Srinivasan Krishnamachari
Contact Info
K.Srinivasan IRS(C&CE) is a Former Assistant Commissioner of GST,Chennai. He writes regularly on Indirect Tax Laws, Macro Economics and General Laws. He is a senior Guest Faculty at NACEN, Chennai and a CBIC Master Trainer of GST. He has trained a large number officers of the Center and State Tax Departments. He has a long association with the Board of Studies of ICAI/ICMA/ICSI. He regularly addresses all trade bodies and chambers across the country on Indirect Tax Laws and GST. He has been chosen for the Presidential Medal and Certificate of merit for the year 2019 for his outstanding contributions to the smooth implementation of the Government's major tax reform GST and for acting as a bridge between the Government and trade. He currently works as a Senior Associate,Indirect & Corporate taxes, at a Chennai based Law firm RANK Associates. E.mail [email protected]
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Refunds for tax paid under wrong tax head: timing and procedural treatment under GST refund provisions clarified.
Refunds where tax was paid under the wrong tax head follow the interplay of Section 77 (CGST) and Section 19 (IGST): mischaracterised intra State or inter State supplies require cash refund claims and fresh deposits under the correct tax head with statutory waiver of interest for the fresh deposit. The author argues that, because refund procedure is expressly linked and interest is waived, the ordinary two year limitation should not bar such refunds and unjust enrichment need not be tested, though refunds are to be processed under the regular refund mechanism and Rule 89. (AI Summary)
Goods and Services Tax - GST
Classification of supply determines whether transfers of business assets constitute taxable supplies under GST rules for transfers of assets.
The article analyses an AAR ruling treating permanent disposal of pre-GST capitalised fixtures as a supply of goods under Schedule II entry 4(a) because the assets ceased to form part of the business, and critiques the AAR's view that Schedule II operates only after insertion of Section 7(1A). The author stresses Schedule II is classificatory and cannot act independently of Section 7(1), and observes that Section 7(1A) has retrospective effect to GST's commencement, thereby affecting the temporal application of Schedule II classifications. (AI Summary)
Goods and Services Tax - GST
Export refunds for services: proof of foreign exchange realization and bond/LUT choice determine GST refund paths.
Export refunds for services require proof of convertible foreign exchange realization and BRC/FIRC documentation; exporters may elect the bond/LUT route to treat supplies as Zero rated and claim refund of unutilised Input Tax Credit under Section 16(3)(a) without a statutory time limit, or pay IGST and seek refund under Section 16(3)(b) subject to the two-year refund limitation in Section 54, while Rule 96A mandates IGST payment with interest if realisation does not occur within one year. (AI Summary)
Goods and Services Tax - GST
Refund of payments lacking legal sanction: amounts paid without statutory authority are recoverable despite the one year refund bar.
Erroneous payments made without legal authority under excise, customs, service tax or allied cesses lose the character of tax and are recoverable irrespective of the statutory one year refund window that applies to payments made under authority of law. Where retrospective exemption, contract frustration, or absence of liability removes legal sanction, the amount is treated as a deposit refundable provided no unjust enrichment exists. Recovery is nevertheless subject to equitable limitation principles, and a reasonable period (proposed three years) is suggested for claiming such refunds to balance taxpayer rights and administrative certainty. (AI Summary)
Goods and Services Tax - GST
Anti profiteering rules may require businesses to pass GST cost savings through to consumers, despite measurement challenges.
The statute creates a statutory anti profiteering regime empowering an authority to examine business cost bases and determine whether tax rate reductions or enhanced input tax credits from GST have been passed to consumers, with power to recover gains not passed on. Effective enforcement depends on access to price data, clear measurement methods to isolate tax related price effects from other commercial factors, and calibrated procedures to distinguish legitimate profit from unlawful profiteering. (AI Summary)
Goods and Services Tax - GST
Place of supply: renting immovable property in India can attract IGST and require registration or designated payer.
Where renting of immovable property is involved, the place of supply is the location of the property; thus, even when both supplier and recipient are located outside India, a transaction concerning immovable property situated in India can be treated as taxable. This may be achieved by construing the supply as an import of service or by applying Section 13 liberally, invoking Section 7(4) or the residual clause in Section 7(5)(c), and by requiring registration or designation of a person in India to discharge IGST liability, notwithstanding administrative and legal tensions that arise. (AI Summary)
Goods and Services Tax - GST
TaxTMI 
TaxTMI 
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01 May 2020 
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