In this matter, M/s. Suncraft Energy Pvt. Ltd. (“the assessee”) availed Input Tax Credit on certain inward supplies basis the invoices received from the suppliers. However, such ITC was not reflecting in GSTR-2A for the FY 2017-18 since the suppliers failed to disclose these supplies in their Form GSTR-1. Demand was raised on the assessee to reverse such excess ITC availed on account of mis-match between GSTR-3B and GSTR-2A. The assessee made its submissions on following three major grounds:

1. Press release dated 04.05.2018 which clarified that there shall not be any automatic reversal of input tax credit from buyer on non-payment of tax by the seller. In case of default in payment of tax by the seller, recovery shall be made from the seller however, reversal of credit from buyer shall be an option available with the revenue authorities to address exceptional situations like missing dealer, closure of business by supplier or supplier not having adequate assets etc.

2. The Press Release dated 18.10.2018 which clarified that furnishing of outward details in Form GSTR-1 by the corresponding supplier and the facility to view the same in Form GSTR-2A by the recipient is in the nature of taxpayer facilitation and does not impact the ability of the taxpayer to avail ITC on self-assessment basis in consonance with the provisions of Section 16 of the Act.

3. Judgements of the Hon’ble Supreme Court in the case of M/s Union of India vs Bharti Airtel Ltd. and Ors. and Commissioner of Trade and Taxes, Delhi and Ors. vs Arise India Limited and Ors. which held thatin the event that the selling dealer has failed to deposit the tax collected by him from the purchasing dealer, the remedy for the Department would be to proceed against the defaulting selling dealer to recover such tax and not deny the purchasing dealer the ITC.

The Hon’ble Calcutta High Court accepted the contentions of the assessee and ruled in favour of the assessee. It held that ITC claimed by the purchaser cannot be denied if the supplier has not remitted GST on it’s output supply unless there is an exceptional case where it becomes impossible for the department to collect such tax from the supplier and if there is even a little chance of recovering the tax from the supplier, demand needs to be raised to the supplier before demanding reversal of credit from the purchaser.

The Department filed a SLP against the judgement of the Hon’ble Calcutta High Court. On review of the matter, the Hon’ble Supreme Court dismissed the SLP filed by the Department and upheld the decision of the Hon’ble Calcutta High Court [SC Judgment dated 14-12-2023 in Special Leave to Appeal (C) No(s).27827-27828/2023].

This is a landmark judgement which can be applied in cases where the ITC is denied on account of mismatches between GSTR-3B and GSTR-2A. However, it might be interesting to note how this decision would apply in cases of dispute for period after the introduction of Rule 36(4) from October 9, 2019, and Section 16(2)(aa) from January 1, 2022.

The post NO ITC REVERSAL FOR GSTR2A MISMATCH , SAYS SUPREME COURT appeared first on GST Platform.

LIMIT FOR GST REGISTRATION 

Every supplier making taxable supply of goods or services or both shall get himself registered in the State from which supply is made. In general, the limit for taking GST registration is Rs Twenty Lacs and Rs Forty Lacs. For exclusive supplier of goods the registration limit is Rs Forty Lacs and for others the limit is Rs Twenty Lacs.

For Special Category states, including State of Jammu and Kashmir , Arunachal Pradesh , Assam, Himachal Pradesh , Meghalaya , Sikkim , Uttarakhand the turnover limit will be Ten Lacs instead of Twenty Lacs.

If a business has been transferred from one person to another due to succession or otherwise , then transferee shall get GST Registration

In case of Merger Transfer, Acquisition, Amalgamation etc the new entity shall get GST registration.

Read Also : How to Apply for GST Registration Online

EXEMPTION FROM GST REGISTRATION

Every person making supply of exclusively exempt supplies of goods / services or both shall not be liable to take registration in GST 

An agriculturist, is exempted from GST registration for the produce out of his cultivation.

MANDATORY GST REGISTRATION

Following persons shall take GST registration without any condition:

Engaged in Making Inter – State Supply

Casual Taxable Person making Taxable Supply as per the provisions of GST Act.

Person required to pay GST under Reverse Charge Mechanism

Person required to pay GST U/s 9(5)

Non-resident Taxable Persons making taxable supply

Person required to deduct TDS in GST u/s 51

Person making taxable supply on behalf of other taxable person

Input Service Distributor

Persons supplying goods through E commerce operator who is required to collect TCS U/s 52

Electronic commerce operator who is required to collect Tax Collection at Source

Person Supplying Online Information and Database Access Retrieval Services form a place Outside India to a Place In India Other than registered person.

MEANING OF TERMS

Agent means a person , factor ,broker etc by whatever name called who carries on the business on behalf of other person as per clause 5 of Section 2 of GST Act.

Agriculturist means Individual or Huf , who cultivates the Land on his own , with his Family or by servants on wages payable as defined under Clause 7 of Section 2 of GST Act.

Casual Taxable Person means a person carrying on business occasionally for supply of goods or services in a State where he has no fixed place of business as defined under Clause 20 of Section 2 of GST Act.

Exempt Supply means supply exempted U/s 11 of CGST Act or U/s 6 of IGST Act and includes Non Taxable Supply as defined under Clause 47 of Section 2 of GST Act.

Person includes Individual, Hindu Undivided Family , Company, Firm , Limited Liability Partnership, AOP or BOI, Corporation established under Central or State Act, Co-operative Society , Local Authority , Central Government or State Government , Trusts , Artificial Judicial Persons etc as per Clause 84 of GST Act

Reverse Charge Mechanism means the liability to pay tax by the recipient of goods or services as per the provisions of GST Act in  this regard.

Taxable Person means a person who is registered or liable to be registered as per the provisions of the GST Act.

The post WHO SHALL TAKE GST REGISTRATION ? appeared first on GST Platform.

The apex Bank , Reserve Bank of India has issued  a circular regarding changes in timings of National Electronic Funds Transfer (NEFT) on 24*7 basis.

As per the circular , the neft facility will now be available 24*7 basis starting from 16^th December 2019 with the first settlement taking place after 00:30 Hours on 16^th December 2019.

The important points in the circular are as follows:

• The number of batches will be 48 each of Half Hour every Day
• The first settlement will be done after 00:30 Hrs on 16^th December 2019.
• The facility for Electronic transfer on NEFT basis will be available for all the days disregard of any holidays either public or otherwise.
• During Banking hours, NEFT Transaction will be initiated and processed as usual , but after the business hours of banks it is expected to be automated transactions initiated using Straight Through Processing (STP) modes by the banks and financial institutions .
• The present practice of crediting the beneficiary account (Account of transferee or person on whose account payment is done) or returning the transactions to originating (transferor or person from whose account amount is transferred) bank will continue.
• The members bank has to ensure the sending of positive confirmation message for all NEFT credits .
• All the existing provisions of the current National Electronic Funds Transfer procedural guidelines will be applicable for NEFT 24*7 basis transaction as well.

BENEFITS TO ACCOUNT HOLDERS IN THIS FACILITY

The account holder will be benefited by the change in NEFT Timings  as in the present condition the transaction initiated through NEFT mode after banking hours will be scheduled for the next working day and the transaction gets completed only after one day their by delaying the transactions .

After this facility , there will be no such situation and the amount will be transferred within a batch of half hour and will be credited to the payee on the same day.

The taxpayers will be enabled to pay GST and other Indirect Taxes in India after business hours of banks also due to this changes in NEFT timings.

IMPACT OF CHANGES IN NEFT TIMINGS  

Newly Introduced section in Income Tax Act , 1961 , Section 269SU says that the persons having business more than Rs 50 Crores in the preceding Financial Year shall provide mandatory the option of electronic payment or mode of payment in electronic form other than the mode of payment already given by them to customers  from 01^st November 2019. Noncompliance of this provision will result in imposition of penalty to the default persons.

Download the Circular – Click Here

Also Read : https://gstplatform.com/gstn-sending-sms-to-file-gstr3b/

The post Banks to Provide 24*7 NEFT Facility from December 16 appeared first on GST Platform.

The amendment act has done various major changes in existing GST Provisions . 

Some of the important GST Amendment  includes :

Provisions related to Blocked Input Tax Credit in GST U/s 17(5) has been amended. Earlier Input Tax Credit was Blocked in respect of all vehicles. After amendment this restriction has been relaxed to some extent and Input Tax Credit can be claimed for vehicles,

Earlier registered supplier has to issue credit notes and debit notes on one to one basis in respect of Tax Invoices In GST. Now one or more Credit and Debit notes can be issued in respect of one or more Tax invoices in GST . This will provide big relief to taxpayers from documentation .

Certain definitions as given in Section 2 of GST Act ,such as Appellate Authority etc has been amended . 

Provisions of Reverse Charge Mechanism U/s 9(4) , has been deleted and new provisions has been inserted . As per the new provisions only notified persons will be required to pay tax under reverse charge for purchases from Unregistered Person in GST for specified goods and services.

Eligibility for opting in GST Composition scheme has been relaxed and big relief has been provided through this GST Amendment for small taxpayers .

The Limit of GST registration has also been increased in this amendment Act.

The new procedure to file GST New return system has been included in GST Act U/s 43A which is yet to be notified . This will change the GST Return filing process for all the dealers and registered taxpayers .

These are some of major changes done in the GST amendment Act. Complete amendment Act is enclosed here for download

Copy of Finance Act can be downloaded here

CGST Amendment 2019

The post CHANGES IN GST ACT FROM 01.08.2019 appeared first on GST Platform.