GSTN Issues Advisory On “Initiating Drop Proceeding” By Taxpayers

The Goods and Service Tax Networks (GSTN) has issued an advisory on “Initiating Drop Proceeding” by taxpayers.On the GST Portal, a feature known as Automated Drop Proceedings of GSTINs suspended due to non-filing of returns has recently been introduced. The taxpayers who have submitted their pending 6 monthly or 2 quarterly returns are eligible for this functionality.The GSTN has instructed the taxpayers to click "Initiate Drop Proceeding" to end the suspension once the required returns have...

CBIC Issues Clarification Regarding GST Rates And Classification Of Goods On 48th GST Council Recommendation

The Central Board of Indirect Taxes and Customs (CBIC) has issued the clarification regarding GST rates and classification of certain goods based on the recommendations of the GST Council in its 48th meeting held on 17th December 2022.1. 18% GST Applicable On RabRab can be correctly classified under the heading 1702 and is subject to an 18% GST rate.A request for clarification regarding the definition of "Rab" has been received. It has been stated that "Rab" refers to "massecuite prepared by...

Circular Regarding Mismatch Of ITC Is Applicable For 2019-20 In Case Of Identical Errors: Karnataka High Court

The Karnataka High Court has held that the circular regarding the mismatch of input tax credit (ITC) is applicable for 2019–20 in the case of identical errors."Though the Circular refers only to the years 2017–18 and 2018–19, since there are identical errors committed by the petitioner not only in respect of the assessment years 2017–18 and 2018–19 but also in relation to the assessment year 2019–20 also, I am of the view that by adopting a justice-oriented approach, the petitioner would be...

Clinical Establishments Providing Health Care Services Are Exempted From Service Tax: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has observed that clinical establishments providing health care services are exempt from service tax.The two-member bench headed by Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that healthcare services are provided by clinical establishments by engaging consultant doctors. For the services, an amount is collected from the patients. It is shared with the doctors by the clinical...

Responsibility Of Assessee To Know The Eligibility Before Making Export Benefits Claim: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the appellant made a wrong claim of export benefit under MEIS, having been misadvised by the Customs House Agent (CHA).The bench of Anil Choudhary (Judicial Member) has observed that it was the responsibility of the appellant to understand the eligibility and the conditions before making a claim for the export benefits. However, the goods were not prohibited goods. The fine and penalty are on the...

State Of Tripura Has No Jurisdiction To Levy VAT For Supply Of LPG Cylinder Under Work Orders Executed Outside The State: Tripura High Court

The Tripura High Court has ruled that the State of Tripura has no jurisdiction to levy VAT under the Tripura Value Added Tax Act, 2004 (TVAT), on transport or supply of LPG cylinders to Tripura under the work orders executed outside the State. The bench of Acting Chief Justice T. Amarnath Goud and Justice Arindam Lodh held that that the situs of the sale would be the place where the contracts were executed. The Court further held that transport of LPG cylinders by the assessee under the...

Importers To Furnish Additional Information At Customs Automated System While Filing A Bill Of Entry In Case Of "Specified Goods": CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has notified the Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023 (CAVR, 2023), which shall come into effect on February 11, 2023.The Board has informed importers that, when filing a bill of entry for "specified goods," they will need to provide additional information in the Customs Automated System.The rules offer directions to both the person referring something to the board and the person conducting a...

Bombay High Court Quashes Reassessment Order On Asian Paints In View Of Full Disclosure

The Bombay High Court has quashed the reassessment order as the assessee, Asian Paints, disclosed fully and truly all facts material and necessary for the assessment.The division bench of Justice Dhiraj Singh Thakur and Justice Valmiki SA Menezes has observed that the reasons do not disclose what material or fact was not disclosed by the assessee.The petitioner/assessee is a public limited company engaged in the business of manufacturing and selling paints, varnish, primer, etc. The business is...

TDS Not Applicable To Salary/Commission Paid To Partners: ITAT

The Gauhati Bench of the Income Tax Appellate Tribunal (ITAT) has held that the TDS is not applicable to salary or commission paid to partners.The two-member bench of Sanjay Garg (Judicial Member) and Manish Board (Accountant Member) observed that salary, bonus, remuneration, or commission are collectively referred to as "remuneration," and the remuneration paid during the year is within the permissible limit set forth in section 40(b)(v) of the Income Tax Act.The respondent/assessee is a...

Subsumption Of Service Tax Will Not Absolve Liability To Pay GST If Service Tax Was Agreed To Be Paid In Agreement : Telangana High Court

In a Writ Petition, the Telangana High Court ordered that the Petitioner is liable to pay the GST on the license fee in place of service tax as the Petitioner was paying service tax separately under the terms of Deed of License. The petitioner was granted license by the Telangana State Road Transport Corporation to set up business for running popcorn stall on payment of agreed license fee and for the said purpose she had entered into agreement titled ‘Deed of License’. Sri....

CBIC Extends Levy Of Anti-dumping Duty On Fishnet Exported From China Till July 9, 2023

The Central Board of Indirect Taxes and Customs (CBIC) has extended the levy of ADD on fishnet/fishing nets exported from China till July 9, 2023.Previously, the CBIC issued Notification No. 20/2018-Customs (ADD) dated April 10, 2018, which imposed a definitive anti-dumping duty (ADD) for a five-year period on imports of fishnet or fishing nets coming from China or Bangladesh.The levy of ADD on fishnets or fishing nets originating in or exported from China PR will now be extended from April 9,...

CBDT Abolishes Limit Of Rs. 5,000 For Submission Of SFT In Relation To Interest Income

The Central Board of Direct Taxes (CBDT) has removed the limit of Rs. 5,000 for the submission of a Statement of Financial Transactions (SFT) in relation to interest income with effect from January 5, 2023.With the exception of "Jan Dhan Account" holders, the information in SFT must now even include information about account holders earning interest income up to Rs. 5,000.Specific individuals are required by Section 285BA and Rule 114E to report interest transactions in Statements of Financial...