Challenges MSME face due to the accrual-based GST framework. GST on accrual basis hurting MSME/ Small businesses” highlights a significant challenge in India’s GST system for MSME/ Small businesses —the requirement to pay GST based on invoice issuance, not actual receipt of payment. Accrual-Based GST is Squeezing Small Businesses’ Cash Flows Bhagat pays Goods and …
Summary of insights: Gross and Net GST revenue collections for March 2025 Analysis of GST Collections for March 2025 Overall Monthly Collection: The GST collection for March 2025 witnessed a notable rise, totaling INR 1,96,141 crore, reflecting a 9.9% year-on-year (YoY) growth over INR 1,78,484 crore collected in March 2024. This marks a stronger …
When a Delivery Challan Must Be Issued Under GST Regulations in India This blog guide outlines key scenarios where a delivery challan is required under GST, along with mandatory documentation and compliance requirements. Structured Scenarios Requiring a Delivery Challan to be Issued by Taxpayer: Transportation of Goods for Job Work Every consignment for job work …
Retrospective Amendment on ITC for Construction Costs What’s Changing : A retrospective amendment, effective from July 1, 2017, prevents entities—like commercial real estate companies—from claiming Input Tax Credit (ITC) on goods and services used in the construction of immovable property on their own account (e.g., buildings, warehouses). The government proposes a retrospective amendment (effective from …
GST Advisory on GST Waiver Scheme under Section 128A We are sharing this important update on the GST Waiver Scheme under Section 128A Key Points:- Here’s a quick summary for anyone needing clarification: Goods and Services Tax- Government of India, States and Union Territories Advisory for Waiver Scheme under Section 128A, A critical eligibility …
Rule 86B, introduced by Notification No. 94/2020 – Central Tax on December 22, 2020, effective from January 1, 2021, limits the use of Input Tax Credit for discharging output tax liability. Registered taxpayers with a monthly taxable turnover exceeding INR 50 lakh are required to pay at least 1% of their OTL in cash, …
Overview on RBI Penalties is not a ‘Supply’ Under GST law : The recent ruling by the Maharashtra Authority for Advance Ruling on RBI penalties and GST offers a clear interpretation in alignment with Goods and Service Tax laws and guidelines. AAR has delivered an important clarification regarding the taxability of penalties, late fees, penal …
File Fresh declaration required for Goods Transport Agency Services Managing billing under both Forward Charge Mechanism and Reverse Charge Mechanism for a transporter client involves meticulous compliance with GST regulations. Services to unregistered persons or those transporting exempt goods fall under FCM. Services to specified entities (as per RCM rules) fall under RCM. Unregistered Transporter …
Self-invoicing, Time of supply for registered & Unregistered suppliers under RCM The recent changes effective from 1st November 2024 in the GST framework related to Self-Invoicing and the Time of Supply of Services under Reverse Charge Mechanism (RCM) introduce more structured timelines and compliance requirements. These changes aim to streamline compliance, especially in Reverse Charge …
No ITC reversal is required when unsecured loans remain loans (not considered supplies). Under GST laws, Input Tax Credit reversal is mandated in cases where goods or services are used for non-business purposes or for making exempt supplies. Since unsecured loans are not considered as “supplies” under GST, the Input Tax Credit availed on inputs …