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Popcorn’ is classified under gst rule

Popcorn’ is classified under gst rule Popcorn’ is classified under HSN 19041090, attracts 18% GST Authority for Advance Rulings, Gujarat Jay Jalaram Enterprises, In re – [2020] 117 The assessee was a proprietorship concern and manufacture Pop Corn, which sold in a sealed plastic bag bearing a registered brand name. It filed an application for advance ruling to determine classification and rate which would be applicable on the supply made by it. It contended that its product which is popularly known as POPCORN is nothing but CORN/MAIZE, which is a CEREAL, falling under Chapter 10. The Authority for Advance Ruling (AAR) observed that the issue involved in this case pertains to classification of the product ‘POP CORN’ put up in unit container and bearing a registered brand name. It also observed that the product in question i.e. ‘POP CORN’ is manufactured from raw corn/maize grains, by heating in an electric machine/oven at the temperature of 1800 to 2000 centigrade and due to...

Buyer eligible to avail full ITC even when tax rate charged by seller on goods is higher than the specified rate: HC

Buyer eligible to avail full ITC even when tax rate charged by seller on goods is higher than the specified rate: HC Buyer eligible to avail full ITC even when tax rate charged by seller on goods is higher than the specified rate: HC Visteon Automotive Systems (P.) Ltd. v. Deputy Commissioner – [2020] 117 The petitioner registered under Tamil Nadu Value Added Tax Act, 2006 (the Act) had purchased “capital goods” for manufacturing purpose and availed input tax credit. As per the Act, the “capital goods” were liable to VAT at 4%. However, the dealer who sold the “capital goods” to the petitioner charged VAT at 12.5% and passed on the incidence of such tax to the petitioner. The petitioner therefore availed the tax paid and reflected in the invoice at 12.5%. The department has issued show cause notice (SCN) contending that the “capital goods” were liable to VAT only at 4%, therefore, the petitioner was liable to reverse input tax credit in excess of 4% and accordingly the petition...

Clarification on Levy of GST on Director’s Remuneration.

Gst update Clarification on Levy of GST on Director’s Remuneration In this time of pandemic, one would expect Tax laws to be administered compassionately with Revenue authorities not running with mystifying interpretation of the GST Law. Indian GST Law and regime will soon celebrate its Third Anniversary yet, but still there were controversies on some topics which caused unwanted chaos. GST on Director’s remuneration was one of such controversies which was in news due to its different rulings made by the State of Rajasthan & the State of Karnataka. What was the Issue? The Main issue was whether payments made by a company to its director will qualify as salary to an employee and accordingly not attract GST, or it will attract levy of GST under RCM. And also the issue was how it will be treated to different classes of directors of a company, viz. Managing Director, Whole Time director, Independent Director, Nominated Director. Provisions relating to Supply in GST Law: As per ...

Know GST applicability on Advertisement in Digital, Print Media & Google Ad sense

Gst update Know GST applicability on Advertisement in Digital, Print Media & Google Ad sense Introduction Advertisement is considered significant for the growth of any business, brand, product or service. With the ever increasing modes of advertisement, taxability of the same also becomes complex. Let us get acquainted with the GST taxability provisions for advertisement services. How is advertisement services categorized under GST? GST is applicable to all modes of advertising (sale of space in digital media as well as print media). For taxability purposes advertising services are divided into 2 categories under GST:- Advertising through digital media Advertisement in print media What do you mean by advertisement in print media? Print advertising is a widely used form of advertising. These advertisements appear in newspapers or magazines and are sometimes included as brochures or fliers. GST is leviable on advertisements in print media @ 5%. For instance, A...

Companies facing cash crunch may have to reverse GST credit on delayed payments to vendors

Gst update *Companies facing cash crunch may have to reverse GST credit on delayed payments to vendors* Companies which have postponed vendor payments due to a liquidity crunch brought on by the Covid-19 crisis will have to face further working capital woes due to credit reversal with interest under the goods and services tax framework, in case they don’t clear the dues within 180 days of the date of invoice. These cash-strapped companies will have to either make payments within 180 days or reverse the tax credit they have availed of. They will also have to pay interest at 18% to the government from the date the credit was taken. Read More at: https://economictimes.indiatimes.com/news/economy/policy/companies-facing-cash-crunch-may-have-to-reverse-gst-credit-on-delayed-payments-to-vendors/articleshow/76525295.cms Gst update in hindi * नकदी संकट का सामना करने वाली कंपनियों को विक्रेताओं को देरी से भुगतान पर जीएसटी क्रेडिट को उलट देना पड़ सकता है * जिन कंपनियों ने को...

Input Tax Availability on Transportation of employees

Gst update Input Tax Availability on Transportation of employees The issue regarding allowing of availability of input tax credit relating to the facilities provided to the employees by the companies has been a point of dispute between the taxpayers and department since inception of GST regime. AAR has always given a regressive ruling i.e. not in favour of taxpayers. In this update we will discuss the ruling in case of Prasar Broadcasting Corporation of India (All India Radio) pronounced by AAR, Himachal Pradesh. The AAR rejected the appellant contention based on Section 16(4) that ITC on supply of goods and services are intended to be used in the course or furtherance of business. The AAR held that rent a cab services availed by the applicant for transportation of employees are covered under clause (b) of Section 17(5) and will be allowable only on the condition that such goods or services or both is obligatory for an employer to provide to its employees under law for the time bei...

Petition filed in Supreme Court to compulsory show “Country of origin” for all products on e- commerce site

Petition filed in Supreme Court to compulsory show “Country of origin” for all products on e- commerce site Introduction A writ petition has been filed under Article 32 of the Constitution of India seeking direction to formulate a law that mandates all the e-commerce industry/ business houses selling goods in India, through any channel to display the Country of Origin in such a way that is legible easily by the consumers; making the consumer’s aware of the ‘Country of Origin’ so as the Consumer can make an informed decision. Petition was raised on the following Questions of Law? Whether the consumer has the right to know the ‘Country of Origin’ or not so as to take a conscious decision? Whether Respondent shall attract penalties upon the e-commerce industry for non- disclosure of the ‘Country of Origin’ on the products they are selling, as it is nothing less than cheating with the consumers, as it is a matter of right for the consumers to be aware about the Country ...