Important Changes in GST Law w.e.f. 01st January 2022
Following is the gist of important changes being brought about in the GST law w.e.f. 01st January 2022: Mandatory Aadhaar authentication is required for claiming refunds under GST Blocking of the facility of filing GSTR-1 in cases where the business has not paid taxes and filed GSTR-3B in the immediate previous month. Power given to […]
Unavailability of Input Tax Credit in certain instances
As per Section 16 of the CGST Act 2017, a taxpayer is allowed to avail Input Tax Credit only if such goods or services are used in course of furtherance of the business along with certain other conditions. On the other hand Section 17(5) restricts ITC on certain goods & services & is thus ineligible. […]
ITC of inputs used in manufacturing cakes and pastries which were expired has to be reversed: AAR
GST : Expired cakes & pastries that were kept in display for use in course or furtherance of business of bakery being destroyed are covered under non obstante clause (h) of section 17(5) of CGST Act and thereby ITC on inputs used in manufacturing expired cakes & pastries is not admissible and required to be […]
CBIC clarification on GST rates applicable to Cloud Kitchens and Ice-Cream Parlors
The CBIC has issued clarifications with reference to GST rates of certain services on the basis of recommendations of the GST Council in its 45th meeting held on 17th September, 2021 through its Circular No. 164/20/2021-GST dt. 06th October 2021: Services by cloud kitchens/central kitchens: The word “restaurant service‟ is defined in Notification No. 11/2017 […]
GST: Gist of recent clarifications- Part II
The CBIC has recently clarified some very pertinent issues plaguing the GST taxpayers as follows: Which of the following dates are relevant to determine the ‘financial year’ for the purpose of section 16(4): (a) date of issuance of debit note, or (b) date of issuance of underlying invoice?: W.e.f. 01.01.2021, in case of debit notes, […]
GST: Gist of recent clarifications- Part I
Clarification on doubts related to scope of “Intermediary”– The concept of intermediary services requires some basic prerequisites: a) Minimum Of Three Parties: This arrangement requires a minimum of three parties, two of them transacting in the supply of goods or services or securities (the main supply) and one arranging or facilitating (the ancillary supply) the […]
Basic Company Law Compliances that we often fail to undertake..
Company Law mandates multiple compliances for a company, few of which are routine & basic in nature. But many a times these are the ones that we fail to undertake. ROC non-compliance brings huge amounts of penalties & therefore it is imperative that we are aware of these basic but often over-looked compliances that every […]
Applicability of Tax Audit for AY 2021-22
A. Tax Audit Limit for Individual/HUF/firm engaged in Business: Turnover exceeds Rs. 5 crore: Tax Audit under the Income Tax Act 1961 is applicable to all entities if the total sales, turnover or gross receipts (as the case may be) in a business for the year exceeds Rs. 5 crore. 2. Turnover is between Rs. 2 […]
Decoding the newly introduced Section 194Q for deduction of TDS
W.e.f. 01st July, the Government has introduced a new provision for deduction of TDS u/s 194Q, the applicability of which is being reproduced below in a simplified point by point manner: 1. Deduction in which case: Purchase of goods (including capital goods) from a resident seller (This implies that import transactions are out of the purview of this section) 2. Event […]
Navigating GST Complexities: ITC Reversal for non-payment of vendor invoice within 180 days
Second & Third Proviso to Section 16(2) of the CGST Act 2017 provide that: “Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon […]