The financial year has had a great start for most of the states even after a strict lockdown in the country which impacted the economy significantly,some relaxation in the lockdown has resulted in higher revenue collection in Karnataka in the first quarter as compared to last year,though we still have some covid restrictions the economic activity is not facing any serious damages this year.
The lockdown restrictions had a huge impact on the economy of India but soon after the relaxations in the lockdown the state governments are seeing a good start to the revenue, Maharashtra GST has reflected a similar phenomenon where the GST collection rose by 31% as compared to August 2020.
According to the reports that have come out post-collection it is seen that the Odisha government has collected Rs 957 Crore SGST & 793 Crore Rs as CGST, IGST amounts to Rs 949 Crore and cess was around Rs 620 crore and thus Odisha has continued to maintain a high momentum over its GST revenue collection after the lockdown restrictions were relaxed in the state.
The finance minister chaired a meeting with his experts for relaxation in investment norms and to nudge financial regulations,The meeting had regulators namely RBI,,IRDA,SEBI & PFRDA.The government is planning to ease asset monetisation and come up with new easy initiatives in the near future.
The Authority of Advanced Ruling, Gujarat, has held that GST will be attracted on any incentives received under the 'Aatma Nirbhar Gujarat Sahay Yojana'. Under the scheme, Nagarik Sahakari Banks (including those registered under the Multi-State Cooperative Act) and credit co-operative societies would provide loans without collateral up to Rs. 1 lac to customers at an interest rate of 8%.
The Tamil Nadu Authority of Advance Ruling (AAR) ruled that INOX Air Products Ltd. is not entitled to utilise Input Tax Credit (ITC) of GST on the transfer of leasehold land. Under section 17(5) of the CGST Act, input tax credit on land leased is blocked as INOX has used such land for the construction of Plant and Machinery.
The Gujarat Authority of Advance Ruling (AAR) held that job work on service by way of pharmaceutical drugs shall attract 12% GST. Under section 2(68) of the CGST Act, any service given by a person in the form of treatment or processing of products belonging to another registered person is a job work service and shall attract GST at 12%.
Forms GSTR-9 and GSTR-9C for FY 2020-21 are available from August onwards on the GST portal and are to be filed by 31st December this year. Regular taxpayers should correct and report missing invoices, consolidate the financial data over the year, reconcile differences between audited statements and draft GSTRs, cross-check ITC with vendors and issue appropriate debit/credit notes.
The Goods and Service Tax Network (GSTN) has announced the Module-by-Module functionalities for additional features added between December 2020 and July 2021 that will be available on the GST Portal for taxpayers. These functionalities apply to a variety of modules, including Registration, Returns, Advance Ruling, Payment, Refund, and other subjects.
The state government of Tamil Nadu, while presenting the budget in the State Assembly, has notified a reduction in Value Added Tax (VAT) on petrol and diesel. The VAT on petrol has been reduced from 34% to 15% and on diesel, it has been reduced from 25% to 11%. The new prices will come into effect from August 14, 2021.
A Karnataka High Court Division Bench has stayed a single judge judgement declaring that racing clubs must pay GST only on the commission, not on the whole face value of the wager. It was stayed due to government appeals, which required consideration of the pre-GST regime, where a totalisator tax and betting tax was charged on the whole bet amount.
Premier Sales Promotion Pvt Ltd, based in Bengaluru, approached the AAR's Karnataka bench about the GST rate that would apply to the supply of gift vouchers, cash-back vouchers, or supply of e-vouchers. The AAR determined that the supply of e-vouchers is taxable as goods at 18%, regardless of the underlying item procured using such vouchers.
The Karnataka Authority of Advance Ruling (AAR) discussed GST on projects that are affordable housing projects and have been designated as infrastructure. The two-member bench ruled that the construction service provided by the applicant are liable to tax at the rate of 12%, if the projects are affordable housing projects else, the services will be taxed at 18%.
In a recent ruling by the Tamil Nadu Appellate Authority of Advance Ruling(AAAR), no GST is payable on the supply of potable or non-purified water. Purified water is pure H2O that includes just hydrogen and oxygen and no minerals. Potable water, on the other hand, is water that is appropriate for human and animal use and contains dissolved minerals.
The Telangana High Court's bench of judges ordered that no tax demand could be made or raised while an investigation is still under process. The respondents cannot be permitted to collect any tax, interest, or penalty by serving notice on the petitioner/assessee, any such act shall be arbitrary and without jurisdiction.