Bhansali Financial Services

25/02/2023

Rationalization of provision of place of supply of services of transportation of goods

Rationalization of provision of place of supply of services of transportation of goods: Council recommended to rationalize the provision of place of supply for services of transportation of goods by deletion of section 13(9) of IGST Act, 2017 so as to provide that the place of supply of services of transportation of goods, in cases where location of supplier of services or location of recipient of services is outside India, shall be the location of the recipient of services.

07/11/2022

AAR On Recovery from employee for the Notice Pay, Bond Forfeiture, Canteen Charges, ID Cards replacement Liquidated Damages etc not liable for the GST:

(Applicant – M/s Rites Ltd.)

The AAR, Haryana has passed a ruling on the taxability of amount collected or received or forfeited as Notice Pay Recovery, Bond forfeiture of contractual employees, canteen charges, recovery on account of loss or replacement of ID Cards, Liquidated damages due to delay in completion, Forfeiture of earnest money and security deposit and bank guarantee by applicant, and Amount written off as creditors balance in the books of accounts of the applicant.

Held:

 Notice Pay Recovery- the CBIC vide Circular No. 178/10/2022-GST dated August 3, 2022 hasvclarified the issue regarding Notice pay recovery and surety bond forfeiture. further, the charges paid by an employee when he/she leaves without serving the mandatory notice period cannot be understood as consideration for any supply or services. It is in fact compensation in case either party frustrates the employment contract.

 Surety bond forfeiture- Surety Bond Forfeiture by the Applicant of the employee, who leaves the company without serving minimum contract period as per the employment contract is not consideration. These are outside the scope of supply because the amount collected is covered under the ambit of Schedule III of the CGST Act, 2017.

 Canteen charges- The nominal deduction from salary of the employee at fixed rate is outside the purview of GST as the third party vendor is charging GST on the said supply and also because the principal supply of the Applicant is that of transport, infrastructure and related technology.

 Charges for re-issuance of ID Card- The Applicant uses in-house printing facility and therefore the same falls under the ambit of Schedule III appended with the CGST Act, 2017.

 Liquidated damages due to delay in completion, earnest money, bank guarantee and security deposit- Non-taxable in light of CBIC Circular No. 178/10/2022-GST dated August 3, 2022.

 Taxability of amount written off in the books of accounts of the Applicant of the Applicant as creditors balance- The same is not taxable as no services were being provided or received in the said transactions, and the unclaimed amount in a way is an income and not a supply and therefore would be outside the scope of supply.

On factual and legal aspects mentioned above, it was found that none of the above mentioned amounts were chargeable to GST.

07/11/2022

E-Invoice and e-Waybill Single sign-on (SSO) functionality has been enabled.:
 The Single sign-on (“SSO”) functionality has been enabled for e-Invoice and e-Waybill.
 The SSO is a facility by which the user can log in to the e-Way bill system using his/her credentials and click on the e-Invoice link to access the e-Invoice system directly without logging in again and vice versa.

07/11/2022

Filling of the GSTR-1 allowed after filling of the previous GSTR-3B only & GSTR-3B allowed to filling after filling of previous GSTR-1 return on portal, vice versa:

 The Central Government has amended Section 37 & Section 39 of Central Goods & Service Tax Act (CGST), 2017 vide Notification No. 18/2022–Central Tax dated 28th September, 2022 with effect from 01 October, 2022. According to section 37(4) of CGST, Act, taxpayers shall not be allowed to file GSTR-1 if previous GSTR-1 is not filed and as per sec 39(10) a taxpayer shall not be allowed to file GSTR-3B if GSTR-1 for the same tax period is not filed.

 Section 37(4) & 39(10) of Central Goods & Service Tax Act, 2017 are reproduced below:
- These changes are being implemented prospectively and will be operational on GST Portal from 01st November, 2022. Accordingly, from October-2022 tax period onwards, the filing of previous period GSTR-1 will be mandatory before filing current period GSTR-1.
- Further, from October, 2022 tax period onwards, filing of GSTR-1 will also be mandatory before filing GSTR-3B.

 The GST Common Portal is not allowing the taxpayers to open GSTR-3B of October, if GSTR-1 for the same tax period i.e. October has not been filed. Amended section 39(10) restricts the filing of GSTR-3B for the current tax period if any of the GSTR-1 for the previous period including the current period has not been furnished by the taxpayer.

05/11/2022

India tops the list of countries with cheapest manufacturing cost: US News and World Report 2022.

05/11/2022

India's foreign exchange reserves rose by $6.56 billion to $531.08 billion for the week ending Oct 28, the biggest weekly jump since September 2021.

03/11/2022

"A small cap MF invests in small cap Cos, suppose a small Cap Co in which that fund had invested,grows into large cap, will then the Small cap MF will exit from that Co ?"

Small cap mutual funds are required to invest at least 65% of their assets in small-cap company stocks.

The remaining portion can be invested in larger cap companies.

So many times when a company becomes big, the fund manager isn’t required to sell off the stock immediately.

In practice, most fund managers gradually start selling such stocks to make room for newer stocks that are small cap.

08/08/2022

DGFT extends the validity of Status Certificates issued in FY 2015-16 and 2016-17 under FTP 2015-20:

The DGFT vide Public Notice No. 21/2015-2020 dated August 05, 2022 regarding the extension of validity of Status Certificates issued in the Financial Year (“FY”) 2015-16 and 2016-17 under the current Foreign Trade Policy 2015-2020 (“FTP”) till September 30, 2022.

Validity of Status Holder Certificates issued in the FY 2015-16 and 2016-17 under the provisions of FTP 2015-20 has been extended upto September 30, 2022.

27/06/2022

09/05/2022

Some common error occurred due to that reason E invoice has not reflected in GSTR-1:
1. Document Date: Document date is earlier to reporting date but GSTR 1 already filed by that date.
2. Wrong Supplier Type: E-Invoicing mandate is applicable to B2B supplies and Exports only.
Hence, if in e-invoice data any supplier type reported apart from these two like – ISD/NRTP/TCS/TDS will result in non-auto-population of e-invoice data
3. Supplier is a Composition Taxpayer:
4. Document date is prior to Supplier’s/Recipient’s effective date of registration:
5. Document date is after Supplier’s/Recipient’s effective date of cancellation of registration:
6. Invoices reported as attracting “IGST on Intra-state supply” but without reverse charge:
7. Buyer GSTIN and Invoice Type not in Sync:
8. Export Without Payment and SEZ without Payment reported with Tax amounts:
9. Serial No is 0:
Apart from the above, some of the invoices were inadvertently missed in auto-population.
GSTN released advisory confirming that same was an inadvertent gap and would be rectified and details will be pushed in the GSTR 1 manually before filling of the GSTR-1.

09/05/2022

GSTN enabled new functionality for filing of application of advance ruling, appeal, etc. by unregistered persons:

The Goods and Services Tax Network (“GSTN”) has enabled new functionality to facilitate the filing of application of advance ruling, appeal, etc. by unregistered persons on the GST portal.