http://www.basakassociates.com/

Basak & Associates, Chartered Accountants, 47 Purbachal Main Road, Haltu, Garfa, KOLKATA (2026)

17/05/2026

🧐 GST Quiz – Test Your Knowledge.

15/05/2026

🚨 Most businesses focus on reducing GST liability.
Very few check whether the Government already owes them money.

And that’s where lakhs of rupees often remain unclaimed. 👇

💰 Common GST refund opportunities businesses miss:

🔹 Accumulated ITC under Inverted Duty Structure
If input GST rate is higher than output GST rate, refund of accumulated ITC may be available.

🔹 Export refunds left unclaimed
Many exporters ignore small refund amounts — but even smaller eligible claims can matter over time.

🔹 Refund on export of services
Businesses serving overseas clients may need to reassess whether certain services qualify as exports under GST provisions.

🔹 Unclaimed TDS/TCS credits
Credits deducted by e-commerce platforms or other deductors often remain unused in the electronic cash/credit ledger.

🔹 Tax paid under wrong GST head
Wrong payment of IGST instead of CGST+SGST (or vice versa) may be eligible for refund subject to conditions.

⚠️ Most businesses do not lose money because refunds are unavailable.
They lose money because nobody reviewed the data properly.

✅ What businesses should do now:
✔ Conduct a GST Refund Opportunity Review
✔ Reconcile electronic ledgers carefully
✔ Review FY 2024-25 transactions before limitation timelines expire
✔ Identify unclaimed credits and excess tax payments

📌 A GST review should not only identify liabilities.
It should also identify money recoverable by the business.

14/05/2026

🚨 The costliest GST mistake businesses make is NOT late filing.

It’s treating GST as a routine filing activity instead of a business risk.

Here’s what happens in many businesses 👇

✅ Returns filed on time - ❌ Supplier compliance never checked

✅ ITC claimed from GSTR-2B - ❌ 180-day payment rule ignored

✅ GSTR-1 filed properly - ❌ IMS never reviewed

✅ Annual return filed - ❌ No real GST risk review done

⚠️ Today’s GST system is no longer just compliance-driven.
Blocked ITC, suspended registrations, return restrictions, e-invoice issues, and automated notices have made GST a continuous risk-management function.

And most disputes begin with:
🔴 missed reconciliations
🔴 vendor non-compliance
🔴 incorrect ITC assumptions
🔴 unchecked reporting mismatches

📌 Businesses that manage GST proactively usually face fewer notices, fewer reversals, and fewer surprises.

The smartest businesses in FY 2026-27 will not be the ones who only “file returns.”

They’ll be the ones who:
✔ reconcile monthly
✔ monitor vendor compliance
✔ review GST risks regularly
✔ treat GST as part of financial control

Because GST is not just a form filing system anymore.
It’s a business risk management system.

13/05/2026

⚡ PETROL & DIESEL UNDER GST: THE BOMB THE 57TH COUNCIL MIGHT FINALLY DROP AND WHAT IT COULD MEAN FOR EVERY INDIAN!

Every time petrol crosses ₹100/litre, India erupts in outrage.

And now, with the 57th GST Council Meeting expected in late May or June 2026, the conversation around fuel under GST is getting louder again. 🐘

There are also growing discussions around broader energy-sector GST reforms, including electricity and natural gas - a move many industries believe could reshape India’s indirect tax system.

And here’s what the numbers suggest about petrol 👇

Currently, petrol and diesel continue outside the GST regime and are taxed through Central Excise and State VAT. The total tax burden on fuel remains significantly higher than most GST-taxed products.

Many experts believe that if petrol were brought under GST - even at higher GST slabs - fuel prices could become more rationalised compared to current effective tax structures.

Why hasn’t it happened yet?

🔴 Petrol and diesel are among the biggest revenue sources for states - many states depend heavily on fuel VAT collections
🔴 Bringing fuel under GST would reduce states’ independent control over this revenue stream
🔴 Any such move requires broad consensus within the GST Council

But here’s what’s changing:

✅ GST collections are now at record highs
✅ GST reforms are again becoming a major policy discussion
✅ Industries are pushing for smoother credit flow and lower energy costs
✅ Energy-sector GST reforms are receiving renewed attention

📌 No official announcement yet on petrol & diesel under GST.

But for the first time in a long time, the discussion is becoming impossible to ignore.

💬 COMMENT BELOW:
Should petrol & diesel come under GST?

YES or NO?

12/05/2026

🚨 The 57th GST Council Meeting is expected in late May or June 2026 - and businesses across India are already hoping for major changes.

After years of increasing compliance, ITC disputes, portal complexities, and reporting burdens, taxpayers want practical reforms - not just more rules.

📢 Here’s what many businesses and professionals want the Council to address:

🔹 Fix Section 16(2)(c) hardship
Why should a genuine buyer lose ITC because of supplier default?

🔹 Simplify IMS
Many MSMEs still find the Invoice Management System difficult to manage efficiently.

🔹 Relief in late fees for small taxpayers
Small compliance delays should not become massive financial burdens.

🔹 Increase GSTR-9 exemption threshold
Many believe the limit should be raised for MSMEs.

🔹 Clear GST framework for crypto & digital assets
Several grey areas still remain unresolved.

💬 If you could change ONE thing in GST, what would it be?

Comment below - let’s hear what businesses actually want from the 57th GST Council Meeting.

11/05/2026

🚨 Most businesses claim these GST credits without realising they may be BLOCKED under Section 17(5).

Sounds familiar?

Last quarter, your business may have:
🍽️ Taken employees or clients out for dinner
🏋️ Paid for gym or wellness memberships
💆 Purchased wellness or comfort facilities for staff
🎂 Arranged catering during festivals or office events

And the GST ITC was probably claimed normally.

Here’s the problem 👇

Under Section 17(5) of the CGST Act, ITC on certain expenses is specifically blocked - even if:
✔️ You have a proper GST invoice
✔️ GST was actually paid to the vendor
✔️ ITC appears in GSTR-2B
✔️ All Section 16 conditions are satisfied

⚠️ Common blocked credit areas include:
❌ Food & beverages
❌ Outdoor catering
❌ Health & beauty treatment
❌ Club or gym memberships
❌ Employee travel-related benefits

Many businesses get trapped because the invoices look completely genuine and the ITC reflects properly in the portal.

But during GST scrutiny or audit, these claims can lead to:
⚠️ ITC reversal
⚠️ Interest liability
⚠️ Penalty exposure

✅ What businesses should do NOW:
🔹 Review ITC claimed from April 2025 onwards
🔹 Identify expenses related to catering, food, wellness, memberships, and employee perks
🔹 Verify whether any exception under Section 17(5) applies
🔹 Reverse ineligible ITC voluntarily wherever required
🔹 Strengthen internal review before filing returns

📌 In GST, every ITC appearing in GSTR-2B is not automatically eligible.

A proper ITC review today can prevent costly disputes tomorrow.

08/05/2026

🚛 Using a Transport Agency (GTA)? Don’t Ignore This Small Detail
If your GTA claims forward charge (12% GST):
👉 Always obtain a declaration from them
⚠️ Why?
Because:
Without proper documentation
You may not be able to prove their tax position during audit

👉 And department may treat it as RCM liability on you

💡 Simple Rule:
Invoice shows GST = forward charge
But documentation supports your defence

🔥 Conclusion
✔ You were not wrong to raise this issue
❌ But wording needs correction
✅ It’s a risk-based advisory, not strict law

07/05/2026

🚨 A GST Judgment Every Business Owner in India Must Read - RIGHT NOW.

On 1st May 2026, the Gujarat High Court delivered a landmark ruling that could significantly impact businesses across the country.

In *Maruti Enterprise vs Union of India*, the Court upheld the constitutional validity of Section 16(2)(c) of the CGST Act and made one thing absolutely clear:

👉 Input Tax Credit (ITC) is NOT an unconditional right.
👉 Your ITC depends on whether your supplier has actually deposited GST with the Government.

This means:

❌ Even if you:
✔️ paid the supplier in full,
✔️ received the goods/services,
✔️ possess a valid tax invoice,
✔️ and acted completely bona fide…

…your ITC can STILL be denied if the supplier fails to pay GST to the Government.

Let that sink in.

You pay the supplier.
The supplier defaults.
And YOU face ITC reversal, interest, and demand notices.

⚖️ Why experts are concerned:

Many tax professionals have raised serious questions about the fairness of this approach. After all, the Government itself grants GST registration to suppliers. If the supplier defaults, should an honest purchaser really be punished?

As highlighted by tax experts, shifting the burden entirely onto buyers could undermine trust in the GST credit chain and create significant compliance risks for genuine businesses.

📌 Practical Impact on Businesses:

This judgment changes the risk landscape under GST — especially for businesses dealing with multiple vendors and layered supply chains.

Going forward:

❌ Innocence alone may not protect your ITC
❌ Vendor default can directly impact your working capital
❌ Supplier due diligence is no longer optional

✅ What businesses should do IMMEDIATELY:

🔹 Reconcile GSTR-2B every month without fail
🔹 Monitor supplier filing and tax payment status regularly
🔹 Track Rule 37A compliance timelines carefully
🔹 Include indemnity and ITC loss clauses in vendor agreements
🔹 Conduct a vendor risk review of your top suppliers
🔹 Consult your CA and strengthen GST compliance systems

📢 This is arguably one of the most significant GST judgments of 2026.

If you are a business owner, finance head, accountant, or GST practitioner - this ruling directly affects you.

Share this with your network. Someone may avoid a major GST exposure because of it.

Basak & Associates, Chartered Accountants

17/05/2026

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