GST Rate to be reviewed by GST Council

The GST Council is scheduled to meet on 18th December to review GST rates.

This is necessitated by the consistent fall in both the GST and Compensation Cess collections.

Also the States, particularly opposition ruled States have been applying pressure on the Centre to release GST payments immediately as Rs 50,000 cr cess lies unutilised.

This GST review more specifically covers exempted items, items with inverted rates, compensation cess rate. This may lead to GST rates on certain items being raised. 

 

Central Excise & Service tax Amnesty Scheme

  1. 1. Chapter V of the FA 2019 (full text of SVLDR Scheme)
  2. 2. SVLDR Rules
  3. 3. SVLDR Notification No 4/2019
  4. 4. CBIC Circulars dated 28.08.2019 and 25.09.2019
  5. 5. FAQs on SVLDR
  6. 6. SVLDR Departmental presentation
GST Optimisation Part 2

This is the 2nd Part of the set of videos on “GST Optimisation”. It explains how indirect tax cascading still continues in India even after implementing GST. The video covers specific situations in which tax cascading happens. This video is meant for the general public and not exactly the tax experts. So the language is simpler devoid of sections, rules, technical expressions and tax jargon.

https://www.youtube.com/watch?v=pohxDYOjLNU&t=226s

GST Optimisation Part 1

This is the first part of a three part video set on Tax Optimisation, more specifically GST Optimisation. Its created for those who are not too familiar with taxation and yet keen to understand and benefit by optimising on taxes. This can be useful for people handling indirect taxation too as the aim of these videos is to conceptually clarify the subject.

https://youtu.be/tWWb9ClOOZg

"The Indian GST Story" by Anthony Fernandes - Founder of Tax Quotient


1st June 2019

 

 
   

 

Recent Court / Tribunal Judgements

 CESTAT Decisions

 

18th October, 2018 : CESTAT Mum : UPS Jetair Express Private Limited   Vs Commissioner of CGST, Mumbai East 

Revenue denied CENVAT credit only on the ground invoices didn't mention the registration number of the service provider. No other allegations were made regarding receipt of input services, eligibility etc.

Held : This is merely a procedural lapse. It is settled that CENVAT credit can't be denied on mere technicalities or procedural lapses.

CENVAT credit allowed, extended period of limitation not applicable.

Ed's comment : Isnt it surprising that a Senior Officer like Prin. ADG, DGPM, WRU, still needs to catch up with decades old case law regarding Modvat and Cenvat? It's repeatedly held procedural lapses aren't reason enough to deny credit. How will the dept reduce litigation? Should Tribunal for fairness?

18th October, 2018 : CESTAT Ahd : M/s Auto Care Lubricant Vs C.C.E. & S.T.-Vapi
The Tribunal relying on an earlier decision in Castrol India Ltd, held :
“The authorities under the Standards of Weights and Measures Act are the best judge to decide as to whether a product is required to be affixed with a MRP under the said Act or not. If said authority has clarified that 210 ltr. barrel are not required to be affixed with MRP, it was obligatory on the part of the Excise authority to accept such decision of Controller of Legal Metrology authority….., it was not open to the Excise authority to doubt the decision of the authority under Standards of Weights and Measures Act and to proceed independently ….”

18th October 2018 : CESTAT Ahd : M/s Javiya Finance Services, Javiya Marketing Vs C.C.E.& S.T.- Surat-I
The appellant were providing service of identifying customers for car loans and receiving commission from ICICI Bank. This was to be taxed under Business Auxiliary Services (BAS).  

The appellants admitted taxability but argued they were under bonafide belief the services are not taxable and so extended period of limitation should not be invoked.
Held : "The definition of Business  Auxiliary  Services  is  very  clear  and  there  is  no  scope  of interpretation. The definition specifically includes the service of promotion or marketing of any service of the client within its ambit." Appeals dismissed.

 

 12th Oct : CESTAT Mum : Tahnee Heights CHS Ltd. Vs Commissioner of CGST, Mumbai South : Held : "The appellant also do not provide any service to its members, who pay the amount towards their share of contribution, for occupation of the units ....the explanation furnished under clause 3(a) in Section 65B of the Act will not designate the appellant as an entity, separate from its members....the case of the appellant is not confirming to the requirement of 'service', as per the definition contained in Section 65B(44) of the Act."

10th Oct : CESTAT Ahd :  L & T Ltd. etc Vs C.C.E. Ahd Appellants argued the law and IS specifications had changed for their product "concrete mix" made at site. It was eligible for the exemption making the earlier Supreme Court judgement in their own case irrelevant.

Tribunal ruled that there is no change in the  C.Ex Tariff Heading description as far as ready mix concrete is concerned. There is no mention of any IS Specification anywhere in the SC judgement. So changes in IS Specifications cannot be used to distinguish the decision of Hon’ble Apex Court. Demand beyond the period of limitation set aside. Personal penalty quashed as this is a case of interretation.

11th Oct : CESTAT Chennai : M/s. Pepsico India HPL Vs Commr of GST & CE, Chennai Outer : The appellants had paid excess central excise duty for which they utilised the CENVAT credit. On realizing this they suo moto took re-credit of the excess amount debited from the Cenvat account.

Held:  Following the said decisions of the High Courts, The impugned order and demand was set aside.

High Court Judgements

 

2nd July, 2018  : Allahabad High Court : Hamdard (Wakf) Labs Vs Commr Of Commercial Taxes : The High Court upholds the Tribunal order and holds that "Sharbat "Rooh Afza" is not unclassifiable under Schedule-V of the Act and liable to tax @ 12.5%. It is neither fruit juice nor fruit drink nor processed fruit.

 2nd July, 2018 :  Delhi High Court : JOYCE KAROUNG Vs NARCOTICS CONTROL BUREAU : Relying on the SC judgment in Babua v. State of Orissa, (2001) 2 SCC 566 the High Court concluded the petitioner is not prima facie not guilty. Also, liberty of a citizen must be balanced with the interest of the society especially where narcotic drugs and psychotropic substances are involved. It is alleged that this is not the first offence.
   
   

Click for earlier Judgements in 2018

Budget 2018-19 Highlights in bullets

The Finance Minister begins to address the Parliament with his Budget Speech at 11.00 am soon after theHon'ble Speaker Ms Sumitra Mahajan completed her obituary for BJP MP from Palghar, Maharashtra, Chintaman Wanaga.

 

Part A of the Speech - Expenditure

  • FM says "This year's Budget will focus on agriculture, infrastructure and healthcare"
  • The FM recounted the PMs call to double farmers income by 2022.
  • Agricultural activities to receive Rs 11 lakh Crore for agricultural credit
  • Air pollution is a serious concern, a Special scheme to address air pollution in National Capital Region
  • Bamboo sector to receive allocation of Rs 1290 Crore
  • Rs 10,000 Cr to be deployed for Fisheries Development Fund & Animal Husbandry
  • MSME sector to receive allocation of Rs 4934 Crores
  • MSP for crops have been increased to 1.5 times
  • Ujwala Yojana to provide free gas connection to 8 Crore rural women
  • The Govt target to build 2 Crores toilets in the next 2 years
  • Allocation of Rs 5750 Crore for National Livelihood Mission
  • Segmentation of education from pre-nursery to 12th Class to be abolished
  • Eklavya schools to be set up for tribal children
  • A Railway University has been proposed to be set up in Vadodara
  • Rs 1200 Crores allocated for Health & Wellness centres
  • National Health Protection to insure poor and vulnerable to provide Rs 5 lakhs per year per family to cover 10 Crore families or 50 Crore individuals
  • Plan to set up 24 new Government Medical Colleges and Hospitals
  • Allocation of Rs 600 Crore for provide supplement for all TB patients during the period of treatment
  • Allocation of Rs 1 lakh Crores for educational infrastructure
  • Textile sector to receive allocation of Rs 1748 Crores
  • 99 cities to receive an outlay of Rs 2.04 lakh Crores under Smart City mission
  • To develop 10 tourists sites as iconic tourist destinations
  • Additional suburban network of 150 kms - allocation of
  • Redevelopment of 600 railway stations.
  • All trains will eventually have cctv and wifi.
  • Capacity of airports to be enhanced to handle 1 billion trips annually
  • Use of crypto-currency is illegal and will be curbed.
  • Toll payment to be converted to electronic payment
  • The is an expected income of Rs 1 lakh Crore on disinvestment during 2017-18 which is higher than the target. The disinvetment target for 2018-19 is Rs 80,00 Crores.
  • Aadhar like ID's proposed to cover enterprises
  • Fiscal deficit proposed for 2018-19 to be 3.3% of the GDP. For the year 2017-18 it stands at 3.5%
  • MP emoluments will be automatically revised every 5 years and will be indexed to inflation.

 

Part B of the Speech - Tax Proposals

  • Personal Tax collections increases by Rs 90,000 Crores.
  • Effective tax payers now stand at 8.27 Crores
  • Full exemption for agricultural firms upto Rs 100 Crores
  • No changes in IT rates for individuals. However salaried person to get a higher standard deduction of Rs 40,000/-. To benefit 2.5 Crore taxpayers.
  • Senior citizens will get a benefit of Rs 50000 on interest earned on deposits in banks & PO also no TDS on such interest upto Rs 50,000 crores.
  • Senior citizens will get a benefit of Rs 50,000 on medical insurance expense.
  • Long term capital gains tax to be tax @ 10% without any indexation. However the capital gains to be computed on the basis of of price of the share as on 31st January, 2018 will become the basis.
  • Indirect Tax - no changes in GST
  • Central Board of Customs and Excise to be changed to Central Board of Indirect Taxes
  • Customs Duty on mobile phone increased from 15% to 20%.

 


Tax Risk Management Part 1

An Introduction

 

Risk comes from not knowing what you’re doing. 
- Warren Buffet

Read the Article

 

Tax Risk Management Part 2

Tax Risks as Black Swan Events!

If you were asked "What 'tax risks' you perceive in your business?" What would be your answer?

Read the Article

 

 

Indirect Tax Risk Management

Indirect Risk Tax Management
 

 

 

 

Economic Survey of India 2017-18