Tuesday, 29 May 2018

Petitioner Entitled to C-Form under CST in respect of High Speed Diesel as Central Government didn’t notify it under CGST: Chhattisgarh HC

In Shree Raipur Cement Plant vs. State of Chhattisgarh Finance Department & Ors., the Chhattisgarh High Court held that the petitioner is entitled to be issued C Form under the Central Sales Tax Act, 1956 read with the Central Sales Tax (Registration and Turnover) Rules, 1957 in respect of high speed diesel purchased by it in the course of inter-State trade and used by it in the course of manufacturing of cement, after the promulgation of the Central Goods and Services Tax Act, 2017 with effect from 1-7-2017.

In the instant case, the Petitioner is a registered company under the Central Sales Tax (CST) Act, 1956 read with the Central Sales Tax (Registration and Turnover) Rules, 1957. It manufactures cement from mining limestone. For using the mining equipments, the petitioner requires High Speed Diesel. The petitioner Company was permitted to purchase goods in the course of inter-State trade at the rates specified in Section 8(1) of the CST Act, 1956.

Source: Taxscan

N.K. Goel & Bros.
Chartered Accountants
CA Yashu Goel

Friday, 4 May 2018

GST Council approves principles for filing of new return design based on the recommendations of the Group of Ministers on IT simplification

Ministry of Finance

GST Council today in its 27thmeeting approved principles for filing of new return design based on the recommendations of the Group of Ministers on IT simplification. The key elements of the new return design are as follows –


*One monthly Return*:All taxpayers excluding a few exceptions like composition dealer shall file one monthly return. Return filing dates shall be staggered based on the turnover of the registered person to manage load on the IT system. Composition dealers and dealers having nil transaction shall have facility to file quarterly return.


*Unidirectional Flow of invoices*: There shall be unidirectional flow of invoices uploaded by the seller on anytime basis during the month which would be the valid document to avail input tax credit by the buyer. Buyer would also be able to continuously see the uploaded invoices during the month.There shall not be any need to upload the purchase invoices also. Invoices for B2B transaction shall need to use HSN at four digit level or more to achieve uniformity in the reporting system. 


*Simple Return design and easy IT interface*: The B2Bdealers will have to fill invoice-wise details of the outward supply made by them, based on which the system will automatically calculate his tax liability. The input tax credit will be calculated automatically by the system based on invoices uploaded by his sellers.   Taxpayer shall be also given user friendly IT interface and offline IT tool to upload the invoices.


*No automatic reversal of credit*: 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 also 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.


*Due process for recovery and reversal*: Recovery of tax or reversal of input tax credit shall be through a due process of issuing notice and order. The process would be online and automated to reduce the human interface. 


*Supplier side control*: Unloading of invoices by the seller to pass input tax credit who has defaulted in payment of tax above a threshold amount shall be blocked to control misuse of input tax credit facility. Similar safeguards would be built with regard to newly registered dealers also. Analytical tools would be used to identify such transactions at the earliest and prevent loss of revenue.


*Transition*: There will be a three stage transition to the new system. Stage I shall be the present system of filing of return GSTR 3B and GSTR 1. GSTR 2 and GSTR 3 shall continue to remain suspended. Stage I will continue for a period not exceeding 6 months by which time new return software would be ready. In stage  2, the new return will have facility for invoice-wise data upload and also facility for claiming input tax credit on self declaration basis, as in case of GSTR 3B now.


During this stage 2, the dealer will be constantly fed with information about gap between credit available to them as per invoices uploaded by their sellers and the provisional credit being claimed by them. After 6 months of this phase 2, the facility of provisional credit will get withdrawn and input tax credit will only be limited to the invoices uploaded by the sellers from whom the dealer has purchased goods. 


*Content of the return and implementation*: Return shall be simplified also by reducing the content/information required to be filled in the return. The details of the design of the return form, business process and legal changes would be worked out by the law committee based on these principles. Government is keen to introduce the simplified return design at the earliest to reduce the compliance burden on the trade in keeping with the philosophy of ease of doing business. 

Friday, 27 April 2018

No need for separate PAN Card in case of certain companies

Finance Act, 2018, amended section 139A of the Income-tax Act, 1961, and removed the requirement of issuing PAN in the form of a laminated card

It has been clarified that PAN and TAN mentioned in the Certificate of Incorporation (COI) issued by MCA shall also be treated as sufficient proof of PAN and TAN for the said company assesses.

In case of a company, an application for incorporation, allotment of PAN and allotment of TAN may be made through a common application form submitted to the MCA. In these cases, the COI issued by MCA contains a mention of both PAN and TAN.

Link to Press Release Dated: 14th April 2018 =>

Tuesday, 24 April 2018

Press release for bill to ship to

The government has issued a press release for bill to ship to transactions

It has been made clear that in this transaction the e-waybill has to be issued by only one of the two parties that is the original purchaser or the person dispatching the goods

For details kindly refer the copy of press release in the given link

Sunday, 15 April 2018

Intra-State Movement of these 19 Goods requires E-Way Bill: Gujarat Govt. Issues Notification

In a Notification issued by the Commissioner of State Tax, Gujarat, the Commissioner has notified that E-Way Bill is not required to be generated for intra-city movement as well as the intra-state movement of all goods within the whole of the territory of the State of Gujarat. However, the intra-state movement of the notified 19 goods of consignment exceeding Rs. 50,000/- require E-Way Bill.

The 19 Listed Goods for which E-Way Bill is required, when the value of consignment exceed Rs. 50,000/- are: All kinds of edible oils, all kinds of taxable oil seeds, all kinds of oil cakes, Iron and steel, Ferrous and Non-ferrous metal and scrape thereof, Ceramic tiles, Brass parts and brass items, processed tobacco and products thereof, cigarette, Gutkha and Pan Masala, All types of Yarns, All types of plywood, block board, Decorative and Laminated Sheets, Coal including Coke in all its forms, Timber and Timber products, Cement, Marble and Granite, Kota Stones, Naphtha, Light Diesel Oil, Tea (in leaf or Powder form).

N.K. Goel & Bros.
Chartered Accountants
CA Yashu Goel

Sunday, 18 February 2018

Motor Accident Claim

: If The Transfer Of Vehicle Is Not Registered With Authority Original Owner Is Liable [Read Judgment]

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