GST

In 2017, India adopted a new tax rule called GST, or Goods and Service Tax. This comprehensive tax structure replaced the complex indirect tax system already prevailing in the country. With the implementation of GST, a uniform tax system became applicable and headed by the GST council - a constitutional body comprising members representing central...

The 49th GST council meeting chaired by the Finance Minister, Smt Nirmala Sitharaman, discussed many issues at length but delivered only on a few fronts. While a lot was expected from the meeting, only the following major points were the outcome: Exports of pan masala, gutka, and chewing tobaccos are to be allowed against LUT...

GST law is based on the value added concept whereby one is required to pay tax only on the value he adds in the goods or services he deals in. This concept works on the mechanism of Input Tax Credit. However, GST law provides a list of items on which ITC is restricted and therefore...

A question that often arises in a common buyer’s mind is whether or not they will get ITC on purchases like phones, watches, I-pads, etc. which was purchased for business use. They find it hard to distinguish whether it is used for office purposes or personal consumption, owing to the thin line between the two.  ...

A lot of car dealers get this question from their customers, what is the GST provision on the credit admissibility on purchase of a motor vehicle and the repairs done on it? From the customer’s point of view, section 17 (5) of CGST Act clearly states, if a motor vehicle has a capacity of fewer...

We are just 2 days away from a historical, promised budget where the Hon’ble Finance Minister, Nirmala Sitharaman, will give her third budget speech on Feb 1.  We hope that this new Union Budget infuses hope in the economy, especially for the infrastructure sector that is reeling. It should provide a road map to the...

All tax-paying businesses are eligible for a certain amount of Input Tax Credit (ITC) on the GST paid for goods that were purchased for reselling. This is one of the basic tenets of taxation law. But what happens if the supplier of those goods hasn't paid their GST? Can the purchaser avail for ITC under...

Let us suppose that a car dealer owns a warehouse full of cars. Due to a natural calamity, this warehouse is flooded. All the cars are damaged - some completely, others partially. In this situation, what happens to the ITC claim of the dealer on those cars? What does the GST Act provide for on...

Bringing a fair conclusion to the long-disputed issue of whether or not ITC is admissible on GST paid for promotional expenses, the Karnataka bench of Authority for Advance Ruling (AAR) ruled that ITC will be available on such cases. As the supply of promotional goods within related parties, such as franchise, is considered a 'taxable...