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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.
This guide details the procedure for applying for compounding of an offence under Goods and Services Tax (GST) in India. Compounding allows taxpayers to resolve prosecution proceedings by paying a monetary compensation, thereby avoiding criminal charges and further penalties for the same infraction. The article outlines the step-by-step application process on the GST portal, covering necessary details, document uploads, and submission methods.
This guide details the process for applying for and appealing advance rulings under GST on the official portal, catering to both registered and unregistered individuals. It outlines step-by-step instructions, including fee payment, form submission, and document uploads for obtaining a ruling from the Authority of Advance Rulings (AAR) or filing an appeal with the Appellate Authority for Advance Rulings (AAAR). Additionally, the article covers other useful portal functionalities like viewing cause lists, orders, notices, and filing rectifications or replies to communications.
The Central Board of Indirect Tax and Customs initially made Aadhaar authentication mandatory for GST registration but later made it optional, with exceptions for non-residents and existing registrants. Recent updates have expanded biometric-based Aadhaar verification nationwide and introduced alternative document verification for those not opting for Aadhaar. This process helps validate taxpayer identities to prevent fraudulent activities within the Goods and Services Tax framework.
The 42nd GST Council Meeting, held on October 5th and 12th, 2020, focused on resolving the critical compensation cess shortfall for states. Despite extensive discussions, consensus on borrowing mechanisms proved challenging, leading to a follow-up session. The meetings addressed various issues, including quarterly return filing for small taxpayers, HSN code mandates, and GST exemptions for satellite launch services, while also reviewing previous proposals for state borrowing options.
Tax officials use Forms DRC-07A and DRC-08A to manage and track pre-GST tax demands. DRC-07A summarizes initial tax arrears under the CGST Act, while DRC-08A records any subsequent modifications or recoveries. Taxpayers can access these crucial documents and monitor their electronic liability register through a guided process on the official GST portal. This article outlines the necessary steps to view these forms and understand outstanding pre-GST dues.
This article outlines Section 206C(1H) of the Income Tax Act, which governs Tax Collected at Source (TCS) on the sale of goods, with a key update noting its repeal from April 1, 2025. It details the applicability criteria for sellers and buyers, including turnover thresholds and specific exemptions. The guide also covers the calculation, rates, compliance requirements, and penalties associated with this TCS provision, alongside its interaction with e-invoicing mandates.
This guide outlines the step-by-step procedure for taxpayers in India to voluntarily cancel their Goods and Services Tax (GST) registration. It details logging into the GST portal, navigating the application, providing basic details, and selecting a cancellation reason. The article covers various scenarios like changes in business constitution, cessation of tax liability, or business discontinuation. The process concludes with verification, digital signing, and tracking the application status.
The government introduced changes to the GSTR-3B return form in July 2022, particularly impacting how data is reported in Table 4. These updates mandate a more detailed classification of input tax credit (ITC) into eligible, ineligible, restricted, reversed, and reclaimed categories. This article outlines the new format, the updated reporting procedures for taxpayers, and the implications of these changes, emphasizing the need for accurate ITC declaration to avoid penalties and ensure compliance. Taxpayers must now maintain separate ledgers for ineligible ITC and perform frequent reconciliations to adapt to these new requirements effectively.
The GST framework treats employers and employees as related parties, leading to complexities regarding GST applicability on employee benefits. This article clarifies the provisions of Section 17(5) of the CGST Act, which outlines restrictions on Input Tax Credit for specific goods and services provided to employees, such as food and transport. It further examines the GST treatment of various employee perks, including gifts and common facilities, differentiating between contractual and non-contractual benefits. Additionally, it highlights important advance rulings and the comprehensive clarifications issued by Circular 172 in July 2022, aimed at resolving ambiguities surrounding GST on employee perquisites.
A slump sale involves transferring an entire business as a going concern for a lump-sum price, without individual asset valuation. While typically considered a supply under GST, specific provisions and notifications exempt such transfers from GST if they qualify as a supply of service of a going concern. An advance ruling from Karnataka further clarified that transferring a whole business unit as a going concern is indeed a GST-exempt service.
This article clarifies the Goods and Services Tax (GST) applicability and rates for yoga, physical, mental, and spiritual wellness services in India. It details how such services fall under the scope of supply, outlines conditions for GST exemptions for charitable institutions, and specifies the HSN code and applicable GST rates. Additionally, the piece examines the availability of Input Tax Credit (ITC) for these services and reviews relevant advance rulings concerning their taxability.
A new Table 3.1.1 has been introduced in GSTR-3B as per CGST notification 14/2022, requiring electronic commerce operators (ECOs) and registered suppliers to report sales under Section 9(5) of the CGST Act, 2017. This table specifically covers services like accommodation, passenger transport, restaurant, and housekeeping, with tax payable in cash without ITC utilization. The new reporting aims to enhance compliance, improve reconciliation, and prevent incorrect ITC claims, necessitating robust accounting and real-time updates for e-commerce entities.