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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
 
Centre prepares for 'Flawed GST' with dual rates; All efforts to realise April 1, 2011 deadline

TIOL - COB(WEB) - 193
JUNE 24, 2010

By Shailendra Kumar, Editor

THE DTC and the GST are literally the two wheels of the fiscal reforms 'chariot' the Finance Minister, Mr Pranab Mukherjee, has been riding on with fluctuating indices of success. It is true that one of the wheels - the DTC - may appear to be surging ahead of the other, but it certainly does not mean that the other wheel has been significantly lagging behind. Mr Mukherjee stands fully convinced that if he manages to pull the GST-cart successfully, it is not only his Revenue deficit which would be wiped off but even the fiscal deficit would be begging for oxygen cylinders to survive for some more years. 50 lakh is going to be the assessee-base, and the GST rate would be somewhere between 16 to 18 per cent.

TIOL has already reported in this column that so far as exemption threshold limit is concerned the Centre has already firmed up its mind for Rs 10 lakh limit recommended by the Empowered Committee. Thus, one major breakthrough has been achieved. For the SSI sector, the Centre has also made up its mind for the Composition Scheme upto Rs one Crore. And to nip the dissention in the bud, the administration of this scheme would be handed over to the States which can also keep the revenue generated from this sector.

The second milestone which may be officially announced at the appropriate time, is going to be the Centre's acceptance of the 'Flawed GST' in contrast to what the Finance Commission had recommended - a Flawless GST! Why flawed? Given the fact that there are about 99 exemption notifications issued by the States and about 333 notifications issued by the Centre, it has come to be accepted that it would politically be impossible to discard all of them in one go. At best these exemptions would be trimmed to a politically manageable level. Apart from the political reason, it also makes economic sense that no commodity should be suddenly subjected to a hight duty rate if there is going to be a single GST rate. Thus, the space in between the zero and the final duty rate calls for a consensus on the second rate. And that is why the Centre has decided to go for not only the dual GST but also dual GST rates.

What makes it further a flawed GST is the acceptance of the Centre to keep certain goods of strategic importance outside its purview. Some of these are petrol, diesel, natural gas, liquor, electricity and also supply of electricity which attracts service tax today. Although it is not a good news for the industry and trade as credit would not be available for the same but this is perhaps the only option the Finance Minister has to pull the GST-cart out of the political quicksand.

If one goes by the past 15 days tour programme of the Finance Minister it may appear that the FM has been actively campaigning for the larger cause of GST. Mr Mukherjee who had visited Patna to address the Chief Ministers and FMs of Eastern & North-Eastern States, did broach the GST issues and also promised attractive compensation package. He then addressed the CBEC Chief Commissioners' conference where he again talked about the GST and the same day, flew to Ahmedabad where he met Gujarat CM and FM and discussed about the areas of discord relating to GST. The FM then went to Kolkata where he talked about GST and came back to Delhi only to hold high-level meeting with his own officials on a Sunday afternoon where several decisions were taken to crystallise the stand of the Central Government on various components of the new regime.

So far as the purchase tax is concerned, the FM is confident of bringing the four opposing States of Punjab, Haryana, AP and MP, on a common platform. It is true that the purchase tax on agricultural produce accounts for about 20 per cent of their revenue collections but it has to be subsumed to minimise the flawed elements in the new regime. The Centre has agreed to compensate these States if they allow it to be subsumed by the GST.

Next comes the Constitutional Amendment to incorporate the Fourth List which would allow both the Centre and the States to levy GST. The Ministry of Law has prepared the first draft but North Block has found too many gaping holes in the same, and the second round of fine-tuning has just begun. An effort is on to finalise and introduce the same in the Parliament during the Monsoon Session so that the relevant bill could be endorsed by at least two-thirds of State Assemblies.

And finally comes the much-needed but least talked about IT infrastructure which alone can guarantee implementation and success of the GST. The TAGUP, headed by Mr Nandan Nilekani, is all set to hold its first formal meeting coming Monday. Although the CBEC is as usual excessively optimistic to put it in place before April 1, 2011, Mr Nilekani, being a practical IT wizard, knows that the size of the task is too overwhelming, and a lot of homework needs to be done to match the challenge. In fact, credit goes to CBEC Chairman Mr V Sridhar who, on the second day of the CCs' conference, did some plain talking and asked the officers that the business as usual will not do if India has to switchover to GST and if CBEC is going to be the nodal agency for the same. He asked his departmental officers to gear up technologically, administratively and also conceptually, to implement the new system. Let's hope Mr Sridhar's words are carried by the DG System and the Chief Commissioners to their respective zones where the same filters down to other officers who would be eventually interacting with GST assessees. Let's also hope that the CBEC's Directorate of System honestly assesses its capability and then does not hesitate to seek external help of quality IT brains to make it a success for efficient IT infrastructure. Let's wish the Finance Minister good luck for realising his dream and helping Indian economy to cut costs and expand its commercial domain across the globe.