Clarifications of issues under GST related to casual taxable person and recovery of excess Input Tax Credit distributed by an Input Service distributo...
Clarification on certain issues (sale by government departments to unregistered person; leviability of penalty under section 73(11) of the CGST Act; r...
Clarification on certain issues (sale by government departments to unregistered person; leviability of penalty under section 73(11) of the KGST Act; r...
Clarification regarding applicability of section 56(2)(viia) of the Income-tax Act, 1961 for issue of shares by a company in which public are not subs...
Scope of principal and agent relationship under Schedule I of MGST Act. 2017 in the context of del-credre agent.
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Del credre agent classification determines whether interest on buyer credit is included in the transaction value of goods under GST. Whether a del credre agent is an agent under Para 3 of Schedule I depends on invoicing: if the supplier invoices the customer (directly or through the DCA) the DCA is not an agent; if the DCA invoices in his own name the DCA is an agent. If not an agent, short term credit by the DCA is an independent financial service and its interest is not part of the supplier's goods value. If an agent, the extension of credit is subsumed into the goods supply and the interest must be included in the goods' transaction value.
To clarify the procedure in respect of return of time expired drugs or medicines.
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Return supply rules for expired drugs govern invoicing, ITC entitlement and reversal on destruction of returned goods. Retailers or wholesalers returning time expired drugs may treat the return as a return supply (registered non composition: issue invoice; composition: bill of supply and pay composition tax; unregistered: commercial document without tax). The recipient may claim Input Tax Credit (ITC) subject to Section 16; if the manufacturer destroys returned goods he must reverse the ITC availed on the return supply under clause (h) of sub section (5) of section 17. As an alternative, the original supplier may issue a credit note under section 34; tax adjustment and portal upload depend on the time limit in sub section (2) of section 34.
Clarifications of issues under GST related to casual taxable person and recovery of excess Input Tax Credit distributed by an Input Service distributor.
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Casual taxable person advance tax calculation must account for eligible input tax credit, affecting registration deposits. A casual taxable person must deposit advance tax calculated on the estimated net tax liability after deducting eligible input tax credit as indicated in FORM GST REG 1; long-running exhibitions beyond the casual registration period must obtain normal registration with the allotment/consent letter as proof of place of business and are not required to pay advance tax for that registration and may surrender it after the exhibition. Excess credit distributed by an Input Service Distributor in contravention of rules is recoverable from recipients with interest and penalty; recipients may voluntarily remit via FORM GST DRC 03, otherwise recovery proceedings under the Act using FORM GST DRC 07 may be initiated, and the ISD remains liable to a general penalty.
Processing of Applications for Cancellation of Registration submitted in FORM GST REG-16.
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Cancellation of GST registration: prescribed portal particulars must be provided and officers must accept or notify defects before rejection. Applications for cancellation in FORM GST REG-16 may be made for specified reasons and must include mandatory particulars on the common portal; officers should accept and issue FORM GST REG-19 within 30 days except where the application is incomplete or the transferee entity is unregistered. In such exceptions the officer must give seven working days to remedy discrepancies before rejecting with recorded reasons. Payment or reversal of input tax on stock need not precede filing and may be completed in FORM GSTR-10, but ledger balances become unavailable from the claimed cancellation date except to meet liabilities up to filing the final return.
Scope of Principal-agent relationship in the context of Schedule I of the MGST Act.
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Principal-agent supply rule: invoice issuance determines GST treatment of goods transfers under Schedule I. Schedule I deems certain transfers between principal and agent to be supplies even without consideration when the agent acts in a representative capacity. The crucial objective test is invoice issuance: if the agent issues the invoice in his own name for the onward supply, transfers from principal to agent fall within Schedule I; if the invoice to the customer is in the principal's name, Schedule I does not apply. Authority to pass or receive title on behalf of the principal is determinative.
Refund claim eligibility: specified category returns suffice for refund processing without requiring general outward supply returns. Filing of FORM GSTR-1 and FORM GSTR-3B is not mandatory for refund claims by Input Service Distributors, composition taxpayers, or non-resident taxable persons; the returns prescribed for those categories (FORM GSTR-6, FORM GSTR-4, and FORM GSTR-5 respectively) suffice to support refund of electronic ledger balances.
Clarification regarding GST tax rate for Sprinkler and Drip Irrigation System including laterals
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GST rate for micro irrigation clarified: sprinklers and drip systems including laterals are covered under the reduced rate. The circular clarifies that the Schedule II entry for sprinklers and drip irrigation including laterals covers sprinkler irrigation systems and their components (nozzles, laterals, etc.), placing micro irrigation methods within the reduced GST classification recommended by the GST Council and requiring consistent treatment in the field; implementation issues are to be reported to the Commissioner.
Export of services under GST: outsourced foreign portion treated as export if reverse charge tax paid and RBI permits retention. Where an Indian supplier outsources part of services to a foreign supplier for a recipient outside India, two supplies arise: the Indian supplier's supply to the recipient for the full contract value and the import of services by the Indian supplier from the foreign supplier for the outsourced portion. The Indian supplier must pay integrated tax on the imported portion under reverse charge and may claim input tax credit; the full contract value may nonetheless be treated as export if reverse charge tax is paid and RBI permits retention of part of the consideration outside India.
Clarification regarding GST tax rate for Sprinkler and Drip Irrigation System including laterals.
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GST rate for sprinkler and drip irrigation systems: uniform implementation directed for all state tax field formations. The circular directs uniform application of the Department of Revenue, Tax Research Unit's clarification on the GST rate for sprinkler and drip irrigation systems, including laterals, and instructs all state tax field formations to follow the annexed Circular under the authority of section 168 of the Tripura State Goods and Services Tax Act, 2017.
GST rates and classification directive: field formations must follow central clarification for uniform implementation immediately. State tax field formations are directed, under powers conferred by section 168 of the Tripura State GST Act, to follow the Department of Revenue, Tax Research Unit clarifications on GST rates and classification of goods set out in Circular No. 80/54/2018-GST dated 31-12-2018, annexed to this state circular, to ensure uniform implementation across the state.
GST refund clarifications require adherence to central CBIC guidance to ensure uniform implementation of refund procedures. The Chief Commissioner instructs all subordinate tax officers to follow the clarifications issued by the Department of Revenue, Central Board of Indirect Taxes and Customs, GST Policy Wing (Circular No.79/53/2018-GST) on refund-related issues, and, invoking section 168 of the Tripura State GST Act, adopts that circular for uniform implementation across the state.
Export of services under GST: central clarifications adopted and state authorities directed to apply uniform compliance guidance. The state tax administration is instructed, under powers conferred by section 168 of the Tripura State Goods and Services Tax Act, 2017, to follow the clarifications on export of services set out in CBIC Circular No. 78/52/2018-GST dated 31 December 2018. The circular provides guidance on conditions, place of supply, recipient location, and documentation necessary to determine and support export of services status, and must be applied uniformly across field formations.
Denial of composition option by tax authorities and effective date thereof.
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Denial of composition option clarification adopted; tax officers instructed to apply effective-date rules uniformly across formations. Tax officers are directed, under the State Act's administrative powers, to follow the CBIC GST Policy Wing clarification on denial of the composition scheme option and the effective date of such denial, as annexed, to ensure uniform application across field formations.
Clarification on certain issues (sale by government departments to unregistered person; leviability of penalty under section 73(11) of the CGST Act; rate of tax in case of debit notes / credit notes issued under section 142(2) of the CGST Act; applicability of notification No. 50/2018-Central Tax; valuation methodology in case of TCS under Income Tax Act and definition of owner of goods) related to GST.
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GST clarification on treatment of government sales, penalty leviability, debit/credit note rates and valuation-follow CBIC guidance. The CBIC circular clarifies six GST matters: sales by government to unregistered persons; penalty leviability under section 73(11) CGST; tax rate for debit/credit notes under section 142(2) CGST; applicability of a central notification; TCS-related valuation under the Income Tax Act; and the definition of owner of goods. The Tripura State Tax administration, invoking section 168 of the Tripura SGST Act, directs all state tax officers to follow these clarifications to ensure uniform implementation within the state.
Electronic refund submission enables portal-only filing and electronic transfer to jurisdictional officer, eliminating mandatory physical submission. Refund applications in FORM GST RFD-01A must have all supporting documents, statements and invoice lists electronically uploaded on the common portal at filing; ARN is generated only after complete electronic submission and the application is electronically transferred to and viewable by the jurisdictional proper officer. Net ITC for inverted duty refunds includes ITC availed on all inputs in the relevant period irrespective of their rates. Reversed ITC is not treated as availed for refund purposes unless subsequently re availed and the reversal undone. Refund of tax on input services and capital goods is not available under inverted duty refund rules.
Export of services: outsourced foreign work treated as export if IGST on imported services paid and RBI permits retention. When an Indian supplier outsources part of a contract to a foreign provider, two supplies exist: the Indian supplier's supply to the non resident recipient for the full contract value and the import of services by the Indian supplier for the outsourced portion. The Indian supplier must pay integrated tax under the reverse charge mechanism on the imported portion and may claim input tax credit. The full contract value can be treated as export of services if IGST is paid on the imported portion and RBI permits retention of part of the consideration outside India.
Denial of composition option by tax authorities and effective date thereof
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Composition scheme effective date rules clarified: withdrawal date limits and retrospective denial conditions explained. Withdrawal from the composition scheme takes effect from the date indicated in FORM GST CMP-04 but not earlier than the commencement of the financial year in which it is filed. Denial of the composition option by the proper officer, after issue of FORM GST CMP-05 and reply in FORM GST CMP-06, must be ordered in FORM GST CMP-07 within thirty days and may be given effect prospectively or retrospectively but not prior to the date of contravention; tax, interest and penalty determination for the relevant period must be pursued under sections 73 or 74, and section 18(1)(c) governs credit on inputs held the day before the order.
Clarification on certain issues (sale by government departments to unregistered person; leviability of penalty under section 73(11) of the KGST Act; rate of tax in case of debit notes / credit notes issued under section 142(2) of the KGST Act; applicability of notification No. 50/2018-Central Tax; valuation methodology in case of TCS under Income Tax Act and definition of owner of goods) related to GST
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Taxability of government disposals: government departments must register and pay GST when selling to unregistered buyers. Supply of used, seized, confiscated, old or scrap goods by government entities to unregistered persons is taxable under GST and such departments must register and pay tax subject to sections 22 and 24. Section 73(11) penalty applies only when section 73 proceedings are invoked; late filing of GSTR 3B with tax and interest paid generally does not attract that penalty though section 125 may apply. Debit/credit notes issued under section 142(2) attract GST rates under the GST Acts. TDS under section 51 applies to government controlled entities with majority participation; TCS collected under Income Tax is includible in GST value. Ownership for section 129(1) is deemed to be consignor or consignee where specified documents accompany goods, otherwise determined by the proper officer.
Clarification regarding applicability of section 56(2)(viia) of the Income-tax Act, 1961 for issue of shares by a company in which public are not substantially interested.
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Section 56(2)(viia) limited to transfers of shares for no or inadequate consideration; fresh issuances excluded from its scope. Section 56(2)(viia) applies only where a specified company or firm receives shares of a specified company through transfer for no or inadequate consideration as an anti abuse measure; it does not apply to receipt of shares resulting from fresh issuances such as bonus, rights or preference shares by the specified company.
West Bengal Goods and Services Tax (Fourth Removal of Difficulties) Order, 2018
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Furnishing of electronic GST statements: deadline extended to end of January for operators affected by portal registration failures. An Explanation inserted into the provision declares that operators who, owing to technical difficulties on the common portal, collected the specified amounts for October, November and December 2018 shall have the due date for furnishing the required electronic monthly statements for those months fixed as the 31st January, 2019, thereby providing a single extended deadline to address the registration-related filing impediment.
Directive for Data-Driven Enforcement Action and Prevention of Organized Tax Evasion under GST and E-Way Bill Systems in Uttar Pradesh Commercial Tax Department
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Data-driven GST enforcement targets organised tax evasion through portal analysis, coordinated zone action, and intelligence-based field measures. Data-driven enforcement against organised tax evasion under GST and the e-way bill system requires regional and zone-wise analysis of portal data, ... Summary
Data-driven GST enforcement targets organised tax evasion through portal analysis, coordinated zone action, and intelligence-based field measures.
Data-driven enforcement against organised tax evasion under GST and the e-way bill system requires regional and zone-wise analysis of portal data, coordinated planning by Additional Commissioners, and intelligence-based field action. The directive calls for detailed study of GST, e-way bill, SIB Management System, Mobile Management System, red flag dealer, registration, non-filer, return scrutiny, and headquarters input data to identify transport companies, vehicles, commodities, routes, timing, and other patterns associated with suspected evasion. Where organised evasion extends across more than one zone, officers may be authorised to act outside their zone with approval of the Commissioner.
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