Tax unlock

  Legal provision involved : As per Section 7 of CGST Act, 2017 all supplies of goods or services or both made by a registered taxable person for consideration in course of furtherance of business attracts GST. However, Schedule I to CGST Act, 2017 provides that transactions between related parties in the course of furtherance of business are treated as supplies even if it is made without consideration. Explanation to Section 15 of  CGST Act, 2017  provides that employer and employee are deemed to be related persons. Combined reading of afore-mentioned provisions suggests that the supply made by an employer to an employee is liable to GST even if it is made without consideration (except gifts up to INR 50,000). However, Schedule III of the CGST Act states that ‘services by an employee to the employer in the course of or concerning his employment’ are not considered as supply of goods or services. Therefore, employee remuneration is outside the purview of GST.   Analysis &

Meaning of Merchant Operator ·          Merchant Export means an activity by a trader who exports or intends to export goods. The person engaged in trading activity and export or intend to export goods is a Merchant Exporter. A merchant exporter is mainly engaged in the export of goods and not services. The procedure for supplying goods to a merchant exporter shall be as follows: Order by Merchant Operator ·          Merchant exporter shall place an order on registered supplier for procuring goods at concessional rate (IGST @0.1 or CGST 0.5+SGST 0.5) ·          Copy of the order shall also be provided to the jurisdictional tax officer of the registered supplier   Supply of goods by supplier For exporting the goods, the recipient shall ·       directly move the said goods from supplier’s place to the port/inland container depot (ICD)/airport/land custom station (LCD) from where the said goods are to be exported; or directly move the said goods to a registered wareh

There is huge change in claiming GST Credit  from 01/01/22 and so necessary to inform to non finance department as they will be dealing with vendors. Below is draft mail you can send to non finance department.  Sub : Huge Change in Claiming of GST credit Dear all, There is huge change in claiming of GST credit (applicable from 01/01/21) wide notification 39/2021-CT, Dated -21/12/21 as under : As per the new insertion of Section 16(2)(aa), a Recipient cannot avail Input Tax Credit (ITC) for the Invoice issues by the Supplier, if the Supplier has not filed that Invoice in his GSTR1 Returns i.e. Input tax Credit(GST Paid to vendors) in respect of invoices and debit notes shall be available only to extent they are furnished in GSTR1 by the vendors and the appearing in GSTR2A/2B of the recipient(your company name). If Vendor have not filed GSTR1 showing invoice issued to us in within due date (11 th of preceding month), than we will not able to take credit of tax till they show invoices is