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THE EDGE
TAX & LEGAL UPDATE

 

 

Vol 2, Part 33

Wednesday, Aug 29, 2018

Weekly on GST, FSSAI, RERA & More...

 

INPUT TAX CREDIT – RECENT NOTICES UNDER GST

 

Input Tax Credit is defined under CGST Act as the credit of Input Tax. Input Tax is the tax paid on the purchase of goods or services used in the course of or furtherance of business. The provisions pertaining to Input Tax Credit are provided under Section 16 to 21 of the CGST Act, 2017 and Rule 24 to 35 of the CGST Rules, 2017. There are certain goods and services on the purchase of which no credit is available. The restrictions relating to it are enumerated in Section 17 of the CGST Act, 2017. In order to claim credit, the purchasing taxpayer must show the purchases in their Returns pertaining to inward supplies and the same must also reflect in the Returns filed by the Selling Taxpayer in their returns pertaining to Outward Supply. The credit chain should not break and it is important that the details match, only then the credit will be allowed to the purchasing dealer. If during Assessment credit is denied to the Assessee then legal recourse should be taken. Precaution should be taken while filing of reply and giving statements. There have been cases in the earlier regime where credit was denied to the bona fide purchasing dealer only because the seller failed to deposit the tax or the registration of the seller was cancelled after the purchase with retrospective effect. The Hon’ble Delhi High Court settled this issue in the case of M/s. Arise India Limited and held that the bonafide purchaser would not be denied credit only because the selling dealer failed to deposit the tax. The said ratio is also confirmed by the Hon’ble Supreme Court. The correct recourse would be to take action against the selling dealer and to allow credit to the purchasing dealer.Recently also, under the GST regime the issue of Bogus Bills is being investigated by the GST Department. All the taxpayers should take precautions and act as per law only.

 

 

◔ TIMELINES

 

Due date for furnishing of statement for TDS under section 194-IA for July 2018 30th Aug
Due date for furnishing of statement for TDS under section 194-IB for July 2018 30th Aug
ITR for AY 2018-19 for all assessee other than (a) corporates or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report under section 92E. 31st Aug
GSTR-1 (Monthly Return for August, 2018). 11th Sept
Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of July, 2018 14th Sept
Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of July, 2018 14th Sept
GSTR-3B August, 2018 20th Sept
GSTR-6 (July, 2017 – June, 2018) 30th Sept
GSTR-1 (Quarterly Return for July – September, 2018) 31st Oct

 

NOTIFICATIONS / AMENDMENTS

 

CUSTOMS – ANTI-DUMPING DUTY

 

Notification No. 41/2018-Cus (ADD), dt.24.08.2018:
Seeks to provide for provisional assessment of jute goods exported from Bangladesh by M/s. Natore Jute Mills, Bangladesh (Producer) and M/s PNP Jute Trading LLC,USA (Exporter/ Trader) till the final findings of New Shipper Review in this regard are received. Read More

 

Notification No. 42/2018-Cus (ADD), dt. 24.08.2018:
Seeks to provide for provisional assessment of jute goods exported from Bangladesh by M/s Aziz Fibres Limited, Bangladesh (Producer/ Exporter) till the final findings of New Shipper Review in this regard are received. Read More

 

CGST

 

Notification No. 36/2018-Central Tax dt. 24.08.2018
Seeks to extend the due dates for filing FORM GSTR-3B for the months of July, 2018 and August, 2018 Read More

 

Notification No. 37/2018-Central Tax dt. 24.08.2018
Seeks to prescribe the due dates for furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of more than Rs. 1.5 crores for the months of July, 2018 and August, 2018 Read More

 

Notification No. 38/2018-Central Tax dt. 24.08.2018
Seeks to prescribe the due dates for quarterly furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of upto Rs.1.5 crores for the quarter July, 2018 to September, 2018 Read More

 

CGST – CIRCULAR

 

Circular No. 56/2018- dt. 24.08.2018
Clarification on removal of restriction on refund of accumulated Input Tax Credit on fabrics Read More

 

 

WEEKLY QUIZ

 

 

Is an agriculturist who only supplies the produce out of cultivation of land liable to registration under GST?

A: Yes

B. No

Click here

Last date to participate:
Sep 1, 2018

 

PREVIOUS WEEK'S WINNERS

 

Harsh Gupta, Ghaziabad
Mahesh Goswami, Haryana
Ravikumar Doddi, Hyderabad

 

ITAT JUDGEMENTS

 

JAIPUR BENCH

 

M/S OMIL JSC (JV) KAMENG, KOTA vs DY. CIT CIRCLE-2, JAIPUR
The Jaipur bench of the Income Tax Appellate Tribunal (ITAT) has held that the deduction under Section 80IE of the Income Tax Act would not be available to interest on income tax refund. Read More

 

MUMBAI BENCH

 

Saif Ali Khan PataudivsAssistant Commissioner of Income-tax, Mumbai
Where flat was not constructed as per approved plan and there were certain defects in construction, removal of which was necessary and assessee had to incur over Rs.50 lacs for alteration of said flat, letting out of said flat could not be forced upon assessee; since due to inherent defects, said flat could not be let out and it was vacant during a period, proportionate deduction should be allowed from sum on which property might reasonably be let out from year to year as section 23(1)(c) duly permits benefit of deduction in this regard. Read More

 

NEW DELHI BENCH

 

THE DY. C.I.T CENTRAL CIRCLE-1, DEHRADUN vs. SHRI ABHINAV BINDRA

 

In a recent ruling, the Income Tax Appellate Tribunal (ITAT), Delhi bench has granted tax relief to retired professional shooter, AbhinavBindra. The Tribunal bench has held that the former World and Olympic champion is not liable to pay income tax on the rewards received by him from the Centre and the State Governments. Read More

 

COCHIN BENCH

 

The Asst. Commissioner of Income Tax, Circle-1 Non-Corporate, Kochi vs M/S Ooty Gate Hotel C/O Davis KuriakosePathadan House Nayathode, Angamaly

 

The Income Tax Appellate Tribunal (ITAT), Cochin bench has held that the sale of hotel premises would amount to a slump sale which is liable to the taxed under Section 50B of the Income Tax Act. `Slump sale’ is a sale of an undertaking as a going concern. Read More

 

 

FROM THE BENCH

 

 

INCOME TAX

 

Commissioner of Income-tax vs Classic Binding Industries,[2018] 96 taxmann.com 405 (SC),dt. 20.08.2018
Where an assessee who sets up a new industry of a kind mentioned in sub-section (2) of section 80-IC and starts availing exemption of 100 per cent tax under sub-section (3) of section 80-IC (which is admissible for five years), after availing deduction for a period of 5 years at rate of 100 per cent of such profits and gains from 'units', assessee would be entitled to deduction for remaining 5 assessment years at rate of 25 per cent (or 30 per cent where assessee is a company), as case may be, and not at rate of 100 per cent. Read More

 

GST

 

Axis Mutual Fund v. State of Maharashtra & Ors. Dt. 06.08.2018
The Bombay High Court in the case of Axis Mutual Fund v. State of Maharashtra, held that no input tax credit can be claimed on goods not resold within a period of 6 months as is stipulated by the legislation. Read More

 

GST ADVANCE RULING

 

Switching Avo Electro Power Ltd. (2018) AAR, WEST BENGAL
The Appellate Authority for Advance Ruling (AAAR), West Bengal has held that the supply of UPS and Battery is to be considered as Mixed Supply within the meaning of Section 2(74) of the GST Act, as they are supplied under a single contract at a combined single price. Read More

 

SALES TAX

 

MRF LTD. vs. The Commissioner of Trade & Taxes & ANR. dt. 10.08.2018
The Delhi High Court has recently allowed Interest on the refund of the pre-deposit paid as a statutory requirement for filing appeal.

 

The petitioner, had succeeded partly in an appeal, which resulted in its claim for exclusion of certain amounts in its taxable turnover. The sole grievance of the petitioner was that, the respondent GST authorities did not permit any interest on pre-deposit remitted during the filing of appeal. Read More

 

 

MISCELLANEOUS

 

  • Press Release by CBDT dt. 28.2018: Press Note on Extension of date for filing of Income Tax Returns for taxpayers in Kerala. Read More
  • Insolvency Professional punished for Authorizing Firm to raise Invoices for his Professional Fee
  • NAA launches Consumer Helpline to receive Anti-Profiteering Complaints. The helpline number 011-21400643 has been provided to the consumers to register their complaints, provide information and resolve queries related to profiteering under the Goods and Services Tax (GST) law. The helpline number will be available between 9:30 am-1 pm and 1:30 pm – 6 pm on all working days, as per the latest post on the NAA website.
  • Cabinet approves Additional 2% DA to Central Govt Employees and Dearness Relief to Pensioners.

 

 

 

Editorial Team : Meenal Ghiya, Priyamvada Joshi & Deepak Garg

 

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