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GST - Credit card holder offered loan - Service rendered by Citi Bank in extending loan is nothing but a service pertaining to the said credit card - Interest component of EMI of loan advanced by bank is not exempted: HCGST -Since the petitioner has prayed for a relief to compel the respondent bank to grant exemption, the writ petition is maintainable: HCCus - Order cancelling Special Warehouse Licence is an appealable order before the Tribunal - Respondent to work out the remedies in accordance with law: HCGST - Printing of content provided by recipient using paper & materials of applicant and supply of such printed leaflets to recipient is a composite supply - Supply of service of printing is principal supply; GST @18%: AARCX - SVLDRS, 2019 - In the SCN, it is not mentioned that the duty demand is jointly and severally payable - A co-noticee is one who is liable for the very same amount along with others: HCGST - Authority has proceeded to pass order for cancellation of registration on new material or facts which neither formed part of SCN nor the same were disclosed to writ applicant - Order set aside: HCGST - TRAN-1 - Rule 117 being directory in nature, the time limit for transitioning of credit would in no manner result in forfeiture of rights even when credit is not availed within the period prescribed: HCGST - Age is just a numberI-T - Amount received in excess of amount standing to credit of partnership firm which is paid towards notional gain on revaluation of land is liable to tax : HCGovt revises tariff value of edible oils & goldI-T - Prosecution of assessee upheld where wilful concealment of correct income by not filing ITR within time stipulated, is clearly established : HCDigital Assets transfer - CBDT notifies Form 26QF for crypto exchangeI-T - Re-assessment - Best of judgment order - Assessee not diligent in pursuing matter, failed to give adequate reply to notices; cannot later allege contravention of natural justice: HCCBDT notifies NFT resulting in transfer of ownership to be excluded for taxation purposeI-T - One opportunity can be granted to assessee as offence is compoundable: HCNiti Aayog & WFP table report on Take Home Ration schemeI-T - Case can be fixed for either limited scrutiny or complete scrutiny and in case it is for complete scrutiny, then no written approval is required by AO from PCIT: ITATConsumer Price Index for Industrial Workers for May 2022 rises by 1.02%I-T - Penalty imposed u/s 271(1)(c) sustained where assessee does not submit any evidence to show that it made voluntary disclosure during assessment proceedings, before detection of bogus loss claimed: ITAT8 Core Industries - Power, Cement, Coal & Fertilisers record high growth in May 2022I-T - Assessee did not write off provisions for doubtful debts due to fear of losing right to civil proceedings for recovery of debts; deduction allowed for provision of doubtful debts: ITATGovt releases calendar for Treasury Bills auctionI-T - Amount received in excess of amount standing to credit of partnership firm which is paid towards notional gain on revaluation of land is liable to tax : ITATGST Tribunal - Challenge is to remove microbes of bias in fleshing it out!Cus - Once in 100% EOU, raw material imported duty free is used in manufacture of final product and same is cleared on payment of duty in DTA, customs duty on raw material cannot be demanded: CESTATGST FileCX - Empty packaging material of cenvatable input is not liable for payment either as excise duty or as cenvat credit under Rule 6(3) of CCR, 2004: CESTATGovt releases Public Debt Management report for Jan-Mar 2022ST - Relevant date for computing six months periods under Notification No. 41/2007-ST to be taken the date when service tax paid and not first day of month following quarter in which export made, merely on the ground of limitation refund cannot be rejected: CESTATMigration of e-BRC Portal/Website to new IT platformST - Since the typographic error in challan number and corelation of compiled record of appellant is impressed upon by them, request of remanding the matter is hereby accepted: CESTAT
 
GST - Major Breakthrough - Centre & States almost-agree for Rs 10 lakh exemption threshold limit

TIOL - COB(WEB) - 189
MAY 27, 2010

By Shailendra Kumar, Editor

IF TIOL Netizens decide to go by the general media reports on what happened last Friday when the State Finance Ministers met as members of the Empowered Committee on GST in New Delhi, many of them may tend to believe that it was a grand fiasco! What was widely reported post-event was the statement of EC's Chairman, Mr Asim Dasgupta, who said that the Union Finance Minister has indicated to him that he may go beyond the compensation corpus suggested by the 13th Finance Commission if the States agree to board the GST-bus along with the Centre. He also revealed that the States have been looking for bigger compensation package not only for the possible revenue loss in the wake of GST-switchover but also for the cut in the CST rate last fiscal. The only other member of the Committee who spoke to the media was Bihar Dy Chief Minister, Mr Sushil Kumar Modi, who guardedly uttered only a few words relating to the GST rate and the exemption threshold-level.

However, the inputs reaching TIOL Editorial from various sources who attended the closed-door meeting weave a different and much more optimistic story. The last Friday meeting cannot, by any stretch of imagination, be dubbed as a failure to thrash out something substantive. Although the Union Finance Minister's Advisor, Ms Omita Paul, who was slated to attend the meeting, did not keep her 'diplomatic tryst' and skipped the meet but the States did discuss at length the exhaustive comments of the Central Government, given in response to their 'First Discussion Paper'. Most participants in the debate expressed their agreement with the Centre's view that if States go for Rs 10 lakh threshold limit, the Centre would also like to ride the same limit. The States veer around the view that the Centre is free to choose its own limit and if it decides to stick to the limit, proposed by the States, it can.

In other words, if it happens, it should be treated as a major breakthrough by all the stake-holders as the decision to fix the threshold limit would certainly lay a strong foundation for other statistics to be considered for determining other parameters. For instance, if it is going to be Rs 10 lakh exemption, it would mean not less than 50 lakh assessee-base for both the Centre as well as the States. If it is going to be 50 lakhs taxbase, it would help thaw the frozen thoughts over the 'Revenue Neutral Rate' (RNR) which would in turn help arrive at a possible range of GST rates to be chosen by all the parties.

Another important input which our sources confided in us is that the EC's Members did not take kindly the recommendations of the GST Task Force of the 13th Finance Commission. Many of the Members were flabbergasted by the Rs 50,000 Crore compensation corpus suggested by the Task Force provided the States opt for what the Task Force fondly preferred to call - 'The Flawless GST'! Those who know Mr Dasgupta as ''Mr Cool'', were in for a different hue of experience when his outbursts questioned the mandate of the 13th Finance Commission to set up a Task Force on GST. Some Members joined the cacophony of protest over the compensation package suggested by the Commission and expressed their keenness to know how did the Commission fund the expenses of this 'Task Force' which was never a part of its terms of reference! (See what TIOL reported in Cob(Web) Column in December on this issue - ''Finance Commission Task Force Report on GST - The Enemy within!'')

TIOL does share the feelings of the State Finance Ministers and strongly believe that the 13th Finance Commission did exceed the mandate given to it by the Centre. To rub salt to the wound, the Commission chose a Direct Tax officer to head the Task Force, suggesting measures for indirect tax reforms!

Anyway, let's keep an eye on the follow-up meetings of the EC's Members with the Union Finance Minister, Mr Pranab Mukherjee, sometime in June. The States are going to discuss the compensation package for first, the CST phase-out, and also the quantum of compensation for the GST roll-out.

Meanwhile, the CBEC which is going to be the GST implementing agency, is learnt to have fixed its eye-balls on Rs 10 lakh threshold limit which would hugely expand its taxbase from 11 lakh to about 50 lakh. If that is going to be a possible reality, how will it be implemented and administered is going to be a major challenge before its topbrass. Not to miss any opportunity, the CBEC which is going to hold its annual Chief Commissioners' Conference on June 15-16, is learnt to have discarded the jaded format of organising the event where most senior Chief Commissioners are timed to talk about their revenue collections and possible shortfalls. As against the traditional format which provides some snoozing space to some Chief Commissioners, the CBEC is going to form Five Groups which would have closed-door brain-storming sessions on issues like how to deal with 50 lakh GST assessees; the requirement of human resources and the administration; how to improve productivity per officer; Revenue Management and Trade Facilitation for Taxpyers's Needs. No preaching is the resolve of the Board. All these Five Groups would be allowed to make detailed presentation next day, and the Board would then take stock of the empirical suggestions for the policy-making. The first day session is going to be dominated by a barely one or two speeches and then the presentation on 'Best Practices' adopted by certain zones. Some of these practices would be recommended by the Board for other Zones to follow.

Going by the latest developments and the preparations of the CBEC at a feverish pitch, it is indeed difficult to say that April 1, 2011 is an impossible deadline to realise. What may make it further possible is the EC's decision to set up a Working Group on IT Infrastructure which is going to be headed by the well known IT wizard, Mr Nandan Nilekani. Mr Nilekani has already increased the frequency of his interaction with the CBEC, and this Working Group may enable him to build consensus at least on the IT architecture which is so vital for the GST roll-out. TIOL along with its Netizens wish all stake-holders good luck for making April 1, 2011 an achievable deadline!