1. Lot of confusion presently prevails as to whether registered persons under GST are required to undergo an GST audit by a Chartered Accountant or a Cost Accountant if the turnover of such persons exceed INR 2 crores. Let us look at the current legal provisions with regard to the said subject. Sec. 35(5) of […]
We have come across cases wherein the tax invoice on the basis of which input tax credit (ITC) is availed do not contain all the particulars as stipulated by law. As an example place of supply or SAC is not stated. Issue for the present article is whether ITC can be validly claimed on such defective invoices ?
Subject of cross charge (applicable on transactions between separate registrations of a single person) has been vigorously debated since the implementation of GST. In the present article we seek to communicate our views on the said subject.
If the value of scrap is treated as a consideration it will be taxed not only in the hands of the job worker but also in the hands of the registered supplier. This is because Sec. 7(1)(a) of the CGST Act, 2017 construes any supply of goods by way of barter in the course or furtherance of business as a transaction leviable to tax.
Authority on Advance Rulingsin Karnataka held in the case of Gogte Infrastructure Development Corporation Ltd that the supply of hotel accommodation services by a hotel situated outside the SEZ to a unit in SEZ shall not enjoy the benefits of zero-rating and hence will be taxed.
One needs to thus understand as to when the completion certificate is issued and also when will first occupation take place. Only then can one determine the relevant date after which sale of units where entire consideration is received after such relevant date will not be subjected to GST.
Since last two months we have witnessed some advance rulings which have created panic in the trade and industry. We have already expressed our reservations on few rulings with a detailed write up earlier. Here we attempt to summarize few of such rulings along with our comments in brief.
If GST officer is allowed to challenge the accounting treatment it shall result in two different financial results under the GST Laws and under the Income Tax Laws. Same cannot be accepted as held in the case (supra).
Sometimes it happens that a supplier incurs certain expenses (e.g. travelling) and seeks reimbursement of the same along with his charges from his customer. Such supplier shows the reimbursement amount separately in the invoice. Can he avoid GST liability on such reimbursement is the issue for discussion in the present article ?
Many times a customer located outside India places an order on an Indian manufacturer to supply certain components. For manufacture of these components Indian supplier is required to incur certain costs for designing the tools. Said cost is recovered from the customer as tool development charges.
