01 January 0001

Tax Amicus: September 2018

Preparing for GST Audit & Annual Returns
By Amandeep Singh
The new tax regime has already completed its first anniversary and the first financial year i.e. FY 2017- 18 post implementation of GST has also ended on 31st March 2018. Now it is time for the members of trade and industry to get ready for undertaking the exercise of GST audit and file the first GST Annual Return. The article in this issue of Tax Amicus hence discusses audit of registered persons to be conducted as per Section 35(5) of the CGST Act read with Rule 80(3) of the CGST Rules, 2017, and the obligation to file annual return. Deliberating on issues like use of word ‘turnover’ in Section 35(5), intra-company transactions, cross-charging of promotion and advertisement expenses incurred by head office, the author is of the view that first GST audit will be very crucial in identification of discrepancies and in taking corrective measures. In respect of returns, the article identifies various additional reporting requirements for which the assesse will have to work overtime...

Goods & Services Tax (GST)
Notifications and Circulars

  • GSTR-1 for July 2017 to September 2018 can be filed till 31-10-2018
  • GST – TDS & TCS provisions to come into force from 1st October, 2018
  • GST Audit – Reconciliation Statement in Form GSTR-9C notified
  • Principal-agent relationship for mandatory registration clarified
  • Alternative method for reversal of wrongly availed Cenvat credit or inadmissible transitional credit
  • E-way bill validity – Storing of goods in transporter’s godown can be opted
  • Invoice procedure for goods transportation in batches and lots
  • Documents for taking ITC – Provisions relaxed
  • Late fees waived for filing GSTR-3B, 4 and 6 for specified period
  • Time limit for making declaration in FORM GST ITC-04 extended
  • GST TRAN-1 can be filed till 31st March 2019 in specified cases

For GST Acts, GST Rules and Notifications (Central and States), Circulars, Press Releases and Notes, please use Knowledge tab in www.gst.lakshmisri.com.

Ratio decidendi

  • Supply or construction of solar power plant is composite supply – Appellate AAR Maharashtra
  • GST when liable on activities of charitable trust – AAR Maharashtra
  • Supply of spares, consumables take service out of ‘pure service’ – AAR Maharashtra

Notifications and Circulars

  • EPCG – Shifting of capital goods, and EO fulfilment intimation
  • Bio-fuels – Export Policy revised from ‘free’ to ‘restricted’
  • Export of SCOMET items for repair/display – Procedure
  • System driven approval of MEIS for exports from EDI ports – Guidelines

Ratio decidendi

  • Import by EOU – Excess imports when not relevant to deny exemption – CESTAT Mumbai
  • Freezing of bank account must comply with Customs Sections 105 and 110 – Delhi High Court
  • No Customs duty payable during redemption when no such demand made in SCN – Delhi High Court
  • Project imports – No need of registration before imports – CESTAT Kolkata
  • Pre-cooked and fried noodles can be considered as ‘dried’ – Court of Justice of the European Union

Central Excise and Service Tax

Ratio decidendi

  • Cenvat credit admissible on mandatory CSR activities – CESTAT Mumbai
  • Abatement under Excise Sec. 3A(2) – CESTAT refers issue to Larger Bench
  • Valuation – Loss in final goods immaterial for captive consumption valuation – CESTAT Mumbai
  • Valuation – Value of drawing received from buyer when not includible – CESTAT Chennai
  • Refund not barred by limitation when liability absent – Delhi High Court
  • Renting of immovable property service - Refundable security not liable – CESTAT Delhi
  • Cenvat credit available on services from non-whole time director – CESTAT Allahabad
  • Cenvat credit – Failure to ascertain exclusion under Rule 9(1)(b) is not suppression – CESTAT Delhi
  • Cenvat credit on inputs lost in cyclone – Reversal when not required – CESTAT Kolkata
  • Cenvat credit on laying or maintenance of railway siding track, available – CESTAT Chennai
  • Cenvat credit when part of amount payable to service provider withheld by recipient – CESTAT Delhi
  • Cenvat credit available on capital goods predominantly used in exempted goods except for a short period – CESTAT Hyderabad

Value Added Tax and other Taxes

Ratio decidendi

  • Fashion show amounts to ‘entertainment’ and liable to entertainment tax – Karnataka High Court
  • Deemed sale – Provision of infrastructure under exclusive control – Gujarat High Court
  • Kerala VAT - Limitation under Section 25(1) concerns initiation of assessment of turnover – Kerala High Court
September, 2018/Issue-87 September, 2018/Issue-87

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