In the ongoing campaign against fake/bogus invoices and resultant availment of inadmissible ITC, officers of Central Goods and Service Tax (CGST) Commissionerate, Delhi (East) have detected a case of issue of fake bills of Rs. 79.5 crore (approx). The syndicate was being operated by Sh. Nitin Jain, C.A by floating three firms i.e M/s Anshika Metals, M/s N.J Trading Co. and M/s A.J Enterprises using the identity of his family members, with the intent of passing of inadmissible ITC. Sh. Nitin Jain..
Introduction Initially registered persons could claim Input Tax Credit on a self-declaration basis in Table 4(a) of GSTR-3B. The ITC that could be claimed on self-declaration basis included a summary figure of IGST, CGST and SGST. There was no requirement for reconciliation with GSTR-2A until clause 4 was added to the rule 36 of CGST rules through notification no. 49/2019 dated 9th October,2019. What is Rule 36(4) of CGST Rules? As per Rule 36(4), Input tax credit to be availed by a reg..
The Central Government introduced the 14th amendment rules vide notification no 94/2020 dated 22.12.2020. This notification resulted in various changes in CGST Rules, 2017 which have a severe impact on various sectors. One of them is the introduction of Rule 86B which came into effect on 01.01.2020. This rule restricts the utilization of available ITC in the electronic credit ledger of the registered person. It allows the registered person to avail ITC to pay only 99% of the tax liability. T..
The Central Board of Indirect Taxes and Customs has amended the Central Goods and Services Tax Rules, 2017, and has released the Central Goods and Services Tax (Amendment) Rules, 2021. Read the official announcement and the amendments made in the Rules below: [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)] Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs Notification No. 0..
The Central GST Delhi West Commissionerate has unearthed evasion of GST by way of manufacture and clandestine supply of gutkha/pan masala/tobacco products without any registration and payment of duty. On basis of the search at the premise of manufacture, it was found that illegal manufacturing of Gutkha/pan masala/tobacco product was going on, evidenced by a godown, machines, raw materials and manufactured products at the premises. Around 65 labourers were found working at the illegal factory. T..
The CBIC vide Notification No. 94/2020-Central Tax, dated December 22, 2020 has issued Central Goods and Services Tax Rules (Fourteenth Amendment), 2020, inter alia, amending Rule 22 of the Central Goods and Services Tax Rules, 2017 ("CGST Rules"), dealing with "Cancellation of registration" in following manner: • Rule 22(3) - Inserted the words "or under sub-rule (2A) of rule 21A" after the words, brackets and figure "the show cause issued under sub-r..
Time limit for system-based GST Registration increased The time for system-based registration has been enhanced from 3 days to 7 days. That means, now department shall be required to review and grant registration within 7 days against 3 days as provided earlier from the date of filing of registration application. Where the applicant does not do Aadhaar authentication or where department feels fit to carry out physical verification the time limit for grant of registration shall be 30 days inst..
Important Changes introduced CGST(Fourteenth Amendment) Rules 2020 Time limit for system-based GST Registration increased 1. The time for system-based registration has been enhanced from 3 days to 7 days. That means, now department shall be required to review and grant registration within 7 days against 3 days as provided earlier from the date of filing of registration application. Where the applicant does not do adhaar authentication or where department feels fit to carry out physical ..
Industries worldwide with the pace of their growth, in order to squeeze the benefits of economies of scale, tends to perform the functions on their own for which they generally are dependent on the third person. In this article, among the various functions performed, I would like to throw some light on the admissibility of Input Tax Credit on transmission wires laid outside the factory premises i.e. on the areas not owned by them, by the big factory houses generated in their own thermal plants u..
Under GST, there are many restrictions on availing of the input tax credit. One such limitation is present by the way of section 16(4) limiting the date of claiming the input tax credit to the due date filing of the return for September or date of filing of annual return whichever is earlier. Now GST department has started issuing the notices for those assesses that have filed returns after the due date mentioned in section 16(4) and hence, instructing them to reverse the credit that is being cl..