Indirect Tax Laws - March 2021 MTP

Computation of net GST payable by Sahu Parivar for the month of May Particulars CGST (Rs.) (Rs.) IGST (Rs.) Output tax liability [Working Note 1] 4,87,800 Less: ITC of CGST [Working Note 2] (37,000) Less: ITC of SGST has been utilized only after ITC of CGST has been utilized fully in terms of proviso to section 49(5)(c) [Working Note 2] (37,000) Net GST payable from Electronic Cash Ledger 4,13,800 Working Note 1 Computation of output tax liability of Sahu Parivar…

ITC on life insurance is blocked unless it is used in case of sub-contracting or the same is provided under any statutory obligation. ITC on travel benefits extended to employees on home travel concession and membership of health and fitness center is blocked unless it is obligatory for an employer to provide the same to its employees under any law for the time being in force. (2) ITC on works contract services when supplied for construction of an immovable property…

Rate of exchange notified by CBIC on the date of filing of bill of entry has to be considered [Third proviso to section 14 of the Customs Act, 1962].

In case of goods imported by air, freight cannot exceed 20% of FOB value [fifth proviso to rule 10(2) of the Customs (Determination of Value of Imported Goods) Rules, 2007].

Insurance charges, when not ascertainable, have to be included @ 1.125% of FOB value of goods [Third proviso to rule 10(2) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007].

Rate of duty will be the rate in force on the date of presentation of bill of entry or on the date of arrival of the aircraft, whichever is later [Proviso to section 15 of the Customs Act, 1962].

Integrated tax is levied on the sum total of the assessable value of the imported goods, customs duties and applicable social welfare surcharge. (a) (i) As per section 12(7)(a)(ii) of the IGST Act, 2017 when service by way of organization of an event is provided to an unregistered person, the place of supply is the location where the event is actually held and if the event is held outside India, the place of supply is the location of recipient. Since…

Section 22(1) of the CGST Act, 2017 read with Notification No. 10/2019 CT dated 07.03.2019 inter alia provides that every supplier who is exclusively engaged in intra-State supply of goods is liable to be registered under GST in the State/ Union territory from where he makes the taxable supply of goods only when aggregate turnover in a financial year exceeds Rs. 40,00,000. However, the above provisions are not applicable to few specified States, i.e. States of Arunachal Pradesh, Manipur, Meghalaya…