations,...

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