Small industries’ association wants GST to be reduced

Erode District Small Industries Association (EEDISSIA) has urged the Central government to reduce the Goods and Services Tax (GST) on plastic raw materials, textile yarn and carbonated fruit juice-based drink.

The association’s general body meeting was held under the chairmanship of its president P. Thirumoorthy in which secretary R. Ramparakash, vice-presidents V.T. Shreedhar and P. Kandasamy, treasurer S. Palanivel, joint secretary A. Saravanan Babu and members participated. Various resolutions were passed during the meeting.

A resolution said that the GST council has recommended an increase in the GST rate on cartons, boxes, packing containers of paper from the present 12% to 18%. The resolution said that the move will affect the paper industry much and wanted the proposal to be withdrawn. Another resolution said that it was proposed to increase the GST for carbonated beverages upto 40% and wanted it to be withdrawn. Use of plastic bags for packing was banned without any proof and hence the government should come out with alternative products for packing on war-footing. Since plastic items can be recycled, it should be permitted for secondary packages, the resolution said.

Other resolutions were, including Erode under the Coimbatore-Salem Industrial Corridor project, converting Erode district as drone special production centre, focusing on parachute manufacturing in the district, establishing separate industrial estates for textile, food processing and plastics in the district, establishing export hub, establishing railway export terminal at Sipcot in Perundurai and taking steps to control price of fuel. A resolution called for constructing flyovers, public parking lots and ring roads in the city and pedestrian subway near Erode Railway Junction and a flyover at Rangampalayam. The resolution also urged the government to widen the existing roads connecting Tiruchengodu, Chithode and Karur as four-lanes.

SOURCE:https://www.thehindu.com/news/cities/Coimbatore/small-industries-association-wants-gst-to-be-reduced/article37097606.ece

GST Latest Update : कर्मचारियों की कैंटीन सेवाएं जीएसटी दायरे से बाहर, एएआर ने दिया फैसला

जमशेदपुर, जासं। कई बड़े औद्योगिक और विनिर्माण इकाइयों को कुछ राहत प्रदान करने वाले कर निर्णय के बाद कर्मचारियों से एकत्र किए गए कैंटीन शुल्क अब माल और सेवा कर (जीएसटी) के दायरे से बाहर होंगे। हाल के एक फैसले में गुजरात अथॉरिटी फॉर एडवांस रूलिंग (एएआर) ने कहा कि कैंटीन सेवा प्रदाता को भुगतान किए जाने वाले कैंटीन शुल्क के लिए कर्मचारियों से एकत्र की गई राशि पर जीएसटी लागू नहीं है

कर विशेषज्ञों का कहना है कि यह कई कंपनियों के बीच बहस का मुद्दा रहा है, जिन्हें मौजूदा कानून के तहत फूड कैंटीन मुहैया कराना है। ज्यादातर मामलों में कर्मचारियों से एक टोकन राशि एकत्र की जाती है। एएआर ने फैसला सुनाया कि ऐसे मामलों में जहां कंपनी इस राशि पर कोई लाभ नहीं कमा रही है और केवल एक मध्यस्थ के रूप में कार्य कर रही है, जीएसटी नहीं लगाया जा सकता है। जमशेदपुर के टाटा स्टील व टाटा मोटर्स में आज भी कैंटीन की सुविधा है, जहां काफी सस्ते दर में कर्मचारियों को भोजन दिया जाता है।

अलग-अलग प्राधिकरणों का था अलग दृष्टिकोण

पहले के दो एएआर फैसलों में दो अलग-अलग प्राधिकरणों द्वारा एक अलग दृष्टिकोण लिया गया था। टाटा मोटर्स के मामले में एएआर ने फैसला सुनाया था कि इतनी राशि पर जीएसटी लागू नहीं है, जबकि एमनील फार्मास्युटिकल्स के मामले में एक विपरीत दृष्टिकोण लिया गया था।

नांगिया एंडरसन इंडिया के मैनेजिंग पार्टनर राकेश नांगिया ने कहा कि कर्मचारियों के लिए कैंटीन सेवाओं का प्रावधान और उस पर जीएसटी भुगतान पूरे उद्योग में चर्चा का विषय रहा है और उक्त मामले में आवेदक के पक्ष में और उसके खिलाफ कई फैसले सुनाए गए हैं।

विभिन्न प्राधिकरणों से अलग-अलग राय की पृष्ठभूमि में केंद्रीय अप्रत्यक्ष कर और सीमा शुल्क बोर्ड से उचित स्पष्टीकरण इस मुद्दे को शांत कर सकता है और उद्योग को सही स्पष्ट दृष्टिकोण अपनाने में सक्षम बनाता है।

इनपुट टैक्स क्रेडिट ने भी फैलाया था भ्रम

कैंटीन पर जीएसटी और कंपनियों को मिलने वाले इनपुट टैक्स क्रेडिट ने भी पहले भ्रम की स्थिति पैदा कर दी है। 2018 में सरकार ने कहा था कि बैंक सुरक्षा गार्डों द्वारा भुगतान किए गए जीवन बीमा प्रीमियम का इनपुट टैक्स क्रेडिट ले सकते हैं। अस्पताल नर्सों द्वारा भुगतान किए गए चिकित्सा बीमा प्रीमियम का क्रेडिट ले सकते हैं और कंपनियां मजदूरों से ली जाने वाली कैंटीन फीस का क्रेडिट ले सकती हैं।

इनपुट टैक्स क्रेडिट एक ऐसा तंत्र है जहां किसी कंपनी या बैंक द्वारा इनपुट सेवाओं या कच्चे माल पर भुगतान किए गए जीएसटी का हिस्सा भविष्य की कर देनदारियों के खिलाफ सेट किया जा सकता है। फिर भी सरकार के स्पष्टीकरण का मतलब यह भी था कि कुछ मामलों में कैंटीन शुल्क पर जीएसटी लागू किया जा सकता है।

कर विशेषज्ञ अजय श्रीवास्तव बताते हैं कि अपवाद का मतलब है कि किसी भी नियोक्ता द्वारा प्रदान की जाने वाली कोई भी सेवा जो कानून द्वारा अनिवार्य है, इनपुट टैक्स क्रेडिट के लिए पात्र होगी। हाल ही में AAR का फैसला इसे एक कदम और आगे ले जाता है। एएआर का मतलब है कि बिना लाभ कमाने के इरादे से नियोक्ता द्वारा प्रदान की जाने वाली कोई भी सेवा जीएसटी के दायरे से बाहर होनी चाहिए।

SOURCE:https://www.jagran.com/jharkhand/jamshedpur-canteen-services-of-employees-out-of-gst-purview-aar-decided-22134473.html

GST Council likely to consider single tax rate for online gaming, race courses and casinos

There has been a lot of debate on the concept of a game of skill versus a  game of chance. However, people in the know have told CNBC-TV18 that the GST Council is likely to consider one single tax rate for online gaming, racecourses, casinos and that could be as high as 28 percent.

Govt may ease GST norms on re-export of leased aircraft

The government is considering easing goods and services tax (GST) rules for re-export of leased planes, in what would offer a major boost to airline financials hit hard by the covid-induced turbulence.

The ministry of civil aviation and the finance ministry are studying a plan to ensure that carriers do not face any hardship from customs authorities from the mandatory requirement of a no-objection certificate while exporting leased planes after the expiry of their leases, a person familiar with the discussions said requesting anonymity.

The aim is to limit any objection to the re-export of an aircraft only to the extent of GST dues of the particular plane instead of an entire airline.

An aircraft, when imported, attracts a 5% GST, and if there are no dues on this account, there shouldn’t be any objection to its re-export, the person cited above said. Any dues relating to the airline’s business operations should not be linked to this no-objection certificate, the person said.

An aircraft at the end of its lease is to be returned, and its holding back on account of the leaseholder’s tax dues would amount to the customs authorities having a charge on the assets of the aircraft owner, who is a third party, the person said.

A decision on easing the tax rules will have to be approved by the GST Council or an empowered panel of officials. Such a decision will be a shot in the arm of airlines to restructure their fleet depending on the current business environment.

In its proposal to the finance ministry, the civil aviation ministry referred to efforts by some domestic airlines to rework their lease pacts for cost savings to improve their cash flows, a second person said.

Emailed queries to the ministries of civil aviation and finance and the Central Board of indirect Taxes and Customs remained unanswered at the time of publishing.

The move comes at a time the industry is struggling to recover from the devastating impact of the pandemic through extensive cost rationalization. The financial performance of Indian airlines is likely to remain weak as material recovery in passenger traffic to pre-covid levels is unlikely in the near-term, credit rating agency Icra Ltd said in an analysis on Monday, citing continued curbs on international travel and subdued demand for corporate travel. The agency has retained its negative outlook for the industry while highlighting low capacity utilization and a sharp increase in jet fuel prices as factors weighing on airline performance.

GST officers seek gazetted rank, power

Highlighting that around 800 GST officers don’t have any specific responsibility and power, Andhra Pradesh GST Officers’ and Employees’ Association has urged the government that only gazetted rank and powers would enable them to discharge their duties efficiently.

The GST officers, who were formerly known as Assistant Commercial Tax Officers (ACTOs), have been striving hard for gazetted rank, saying that without it, they are not able to verify the records and audit the details of shops and business establishments, leading to tax evasion.

Till the introduction of the Goods and Service Tax (GST) on July 1, 2017, ACTOs used to inspect the goods transported from one place to another. Their surprise inspections at railway stations, bus-stands and stock points used to act as a deterrent against tax evasions.

At present, the Assistant Commissioner and the Deputy Commissioner rank officials have powers of inspection and audit. With the heavy load, they are unable to inspect the records of nearly 3,000 dealers in each district, association members pointed out.

A.P. GST Officers and Employees Association president Chowdary Purushottam Naidu and general secretary Allina Ramesh Kumar, Commercial Taxes NGOs Association of Vizianagaram Division president R.Venugopal recently met Chief Minister Y.S. Jagan Mohan Reddy in Amaravati and explained the difficulties being faced by the GST officers.

They informed him that the GST officers in other States were given gazetted rank and powers which helped the respective governments to generate additional revenue with the bringing many traders into the GST net. “The Chief Minister responded positively to our proposals and directed the CMO to look into the matter. We hope the government would issue orders at the earliest. There will not be any financial burden in the form of payment of extra salary to the GST officers. But, it helps the government generate additional revenue by bringing more dealers into the GST net,” said Mr.Purushottam Naidu, who is also the associate president of the A.P. NGOs Association.

Mr. Venugopal said that the government had already ensured gazetted rank to Deputy Tahsildars, Sub-Registrars, and Executive Officers of Panchayat Raj Department, Excise Inspectors, Grade-III Municipal Commissioners and Co-Operative Sub Registrars who joined the service along with them after clearing the Group-II examination.

source:https://www.thehindu.com/news/national/andhra-pradesh/gst-officers-seek-gazetted-rank-power/article37033201.ece

Ahmedabad, Surat becoming bogus GST billing hubs: Govt

Since the implementation of Goods and Services Tax (GST), Ahmedabad and Surat have become the hubs for bogus billing in Gujarat, while the web of illegal transactions has also spread to rapidly industrialising districts like Bhavnagar, Rajkot, Morbi and Gandhinagar where a sizeable number of trading and business firms have been found involved in this racket.

Both Ahmedabad and Surat districts account for almost 58 per cent of the Rs 3,094 crore worth of taxes involved in bogus billing rackets in the three years ending June 30, 2021, the state government stated in a written reply to an unstarred question asked by Congress MLA from Petlad, Niranjan Patel about bogus billing in
GST during the recently concluded monsoon session of Gujarat Assembly.

While Ahmedabad reported the highest Rs 971 crore of tax involved in bogus billing, in Surat it was Rs 789 crore. Both Ahmedabad and Surat saw involvement of 250 and 196 firms each, respectively. GST came into effect from July 1, 2017. While this bogus billing racket is being reported from 18 of the 33 districts of Gujarat, smaller industrial clusters like Bhavnagar, Rajkot, Morbi and Gandhinagar are also reporting involvement of large number of firms in producing fake bills.

Bhavnagar has third highest quantum of tax (Rs 433 crore) involved, where a total of 104 trading units are under scrutiny.

Though the government in its written reply stated that no government officials have been found involved in the bogus billing cases till June 30, 2021, the situation changed the very next month.

Bhavnagar became the singular place in Gujarat where the state government stepped in and transferred 36 officials from one office of SGST department in connection with a Rs 1,000 crore bogus billing case unearthed in July.

Two of these SGST officials including a deputy commissioner were also suspended for their alleged involvement in the case. This is however the first time, the involvement of government officials have come to light.

The data tabled in the Gujarat Assembly also states that 1,037 trading and business firms were involved in generating bogus bills and smaller industrial locations like Rajkot (Rs 333 crore), Morbi (Rs 126 crore) and Gandhinagar (Rs 104 crore) emerged as centres for generation of fake GST bills.

SGST officials in Gujarat The Sunday Express spoke to said that the bogus billing racket in the state involves a complex network of individuals who use these fake bills to illegally claim Input Tax Credit. “This web of individuals could comprise of as many as 50 persons and are roughly categorised by us as initiator entities, pass-on entities and beneficiaries depending on the role they play while implementing the fraud,” said an SGST official.

For instance, in the 2020 case involving one Paresh Chauhan from Ahmedabad, documents were sourced from gullible individuals and the same were used for registrations on GST portal. As the entire system is online, the spot verification of the registered address was not done (it has been made compulsory now).

“Paresh was arrested in beginning of 2020 and is among the first fraud cases in India to go on trial,” the official said adding that 36 entities were involved in the Rs 900 crore bogus billing racket that was being operated out of a rented premises in Ahmedabad city.

SGST officials said bogus billing rackets in Gujarat operate out of not only rented premises, but also have been found operating from premises belonging to some associate remotely connected with the conspirator.

Officials said apart from those firms involved in defrauding tax, there are companies that try to use the bogus bills to inflate their turnover. “This is largely done by firms looking to go for a public listing or those who are seeking loans from banks,” the official added. When asked the reason behind the bogus billing racket spreading to smaller centres, an SGST official said, “The mastermind in most of these cases operate from bigger cities and they spread their network to smaller towns.”

source:https://indianexpress.com/article/cities/ahmedabad/ahmedabad-surat-becoming-bogus-gst-billing-hubs-govt-7575473/

Garments sector demands 5% uniform GST for the sector

The proposal to fix a uniform GST slab of 12% for the garments sector, if it goes through, will hit the ‘already battered’ industry and may lead to job losses, industry insiders fear. Currently there are two tax slabs – 5% for bills below ₹999 and 12% for bills above that. Calls for a uniform tax slab prompted a proposal to fix it at 12% for both slabs. However, representatives of the garment sector are demanding that it should be 5%.

“The industry, one of the largest employers, is one of the worst-hit by the pandemic. With no social gatherings and people working from home, sales have dropped by over 50%. People also do not have spending capacity. Meanwhile, the prices of raw materials have shot up significantly. In such a situation, hiking tax to 12% will further hit the industry,” said Sajjan Raj Mehta, of Karnataka Hosiery and Garments’ Association.

In a letter to Chief Minister Basavaraj Bommai, who was recently appointed chairman of the Group of Ministers on GST Rate Rationalisation, Perikal M. Sundar, president of Federation of Karnataka Chamber of Commerce and Industry, (FKCCI), said, “This sector may face closure leading to unemployment and loss of revenue to the government.”

The proposal has garment workers worried too. A recent study by the Garment and Textiles Workers’ Union (GATWU) estimated that at least 60 garment factories shut down and nearly 40,000, mostly women, lost jobs, in Bengaluru alone since the pandemic.The scale of the crisis is severe across the country, said Jayaram, advisor to GATWU. Even those working have had their salaries cut and in many cases not paid for months, he added. “The demand in the domestic market has fallen steeply and it is in this sector that there has been the most closures and job losses. In such a situation, hiking GST to 12% would lead to a further fall in demand and will eventually hit us workers. It will only mean more closures, loss of jobs and salary cuts. This is the time the government must stand by the sector,” Mr. Jayaram said.Industry representatives recently met the CM and petitioned him seeking a uniform 5% GST slab for the sector. “Earlier, Mr. Bommai, acting on our petition, has written to Union Finance Minister Nirmala Sitharaman seeking a uniform slab of 5%. Now that he chairs the rate rationalisation committee himself, we hope he will honour his commitment,” said Mr. Mehta.

SOURCE:https://www.thehindu.com/news/national/karnataka/garments-sector-demands-5-uniform-gst-for-the-sector/article37014723.ece

Renting your immovable property? Key GST obligations you should know Profile image

If you are owning a residential house or flat or may be an office or a shop and considering to rent/lease it out, you should know about the GST obligations involved, as renting of immovable property qualifies as supply of service under GST law.

1.0 Renting of residential dwelling for use as residence is exempt
Under GST law, exemption has been provided in respect of services by way of renting of residential dwelling for use as residence. Accordingly, in case you have rented out your residential house or flat to anyone for residential use, it will be an exempted supply and GST will not be applicable thereon.
However, in case you have rented your residential house / flat for commercial use the exemption will not be operative and GST will be applicable on the rental amount.
1.1 Renting of residential dwelling to commercial entities exempt?
Various rulings are available in regard to applicability of GST on renting of residential dwelling to commercial entities.
West Bengal Authority of Advance Ruling (AAR) in the case of Borbheta Estate Pvt Ltd has adjudged that renting a residential property to a company for residential use by its employees is an exempt supply under GST.
Andhra Pradesh AAR in case of M/s Lakshmi Tulasi Quality Fuels, has ruled that renting of dwelling to a commercial entity for use as hostel will not be exempt from GST as lessee is engaged in commercial activity of renting of rooms in the dwelling and providing boarding and hospitality services to inmates.
Similarly any residential dwelling taken by a Company for use as Guest House may also be regarded as used for commercial purposes and would be subjected to GST.
1.2 Renting of office or shop or building other than residential house / flat is taxable
The renting of office or shop or building other than residential house / flat is not exempt and would be subject to GST. However GST, will still not be applicable in case your aggregate turnover does not exceed Rs 20 lakhs as there will be no need to obtain GST Registration.
2.0 GST registration: When required
Under GST law a person who is engaged in supply of services is required to obtain registration where his aggregate turnover in a financial year exceeds Rs 20 lakhs. The term aggregate turnover includes taxable as well as exempt supplies but excludes non-supplies like salary from employer, sale of land, completed building etc.
Let us understand the above by following example:
Sana has earned various incomes during a financial year. The treatment of each income from taxability and aggregate turnover perspective is tabulated below:
Description Amount(in Rs) Taxable / exempt / non supply Treatment for aggregate turnover
Salary Income 15,00,000/- Non supply Will not be included, being non-supply.
Rental of residential flat 6,00,000/- Exempt supply Will be included.
Rental of office space 10,00,000 Taxable supply Will be included.
Interest on FDR with Bank 1,00,000 Exempt supply Will be included.
The aggregate turnover worked out as above is Rs 17 lakh which being less than Rs 20 lakh, Sana will not be required to obtain GST registration and pay GST on the rental of office space, which otherwise is a taxable supply.
However once the aggregate turnover breaches the limit of Rs 20 lakh, registration will be required to be taken by Sana within 30 days of such breach and GST will have to be paid on rental income earned thereafter.
2.1 Threshold limit of Rs 20 lakhs available to each co-owner
Kerela AAR in the case of Elambrancheri Khaldoon, has held that a threshold exemption limit of Rs 20 lakhs under GST is available to co-owners separately if rent is collected together and divided among co-owners.
To avoid any litigation, it is suggested that the rent payable to each Co-owner is mentioned in the rent agreement and the tenant should pay the share of rental amount to each of the co-owner separately.
2.2 GST registration: Where required
As per GST law registration is to be obtained in the State / UT from where supply is being made. As a landlord you are not required to obtain GST registration in each State where the immovable property you have let out is located. Rather you can obtain a single GST registration in the State where you reside or have place of business.
3.0 Tax to paid
As per GST law, there are two kind of supplies, the first being Intra-State supply and the second being Inter-State supply.
Intra-State supplies are those supplies where the location of the supplier (place of business/residence where GST registration is taken by the landlord) and place of supply (location of immovable property being let out) are in same State / UT. Supplies, where the location of supplier and place of supply are in different States/UT, are termed as Inter-State supply.
The requirement of registration and tax applicable on renting of immovable property is illustrated in the following table:
Description Situation-1 Situation-2
Location of Immovable Property Rented Out (Place of Supply) Noida (U.P) Noida (U.P)
Place of business or residence of the landlord (Location of Supplier) Noida (U.P) Delhi
Registration to be obtained in which State Uttar Pradesh Delhi
Nature of Supply Intra-State Supply Inter-State Supply
GST Applicable CGST @9% + SGST @ 9% IGST @ 18%
4.0 Invoice for GST on Rent
In case you are required to pay GST on rent, you will have to issue a ‘Tax Invoice’ based on periodicity of rent payment which normally is every month. In case you are GST registered and providing exempted supply of renting of residential dwelling, you need to issue a ‘bill of supply’ instead of ‘tax invoice’.
5.0 When the GST is payable- Time of Supply
In case of renting of immovable property services, GST is payable on due or receipt (whichever is earlier) of rental income. Accordingly GST will also be payable where advance rent is received from the tenant for future months. However GST is not payable on ‘adjustable deposit’ or ‘refundable deposit’.
6.0 Value of Supply
GST is to be paid by you as landlord on the value of supply of renting services. As per GST law the value of supply will generally be the transaction value i.e. the rental amount as mentioned in the lease / rent agreement.
It is suggested that rental amount mentioned in rent agreement should be exclusive of taxes / plus taxes, so that GST can be charged on such amount by you from tenant. In case the rent is inclusive of GST, the landlord need to segregate the rental and GST component while issuing tax invoice and making payment of GST.
6.1 Can property taxes and statutory levies deducted from value of supply:
As per GST Law, taxes (other than GST) are included in value, if separately charged by supplier. Accordingly you can’t deduct the property taxes and other statutory levies for the purpose of arriving at the value of rental income on which GST is to be paid.
6.2 Notional rent on security deposit to be included in value?:
Karnataka Appellate Authority for Advance Ruling (AAAR) in the case of M/s Midcon Polymers Pvt Ltd has held that notional interest on the security deposit shall be taken into consideration, for the purposes of arriving at total income from rental, only if it influences the amount of monthly rent.
6.3 Reimbursement of electricity expenses to be included in value?
Gujarat AAR in the case of Gujarat Narmada Valley Fertilizers & Chemicals Ltd has adjudicated that that a landlord does not have to pay GST on electricity or incidental charges recovered from tenants, in addition to rent as per lease agreement for renting of immovable property.
7.0 Filing of returns
The discussion about GST implications on renting of immovable property cannot end without touching the GST returns aspect.
As a landlord you need to file GSTR-1 return wherein invoice wise details of your rental and other incomes is to be uploaded on monthly / quarterly basis.
The payment of tax on self-assessment basis and filing of GSTR-3B return is to be made on monthly basis. However in case your turnover is less than Rs 5 crore you can opt for QRMP Scheme and file GSTR-3B returns on quarterly basis and pay tax every month.
In case of delay in payment of GST interest @ 18 percent p.a. would be required to be paid for the delayed period.
Further Annual Return is to be filed by December 31 in following year in Form GSTR-9.
The author, Mohammad Salim, is a Chartered Accountant, specializing in the domain of Taxation and is presently working as a General Manager with Power Finance Corporation Ltd. The views expressed are personal.

Higher GST from today likely to affect solar power rates

NEW DELHI : India’s solar power tariffs are expected to go up by around 10 paise per unit with a higher goods and services tax (GST) to be levied on cells, modules, and inverters from 1 October, said several developers and analysts..The GST Council, at its 45th meeting on 17 September, recommended increasing GST on ‘specified renewable energy devices and parts’ from 5% to 12% with effect from 1 October.This increase in GST is expected to increase the capital cost by 4.5% and comes against the backdrop of solar tariffs firming up in recent auctions after hitting a record low of 1.99 per unit in December 2020. India’s solar tariffs are on an upswing because of factors such as higher commodity prices and an increase in the cost of imported solar equipment from April next year.

“Solar (power) capital cost and tariffs are expected to go up by about 4.5% and 10 paise respectively. The timing could not be worse as developers have planned large shipments to take advantage of duty-free window before basic customs duty (BCD) kicks in next year. There is unfortunately too much movement in duties and taxes, adding to investor concerns on the back of other issues such as hike in equipment prices and environmental issues for transmission lines,” said Vinay Rustagi, managing director at consulting firm Bridge to India.

Indian green energy projects have been facing several problems. A case in point is the concern about the impact of electricity transmission lines being put up for green energy projects, which happen to pass over the habitat of the endangered Great Indian Bustard.

“I think this is the reality we have to live with. Whatever impact it has on tariff, it has. It also means that the renewable (energy) market is maturing and does not need support mechanisms to make it attractive. The only trouble is that so many changes in taxes and duties come in and in a business model where the tariff is fixed for the power purchase agreement (PPA) term, it plays havoc with the returns,” said Sanjay Aggarwal, president, Fortum India Pvt. Ltd, owned by Finland’s state-controlled power utility Fortum Oyj.

India’s solar power tariffs have been on a rebound from the record lows of December. Also, rising commodity costs, and 40% BCD on solar modules and 25% on solar cells to be imposed from April 2022 are influencing auction rounds and developers’ bids.

“While it is true that changes get covered under changes in law, the whole industry is struggling to get that operationalized. So, as long as change-in-law issues are fixed swiftly without knocking on so many doors and spending abnormal time and resources to get something that was anyway legally due to the developer, we need to adjust to the new reality,” Aggarwal said.

India runs the world’s largest clean energy programme and aims to achieve 175 GW of renewable capacity, including 100GW of solar power, by 2022.

“The increase in GST on solar products may have an upward impact on costs. The need for such increase in tax must be carefully evaluated against the ultimate impact it may cause on project costs and tariffs,” said Somesh Kumar, power and utilities leader, EY India.

source:https://www.livemint.com/industry/energy/higher-gst-from-today-likely-to-affect-solar-power-rates-11633027983200.html

Form GST ITC-04: Relaxation in requirements of filing Job Work declaration with effect from October 1, says CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has informed about the implementation of recommendation of 45th GST Council Meeting and said that the relaxation in requirements of filing Job Work declaration in Form GST ITC-04 will be with effect from October 1, 2021.

“Implementation of Recommendation of 45th GST Council Meeting. Relaxation in requirements of filing Job Work declaration in Form GST ITC-04 w.e.f 01.10.2021,”CBIC tweeted.

It can be noted that CBIC is responsible for administering Indirect Taxes in India under Ministry of Finance, Government of India.

As per the information provided by CBIC, taxpayers with annual average turnover (AATO) above Rs 5 crores in preceding FY to furnish ITC-04 once in six months. Also, taxpayers with AATO upto Rs 5 crores in preceding FY to furnish ITC-04 once in a year.According to a CBIC notification dated September 24, 2021, in exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, has made several rules further to amend the Central Goods and Services Tax Rules, 2017.

source:https://www.zeebiz.com/personal-finance/news-form-gst-itc-04-relaxation-in-requirements-of-filing-job-work-declaration-with-effect-from-october-1-says-cbic-166382