Anubhav Jain

  Dear Readers, The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on manner of calculation of Adjusted Total Turnover under sub-rule 4 of Rule 89 of CGST Rules, 2017.  This is a much awaited clarification in respect of refunds under rule 89(4) as department while issuing refund was   considering export turnover as per amended definition whereas adjusted total turnover was calculated without considering the amended export turnover as such eligible refund comes to lower side. Click here to download

Dear Readers, The Central Board of Indirect Taxes and Customs has through a tweet intimated the extension of due date for filing of GSTR-9 and 9C for the year 2018-2019 from September 30, 2020 to October 31, 2020. The Notification in this matter will be issued by the Government in due course.

Dear Readers, Since lockdown, professionals and taxpayers are facing delay in GST registrations approval and it seems CBIC has now taken action on the same. CBIC has issued directions to all field offices to clear all the pending applications by July 30 under a 'special drive'. Applications which were pending till June 30, and have not been processed till July 15, will be granted deemed approval, while applications received from July 1, 2020 onwards and that remain pending till July 28, will be deemed as approved on July 31. “The three days deemed approval of application of registration would be resumed from August 1, 2020,” the Board said in a communication to all principal commissioners and commissioners across various jurisdictions. The move to fast track registrations follows that of complete stoppage as the government had decided against granting any deemed approvals for GST registrations since March 25 – the beginning of the lockdown to counter the spread of Covid...

Dear Readers, The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on Goods and Service Tax on hand sanitizers by press note dated 15.07.2020. The issue of GST rate on alcohol based hand sanitizers has been reported in a few sections of media. It is stated that hand sanitizers attract GST at a rate of 18%. Sanitizers are disinfectants like soaps, anti-bacterial liquids, Dettol, etc which all attract duty standard rate of 18% under the GST regime. The GST rates on various items are decided by the GST Council where the Central Government and all the state governments together deliberate and take decisions.  It is further clarified that inputs for the manufacture of hand sanitizers are chemicals packing material, input services, which also attract a GST rate of 18%. Reducing the GST rate on sanitizers and other similar items would lead to an inverted duty structure and put the domestic manufacturers at disadvantage vis-a-vis importers. Lower GST rates help...

Dear Readers, Recently Ahmedabad AAR in the case of M/s Sterlite Technologies Ltd has promulgated that the GST is not payable on goods procured from vendor outside India and sold outside India as goods so purchased are not brought into India. However GST is payable on goods sold to customer located outside India where goods are shipped directly from the premises of the vendor (located outside India to the customer's premises. Further Authority in this ruling has held that since the goods sold to customer are not physically available in the Indian territory as such question of export of goods doesn't arises in this case and it will be considered as inter state supply of goods. Contrary to the above ruling, Kerala AAR in the case of M/s Synthite Industries Ltd. has held that " goods are liable to GST when they are imported into India and the IGST is payable at the time of importation of goods into India; The applicant is neither liable to GST on the sale of goods pr...

Dear Readers, Recently Rajasthan AAR in the case of M/s Clay Craft India Pvt. Ltd. has promulgated that the salary drawn by directors from the company is liable to GST under reverse charge mechanism and this AAR has created panic as law clearly stated that the services provided by an employee to the employer in the course of or in relation to his employment will not be taxable. Therefore it's the need of an hour to write this article and share my opinion on the taxability of salary of directors drawn from company as an employee of such company.  1.     Entry No. 1 of Schedule III of CGST Act, 2017 clearly states that the “s ervices by an employee to the employer in the course of or in relation to his employment” is neither treated as supply of goods nor as supply of services. Further entry no. 6 of Notification 13/2017 dated 28.06.2017 provides for RCM implications on the services rendered by the director of a company to the said company or body corp...