Under different taxation systems, a list of goods or services is exempt from tax due to socio-economic reasons. For example, the sale of life-saving drugs or books meant for reading in different state governments exempt from taxes. Similarly, there are some exceptions even under GST where goods or services are exempt from tax liability. Such exemptions...
Continue readingPURE AGENT CONCEPT IN GST
Introduction The Goods and Services Tax (GST) Act defines an agent as a person including a factor, broker, commission agent, Croatia, del-credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another. A...
Continue readingConcept and scope of Anti-Profiteering measure
The Government wants that GST should not lead to general inflation and for this, it becomes necessary to ensure that benefits arising out of GST implementation be transferred to customers so that it may not lead to inflation. For this, anti-profiteering measures will help check price rise and also put a legal obligation on...
Continue readingCONFISCATION OF GOODS AND CONVEYANCE AND LEVY OF PENALTY
Meaning of Confiscation The term ‘confiscate’ has not been defined under the Goods and Services Tax (GST) Act. However, the dictionary meaning of the word ‘confiscate’ is to expropriate private property for public use without compensating the owner, to appropriate (private property) to the public treasury by way of penalty, to deprive of property...
Continue readingGOODS TRANSPORT AGENCY (GTA)
Meaning of Goods Transport Agency Goods Transport Agency (GTA) means any person who provides service in relation to transport of goods by road and issues consignment note by whatever name called. Thus, the business firms which are engaged in the transportation of goods by road and issue consignment note / LR, etc. shall...
Continue readingLate Fees and Interest on GST Return – Update
Late fees and Interest forms important components under the GST payment and incurred by the business in case of delay in submitting or filing. Latest Updates There is no late fee that shall be levied if the taxpayer file the monthly GSTR-1 for Mar, April, and May before 30th June 2020. the quarterly GSTR-1...
Continue readingWhat is Debit Note and Credit Note?
About: When goods supplied are returned or revised in the invoice value due to goods or services not being up to the value or extra goods being issued, a Debit Note or Credit Note is published by the supplier and receiver of goods and services. A debit note or a Credit Note can be...
Continue readingINPUT SERVICE DISTRIBUTOR
About: “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid...
Continue readingTime, Place and Value of Supply
Why are the time place and value of supply important? Time of supply indicates the point in time when goods/services are considered supplied’. When the seller knows the ‘time’, it helps him identify the due date for payment of taxes. Place of supply is required for determining the tax to be charged on the...
Continue readingAccounts and Other Records
Every registered person is required to maintain all records at his principal place of business. Who must maintain accounts under GST? It is the responsibility of the persons to maintain specified records- The owner The operator of warehouse or godown or any other place used for storage of goods Every transporter Every registered person...
Continue reading