Author: Padmanathan KV

GST on Director’s Remuneration – a critical analysis

Capping of ITC not reflected in GSTR-2A up to 20%

The central government vide Notification no 49/2019 central tax dated 9/10/2019 has made amendments to CGST Rules, 2017. One of the amendments is insertion of sub-rule (4) to rule 36 which is reproduced as follows:

Meaning and scope of Goods Transport Agency: An Analysis

Goods transport Agency (GTA) is undeniably one of the most unorganised sectors in our country. Road transport business operates in a number of ways including goods transport agency, wayside transporters, courier agencies and so on. Therefore, it is pertinent to test whether they would fall within the ambit of GTA. Consequently the taxation of GTA has been a contentious issue in the erstwhile Service tax regime as well as in the GST regime. This article analyses the meaning and scope of GTA drawing inference from various judicial pronouncements.

Composition Scheme to Service Providers: A comprehensive guide

Earlier composition scheme was available only to manufacturers and traders; and service providers were kept outside its ambit. With effect from 1^st April 2019, central government, on recommendation of the council has notified Composition Scheme for service providers vide Notification No. 2/2019 central tax (rate) dated 07/03/2019. Consequently Notification 9/2019 central tax (rate) amended the above said notification to make rules applicable to a person paying tax under section 10 apply to person paying tax under the said notification. Subsequently, On 5^th April a departmental circular was issued to ensure uniformity.  This article tries to analyse the various aspects of the said notifications and circulars in detail.

Utilization of ITC: Practical Scenarios

The CGST (Amendment) Act, 2018 has amended section 49(5) and inserted Section 49A and 49B which has drastically rationalised the utilization of ITC. This article is discusses the practical aspects on the new scheme of utilization of credit in the light of recent notification 16/2019 and CBIC Circular 98/17/2019.

GST on Real Estate: Development Rights, FSI and long term lease

With effect from 1^st April 2019, CBIC vide a series of notification reduced the GST rates for real estate projects. Apart from various conditions to be fulfilled along with the new rates such as reversal of ITC, RCM on unregistered purchase; the notifications also introduced some changes in the taxation of development rights and Floor Space Index (FSI) applicable for all projects after 1^st April 2019 and also to the ongoing project that have opted to pay tax at the new rate. This article is analyses the impact of these amendments in the context of Development rights and FSI.

Enhancement in E-Way Bill and Restriction under Rule 138E of CGST Rules, 2017

E-way bill is an Electronic bill for the movement of goods under GST which can be generated on the E-Way Bill portal. Recently some enhancements have been made in the E-way Bill portal which has been discussed in this article. Moreover, CBIC vide its Notification No 22/2019-central tax dated April 23 2019 has notified the provisions of Rule 138E of CGST Rules, 2017 imposing certain restrictions on taking EWay bill.

GST on Real Estate: Reversal of Input Tax Credit

With the series of changes that have been made effective from 1^st April, 2019 the effective tax rates has come down from 12% and 8% to 5% and 1% in the case of construction of  residential apartments and Affordable housing apartments respectively. Consequent to these changes the ITC has become ineligible and there is a need for reversal of ITC in cases where the promoter opts to pay GST at the new effective rate of 5% or 1%, as applicable, to the extent of the ITC attributable to the supplies whose time of supply (ToS) occurs after 01.04.2019. This article is aimed to explain the formula for reversal of ITC in coherent way possible.