IGST

Rajagopalan answers readers' SME queries related to GST, export and import matters

Experts say the ruling may have ramifications for other industries which provide services to foreign clients too, particularly in the IT, consulting, marketing, and recruitment sectors

The Kerala government on Saturday raised an objection to a deduction of around Rs 332 crore from the settlement of Integrated Goods and Services Tax (IGST) for November 2023 to the state and said it will affect the fiscal situation in the southern state. Addressing the media here, state Finance Minister K N Balagopal said it was not clear as to why this amount was deducted in this manner or what are the calculations underlying such deduction. The senior Left leader also said that a letter in this regard was sent to Union Finance Minister Nirmala Sitharaman seeking her "urgent intervention". He said an amount of approximately Rs 332 crore was deducted from the settlement of IGST towards "adjustment of advance apportionment to make up the shortfall in the IGST balance". "This deduction is a substantial chunk of the state revenue and adversely affects the fiscal situation in the state," Balagopal said. In the letter, the state finance minister said the calculations of settlements nee

The case is related to a partial denial of refunding IGST paid by Lenovo (India) on these sales between December 2019 and February 2020

Average gross monthly GST collection in FY24 now stands at Rs 1.66 trillion, 11 per cent higher Y-o-Y, said the Ministry of Finance on Wednesday

Intimation notices to 70 online gaming, edtech, ad companies

September collection at Rs 1.62 trillion, takes the average monthly mop-up to Rs 1.65 trillion in FY24

Shares of Yatra Online finished below their IPO price during their trading debut on Thursday

OIDAR service provider companies such as Google, X, and Facebook may have to pay integrated GST up to 18 per cent on services provided to the government and individuals in India

The government has exempted payments made for goods imported through ocean freight from 5 per cent integrated GST with effect from October 1. The Finance Ministry has notified changes to the IGST Act with regard to payment of integrated GST on 'ocean freight' on imported goods with effect from October 1. Currently, importers are required to pay 5 per cent GST under the Reverse Charge Mechanism. KPMG Indirect Tax Head & Partner Abhishek Jain said the amendments proposed are aligned with the apex court's ruling in the case of Mohit Minerals and help explicitly mention the government's alignment to the position. "While this has been issued prospectively, the industry has been seeking and successfully claiming refund of taxes already paid for the past period, where credit has not been availed," Jain added. Giving its ruling in the Mohit Minerals case, the Supreme Court in May last year had held that since the Indian importer is liable to pay IGST on the 'composite supply', comprising

Automated refund of Integrated GST (IGST) on export of pan masala, tobacco, and similar other items will be restricted from October 1, the finance ministry has said. Exporters of such items will have to approach jurisdictional Tax officers with their refund claims and get them cleared, as per a notification dated July 31. The changes in the notification will come into effect from October 1. Tax experts said the move is aimed at checking tax evasion in the sector, as there might be over-valuation of goods which are being exported, thus leading to higher IGST refund outgo. Manual checking of refunds will ensure that valuation is optimally done and taxes are paid at all stages. The items on which automated IGST refund restriction has been imposed include pan masala, unmanufactured tobacco, hookah, gutkha, smoking mixtures for pipes and cigarettes and other items, including mentha oil. Such items attract 28 per cent IGST, plus a cess. AMRG & Associates Senior Partner Rajat Mohan said

Interest on loans exempt from IGST but provision is not available to credit card services, says government notification

Rule 96A of the CGST Rules, 2017, allows export of goods without payment of IGST after furnishing a bond or letter of undertaking (LUT)

The GST Council at its next meeting on Tuesday is likely to exempt cancer medicine Dinutuximab imported by individuals from tax, decide on applicability of GST on food or beverages served in multiplexes and come out with a clear definition of utility vehicles for levying a 22 per cent cess, sources said. The Council, chaired by Union finance minister and comprising state ministers, will also decide on GST exemption for satellite launch services provided by private players. Besides, import of medicines and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases for personal use and also by centres of excellence are likely to be exempted from Integrated GST. Currently, such imports attract an IGST of 5 per cent or 12 per cent. The fitment committee, comprising central and state tax officers, has recommended to the Council to clarify on these major issues at the 50th meeting of the Council on July 11. In addition to the recommendations of the fitment committee,

Imports were the only exception in the otherwise strong GST numbers in the first three months of the current financial year

The CBIC Circular referred to above says that the bill of entry will be assessed again and then you have to make the IGST payment

It is difficult to understand why the government has not yet come out with a circular prescribing the procedures that the exporters have to follow.

Any claim for refund/credit shall be examined on its merits and on a case-by-case basis: SC

However, there could be issues in claiming input tax credit by these intermediaries

Ruling was delivered in a case in which a CA and an advocate were arrested for rendering service to exporters who were alleged to have fraudulently claimed a refund of IGST