GST Alert | Form ITC –02 A

Analysis of the newly introduced FORM ITC-02A.

Summary of Notifications issued in May 2020

Summary of Notifications and circulars issued during the month of May 2020.

Article | GST on Liquidated damages

Analysis of provisions pertaining to GST on liquidated damages.

GST Update | Directors Remuneration – Karnataka AAR

An update on our previous article on Directors Remuneration

Article | Directors Remuneration in wake of the recent AAR

Analysis of provisions pertaining to Directors Remuneration in wake of the recent AAR.

GST Alert I PMT 09

Introduction of Form PMT-09

GST Alert I Notification 31 read with 32 of 2020

Detailed analysis of Notification 31/2020- Central Tax (read with Notification 32/2020- Central Tax), dated 3rd April, 2020.

GST Alert I Notification 30 of 2020- Central Tax

Detailed analysis of Notification 30/2020- Central Tax dated 3rd April, 2020.

GST Alert I Notifications issued on 03.04.2020

Summary of all the Notifications issued on 3rd April 2020.

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GST on back office Services

In the case of VServ Global Private Limited ( [2018] 99 taxmann.com 253 (AAR - MAHARASHTRA), the AAR has ruled that back office services provided by an Indian Company to its foreign parent would be exigible to GST. The AAR felt that VServ Global was acting as an intermediary.

Unless challenged till the Supreme Court, this AAR decision is bound to create new headaches for MNC's operating in India.

GST on reimbursement of toll charges?

In Premier Vigilance & Security (P.) Ltd., 2018 99 taxmann.com 79 (AAR -West Bengal ) the AAR has ruled that toll charges has to be included in the value charged by the tax payer to banks since the tax payer is not acting as a pure agent.

Issue

The issue is not whether toll charges should be taxed or not. The issue is the flawed concept of pure agent- a term coined in the erstwhile Service Tax era and has been needlessly copied into GST laws. Realistically speaking, for all back-to-back reimbursements received, the tax payer is acting as a pure agent.

It should also be borne in mind that GST is not charged on toll charges due to Nil rating    through  Entry 23 of Notification No 12/2017 Central Tax ( Rate) dated 28^th June 2017. Could this have been on the mind of the AAR while giving the ruling? Would the ruling have been different had toll charges been subject to GST?

There are no ready answers to the above questions. But GST appears to be heading the Service tax way in terms of unclear laws subject to multiple interpretations.