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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.
Goods and Services Tax (GST) collections are a vital source of revenue for the Indian government, recently surpassing ₹20 lakh crore in FY 2023-24. This article explains the composition of GST revenue, detailing monthly collection trends and the breakdown of CGST, SGST, IGST, and cess. It also highlights the varying contributions to GST revenue from different business types and provides historical data since 2017, showcasing the significance of digital tax administration.
This article explores the application of Goods and Services Tax (GST) to various components of factoring arrangements in India. It clarifies that while the sale of receivables is exempt from GST as actionable claims, processing fees and CERSAI registration charges are taxable as services. Additionally, the article explains that discount or finance charges are generally exempt, but if they include components for servicing and collection, the latter portion may be taxable as a mixed supply at the highest applicable rate.
This article explains the phased implementation of e-invoicing in India and its specific implications for Tax Collected at Source (TCS) for e-commerce operators under GST. It details the integration process for e-commerce platforms with both sandbox and production Invoice Registration Portals (IRPs), outlining the necessary steps for API registration and IRN generation. The content also highlights crucial e-invoicing considerations for suppliers and e-tailers, clarifying their responsibilities and access rights regarding generated IRNs.
This article clarifies the Goods and Services Tax (GST) implications on interest charged for overdue invoice payments in India. It delves into whether such interest qualifies as a "supply" under GST law and how its value is determined for tax purposes. The piece also explains that the GST rate and HSN code for interest align with the original supply and examines relevant Advance Authority Ruling decisions, noting exemptions for penal interest by financial institutions.
The Indian government has fully removed GST on sanitary pads, setting the tax rate to 0%. This article explores the consequences, particularly the creation of an inverted tax structure where input materials are taxed at 12% or 18%. This situation disadvantages local manufacturers by denying input tax credit, while inadvertently benefiting importers. The change, effective July 2018, has shown minimal real benefit to consumers due to unchanged manufacturing costs for domestic producers.
The GST Amnesty Scheme provides taxpayers with relief for unfiled GSTR-3B returns, offering reduced late fees and broader compliance opportunities. Recent updates include a 2024 scheme for conditional waiver of interest and penalties on past demands, and extensions for various return filings and registration revocations. Despite its benefits, challenges such as the absence of interest waivers and issues with Input Tax Credit claims persist, prompting calls for expanded scope and revisions to fully support taxpayer compliance.
India's GST collection for November 2022 reached Rs. 1,45,867 crore, marking an 11% year-on-year increase despite a slight monthly dip from October. This continued a trend of nine consecutive months with collections exceeding Rs. 1.4 lakh crore, driven by CGST, SGST, and IGST, including significant contributions from imported goods. The sustained growth reflects the government's ongoing efforts to counter tax evasion and is anticipated to maintain momentum.
A recent instruction from the GST Investigation Wing clarifies the proper procedure for tax deposits during official searches and investigations. It addresses concerns about officers coercing taxpayers into making voluntary payments via Form DRC-03, emphasizing that such payments must be truly voluntary. The instruction outlines the legally mandated steps for tax recovery, which must be followed strictly, and promises disciplinary action against officers who misuse their authority. This directive ensures that tax recovery occurs only after proper determination and demand confirmation, not through forced payments during inquiries.
Businesses undergoing GST registration may receive notices from tax authorities seeking clarification on submitted details. These notices are typically issued due to mismatches, outdated documents, or unclear information. This guide provides a detailed, step-by-step process for applicants to respond to such notices, covering procedures for both new and existing registrations on the official GST portal.
As the 2024-25 financial year concludes, this article provides a crucial checklist for businesses to finalize their GST records accurately. It covers essential areas such as reconciling turnover, managing Input Tax Credit, and addressing Reverse Charge Mechanism liabilities. Following these guidelines ensures a seamless year-end closing, minimizes audit risks, and prepares businesses for the next financial period.
This article details the Goods and Services Tax (GST) implications for iPhones in India, covering current rates and Harmonized System of Nomenclature (HSN) classification. It explains how GST applies to new and refurbished iPhones, outlines input tax credit eligibility for business users, and clarifies the impact of import duties. The guide also differentiates between composite and mixed supplies for iPhones and their accessories, providing a comprehensive overview for consumers and businesses.
This article clarifies the Goods and Services Tax (GST) framework for ice cream products in India, detailing applicable rates, the HSN code, and Input Tax Credit (ITC) eligibility for manufacturers. It outlines the GST implications for ice cream parlours versus restaurants, differentiating tax treatments based on their service classification. The discussion also includes key rulings from the Authority for Advance Rulings (AAR) on ice cream scoop sales and highlights recent rate changes from the 56th GST Council meeting.