Semblance of Stability

What CBIC circular on GST for job work means In the nine months since GST went live, the Central Board of Indirect Tax and Customs (CBIC) has issued 310 notifications, 68 circulars and 13 orders on different aspects of the tax law. That’s an average of 43 a month, or more than one a day. Recently, the CBIC issued a circular (No 38/12/2018 dated March 26, 2018) clarifying six important issues relating to ‘job work’ (that’s work on raw materials or semi-finished goods supplied by a principal manufacturer). The circular clarifies that, in addition to the goods received from the Read more

GST & Nirav Modi

PNB can easily be booked for GST violations: The first few days after a major scam has been exposed are interesting — facts change, amounts invariably increase, all the regulators want to imprison the same scamsters, and similar scams by others show up furtively. A similar pattern is playing out in the PNB-Nirav Modi scam as well. Many arrests have been made and the tentacles of regulators are spreading to anyone related to the scam in any manner, including employees and auditors. That said, the one department that hasn’t made much noise about the scam is the Central Board of Read more

Circular No 27/01/2018-GST, 4 th January 2018

    In a Circular No 27/01/2018-GST dated 4th January 2018, the Ministry of Finance has attempted to clarify certain issues on the levy of GST for specified services.     Accommodation Services     The Circular clarifies that GST would be levied on the tariff published anywhere. In case the actual amount charged differs from the published tariff, GST would be charged on the actual amount charged. If tariff changes between booking and actual usage, GST would be charged on the published tariff at the time of supply (which, one should assume, would be the time of booking).   Read more


If you ask 3 Indians for their opinion on GST, you will get 5 views. These opinions would basically on the law overall and whether it has been good or bad for the country. We are not talking about these opinions. Readers would be aware that the major parts of the GST law are from the existing VAT, Central Excise and Service tax laws. Still, there are a number of issues that could be interpreted differently by different people. For example, claiming credits for GST paid on reverse charge paid as per Section 9(4) (which has been deferred till 31st Read more

GST and it’s Impact on Employer, Employee

A specific exemption was notified under service tax for services rendered by an employee to an employer. Employees all over the country should be relieved that the same exemption has been continued as the opening entry in Schedule III of the Central Goods and Services Tax (CGST) Act — services by an employee to the employer in the course of or in relation to his employment shall never be treated as supply of either goods or services. As far as the employer is concerned, Schedule I of the CGST Act states that gifts not exceeding Rs 50,000 in value in a Read more