Budget impact from GST perspective
1 month, 4 weeks ago

Budget impact from GST perspective

New Indian Express  

BENGALURU: Goods and Services Tax is crucial for revenue collection, compliance, and economic growth. The FB simplifies compliance by deleting time of supply rules for gift vouchers/gift cards issued for promotional purposes, though the goods or services redeemed through them remain taxable under GST. ITC Restriction: The FB restricts Input Tax Credit on inputs used for constructing buildings, malls and other immovable properties, even if they are later leased or rented out, overriding the Hon’ble Supreme Court’s ruling in Safari Retreats. Mandatory ISD Registration and Inclusion of Inter-State RCM Transactions for ITC Distribution: Effective April 1, 2025, it is mandatory for a common office receiving ITC on behalf of distinct persons to obtain Input Service Distributor registration. Output Tax Reduction Linked to ITC Reversal: The FB, by inserting proviso to Section 34 of the GST Act, mandates that a recipient must reverse the ITC on a credit note issued by the supplier to claim reduction of output tax.

Tax Itc Vouchers Isd  gst  services  honble  transactions  budget  itc  isd  goods  vouchers  tax  fb  perspective  impact

History of this topic

The post-Budget agenda: How to make GST 'Good and Simple Tax'
1 month, 2 weeks ago

The post-Budget agenda: How to make GST 'Good and Simple Tax'

India Today  

Good intention undone by poor implementation. At the SKOCH Summit in New Delhi in November 2024, M. Govinda Rao, economist and former member of the 14th Finance Commission, had said, “Globally, GST is considered a money machine. While political constraints may prevent a single rate, reducing the number of rates would bring clarity and efficiency.” At present, the GST structure …

GST on vouchers and gift cards: All you need to know
2 months, 4 weeks ago

GST on vouchers and gift cards: All you need to know

India Today  

Gift vouchers and prepaid cards have become popular payment tools for consumers, but their tax implications often raise questions. NON-PREPAID VOUCHERS: ACTIONABLE CLAIMS Non-prepaid vouchers, which allow holders to redeem specific goods or services, are classified as ‘actionable claims.’ These transactions are also excluded from GST since they do not involve the supply of goods or services. GST ON VOUCHER …

Towards a simple and rational GST
3 months, 1 week ago

Towards a simple and rational GST

Hindustan Times  

Social media went pop over popcorn on Saturday, sharing details on the differential Goods and Services Tax rates on variants. But, two larger issues with India’s indirect tax regime need to be promptly addressed. The window for the rationalisation of the tax slabs has been extended, and it isn’t clear whether this will even happen The first has to do …

Reverse charge will increase burden on taxpayers
3 months, 3 weeks ago

Reverse charge will increase burden on taxpayers

Deccan Chronicle  

Hyderabad:The reverse charge mechanism, which will plug loopholes in the administration of the Goods and Services Tax regime and increase the government’s revenue, is likely to increase the burden on taxpayers. This, the government believes, will increase its revenue as the burden of paying 18 per cent GST on rent on commercial premises will be passed on to the consumers. …

Businesses Seek Higher GST Limit for Small Players
3 months, 3 weeks ago

Businesses Seek Higher GST Limit for Small Players

Deccan Chronicle  

HYDERABAD: The business community sought raising of the GST registration threshold in the state from Rs 20 to Rs 40 lakhs in line with many other states, allowing small businesses to sell goods at lower prices without GST. In an interactive meeting on Goods and Services Tax organised by FTCCI, which was attended by commissioners from the state and central …

Commercial property rentals now under Reverse Charge Mechanism: GST Council
6 months, 3 weeks ago

Commercial property rentals now under Reverse Charge Mechanism: GST Council

Hindustan Times  

The Goods and Services Tax Council at its 54th meeting in New Delhi on September 9 decided to bring renting of commercial property by an unregistered person to a registered person under Reverse Charge Mechanism, in order to prevent revenue leakage. The GST Council also decided that commercial property will now come under the reverse charge mechanism. Clarifies on tax …

GST dilemma: The burden of related party transactions
9 months, 1 week ago

GST dilemma: The burden of related party transactions

New Indian Express  

Introduction: The Goods and Services Tax marks a pivotal transformation in the landscape of taxation, fundamentally altering the way taxes are assessed and collected. Delving into its intricacies, particularly concerning Related Party Transactions, holds paramount importance for businesses endeavouring to navigate the realms of regulatory compliance and financial prudence effectively. GST implementation & Objectives: Introduced in India in July 2017, …

GST Needs A Robust Dispute-Resolution Mechanism - News18
1 year, 1 month ago

GST Needs A Robust Dispute-Resolution Mechanism - News18

News 18  

The Goods and Services Tax was introduced to rationalise the indirect tax system in India, thereby creating a common national market for goods and services. Disputes on an interpretation of the law, unsatisfactory advance ruling mechanism, and revenue-centric approach by tax authorities have led to an increase in litigation. For example, the ‘Sabka Vishwas Scheme 2019’ resolved around 49,534 pre-GST …

BJP Government Did Not Rectify Injustice Meted out To Karnataka Alleges CM In His Budget
1 year, 1 month ago

BJP Government Did Not Rectify Injustice Meted out To Karnataka Alleges CM In His Budget

Deccan Chronicle  

Bengaluru: Chief Minister Siddaramaiah pointed out that Central Government led by Bharatiya Janata Party had meted out three injustices to States including Karnataka such as “unscientific” implementation of Goods and Services Tax, increase in Cesses and Surcharges and change in allocation of formula in tax devolution and grants-in-aid, adversely affected the financial strength of the State. Siddaramaiah accused the previous …

GST | Circular Does Not Override Statutory Provisions: Allahabad High Court Quashes Demand Of Rs. 235 Crores Against Vivo Mobile
1 year, 5 months ago

GST | Circular Does Not Override Statutory Provisions: Allahabad High Court Quashes Demand Of Rs. 235 Crores Against Vivo Mobile

Live Law  

The Allahabad High Court has quashed demand of Rs. If the law were to be read otherwise, i.e., that the ITC claim may never arise unless the tax is first paid then, the second proviso to section 16 itself would be rendered otiose.” Further, placing reliance on Union of India v. Bharti Airtel Ltd. and Others, wherein the Supreme Court …

No GST Applicable On Supply Of Vouchers: Karnataka High Court
2 years, 1 month ago

No GST Applicable On Supply Of Vouchers: Karnataka High Court

Live Law  

The Karnataka High Court has ruled that vouchers do not fall under the category of goods and services and therefore, the issue and supply of vouchers would not attract GST. The Court concluded that vouchers would fall under the definition of ‘money’, as defined under the CGST Act, which is excluded from the definition of goods and services under the …

Critics are wrong, GST has strengthened federalism
2 years, 9 months ago

Critics are wrong, GST has strengthened federalism

Live Mint  

Today, 1 July 2022, marks five years since India’s introduction of the goods and services tax. The second good feature is that, contrary to media hype, the GST has strengthened the Indian federation by enabling seamless input tax credit even when supply chains cross state borders. The narrative that it has weakened the federation by imposing an authoritarian Centre on …

Cross Charging Under Goods And Services Tax Act
2 years, 9 months ago

Cross Charging Under Goods And Services Tax Act

Live Law  

Goods and Services Tax Act does not define Cross Charge. As per Section 25 of Central Goods and Services Tax Act, 2017, where a person has obtained or is required to obtain registration in a state or union territory in respect of an establishment, has an establishment in another state or union territory, then such establishments shall be treated as …

GST Not Payable On RCM Basis On Commission Paid To The Overseas Commission Agent: AAR
2 years, 9 months ago

GST Not Payable On RCM Basis On Commission Paid To The Overseas Commission Agent: AAR

Live Law  

The Uttarakhand Authority of Advance Ruling consisting of Anurag Mishra and Rameshvar Meena has ruled that GST is not payable on the basis of the Reverse Charge Mechanism on the commission paid to the Overseas Commission Agent. The applicant has sought an advance ruling on the issue of whether an Overseas Commission Agent is covered within the definition of the …

GST Only On Amount Exceeding 75,000 Collected By RWAs: Madras High Court:
3 years, 8 months ago

GST Only On Amount Exceeding 75,000 Collected By RWAs: Madras High Court:

Live Law  

Overturning a 2019 circular issued by the Ministry of Finance, Department of Revenue, the Madras High Court has held that the Goods and Services Tax applies not on the full amount but to monthly maintenance amount exceeding ₹7,500 only. Entry 77 of the order grants exemption to contributions made to RWA upto an amount of Rs.7,500/- per month per member …

GST to be levied on underlying goods/services in gift vouchers, rules AAAR
3 years, 11 months ago

GST to be levied on underlying goods/services in gift vouchers, rules AAAR

India TV News  

Clearing the air over taxability of gift cards or vouchers, the Tamil Nadu bench of the AAAR has ruled that GST would be levied on the underlying goods/ services at the time of redemption such pre-paid instruments. Kalyan Jewellers India Ltd has approached the Appellate Authority for Advance Ruling against the ruling by the Tamil Nadu state Authority for Advance …

GST collection crosses ₹1 lakh crore mark for first time since February, totals ₹1.05 lakh crore in October
4 years, 4 months ago

GST collection crosses ₹1 lakh crore mark for first time since February, totals ₹1.05 lakh crore in October

Live Mint  

GST collections in October stood at over ₹1.05 lakh crore, crossing for the first time ₹1 lakh crore mark since February this year, the finance ministry said on Sunday. The Goods and Services Tax collections fell from the psychologically important ₹1 lakh crore mark as the lockdown imposed to contain the COVID-19 spread dented economic activity. The gross Goods and …

Govt announces LTC voucher scheme for employees: 5 things to know
4 years, 5 months ago

Govt announces LTC voucher scheme for employees: 5 things to know

Live Mint  

Finance Minister Nirmala Sitharaman on Monday announced giving out cash vouchers to central government employees this year in lieu of leave travel concession fare which could be spent only on buying non-food GST-rated items. To incentivise the govt sector employees Every four years, central government employees get LTC to any destination to their choice plus one to their hometown. Central …

GST e-invoicing mandatory from October 1: Consequences of non-compliance
4 years, 6 months ago

GST e-invoicing mandatory from October 1: Consequences of non-compliance

Live Mint  

By Rahul Aggarwal & Abhinav Srivastava ‘E-Invoicing’ has been one of the most discussed topics for the past month and it has made its way to the to-do lists of all large corporates having GST aggregate turnover of more than ₹500 crore. This will involve uploading of invoice details on a notified Invoice Registration Portal where validation of key invoice …

Why the GST framework is in trouble
4 years, 7 months ago

Why the GST framework is in trouble

Hindustan Times  

The switch to the Goods and Services Tax in July 2017 was a historic moment in India’s fiscal trajectory. The Union has not paid the constitutionally mandated ₹1.5 lakh crore of GST compensation to states for the months of April-July in the current fiscal year. It also expects that the total shortfall in GST compensation to the states will be …

GST paid on bad debtors must be reversed: DACAAI
4 years, 9 months ago

GST paid on bad debtors must be reversed: DACAAI

India TV News  

GST paid on invoices which have become bad debts must be paid back, Domestic Air Cargo Agents Association of India said on Tuesday.At present, under the GST law agents have to up front pay 18 per cent GST on the invoices. "As per the present GST law we have already paid 18 per cent GST on the invoices raised by …

GST worked well, generated sufficient revenue, says Piyush Goyal
6 years, 8 months ago

GST worked well, generated sufficient revenue, says Piyush Goyal

Deccan Chronicle  

Raipur: Finance Minister Piyush Goyal has said that the Goods and Services Tax has worked well in past one year and has generated sufficient revenue. Addressing the seminar organised by Chhattisgarh Chamber of Commerce and Industries under aegis Chhattisgarh State Infrastructure Development Corporation, Goyal said, "The GST in the past one year has successfully worked and has generated ample revenue. …

Ministerial panel favours deferment of sops for digital payments under GST
6 years, 8 months ago

Ministerial panel favours deferment of sops for digital payments under GST

India TV News  

The Sushil Modi-led ministerial panel will recommend to the GST Council to defer by a year the proposal to incentivise digital payments under the goods and services tax, citing revenue implications of doling out the concessional tax rate. Besides, another ministerial panel under Modi, on reverse charge mechanism, has decided to recommend powers to the GST Council to notify the …

Tamil Nadu govt all praise for GST, calls it 'transparent and self-policing tax regime'
6 years, 9 months ago

Tamil Nadu govt all praise for GST, calls it 'transparent and self-policing tax regime'

Firstpost  

Recalling the 1 July, 2017 rollout of the central tax regime subsuming various other taxes into one, Commercial Taxes Minister KC Veeramani said the introduction of GST was a “landmark in the field of indirect tax reform.” Chennai: The Goods and Services Tax on Thursday came in for praise from the Tamil Nadu government in the assembly, with a minister …

One year of GST: Government could push a raft of anti-evasion measures if compliance or collections dip
6 years, 9 months ago

One year of GST: Government could push a raft of anti-evasion measures if compliance or collections dip

Firstpost  

Several changes in GST compliance during the initial phase had disturbed businesses and hence there would be a conscious effort to reduce the level of compliances in the coming year Editor’s note: It has been a year since the Narendra Modi government rolled out the Goods and Services Tax, on 1 July, 2017. Using this approach, we could possibly see …

A simpler GST can become a registry of all invoices, says iSPIRT’s Sharad Sharma
7 years ago

A simpler GST can become a registry of all invoices, says iSPIRT’s Sharad Sharma

Live Mint  

New Delhi: If the goods and services tax is simplified in the upcoming GST Council meeting, it will become a registry of all invoices a business is involved in, a technology expert said. Another platform called the DBPS will create the same digital trail for businesses that service customers,” iSPIRT co-founder Sharad Sharma said at the technology conference, EmTech India …

‘The party will be over’: How GST will affect businesses that don’t pay tax
7 years, 9 months ago

‘The party will be over’: How GST will affect businesses that don’t pay tax

Hindustan Times  

Rakesh Sachdeva sells auto parts in a busy market in central Delhi, just a few miles from Prime Minister Narendra Modi’s office. Timeline of the long journey to GST rollout: 2000 Vajpayee government started discussion on GST by setting up an expert panel headed by Asim Dasgupta, former West Bengal finance minister Vajpayee government started discussion on GST by setting …

Goods and Services Tax: How GST will change the way businesses operate in India
7 years, 9 months ago

Goods and Services Tax: How GST will change the way businesses operate in India

India TV News  

GST: As India braces for its biggest tax reform since Independence in the form of the Goods and Services Tax, there are many apprehensions among the business community – ‘how’ and ‘what’ primary among them. There is no denying the fact that starting 12:00 am, July 1, 2017, from migration to registration under GST, from a new accounting software to …

GST: TDS for e-commerce firms deferred ahead of 1 July rollout
7 years, 9 months ago

GST: TDS for e-commerce firms deferred ahead of 1 July rollout

Live Mint  

Merchants selling goods on e-commerce platforms and companies supplying goods and services to various government agencies have got more time to prepare for a system of tax collected at source, with the government on Monday deferring enforcement of this requirement under the goods and service tax regime that kicks in from midnight Friday. The requirement of collecting up to 1% …

GST can be paid using debit, credit cards: Revenue Secretary
8 years, 5 months ago

GST can be paid using debit, credit cards: Revenue Secretary

Deccan Chronicle  

Indore: Individuals and entities can pay taxes online using debit or credit cards once the Goods and Services Tax is rolled out, Revenue Secretary Hasmukh Adhia said on October 24. Even if you have account in a private bank you can transfer money and it will reach the government," Adhia said while addressing the Global Investors Summit here. He said …

GST Bill: For smooth rollout, get industry feedback before making it a law, says Harsh Goenka
8 years, 7 months ago

GST Bill: For smooth rollout, get industry feedback before making it a law, says Harsh Goenka

Firstpost  

The Indian GST is a dual model comprising of Central and State GST along with an Integrated GST to be levied on inter-state and cross border transaction. The major benefit of introduction of GST, for the people of India in general and industry in particular, is ease of doing business in the country, as the GST regime will get rid …

GST Bill passed: India Inc cheers, voices concerns regarding implementation
8 years, 7 months ago

GST Bill passed: India Inc cheers, voices concerns regarding implementation

Firstpost  

Consumers will see lower prices in the medium term, businesses will able to operate more efficiently and the Government will see a broadening of its tax base along with ease of tax collection. E-commerce business model has evolved from the traditional ‘inventory led model’ to ‘pure or curated market place’ and / or services model, thereby having to deal with …

GST will see better tax compliance on robust IT infrastructure, says govt
8 years, 7 months ago

GST will see better tax compliance on robust IT infrastructure, says govt

Firstpost  

The ministry on Wednesday issued a set of FAQs and a total of 14 queries have been answered. New Delhi: GST will result in better tax compliance due to a robust IT infrastructure and consumers will be benefited as the overall tax burden on most commodities will come down, the government said on Wednesday. “GST will result in better tax …

DeQoded: How The GST Bill Will Be Good For You
8 years, 8 months ago

DeQoded: How The GST Bill Will Be Good For You

The Quint  

The Goods and Services Tax is believed to be the single most powerful tax reform that India will see. So Central Excise Duty, VAT, Service Tax, Swachh Bharat Cess, Octroi, Luxury Tax, Special Additional Duty, Entry Tax and so on will be substituted with one GST. For sale outside the state, we pay a Central Sales Tax, Excise and a …

E-commerce transactions in GST net
8 years, 9 months ago

E-commerce transactions in GST net

The Hindu  

The model Goods and Services Tax law, made public by the Centre, has clarified that all e-commerce transactions will attract GST and that the tax will be collected by the service operator as soon as the supplier receives payment. “…Every electronic commerce operator shall, at the time of credit of any amount to the account of the supplier of goods …

Government committed to implement Goods and Services Tax | India TV News
9 years, 8 months ago

Government committed to implement Goods and Services Tax | India TV News

India TV News  

New Delhi : The government remains committed to roll out the Goods and Services Tax from April next year, a senior official said on Friday. "The GST Council would be constituted after the enactment of the constitution amendment bill which is currently with the Select Committee of the Rajya Sabha," V.S.Krishnan, member, Central Board of Excise and Customs told mediapersons …

(Nearly) everything you wanted to know about GST but were afraid to ask
9 years, 11 months ago

(Nearly) everything you wanted to know about GST but were afraid to ask

Live Mint  

The concept of a Goods and Services Tax as a single tax on any supply of goods or services or both is known and administered in most other jurisdictions. Further, the absence of a comprehensive credit mechanism for taxes levied by the states and the Centre, which would enable them to harvest the benefit of taxes already paid, adds to …

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