Category: GST

GST Articles, Video, PPT, Discussion, Expert Analysis

Judiciary updates (Income tax, GST & Corporate Laws) -09th Nov 2021

Posted on by Business So Simple in Company Law, GST, Income Tax, Legal awareness

Income Tax

ITAT condone the delay in appeal filing as delay was in e-filing & not on manual filing

Gemini Iron and Steel (P) Ltd. Vs ITO (ITAT Chennai) dated 02/11/2021

TDS not deductible on exempt supplementary rent – Section 10(15A)

InterGlobe Aviation Ltd. Vs JCIT (ITAT Delhi) dated 29/10/2021

Capital subsidy liable to be excluded from computation of book profit

Sunrise Biscuit Co. Pvt. Ltd. Vs ITO (ITAT Gauhati) dated 28/10/2021

GST

SCN quashed by Bombay HC for allegedly availing inadmissible transitional credit as has been issued on an erroneous legal premise

Godrej & Boyce Mfg. Co. Ltd. Vs Union of India and Ors. (Bombay High Court) dated 29/10/2021

TDS under GST applicable if services not exempt from GST

In re Tukaram Pundalik Borade (GST AAR Maharashtra) dated 02/11/2021

Corporate Laws

Judgment debtor cannot raise objections to executions in installments: SC

Dipali Biswas & Ors. Vs Nirmalendu Mukherjee (Supreme Court of India) dated 05/10/2021

Beneficial scheme cannot run contrary to express terms of provisions

 Union of India Vs Abhiram Verma (Supreme Court of India) dated 30/09/2021

Regards

Bipul Kumar

GST में ITC कैसे, कब और कब तक क्लेम कर सकते हैं? II GST ITC-Eligibility, Conditions & Time period of ITC claim

Posted on by Business So Simple in GST

Dear Sir,

Please find below YouTube video link on GST में ITC कैसे, कब और कब तक क्लेम कर सकते हैं? II GST ITC-Eligibility, Conditions & Time period of ITC claim
https://youtu.be/e7xxM8LOfto

Regards,
Bipul Kumar

Judiciary updates (Direct Tax, Indirect tax & Corporate Laws)-07 Nov 2021

Posted on by Business So Simple in Custom, GST, Income Tax, Legal awareness

HC directs dept to refund GST paid under wrong head by petitioner

SBI Cards & Payment Services Limited Vs Union of India (Punjab & Haryana High Court) dated 08/10/2021

Section 148 reassessment based on mere change of opinion is invalid

Jagannath Promoters & Builders Vs DCIT (Orissa High Court) dated 26/10/2021

Capital subsidy liable to be excluded from computation of book profit

Sunrise Biscuit Co. Pvt. Ltd. Vs ITO (ITAT Gauhati) dated 28/10/2021

No bail to person alleged of fraudulently inducing people to invest in Crypto Currency Chit Fund

Grant of bail was refused as applicant did not return the amounts due to the complainants and there was a breach of trust and faith and was against the national economy and national interest, whereby a large number of innocent investors had been duped of their hard-earned money.

Umesh Verma Vs State (Delhi High Court) dated 26/10/2021

Judgment cannot be given based on evidence recorded in other trial despite same offence

A.T. Mydeen and Another Vs Assistant Commissioner, Customs Department (Supreme Court of India) dated 29/10/2021

There Cannot Be Total Ban on Firecrackers : SC

Goutam Roy And Anr. Vs State of West Bengal & Ors. (Supreme Court of India) dated 01/11/2021

Regards

Bipul Kumar

Judiciary updates (GST)- 05 Nov 2021

Posted on by Business So Simple in GST, Legal awareness

TDS under GST applicable if services not exempt from GST

In re Tukaram Pundalik Borade (GST AAR Maharashtra) dated 02/11/2021

Bail granted to person accused of availing ITC fraudulently

Krishan Lal Chopra Vs Director General of GST Intelligence (Punjab and Haryana High Court) dated 28/10/2021

GST advance rulings are applicable within the particular state only

In re Kamdhenu Agrochem Industries LLP (GST AAR Maharashtra) dated 02/11/2021

Society claiming INR 7500 exemption cannot avail ITC

 In re Vishal Cooperative Housing Society Limited (GST AAR Maharashtra) dated 02/11/2021

No GST exemption on renting of property to Govt for under-privileged Girl in absence of Proper Info: AAR

In re Meerabai Tukaram Borade (GST AAR Maharashtra) dated 02/11/2021

Manpower Agency cannot escape GST liability on Gross amount by showing Services Charges and Salary/Wages Separately

 In re Prodip Nandi (GST AAR West Bengal) dated 08/10/2021

Regards,

Bipul Kumar

Centre releases Rs. 17,000 crore as GST Compensation to States/UTs (MoF Press Release dated 03rd Nov 2021)

Posted on by Business So Simple in GST

The Central Government has released GST Compensation of Rs. 17,000 crore to States today. The total amount of compensation released to the States/UTs so far including the aforesaid amount during the year 2021-22 is Rs. 60,000 crore. As per the decision of GST Council, back to back loan of Rs.1.59 lakh crore has already been released in lieu of shortfall in release of GST Compensation during the current financial year

The table below shows the State-wise GST compensation released to States/UTs on 3rd November  2021:

Centre releases Rs. 17,000 crore as GST Compensation to States/UTs

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1769214&RegID=3&LID=1

GST collection for October 2021 registered the second highest since implementation of GST (MoF Press Release dated 01 Nov 2021)

Posted on by Business So Simple in GST, Miscellaneous

GST collection for October 2021 registered the second highest since implementation of GST


₹ 1,30,127 crore gross GST revenue collected in October

Revenues for the month of October 2021 are 24% higher than the GST revenues in the same month last year and 36% over 2019-20

Refer link for Press Release

GST collection for October 2021 registered the second highest since implementation of GST₹ 1,30,127 crore gross GST revenue collected in October Revenues for th

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1768437&RegID=3&LID=1

Judiciary updates -29th Oct 2021 (GST Law)

Posted on by Business So Simple in GST

Summary Order in GST DRC-07 quashed by Patna HC for violating principles of natural justice

K. R. Steel Traders Vs State of Bihar (Patna High Court) dated 21/10/2021

Bombay HC directs GST Authority to process Application for IGST Refund as no order was passed

Evertime Overseas Private Limited Vs Union of India and ors. (Bombay High Court) dated 08/10/2021

No ITC on gifts to retailers for personal consumption for sales promotion

In re GRB Dairy Foods Pvt. Ltd (GST AAR Tamilnadu) dated 30/09/2021

It is illegal to attach Director’s personal property for recovery of sales tax dues

 Manharlal Hirjibhai Virdiya Vs Assistant Commissioner of Commercial Tax (Gujarat High Court) dated 08/10/2021

18% GST payable on Electronic Toys

In re Joshna ChandresJ1  Shah (GST AAR Tamilnadu) dated 30/09/2021

GST not Payable on Ambulances Services to MCGM

 In re Geetee Tours Private Limited (GST AAR Maharashtra) dated 25/10/2021

ITC cannot be availed on second hand car if applicant opted for concessional rate

 In re Deccan Wheels (GST AAR Maharashtra) dated 25/10/2021

Recipient of services/Goods or both cannot apply for advance ruling

 In re Godavari Marathwada Irrigation Development Corporation (GST AAR Maharashtra) dated 25/10/2021

18% GST Payable on activity of reshelling of old sugar mill rollers

In re S.B. Reshellers Pvt.Ltd. (GST AAR Maharashtra) dated 25/10/2021

Regards

Bipul Kumar

Government of India releases balance amount of ₹ 44,000 crore to States and UTs (with Legislature) under the back-to-back loan facility in-lieu of GST compensation (MoF Press Release dated 28th Oct 2021)

Posted on by Business So Simple in GST

The Ministry of Finance has released ₹44,000 crore today to the States and UTs with Legislature under the back-to-back loan facility in lieu of GST Compensation. After taking into account earlier release of ₹ 1,15,000 crore (₹ 75,000 crore released on 15th July, 2021 and ₹ 40,000 crore released on 07th October, 2021), total amount released in the current financial year as back-to-back loan in-lieu of GST compensation is ₹1,59,000 crore. This release is in addition to normal GST compensation being released every 2 months out of actual cess collection.

Subsequent to the 43rd GST Council Meeting held on 28.05.2021, it was decided that the Central Government would borrow ₹1.59 lakh crore and release it to States and UTs with Legislature on a back-to-back basis to meet the resource gap due to the short release of Compensation on account of inadequate amount in the Compensation Fund. This amount is as per the principles adopted for a similar facility in FY 2020-21, where an amount of ₹1.10 lakh crore was released to States under a similar arrangement. This amount of ₹1.59 lakh crore would be over and above the compensation in excess of ₹1 lakh crore (based on cess collection) that is estimated to be released to States/UTs with Legislature during this financial year. The sum total of ₹2.59 lakh crore is expected to exceed the amount of GST compensation accruing in FY 2021-22.

All eligible States and UTs (with Legislature) have agreed to the arrangements of funding of the compensation shortfall under the back-to-back loan facility. For effective response and management of COVID-19 pandemic and a step-up in capital expenditure all States and UTs have a very important role to play. For assisting the States/UTs in their endeavour, Ministry of Finance has frontloaded the release of assistance under the back-to-back loan facility during FY 2021-22 of ₹1,59,000 crore.

The release of ₹44,000 crore being made now is funded from borrowings of GoI in 5-year securitiesissued in the current financial year, at a Weighted Average Yield of 5.69%. No additional market borrowing by Central Government is envisaged on account of this release.

It is expected that this release will help the States/UTs in planning their public expenditure among other things, for improving, health infrastructure and taking up infrastructure projects.

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State/ UTs wise amount released as “Back to Back Loan in lieu of GST Compensation Shortfall” on 28.10.2021

Refer link

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1767194&RegID=3&LID=1

Gurugram DGGI Unit arrests 3 persons for running fake firms and evading GST of more than Rs 48 crore (Ministry of Finance Press Release dated 27th Oct 2021)

Posted on by Business So Simple in GST

The Gurugram Zonal Unit (GZU) of Directorate General of GST Intelligence (DGGI) has arrested three persons under the provisions of the GST Act on charges of running multiple fake firms on the strength of fake documents in two different cases.

Two persons were arrested from Delhi on 5th and 9th October 2021 on charges of orchestrating a fake billing racket involving more than 20 fake firms where more than Rs 22 crore of fraudulent input tax credit was taken thereby defrauding the exchequer. Both persons were arrested and produced before CMM, Delhi, and were subsequently sent to 14 days Judicial Custody.

In another case of fake billing a resident of Pataudi, Haryana, was also arrested. He was found to be in possession of huge cache of incriminating documents like fake stamps of Government Departments, cheque books and ATMs of multiple fake firms, toll receipt book, “Dharam Kanta” or Weighing station booklets, fictitious transporters booklets etc. The same were being used to show evidence of fake supply of goods on which fake input tax credit was generated and passed on through these slew of fake firms.

Based on the evidence, the person was arrested on 23rd October 2021 under the provisions of the GST Act on charges for defrauding the Government of more than Rs 26 crore of GST. The arrested person has been sent to 14 days Judicial Custody.

Further investigations in both the cases are underway.