On introduction of GST, the credit of taxes under the existing law, predominantly Central Excise, Service Tax and Value Added Tax, was allowed to be carry forwarded vide the transitional provision either as Central Goods and Service Tax (CGST) or State Goods and Service Tax (SGST) as the case may be..
It is common practice prevailing in many industries that certain materials are provided by the customer to the manufacturer or contractor. This is done for various business or economic reasons. For example, moulds, jigs and dies etc., are provided by the Original Equipment Manufactu..
Education Cess was being levied on Central Excise and Service Tax from 10.09.2014.
Education Cess paid on the purchase was available as a credit for payment of education cess on payment on the output removal. The credit of cess was not able to use for the payment of duty.
Later, when the rate ..
What is Advance ruling?
'Advance ruling' means a decision/ruling given to the applicant by the constituted authority on the matters relating GST provisions like registration requirement, exemptions, classification, valuation, ITC etc.
Unlike old Central indirect taxes (Central Excise,..
Conceptually GST is destination/consumption based tax i.e. person consuming the service/goods shall bear the burden of such tax and that revenue shall go to the corresponding state but no provision express this concept/ philosophy. However same was inherent and more adequately embodied in the prov..
One of the recent trends has been enquiries and letters by the service tax department to all restaurants/bars/wine shops demanding payment of service tax on the liquor license fee paid to the state government. Department is also backing this vide circular 192/02/2016-Service Tax dated 13.04.2016 (Sl..
GST is intend to cover larger number of people under its net and further keeping threshold exemption limit of 10 Lakhs many people would come under GST net. Small tax payers may not have sufficient infrastructure, knowledge, awareness etc., in complying with various provisions of law including accou..
Denying of CENVAT credit on service of rent-a-cab is favourite to revenue officers. For the period upto 01.04.2011, courts/tribunals allowed the credit however with advent of specific exclusion in the definition of ‘Input service’ so as to disallow the credit on rent-a-cab services, most..
GST is said to be levied on ‘supply’ in legal words taxable event is ‘supply’ thereby dispensing with the existing different taxable events for different levies of duties/taxes like ‘Manufacture’ for levy of excise duty, ‘sale’ for levy of VAT/sales ta..
The basic principle of any VAT system is that credit of duty or tax paid on the input goods or service can be availed only for payment of duty on final products or output services. As a natural corollary, if no duty/tax is payable on final product or output services, credit of duty/tax paid on input..