Newsletter

An application was filed before Maharashtra AAR to determine eligibility to avail Input Tax Credit against unutilized Cenvat Credit such as Education Cess (EC), Secondary & Higher secondary Education cess (SHEC) & Krishi Kalyan Cess (KKC) lying in the books of Accounts.

Relying on decisions in the case of Cellular Operators Association of India and Kansai Nerolac Paints Limited, AAR observes that no ITC can be claimed against such unutilized CENVAT lying in the books of Accounts.

With a view to provide relief to the imports made for rehabiliation of Kerala, the Central Government exempts Basic Customs Duty and IGST on goods imported for donation purposes, subject to conditions provided in the Notification.

In respect of recent Notification allowing refund of accumulated ITC on inverted duty structure applicable to fabrics, CBIC provides  clarification to several questions raised in this regard

It clarifies that only ITC pertaining to inputs leading to such accumulation due to duty structure shall have to be lapsed and also clarifies the methodolgy for such reversal. Further, ITC pertaining to zero-rated supplies shall not be lapsed 

Govt. has decided to extend the due dates of filing the GST returns for all taxpayers registered in the State of Kerala, Mahe (Puducherry) and Kodagu (Karnataka).

The revised due dates of filing GSTR-3B and GSTR-1 for months of July 2018 and August 2018 are 05 October 2018 and 10 October , 2018 respectively.

However, in case of taxpayers with turnover upto 1.5 crores, the due date of filing GSTR-1 for the quarter July to September 2018 has been extended to 15 November 2018.

As per the News flash on GSTN portal, the Due date for GSTR-3B for the month of July 2018 has been extended from 20 Aug 2018 to 24 Aug. 2018.

However, an official Circular/ Notification to this effect is yet to be issued by CBIC.

AAR has held that transaction of transfer of business as a whole in the nature of a going concern amounts to supply of service attracting GST at NIL rate

However, the AAR does not provide any clarity on need for reversal of Input Tax Credit pertaining to such transfer.

An application was filed before Karnataka AAR to determine if the services provided by employee in one location for managing other locations would be taxable under GST or not.

The AAR observed that such services would represent supply between distinct persons and would fall outside the scope of employer-employee relation

Such a view is likely to impact a lot of taxpayers and trigger litigation since it is a common practice to have a centralised management and support team, irrespective of number of offices / registrations in other states

An application was made before the AAR to determine if the activity undertaken by application would classify as zero-rated supply even when the same is not classified as authorised operations by the proper officer of the SEZ.

The AAR has held that  even in the event of the IGST Act not explicitly using the term "authorised operations" in Section 16(1)(b), it is implicit that the supply of goods or services or both described in Section 16(1)(b) have to be read as in relation to authorized operations. 

CBIC notifies the time limit to file GSTR 1 for filing monthly return (i.e taxpayer with aggregate turnover more than 1.5 crore) till 11th of next month.

Also due date to file GSTR 1 for filing quarterly return (i.e taxpayer with aggregate turnover upto 1.5 crore) have been provided as the last date of month following the end of quarter.

Further, the CBIC also clarifed that GSTR-3B would continue to be filed till March 2019 and due date shall be 20th of next month for payment as taxes as well as filing GSTR-3B.

Finance Ministry issues clarification on GST rate of 11 items including fortified milk, bus body building disc brake pad etc.