CBIC Prescribes Manner Of Re-Credit In Electronic Credit Ledger Using FORM GST PMT-03A

The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular prescribing the manner of re-credit in an electronic credit ledger using FORM GST PMT-03A. The taxpayers were facing difficulties in taking re-credit of the amount in the electronic credit ledger in cases where any excess or erroneous refund sanctioned to them had been paid back by them either on their own or on being pointed out by the tax officer. In order to resolve the issue, GSTN has recently developed...

CBIC Notifies Procedure For Filing Refund Of Unutilized ITC On Account Of Export Of Electricity

The Central Board of Indirect Taxes and Customs (CBIC) has notified the manner of filing refunds of unutilized ITC on account of the export of electricity.The CBIC has received a reference from the Ministry of Power regarding the problem being faced by power generating units in filing a refund of unutilised Input Tax Credit (ITC) on account of the export of electricity. It has been represented that though electricity is classified as "goods" in GST, there is no requirement for the filing...

CBIC Issues Clarification On Claiming Refund Under Inverted Duty Structure Where Supplier Is Supplying Goods Under Concessional Notification

The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on the issue of claiming a refund under an inverted duty structure where the supplier is supplying goods under some concessional notification. The Board has received various representations seeking clarification with regard to the applicability of Circular No. 135/05/2020-GST dated 31.03.2020 in cases where the supplier is required to supply goods at a lower rate under Concessional Notification. In...

CBIC Issues Clarification On Applicability of GST Demand And Penalty For Transactions Involving Fake Invoices

The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on the applicability of GST demand and penalty for transactions involving fake invoices.A number of cases have come to light in which registered people were found to be involved in submitting tax bills without really supplying goods or services, or both, in order for the recipients of such invoices to illegally avail and utilise ITC. The CBIC has received representations from the trade as well as the field...

CBIC Mandates Furnishing Of Correct Information Of Inter-State Supplies And ITC Reversal In FORM GSTR-3B And FORM GSTR-1

The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular mandating the furnishing of correct and proper information on inter-State supplies and the amount of ineligible/blocked Input Tax Credit (ITC) and reversal in return on FORM GSTR-3B and statement on FORM GSTR-1.Over time, the procedure of submitting returns has been streamlined. With effect from December 2020, FORM GSTR-3B is auto-generated on the portal by auto-population of ITC from FORM GSTR-2B and...

Payment Towards Output Tax Can Be Made By Utilisation Of Amount Available In Electronic Credit Ledger Of A Registered Person: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on various issues pertaining to GST. The CBIC has notified that the refund in respect of deemed export supplies is the refund of tax paid on the supplies. However, the recipients of deemed export supplies were facing difficulties on the portal in claiming a refund of tax paid due to the requirement of the portal to debit the amount so claimed from their electronic credit ledger. "Considering the...

Interest Component Of EMI Of Loan Availed On Credit Card Is Not Exempt From IGST: Calcutta High Court

The Calcutta High Court has ruled that the interest component of the Equated Monthly Instalments (EMIs) of a loan advanced by a bank on a credit card is not exempt from IGST. The Single Bench of Justice Hiranmay Bhattacharyya held that the services rendered by the bank by way of extending loans amounted to credit card services and hence, the interest component of the EMI of the said loan was interest involved in credit card services, which is excluded from the exemption conferred under...

CBIC Exempts Registered Person From Filing Annual Return Whose Aggregate Turnover In FY 2021-22 Is Upto Rs. 2 Crores

The Central Board of Indirect Taxes and Customs (CBIC), on the recommendation of the GST Council, has exempted the registered person from filing an annual return whose aggregate turnover in the financial year 2021-22 is up to Rs. 2 crores for the financial year 2021-22. The CBIC has amended notification No. 21/2019-Central Tax, dated April 23, 2019, which notified the procedure for quarterly statement and payment of self-assessed tax. The Board has inserted a provision that the persons...

Limitation Period Is Not Applicable On Refund Of Service Tax Wrongly Paid: Karnataka High Court

The Karnataka High Court bench of Justice P.S. Dinesh Kumar and Justice Anant Ramanath Hedge has held that the limitation period is not applicable to a refund of service tax wrongly paid. The appellant/assessee had entered into an agreement with Professional Lien Search LLC, a company based in the USA and providing support services to real estate property buyers in the USA. The appellant's activity was to verify the information on various issues related to the property proposed to be...

Madras High Court Dismisses Plea Alleging Harassment By GST Department

The Madras High Court has dismissed the petition alleging harassment by the GST department. The single bench of Justice N. Sathish Kumar has observed that the term "harassment" is so subjective that it cannot be encapsulated in an objective criterion. The petitioner, having given a complaint, is bound to cooperate with the police for an inquiry. The petitioner/assessee has sought a direction to the respondent/department not to harass the petitioner during the enquiry in connection...

ITAT Directs AO To Allow Depreciation On Molasses Tanks By Making The Correct Computation Of New Assets

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT), consisting of Aby T Varkey (Judicial Member) and Girish Agarwal (Accountant Member), has directed the assessing officer to allow the depreciation on molasses tanks by making the correct computation of new assets. The appellant/assessee is a limited company and is in the business of manufacturing sugar. It has its registered office at Kolkata and a factory at Sasa Musa, Dist. Gopalganj, Bihar. The assessee filed its return of ...

Levy Of GST On Mining Royalty: Rajasthan High Court Grants Interim Protection To Petitioners

The Rajasthan High Court has granted stay on recovery of GST on royalty paid by the Petitioners on mining activity.The order comes in a bunch of writ petitions filed primarily involving the issue of permissibility of raising demand of GST on royalty. The petitioners in these petitions challenged the notifications whereby, royalty paid by them on mining activity is being subjected to GST and/or notices issued for alleged incriminating discrepancies in returns after scrutiny and analogous...