Bedi's Finbiz Solutions

 Liaison offices of foreign entities liable to pay GST: AAR A liaison office set up in India for promoting business of its head office incorporated abroad needs to be registered mandatorily under the Goods & Services Tax (GST), Karnataka’s Authority for Advanced Ruling (AAR) ruled has held.The applicant, Bengaluru-based Liaison Office of German company Fraunhofer-Gesellschaf, moved AAR with three specific queries – whether the activities of a liaison office amount to supply of services, whether it is required to be registered under CGST (Central Goods & Services) Act, 2017 and whether it is liable to pay GST. AAR refrained from commenting on the claim of exemption where the place of supply of service is outside India by virtue of notification issued in 2018. However, it made it clear that valuation norms under the rules need to be resorted for determining tax liability and “assessee is required to be registered compulsorily as per Section 24 of the CGST Act as they are enga...

 GST officers can arrest evaders without completion of assessment: Gujarat High Court The Gujarat High Court in a recent order has armed GST Commissioners with the power to authorise arrest of a person if he has reasons to believe that the person has committed a cognisable and bailable offence, and that the power can be exercised even before completion of assessment and determination of tax evaded. The Gujarat High Court's order has caused some concern among taxpayers, who have reasons to believe that the order would add to harassment of taxpayers at ground level.

  Based upon specific intelligence, the officers of the Anti Evasion branch of Central Goods and Service Tax (CGST),Commissionerate, Delhi (East) have busted a major racket for generation of huge inadmissible input tax credit (ITC) through fake billing of Rs 1,278 crore (approx). The well established syndicate was being operated by floating seven different fake firms with the intent of passing of inadmissible credit to the tune of Rs 137 crores (approx). Searches were conducted over more than nine places spread over different locations in the state of Delhi and Haryana to identify the taxpayers, who were defrauding the Government of its legitimate taxes. The modus operandi of the fraudulent taxpayers includes bogus invoices/bills creation, without actual movement of goods. All the e-way bills generated to transport the goods were fake. The mastermind of the entire racket Shri Ashish Aggarwal has been arrested under Section 132 of the CGST Act on 29.10.2020 and has been remanded to ...

Finally Government announced the Interest on interest waiver on loan moratorium benefit for those who have loans before the Covid pandemic. Who are all eligible for this waiver benefit and how much you can benefit? Many loan borrowers were not able to pay their EMIs due to Lockdown, Job Loss or Pay Cuts. Government of India has taken a decision to provide a moratorium of EMIs on loan for 3 months, which was later extended for another 3 months. During this period loan borrowers who availed loans can request for a moratorium and need not pay EMIs. However, there would be interest on the interest that was imposed by banks and financial institutions. So now the Government announced the waiver of COMPOUND interest during this moratorium period on your outstanding loans. Now let us understand the eligibility for this Interest on interest waiver on loan moratorium. ·          This benefit is available for all those who availed of the moratorium o...

  A Composition taxpayer may now file NIL statement in Form GST CMP-08 for a quarter, through an SMS, apart from filing it through online mode, on GST Portal. To file NIL Form GST CMP-08 through SMS, the taxpayer must fulfil following conditions: Taxpayer must be registered as composition taxable person (by filing Form GST REG-01) or the taxpayer might have opted for composition levy (by filing Form GST CMP-02). Taxpayer must have filed all the applicable statement(s) in Form GST CMP-08 for the previous quarter(s). Authorized signatory and his/ her phone number must be registered on the GST Portal. There must not be any data in save stage, in online version of Form GST CMP-08, on the GST Portal. NIL Form CMP-08 for a tax period must be filed by the taxpayer, if there is  no : outward supplies; liability due to reverse charge (including import of services);  and other tax liability for the quarter, for which the statement is being filed. Steps to File Nil Form GST CMP-08 t...