Goods & Service Tax

Summary of the key points discussed in the 54th GST Council meeting today: 1. Goods: Namkeens and Extruded/Expanded Savoury Food Products: GST rate reduced from 18% to 12% for extruded/expanded savoury products (except un-fried/un-cooked snack pellets). Cancer Drugs: GST rate on Trastuzumab Deruxtecan, Osimertinib, and Durvalumab reduced from 12% to 5%. Metal Scrap: Reverse Charge Mechanism (RCM) introduced for supply of metal scrap by unregistered persons to registered persons; TDS of 2% on supply by registered persons . Railway AC Units: Roof Mounted Package Unit (RMPU) air conditioning machines for railways to attract 28% GST. 2. Services: Life and Health Insurance: Group of Ministers (GoM) to study GST issues on life and health insurance and report by October 2024. Passenger Transport by Helicopter: GST @ 5% on helicopter passenger transport (seat share); 18% for charter services. Flying Training: Approved flying training courses by DGCA-exempted organizations exempted from GST. Re...

  Note: The recommendations of the GST Council have been presented in this release containing major items of decisions in simple language for information of the stakeholders. The same would be given effect through the relevant circulars/ notifications/ law amendments which alone shall have the force of law. Amnesties: 1.        GST Council recommends waiving interest and penalties for demand notices issued under Section 73 of the CGST Act (i.e. the cases not involving fraud, suppression or wilful misstatement, etc.) for the fiscal years 2017-18, 2018-19 and 2019-20, if the full tax demanded is paid upto 31.03.2025. 2.        Insertion of Section 128A in CGST Act, to provide for conditional waiver of interest or penalty or both, relating to demands raised under Section 73, for FY 2017-18 to FY 2019-20 : Considering the difficulties faced by the taxpayers, during the initial years of implementation of GST, the GST Counc...

NEW DELHI: There is bad news for entities that availed of input tax credit (ITC) for GST based on bogus invoices without receiving the goods. The Allahabad high court has dismissed a petition and ruled that evidence of payment of toll and freight is required to be submitted to prove genuineness of a transaction. The order came in a case filed by Malik Traders, which deals in waste materials and scrap, and had claimed input tax credit of over Rs 6 lakh from April to September 2019. Tax authorities in Uttar Pradesh had rejected the claim and penalty of over Rs 6 lakh was imposed for incorrectly availing ITC, which was challenged by Malik Traders. The state argued that to avail ITC certain conditions had to be met and it could not be claimed without actual physical movement of goods or the genuineness of transaction. It said that the petitioner was duty bound to prove beyond any reasonable doubt and establish that actual transaction took place and simply furnishing the details of tax invo...

📢 Output Reconciliation ➡️ a. Reconcile GSTR-1 and GSTR-3B with the company's financial records to identify and rectify any discrepancies. ➡️ b. Verify and reconcile electronic invoices (e-invoices) with the financial records and the Invoice Reference Number (IRN) portal. ➡️ c. Match and reconcile E-way Bill data with the financial records and GST returns. ➡️ d. Verify and reconcile debit and credit notes with the financial records and GSTR-1 & GSTR-3B. ➡️ e. For export transactions, cross-reference shipping bill details with the information reported in GSTR 1. ➡️ f. Ensure accurate reconciliation of nil-rated, exempt, and non-GST supplies as per the financial records and GST return filings. 📢 Input Reconciliation ➡️a. Reconcile Input Tax Credit (ITC) available and actually availed as per the company's financial records with the figures reported in GSTR-3B. Rectify any discrepancies found. ➡️ b. Initiate communication with suppliers when inputs reflected in GSTR-2B do not...

*TCS @ 20% from 01-10-2023 on foreign remittances: Important features* 1. *Exemption thershhold limit of 7 lacs* per financial year per individual shall apply to remittance under liberalized remittance scheme (LRS). No threshold exemption for overseas tour packages 2. *TCS Rates for LRS*: On amount exceeding Rs. 7 lacs, TCS shall be collected : i. @ 0.5% on remittance for *education financed by loan* taken from financial institution ii. @ 5% on remittance for *education not financed* by financial institution. Note : Remittance for *education shall include* tickets for study abroad, tuition fee and other fee to educational institute and other day to day expenses under *codes S0305 or under S1107* iii. @ 5% on remittance for *medical treatment* (including ticket of patient and his attendant and medical expenses and day to day expenses for medical treatment) made under *Code S0304and Code S 1108*. iv. @ 20% on *any other purpose* for remittance under liberalized remittance scheme. 3. *Lib...

  SONEPAT TAX BAR ASSOCIATION   Ms Kumud Singh Addition ETC(CMG/HRMS/PMG/CFMS/Enf)   Re:    Formal Complaint Against Officer Sh. Rajpal AETO (Enf), presently posted at Jagadhari.   Most respectfully submitted as under:   1.      We are writing to bring to your attention a recent incident in which we believe our rights as a citizen were violated by Officer Sh. Raj Pal. We are deeply concerned about the officer's conduct during the incident and subsequent refusal to provide necessary documents, as well as the threatening behaviour towards taxpayers.   2.      On 07/06/2023, Officer Sh. Raj Pal, who recorded the statement in Mov-01 and handed over the copy without any description, his name, designation, and contact number, intercepted a vehicle coming from Delhi to Himachal Pradesh. An order in Mov-02 was issued for physical inspection of the goods, also without his own name and designation. ...

  Introducing Electronic Credit Reversal and Reclaimed statement 31/08/2023   “Vide Notification No. 14/2022 – Central Tax dated 05th July, 2022 (read with circular 170/02/2022-GST, Dated 6th July,2022), the Government introduced certain changes in Table 4 of Form GSTR-3B so as to enable the taxpayers in reporting correct information regarding ITC availed, ITC reversal, ITC re-claimed and ineligible ITC. The re-claimable ITC earlier reversed in Table 4(B)2 may be subsequently claimed in Table 4(A)5 on fulfilment of necessary conditions. Such reclaimed ITC in Table 4(A)5 also needs to be explicitly reported in Table 4D(1).. In order to facilitate the taxpayers in correct and accurate reporting of ITC reversal and reclaim thereof and to avoid clerical mistakes, a new ledger namely  Electronic Credit and Re-claimed Statement  is being introduced on the GST portal. This statement will help the taxpayers in tracking of their ITC that has been reversed in Tabl...