Tag: GST

Section 50-Payment of Interest in GST- Subtle differences in the language being used in the Statue regarding Interest Payable-Part-2

Calculation of Interest payable in GST has been a point of discussion for long and dust does not seems to be settling as of now in the very near future. This article is an attempt to highlight the difference in the language used in the Statute regarding the calculation of Interest wherein Situation-1-Relevant Provision refers to the interest payable under section 50 of CGST Act ...

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Is Section 50(1) applicable and Interest to be paid on ITC Wrongly availed but not utilized for making payment of output liability-What does the Statute provides

One very common issue is whether interest is payable under Section 50(1) on ITC wrongly availed but not utilized for making payment of output liability. At the outset, the issue can be further sub-divided for the sake of simplicity as follows: Situation-1-Taxpayer had the invoice and goods or service or both were received by the taxpayer and Input Tax Credit was reflecting in GSTR-2A, however ...

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#GSTCase-242- Applicability of Limitation Period given in Statute for claim of refund of amount paid by Mistake and whether such amount if refunded to the taxpayer beyond limitation period can be recovered as tax by the Revenue from the Taxpayer

Uniroyal Marine Exports Ltd. v. Commissioner of Central Excise- 122 taxmann.com 114 (Kerala) Facts of the Case- Appellant was a processor and exporter of seafood. The controversy was with respect to the refund of service tax paid by the appellant for services rendered prior to 18-4-2006 when service tax on foreign agency commission was not leviable. The appellant paid tax without demur. The High Court ...

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Passing on the benefit of input tax credit to the recipient by way of commensurate reduction in prices-Can it be a made condition through Section 171 of CGST Act, 2017 post-entitlement of ITC when Section 16(2) does not put any such restriction at the time of entitlement of ITC

It would be worthwhile to highlight that as per the provisions of Section 171(1) of CGST Act, 2017 benefit of input tax credit shall be passed on by the supplier to the recipient by way of commensurate reduction in prices. The moot point which the article tries to raise that can such condition be casted upon the supplier through Section 171 of CGST Act, 2017 ...

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Section 171 of CGST Act, 2017-Interplay between Section 50 vis-à-vis Section 171 vis-à-vis Rule 133 for levy of interest @ 18% on the profiteered amount- Power to Levy and collect interest by delegated legislation?

Today’s article briefly throws light upon the issue regarding levy of Interest under the provisions of Rules without there being an enabling provision in the Statute. Section 171 of CGST Act, 2017 Let’s take an example of Section 171 of CGST Act, 2017 which is being reproduced herewith- 171. Antiprofiteering measure.— (1) Any reduction in rate of tax on any supply of goods or services ...

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Section 171-How National Anti-Profiteering Authority was Constituted and change in terms for constitution of Authority from “by law constitute an authority” in Model GST Law to “by notification, constitute an authority” in CGST Act, 2017

Today’s post would be sharing background behind constitution of Anti-Profiteering Authority in GST Regime. For reference, both provisions under the Model GST Law released in Nov 2016 and CGST Act, 2017 are being reproduced herewith- Model Draft GST Law -Section 163- (1) The Central Government may by law constitute an Authority, or entrust an existing Authority constituted under any law, to examine whether input tax ...

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Article 246A of Constitution of India vis-à-vis Section 171 of CGST Act, 2017- Can the scope of levy and collection be enlarged to such an extent to provide for determining whether any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices-Part I

The short post today tries to put in the background limited to the extent of seeking whether Section 171 of the CGST Act, 2017 passes the test of Constitutional Validity vis-à-vis Article 246A of the Constitution of India. Article 246A of Constitution of India It is understood that by insertion of Article 246A resulted in insertion of special provision with respect to GST and empowered ...

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Rule 86B- Brief overview of the provision restricting the use of the amount available in electronic credit ledger to discharge liability in excess of 99% of output tax liability

Rule 86B (Restriction on use of Input Tax Credit for discharging the output liability) has been inserted into CGST Rules, 2017 vide notification no. 94/2020-Central Tax Dated 22nd December 2020 (Central Goods and Services Tax (Fourteenth Amendment) Rules, 2020.) The rule is effective from 1st January 2021. The salient features of Rule 86B are as follows- a) Rule 86B has an overriding impact on any ...

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Levy of Penalty in GST-General Principles on levy of penalty for presence or absence of discretion for levy of lesser penalty under provisions of law relating to civil liabilities

Section 122(1) of CGST Act, 2017 provides as hereinbelow for quantification of Penalty in GST- He shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded or the tax not deducted under section 51 or short deducted or deducted but not paid to the Government or tax not collected under section 52 or short collected or ...

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Levy of Penalty in GST-Can Multiple penalties be levied under section 122 of CGST Act, 2017 for two offences which may arise in the course of the same transaction, or from the same act of the person

Section 122(1) of CGST Act, 2017 contains a list of 21 offences and the moot question which the articles discusses is whether multiple penalties can be levied for two offences in the course of the same transaction, or from the same act of the person concerned. What is the meaning of same offence- The first step would be to analyse whether the two penalty are ...

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