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Deep dives and practical guides written by the WFYI team.
Comprehensive explanations, FAQs, and updates about GST regulations, returns, and compliance.
The Union Territories of Daman and Diu merged with Dadra and Nagar Haveli, leading to a new unified GST state code. This transition presented challenges for taxpayers seeking GST refunds for the pre-merger period due to issues with ITC balances and invoice GSTINs. The Central Goods and Service Tax Act, 2017, outlined a specific procedure (Circular 168/24/2021) for filing these refunds using the new GSTIN under the "Any other" category, ensuring proper documentation and officer review.
The Karnataka High Court recently ruled that residential properties used as hostels for students and working professionals are exempt from Goods and Services Tax. This decision clarified that such dwellings fall under the definition of residential use, qualifying for exemptions outlined in CBIC notifications. The court overturned previous advance rulings, emphasizing that the GST exemption does not require the lessee to be the direct occupant for residential purposes.
This article elucidates the guidelines provided by GST Circular 170 of 2022 for accurately reporting interstate supplies to unregistered persons, composition taxpayers, and UIN holders in Form GSTR-3B. It also clarifies the proper methodology for recording Input Tax Credit (ITC), its reversals, and ineligible ITC. The circular aims to standardize reporting practices, ensuring consistency between GSTR-1 and GSTR-3B and preventing discrepancies. Adherence to these guidelines is crucial for taxpayers to maintain accurate tax liability declarations and avoid notices from GST authorities.
This article clarifies the application of Goods and Services Tax (GST) to essential food grains and flours in India. It details how pre-packaged and labeled commodities, previously exempt, became subject to a 5% GST from July 18, 2022. The content also outlines the legal definition of a 'pre-packaged commodity' and provides a comprehensive table of HSN codes with their corresponding GST rates for various cereals.
This article explores the inconsistencies between Section 16(2)(c) and Rule 36(4) of the CGST Act, which significantly complicate Input Tax Credit (ITC) claims for buyers. It details how Section 16(2)(c) ties ITC eligibility to supplier tax payments, while the revised Rule 36(4) restricts claims strictly to amounts reflected in GSTR-2B, abolishing provisional credit. The piece highlights the challenges faced by genuine buyers and underscores the need for robust vendor agreements to mitigate risks arising from supplier non-compliance.
This article explains the Goods and Services Tax (GST) framework for solar power-based devices and systems in India. It defines solar equipment, clarifies GST applicability, and details specific rates for various components like solar panels, water heaters, and inverters. The discussion also covers how composite supplies for solar plant installations are taxed and confirms that no specific GST exemptions are currently available for these renewable energy devices.
This article outlines crucial validation rules and common errors encountered during GST e-invoicing. It covers recent updates, including turnover thresholds and reporting deadlines, and provides guidance on ensuring unique invoice numbers, proper B2B categorization, and accurate GSTIN and PIN code validation. The guide also addresses specific scenarios like SEZ units, reverse charge mechanisms, and the importance of timely IRP reporting to prevent rejections and maintain compliance.
This article discusses the application of Goods and Services Tax (GST) on Hybrid Annuity Model (HAM) and Build-Operate-Transfer (BOT) projects in India's road infrastructure sector. It explains the clarification issued by the CBIC and NHAI regarding the 12% GST on annuity payments. The article also highlights that ICRA expects a negligible impact on project cash flows, as developers can utilize Input Tax Credit (ITC) to offset liabilities.
The Union Budget 2022 introduced significant amendments to India's Goods and Services Tax (GST) framework, effective upon CBIC notification. Key changes include revised Input Tax Credit (ITC) provisions, updated GST registration cancellation rules, and extended deadlines for credit note issuance. The budget also reformed GSTR filing procedures, modified Section 41 for ITC claims, and removed Sections 42, 43, and 43A of the CGST Act. Additionally, miscellaneous amendments covered interest rates, exemptions, and electronic portal designations, aiming to streamline GST compliance.
This article details the significant changes to Goods and Services Tax (GST) for brick manufacturers in India, effective from April 1, 2022. It explains the new composition scheme allowing a 6% GST without ITC, or a 12% rate with ITC for those not opting for the scheme. The content also covers the revised GST registration threshold, the impact on eligibility for composition schemes, and specific GST rates for various brick types, including an important update on AAC blocks with fly ash content.
The application of GST to housing society redevelopment projects is a complex area, previously governed by service tax and VAT. Under GST, taxability hinges on whether the activity constitutes a 'supply' in business. Judicial rulings have clarified that flats provided free to existing members are not subject to GST, and development rights are considered immovable property, outside GST's scope. Input Tax Credit is applicable only to the taxable portion of units sold for consideration.
This article explores the application of Goods and Services Tax (GST) to the printing and supply of educational answer booklets and copies. It outlines the classification of these activities as a supply of goods, detailing applicable HSN codes and tax rates. Furthermore, the piece discusses the GST composition scheme for small taxpayers, highlights specific exemptions and valuation methods, and analyzes key advance rulings that clarify the distinction between mixed and composite supplies, and goods versus services in this context.