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 …
Changes are set to take effect from 1st September 2024 Starting in September 2024, taxpayers in India will need to adjust their GST return filing practices due to significant changes aimed at enhancing compliance and financial reporting, according to a Hindustan Times report. Chartered accountant RJA highlighted several updates, which align with Notification No. 12/2024 …
Can GST Taxpayer claim GST input on Bank Charges ? Yes, you can claim Input Tax Credit on bank charges under Goods And Services Tax , and there are official circulars that provide guidance on this matter. A GST taxpayer can claim Input Tax Credit on bank charges under the Goods and Services Tax (GST), provided …
Kind of GSTR Return in India Payment System or mechanism under GST Regime General Rules for Payments Regular taxpayers under GST must compute tax monthly, set off Input Tax Credit against Outward Tax Liability, and pay balance tax to the government. Ledgers to be maintained include Electronic Liability, Electronic Cash, and Electronic Credit Ledger. …
Rule 86B under the GST Regime Rule 86B is a provision introduced under the Goods and Services Tax (GST) regime to restrict the use of Input Tax Credit (ITC) for paying output tax liability. Applicability: This rule applies to registered persons whose taxable value of supply (excluding exempt supply and zero-rated supply) in a month …
Main Highlights from the 53rd Goods and Services Tax Council Meeting Changes in Goods and Services Tax Rates of Goods: Aircraft Parts and Tools: 5% IGST on imports of parts, components, testing equipment, tools, and toolkits for aircraft. Solar Cookers: 12% GST on all solar cookers. RAMA Programme Imports: IGST exemption on research equipment/buoys under …