Provisions of Insolvency and Bankruptcy Code override GST provisions


The Insolvency and Bankruptcy Code 2016 (IBC) was introduced to promote the ease of doing business in India, to address the issue of liquidity in cases relating to insolvency/bankruptcy in India. It consolidates all existing insolvency-related laws like the Sick Industrial Companies, Special Provisions Act 1985, and many more. The IBC also specifies that it will override any other legislation in cases of conflict. The companies going through a resolution mechanism under the IBC, the revenue authorities are insisting on having a priority in the collection of past tax dues. In December 2019, the National Company Law Tribunal (NCLT), Chennai, in the case of T. R. Ravichandran – Resolution Professional (RP) for Kiran Global Chem Limited1. (Corporate Debtor), has directed the revenue auth...

GST authorities to accept GSTR-9 and 9C returns without late fees


The Tax Bar Association approached the Rajasthan High Court [D.B. Civil Writ Petition No. 1805/2020] contending that the Forms GSTR-9 and 9C of various taxpayers, for Financial Year 2017-2018, could not be uploaded by the due date because of technical glitches on the Goods and Services Tax (GST) portal. The Tax Bar Association appraised the High Court regarding technical glitches in filing of Forms GSTR-9 and 9C with various data/screenshots and also the arbitrary fixation of last dates, through ‘tweet’ on Twitter, by the Central Board of Indirect Taxes and Customs (CBIC). The High Court after taking into consideration screenshots submitted by the Tax Bar Association regarding the unsuccessful attempts of the tax professionals, held as under: GST portal appears to be having technical bottl...

Why streamlined workflow and tax automation are critical in GST and E-way bill era


Supply chains cannot be swift if there are disruptions caused by manual GST compliance. The introduction of the Goods and Services Tax (GST) has been an important step in the field of indirect tax reforms in India — and one that has affected all sectors of the Indian economy. For companies dealing in goods, the stakes are high when it comes to managing the GST compliance process. Supply chains, warehouses, logistics, retail, even transportation companies and distributors can have a considerable impact on whether GST returns are filed accurately and in a timely manner. A disruption in one link can potentially buckle the entire value chain of supply. Pre-GST, supply chains, coupled with the warehousing and logistics industries, were often highly unorganized and fragmented, primarily due to i...

All software transactions will be uniformly taxed at 18% GST rate


Government has in a recent notifications clarified that all software transactions will be uniformly taxed at 18% GST rate. This includes software services, supplies on media or temporary transfer of IP.  Please find attached the relevant notification providing the rate applicable on Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right in respect of Information Technology software  [S.No. 17(ii)]   While, Industry request for a 12% GST on software supplies has not been accepted by the council so far, the clarification does address NASSCOM’s perpetual request for an end to ambiguity in tax rates on software and associated disputes, in light of the dual levies and resultant high tax rates under the previous IDT regime. While there is an increa...

Will GST be a record-keeping headache for firms?


This news item talks about the record keeping requirements under the GST law.  As per the rules, a registered tax-paying entity under the GST system for indirect taxation would have to maintain records of imported and exported goods or services and tax-paid supplies — separately for each activity, including manufacturing, trading and services. Apart from maintaining accounting and tax invoice registers, entities will also have to record the complete address of premises where goods are stored, including goods in transit. If the goods are found to be stored elsewhere than the declared place, a tax would be payable as if they were supplied by the same entity. PwC India’s tax and regulatory services team has commented that the stringent requirements would be a hassle and industry should consid...