Wrong availment of ITC under section 16 read with Rule 36 under following circumstances shall also invite cancellation

Wrong availment of ITC under section 16 read with Rule 36 under following circumstances shall also invite cancellation i.e.

a)  ITC not supported by invoice.
b) ITC supported by invoice but all requisite particulars not mentioned.
c) ITC taken without receipt of supplies, 
d) ITC taken without tax having been paid by the supplier , 
e) ITC taken without filing of return
f) ITC taken on payments delayed beyond 180 days
g) ITC taken post September of following financial year
h) ITC taken on capital goods inspite depreciation claimed on ITC component
i) ITC pertaining to some other registered person, whether having same or different PAN
j) ITC on supplies not in course or furtherance of business
k) ITC taken in respect of tax paid on account of fraud, wilful misstatement or suppression of facts

Further, if value of taxable supplies in a month , other than exempt and zero rated supplies, exceeds Rs. 50 lacs, then if 100% of tax is paid through ITC and *condition of paying 1% of tax liability through cash ledger is not met*, it can also be ground for cancellation of gst registration.  

Comments

Post a Comment

Popular posts from this blog

Expenses disallowed under Section 40A(3) and Section 40A(3A) of the Income Tax Act, 1961

Expenses disallowed under Section 40A(3) and Section 40A(3A) of the Income Tax Act, 1961   Section 40A(3) was introduced as a provision designed to counter evasion of tax through claims for expenditure shown to have been incurred in cash with a view to frustrating proper investigation by the Department as to the identity of the payee and the reasonableness of the payment.   Section-40A(3) provides that where assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft or payment made by use of electronic clearing system through a bank account or through such other electronic mode as may be prescribed” exceeds Rs. 10 000/- (Rs. 20,000/- upto assessment year 2017-18), the whole of such expenditure shall not be allowed as deduction in computing profits and gains of business or profession. (Now applicable to charitable trusts also for the purposes of de
Read more

Cases when an Eway bill is not required

Image
Cases when an Eway bill is not required The GST law was introduced in India to right the several wrongs that the erstwhile law had. One of the main problems was that there was lack of transparency in the process with respect to both, the taxpayers as well as the Government. Under the GST regime, one of the methods of the Government to ensure transparency is by digitizing the process.  Eway bill  is one such measure. 1. Documents to carry in case eway bill is not required An Eway bill will act as an effective tool to check on tax evasion at various points and to track the movement of goods. But when it is not required to be generated, the transporter has to ensure that a copy of tax invoice or a bill of supply prepared according to the provisions of Law is carried.  An insight of how eway bill acts as a tax evasion tool can be seen from an instance. If some raw material is being transported from Karnataka to Tamil Nadu where it is processed into finished goods and sold, the state which
Read more

Long Term Capital Gain on Shares

  Shares (equity or preference) which are listed in a recognised stock exchange in India, units of equity oriented mutual funds, listed securities like debentures and Government securities, Units of UTI and Zero Coupon Bonds shall be considered as Long term Capital Asset if the period of holding is more than  12 months . Unlisted shares shall be considered as Long term Capital Asset if the period of holding is more than  24 months . Long-term capital gains arising from sale of listed securities : The  Finance Act, 2018  had inserted section 112A w.e.f.  AY 2019-20 . As per the new section capital gains arising from transfer of a long term capital asset being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust shall be exempt up to Rs. 1,00,000/- and the amount exceeding Rs. 1,00,000/- will be taxed @ of 10%.   This concessional rate of 10% will be applicable if: in a case of an equity share in a company, STT has been paid on both acquisition
Read more