"12 May 2020" Archive

GST Series: Part 1 Section 3 to Section 6 of CGST Act 2017

The Part 1 of the series covers section  3 to section 6 of CGST Act 2017 which deals with appointment of the officers, power and authorization given to the officers under the GST Act....

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How to write a Reply to Show Cause Notice under GST?

Before resorting to the assessment, the GST authorities shall issue a show cause notice proposing the tax due to the department basing on the information submitted in compliance to the assessment notification. The GST authorities shall call for the objections, if any, and then the registered   person, in reply to the show cause notice h...

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GST- Employee Welfare Expenses– Higher ITC under COVID-19

In this period of economic difficulties, it is imperative for each business to evaluate possible measures to reduce the cost. One should closely look at all expenditure where input tax credit has not been taken in the past to evaluate if there exist possibilities of availing due to change in the law or judicial developments....

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Old Vs New GST Returns- New Return Forms and features

The New Return System proposed under Goods and Services Tax (GST) was implemented on trial basis from 1st July, 2019 with 1st October, 2019 being date when the same would be mandated for all taxpayers in phased manner. But, the GST Council in its 37th Meeting held on 20th September, 2019 in Goa decided to […]...

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Draft Engagement letter & Management representation on GST Audit

Article contains Draft Format of Engagement letter on GST Audit and Draft Format of_Management Representation on GST Audit. However the Auditor needs to understand the limitations of management representations as audit evidence....

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Input Tax Credit under GST – Real Estate Sector

For Real Estate Sector, one of the most important aspect after introduction of Goods and Services Tax Act, is to calculate 'Eligible Input Tax Credit'....

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ITC Reversal on supply of Capital Goods- Controversy between section & rule

On Supply of Capital Goods, ITC shall be reversed. The manner of calculation of amount of ITC to be reversed is prescribed in section and rules. But both do not coincide. Let us understand the nuances of section and rules to decide the method to be adopted....

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Composition Scheme For Service Provider Under GST Act

Composition Scheme under GST was earlier available to only the Suppliers of goods. However, in 32nd GST Council Meeting, it has been recommended that the scheme shall be made  available to service providers too. The scheme for service providers is available from  1 April 2019 . The composition scheme for service providers gives an opti...

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No GST On Whole Time Director’s Salary: AAR Karnataka

The very purpose of setting up the concept of Authority for Advance Ruling under GST is to provide clarity and to remove ambiguity in terms of the unanswered question in GST law. It is a kind of knowing the correct interpretation of GST Act from the Government (i.e.Authority) itself which will help reduce disputes and […]...

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GST on Director Remuneration – A Detailed Analysis

An Order of Rajasthan Authority for Advance Ruling (AAR) in case of M/s CLAY CRAFT INDIA PVT. LTD. (JAIPUR)(Order No. RAJ/AAR/2019-20/33 date 20th Feb,20) held that remuneration payable by company to its directors is taxable and attract GST under reverse charge. This order has left all the company taxpayer in dilemma whether to pay GST [&...

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