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Category: GST

  • UNDERSTANDING THE GST ADJUDICATION PROCESS: FROM DETECTION TO APPEAL

    INTRODUCTION

    The Goods and Services Tax (GST), which took effect in India from 2017, has swept away huge structural changes to the landscape of indirect taxation. GST adjudication lifecycle consists of various stages, starting from detection of anomalies to investigations, to the issuance of SCNs adjudication and appeals. There are legal processes that manage each stage to guarantee fairness, transparency, and accountability.

    This article covers the entire process under the umbrella of the GST law, commencing from the stage at which a case generally originates, be it system-based red flags, departmental audits, or any intelligence input, and explains how the proceedings pass through each stage before its final conclusion.

    DETECTION AND INITIATION OF PROCEEDINGS

    Proceedings under the Goods and Services Tax (GST) regime are an important part of curtailing tax evasion and ensuring compliance with legal regulations. It starts by noticing discrepancies or patterns that might indicate violations. The main concerns that lead to such proceedings include:

    a. Data Analytics and Systematic Flags

    GST Network (GSTN) uses advanced data analytics to process and analyze the humongous data collected from the taxpayers. Discrepancies found in this analysis can spark additional scrutiny. Common red flags include:

    • Mismatch in GSTR-1 & GSTR-3B: If the details of outward supplies shown in GSTR-1 do not match with the summary return in GSTR-3B, it might be possible that the sales or tax liability is suppressed.
    • Differences in Input Tax Credit (ITC): If the ITC claimed in GSTR-3B compared to that auto-populated in GSTR-2B shows a significant difference, it may indicate some ineligible or excess claims.
    • Delay or non-filing of returns: If there is a consistent delay or failure to file statutory returns, it can trigger investigations.
    • Unusual transaction patterns: Sudden surges of turnover, frequent return amendments, and transactions with high-risk taxpayers can all raise suspicion.

    b. Audit Findings

    Taxes authorities are empowered to do a registered person audit under Section 65 of CGST Act. These audits are conducted to ascertain the correctness of the turnover declared, tax paid, refund claimed, and ITC availed. The results of such audits, especially where there are major discrepancies or instances of non-compliance, may result in the commencement of proceedings.

    c. Scrutiny of Returns

    Section 61 of the CGST Act empowers tax officers to examine returns and other particulars for the purpose of ensuring their correctness. If exist discrepancies in scrutiny else wise, the taxpayer may be called for explanation. Failure to respond satisfactorily or correct the discrepancies will result in further action.

    d. Intelligence Inputs

    It can also be based on information received from other government departments, informants or internal intelligence units. These inputs of intelligence are collected and acted upon by the Directorate General of GST Intelligence (DGGI) which does the lion’s share of work in this regard.

    e. Risk-Based Selection

    The GST framework has provisions that have been termed as risk parameters, whereby tax payers who are likely to be at an increased risk of fraud are identified. Things like the nature of business, transaction volumes, and compliance history are taken into account. Taxpayers identified through this risk-based methodology may be audited or investigated.

    f. Voluntary Disclosures

    Taxpayers themselves can also discover errors or omissions in their returns and voluntarily inform the tax authorities of such omissions. The scope of this discretion is subject to judicial review; disclosures made under a commitment may mitigate penalties, but also further open the books for scrutiny to make sure the information is complete and accurate.

    PRELIMINARY INQUIRY AND INVESTIGATION

    Whenever there is a chance of non-compliance, a preliminary inquiry by the GST authorities is conducted to confirm the facts of the decrease. This is a critical phase to see whether formal proceedings would be appropriate.” These are the main components of this phase:

    a. Issuance of Summons [Section 70 of CGST Act]

    Section 70 of the CGST Act grants the proper officer the authority to summon any person whose attendance is considered necessary to provide evidence or produce documents relevant to an inquiry. The summons process is similar to that in civil court proceedings and ensures that the inquiry maintains judicial propriety.

    b. Inspection, Search and Seizure (Sec. 67 of the CGST Act)

    Section 67 gives powers to a proper officer not below the rank of Joint Commissioner to authorize inspections, searches, and seizure operations if there is reason to believe that:

    • A taxable person has ‘hidden’ transactions or stock, claimed too much input tax credit, or broken terms to avoid tax.
    • Any goods liable for confiscation or relevant documents secreted in any place.

    In this case, any other officer may be authorized in writing by the officer to search and seize such goods, documents, or books as may be useful for the proceedings under the Act.

    c. Statement recording and Collection of Evidence

    Statements of the taxpayer and other persons concerned are recorded to gather evidences during the investigation. These statements are taken on oath and can be used in subsequent proceedings and are also used to be read by judges in other cases to expedite them. Gathering evidence can include scrutinizing financial records, invoices, or any documentation relevant to the case.

    d. Retention and Return of Seized Items

    According to Section 67(3) of CGST Act, any documents/books/things being seized shall be returned within a period of 30 days from the date of issuance of notice unless the documents are required to be kept for further investigation. The proper officer shall record in writing the reasons for retaining the seized items beyond this period.

    e. Stipulatory Protections and Pro Novate Review

    Taxpayers can be represented by a tax professional in the course of the investigation process. Moreover, natural justice is not only the wisest policy, but the statutory law that an opportunity to be heard, and to adduce evidence in defence, must be afforded to the taxpayer. These powers can only be exercised with a proper judicial oversight.

    ISSUANCE OF SHOW CAUSE NOTICE (SCN)

    a. Legal Framework: Section 73 and 74 of the CGST Act

    The CGST Act specifies the circumstances when an SCN may be issued:

    • Section 73: This section applies to cases involving non-payment, short-payment, erroneous refunds or incorrect availing or utilization of input tax credit (ITC), but where there is no element of fraud or willful misstatement.
    • Section 74: It refers to similar cases but involving figurative fraud, intentional mis-statements, or concealment of facts with the intention to avoid tax.

    Importantly, for periods related to FY 2024-25 and beyond, a new Section 74A has been introduced, combining provisions related to both fraudulent and non-fraudulent cases.

    b. Time Limits for Issuance

    SCNs need to be issued in a timely manner to ensure that principles of natural justice are upheld:

    • Section 73: SCN should be issued at least 3 months before the expiry of 3 years from the due date of the annual return for the relevant FY.
    • Section 74: An SCN shall be issued at least six months before the completion of five years from the due date for filing the annual return for the concerned financial year.

    Ex: the due date for filing the annual return for Financial Year 2020-21 was 31st December 2021. Thus, under Section 73, the SCN was to be issued within 30th September 2024 and under Section 74 by 30th June 2026.

    c. Understanding Voluntary Payment and its Consequences

    Taxpayers may also make voluntary payments to help reduce the penalty:​

    Before SCN: Voluntary payment through Form DRC-03 helps avoid a Penalty.

    After SCN: If within 30 days, payment is made, then the reduced penalty is applicable.

    • Section 73: 10% of the tax due or ₹10,000, whichever is higher.
    • Section 74: 25% of the tax amount

    REPLY, REPRESENTATION, AND PERSONAL HEARING

    The taxpayer can respond to the Show Cause Notice (SCN) once it is issued. This step makes sure that before anything is finalized, that that taxpayer has the opportunity to have their case presented. The rules governing this process are set out below.

    a. Reply to the SCN

    On receipt of SCN, the taxpayer must file a written reply to the relevant adjudicating authority typically within thirty days of receipt as per Section 73 and 74 of the CGST Act.

    • A response to SCN must also be filed together with supporting documents or records denying the allegations made therein.
    • The response is filed online in Form GST DRC-06 on the GST portal.

    b. Right to Personal Hearing

    The taxpayer is granted the right to a personal hearing under Section 75(4) of the CGST Act. Where the taxpayer makes a request, the adjudicating authority ought to give an opportunity for hearing.

    • It should be scheduled after the taxpayer receives the SCN and the reply filed by the taxpayer.
    • A taxpayer can represent himself or herself or be represented by an authorized representative.

    c. Non-compliance with reply or Hearing

    If a taxpayer does not respond or appear for a hearing, the adjudicating authority, at this stage, may take up the case ex parte, based on the available records.

    ADJUDICATION AND PASSING OF ORDER

    After receiving the reply to the SCN along with concluding of personal hearing (if any), the adjudicating authority adjudicates the matter based on available records, submissions and provision of the law.

    a. Relevant Provisions

    Provisions regarding the issuance of adjudication orders post the SCN process are provided in section 73(9) and section 74(9) of the CGST Act.

    The authority is also required to pass an order in writing by giving specific reasons setting out the amount of tax, interest and penalty, if any, payable.

    b. Time limit for passing order

    Section 73 (non-fraud cases):  Order to be passed within 3 years from the due date for filing annual return for the relevant year.

    Section 74 (fraud cases): Order to be passed within 5 years from the due date of annual return for the relevant year.

    c. Format of the Order

    The issuance of order is in Form GST DRC-07 that acts as a summary of demand.

    The order includes:

    • Tax, interest, and penalty affirmed
    • Grounds for decision
    • Reference to answer and hearing
    • Directions for payment

    d. Implication of Order

    If the taxpayer does not pay the sum within the time allowed, the order becomes the basis for recovery proceedings under Section 78.

    The taxpayer also obtains the right to appeal under Section 107 within three months from the date of such order.

    APPEALS AND FURTHER REMEDIES

    In such a situation, if a taxpayer wants to appeal against the adjudication order passed by the GST authorities, the GST law prescribes a mechanism thereof.

    a. First Appeal: Section 107 of CGST Act

    The aggrieved taxpayer can file an appeal against the adjudication order before the Appellate Authority as per Section 107.

    Limitation: The appeal should be filed within 3 months of communication of the order.

    Form: The appeal shall be presented in Form GST APL-01 and shall be accompanied by a copy of the order appealed against.

    b. Pre-Deposit Requirement

    As per Section 107(6), for the appeal to be admitted:

    • 100% of the admitted tax liability must be paid.
    • 10% of the disputed tax amount must be paid as a pre-deposit (subject to a maximum of ₹25 crore).

    c. Further Appeal to Appellate Tribunal (GSTAT)

    If unsatisfied with the decision of the Appellate Authority, an appeal can be filed before the Goods and Services Tax Appellate Tribunal (GSTAT) under Section 112.

    The Tribunal is the second level of appellate review but is not yet fully functional across all jurisdictions as of early 2025.Time Limit: Appeal must be filed within 3 months of receipt of the order from the Appellate Authority.

    d. Appeal to High Court and Supreme Court

    On substantial questions of law, further appeals lie to the High Court under Section 117, and subsequently to the Supreme Court under Section 118.

    e. Alternate Remedies

    In cases involving procedural violations or denial of natural justice, a taxpayer can also approach the High Court under Article 226 of the Constitution through a writ petition, though this is an exceptional remedy.

    CONCLUSION

    The GST regime provides a robust, time-bound, and procedurally fair framework for identification, investigation, and adjudication of such tax disputes. The entire process, from detecting discrepancies to issuing orders and appreciating appellate remedies, is the right balance between enforcement and protecting taxpayer rights. But successful implementation relies on timely compliance, adequate documentation and informed representation on the taxpayers’ part.

    Author Details: Ananya Pathak, 4th year, B.Com LL.B., Jiwaji University

  • GST RATES ON GOLD

    Abstract:

    In this article, we will discuss the impact of Goods and Services Tax (GST) on gold in India, GST rates on gold, GST on old gold exchanges, GST on sovereign gold bonds, etc. As gold holds a significant place in Indian culture and investment portfolios, it becomes crucial to know how GST affects its pricing and taxation. The article talks about the tax implications on gold under GST, including how VAT is no more applicable, benefits on sovereign gold bonds, and GST calculation on gold purchases along with making charges. We will also highlight GST implications in the case of second-hand gold and the comparison with previous VAT principles.

    The article also examines GST-wielding the overall consequences on gold Prices in Indian Market. This guide is for consumers, traders and tax professionals who want to understand how gold in its different forms are taxed under GST. Understand what role compliance requirements, rate slabs & exemptions play in the gold market today.

    Introduction;

    Gold has always played a vital role in Indian culture and economy. In 2017, taxation for gold came under a paradigm shift with the implementation of the Goods and Service Tax (GST). This article explains GST rates on gold jewellery, impact of GST on gold prices, and how to calculate GST for gold purchases.

    Pre- GST tax structure on Gold

    Prior to the implementation of the GST regime in India, gold was being taxed under various heads such as VAT on gold, central excise and customs duty. The total tax rate was different by state, making prices inconsistent and compliance challenging, the report said.

    Buyers were charged approximately 1% VAT on goldbesides 1% excise duty (in some cases), 10% customs duty on imports. Some states also imposed octroi or entry tax, further burdening business.

    The pre-GST structure, therefore, needed reform,  paving the way for a unified system that would simplify taxation while increasing some level of visibility for both buyers and jewellers.

    GST Regime in India and How it Impacted Gold

    Since implementation of GST regime in India in July 2017, taxation of gold has been rationalised and placed under one umbrella. This replaced the previous multilevel tax system with a more simple and uniform approach across states.

    As per GST, gold attracts 3% GST on the value, and making charges on the gold jewellery are taxed at 5% separately. This two-rate system applies equally to new and customised gold ornaments.

    GST offered opportunities and responsibilities for jewellers. The system did recognise input tax credit on business purchases, but once the GST registration crossed a certain threshold (which again depended on turnover), meant constant filing, proper invoicing, proper accounting, etc.

    On the whole, GST contributed to formalisation of the sector, reduced tax evasion, and enhanced compliance. It also clarified long-held misconceptions about gold products, including prices and taxation, among consumers.

    GST Rates on Gold Jewellery

    Gold jewellery is taxed at a 3% standard rate on standard gold under the GST system. The making charges, which form of the labour or service component, would be separately chargeable at 5% GST if charged as separate item.

    This implies that when a customer purchases gold ornaments, the final bill is 3% GST on the value of gold and 5% on making charges, whether the jewels are ready-made or custom-designed. When charges of performance are included in the price, then the total value is taxed.

    While the tax rate did go up a little compared to the pre-GST era (which had only a 1% VAT on gold), the systematic and transparent manner under which GST works has made it easier for both buyers and sellers to know how much tax is being levied on gold jewellery.

    GST on old gold exchange

    The value on which the GST is payable when a customer is exchanging old gold jewellery for new ornaments is only the value of the new jewellery and not on the old gold he is giving in exchange. The jeweller passes the old gold received as a purchase and no GST is applied on old gold.

    For instance, if you trade in your old bangles worth ₹30,000 for a necklace worth ₹70,000, GST is applied only on the net ₹40,000 difference (plus any making charges, if applicable). This makes GST on old gold exchange relatively customer-friendly and aids in the recycling of gold in the industry.

    However, Jewellers must document these transactions appropriately to comply.

    How to Calculate GST for Gold?

    The GST on gold is charged on two components — the value of the gold itself and the making charge. Under the GST regime in India, a 3% tax is applied to gold purchases and a 5% tax applies to making charges, which is classified as a service.

    To understand the calculation, here is a basic step by step example:

    Say you are purchasing a gold necklace:

    Gold worth (weight × rate): ₹50,000

    Making charges: ₹5,000

    At present, GST is being computed in such a way:

    GST @3% on gold: ₹50,000 × 3% = ₹1,500

    GST @5% on making charges: ₹5,000 × 5% = ₹250

    Total price payable = 50000 + 5000 + 1500 + 250 = ₹56,750

    So whenever you are purchasing gold jewellery, keep in mind that the GST rates on gold jewellery comprise of 3% on the value of gold and 5% on making charges. Such transparency in breaking down the cost demystifies the tax element and allows customers to compare prices among jewellers.

    For consumers, it’s wise to ask for an itemized invoice that reflects this breakup. Correct calculation and billing are very important for jewellers for smooth GST compliance and also to claim input credit.

    Impact of GST on Gold Prices and Market Behaviour

    • A change in the Gold prices and the buying patterns was evident after the implementation of the GST. Under current GST regime, while gold jewellery is taxed at 3%, making charges attract 5% GST tax, overall tax incidence for the gold jewellery sector has gone up compared to earlier regime when only 1% VAT and 1% excise were applicable.
    • This period saw a slight increase in the gold values, especially during the early transition. On the other hand, some of the price increase effect was offset by increased transparency and standard pricing that makes it simpler for consumers to comprehend the final price they would have to pay for the product.
    • The market-wise, the enforcement of GST prompted several jewellers to get into the formal sector, particularly due to input credit benefits and mandatory invoicing. It also cracked down on unaccounted cash transactions that were once common in the gold trade.
    • The market gradually adjusted with consumers being more educated about the tax component and jewellers more compliant. While GST had a temporary effect on gold prices, its introduction did play a long-term role in formalizing and streamlining the industry.

    Tax Benefit on Sovereign Gold Bond

    Being an attractive instrument with tax benefits as per the present taxation regime, Sovereign Gold Bonds (SGBs) are superior to physical gold in every aspect. Launched by the Reserve Bank of India on behalf of the government, SGBs are certificates in the gold, and investors do not have to worry about storage or purity.

    The primary benefit is taxation, no GST will be imposed on the purchase of SGBs, since they are considered financial assets, not physical goods. They are therefore attractive compared to buying gold jewellery, which attracts GST on gold jewellery and making charges.

    Also, the income from SGBs (2.5% per annum) is liable to tax and capital gains on redemption (after 8 years) is tax-free (for individuals) in full. Such features make SGBs particularly attractive for long-term investors looking out for safety as well as tax-efficiency.

    To sum up, the tax saving in sovereign gold bond makes it economical when compared to buying gold in the physical form, particularly in a GST market.

    Conclusion

    Under GST, the gold industry in India got much clarity and structure. The GST rates on gold jewellery did raise the overall tax slightly but made for a simpler system that increased compliance and created trust in consumers. Important facets such as GST on old gold exchange, transparent invoicing and tax benefit on Sovereign Gold Bond have transformed the method of buying and selling gold.

    Buyers and dealers are now more vigilant and responsible. Learn About GST on Gold: For consumers, knowledge of how G.S.T. is computed on gold will help them make informed buying choices. For jewellers, forgoing to adjust with the GST regime in India provides long-term credibility in a closely knitted regulatory space.

    GST continues to play a pivotal role in the move towards a more organised, transparent and investor-friendly gold ecosystem as the market walks down the learning curve.

    References:

    https://www.axismaxlife.com/blog/tax-savings/gst-on-gold

    https://cleartax.in/s/gst-impact-on-gold

  • GST Registration vs Udyam Registration : Key Differences and Business Requirements

    Securing appropriate Business Registrations in India is extremely important for all businesses whether big or small in order to stay compliant with laws, take advantage of benefits offered by government and to avoid future legal penalties. Two such important Business Registrations in India are GST Registration and Udyam Registration, commonly referred to as MSME (Micro, Small and Medium Enterprises) Registration.

    Duly obtaining GST Registration as well asUdyamRegistration is essential for all businesses in the country. However, the problem arises when business owners are unable to understand the difference between these two registrations. This article will help business owners distinguish between GST Registration and Udyam Registration and understand their basics in detail.

    What is GST Registration in India?

    The term GST stands for Goods & Service Tax. Registration granted to any business under the GST Law and practice regime is called GST Registration in India. GST Regime was introduced in India on 01/07/2017 which replaced multiple indirect taxes in India to come out as one comprehensive tax regime governing all Indirect Tax dealings in India. All businesses crossing the hereinunder mentioned financial threshold must obtain a GST Registration in India:

    • For businesses dealing in goods: when annual turnover crosses 40 lakh.
    • For businesses dealing in services: when annual turnover crosses 20 lakh.

    GST Law and practice mandate all businesses exceeding this financial threshold to have a GST Registration in India. GST laws and practice also mandate filing of periodical returns disclosing businesses turnovers and profits. Thus, businesses owners must be mindful of staying compliance with the GST laws and practices.

    What is Udyam Registration in India?

    Udyam Registration, previously called as Udyog Registration and also called as MSME Registration is a registration granted to Micro, Small and Medium Enterprises in India, granting them recognition as a small business. The purpose of introduction of the Udyam Registration was to help the government identify small businesses in the country and provide them with benefits such as reduced government fees, subsidiaries, easier credit facilities etc. to help such businesses sustain and grow. Businesses under the following financial threshold may be granted registration as MSMEs:

    1. Micro Enterprises: Annual Turnoverupto ₹5 crores, Investment in Plant and Machinery/Equipmentupto₹1 crore
    2. Small Enterprises:Annual Turnoverupto ₹50 crores, Investment in Plant and Machinery/Equipment upto₹10 crores
    3. Medium Enterprises:Annual Turnoverupto ₹250 crores, Investment in Plant and Machinery/Equipmentupto₹50 crores

    All MSME registered businesses must remember to file annual MSME returns to update data and avail benefits and schemes.

    Key Differences between GST Registration vs Udyog registration

    Although both are extremely important Business Registrations in India, and must be acquired by all. Still businesses owners must understand the detailed difference between  GST registration vs Udyog registration(MSME Registration).

    FEATUREGST REGISTRATIONUDYAM REGISTRATION
    Governing LawGST Law and Practicegoverned through CGST & SGST Act, 2017Micro Small and Medium Enterprise Development Act, 2006
    ObjectiveTo ensure proper tax compliance &tax collectionMSME recognition and government support
    Applicable ToTurnover-based (≥₹20–₹40 lakhs)Investment & turnover-based
    Issued ByGST Department (CBIC)Ministry of MSME
    BenefitsInput Tax Credit, legal recognitionLoans, subsidies, tender preference
    Return FilingGSTR-1, GSTR-3B, GSTR-9, etc.MSME Return annually
    RequirementMandatory for certain thresholdsOptional but highly recommended

    Which one do you need? GST Registration Vs. Udyog Registration

    Both GST Registration as well as Udyam Registration are essential for businesses registrations in India.

    A businesses needs a GST Registration if:

    • Exceeds prescribed financial turnover
    • Engages in inter-state supply
    • Has an E-commerce business

    Must obtain a GST Registration in India to stay compliant with GST Laws and practices.

    A businesses needs Udyam Registration (MSME Registration) if:

    • Comes under the financial threshold provided under the MSMED Act, 2006
    • Wants to take benefit of government schemes, subsidies, policies etc.
    • Wants recognition as an MSME to avail financial assistance

    You need both GST Registration and Udyam Registration if:

    • You are an MSME which is engaged in taxable supply of goods
    • You are a GST Registered entity which wants to take benefits of government’s schemes, subsidies and policies provided under the MSME laws
    • If you wish to obtain businesses growth, cheaper credit loans, financial assistance and funding.

    Hence, for anyone falling under the third category, we highly recommend to obtain both Businesses Registrations in India for optimum protection, growth opportunity and to stay legally compliant.

    Common Misconceptions regarding GST Registration and MSME Registration

    There are several misconceptions surrounding GST Registration and MSME Registration in India. Let’s address these misconceptions one by one:

    First and perhaps the most common misconception is that GST Registration and MSME/Udyog/Udyam Registration is the same. NO, GST Registration is for taxation, whereas Udyam Registration is for recognition of businesses’ status as a MSME.

    Second common misconception is that only large corporations need to take GST Registration. NO, any business which crosses the financial threshold of 20 lakh in case of services and 40 lakhs in case of goods can obtain a GST registration.

    Third common misconception is that Udyam Registration must be compulsory. NO, udyam registration is nothing but a recognition of a businesses’ status as a small business. It is entirely voluntary, but highly recommended.

    Conclusion:

    Both these are essential business registrations in India, however, they differ in their purpose. While GST Registration ensures tax compliance and is a mandatory registration, Udyam Registration is a mere recognition and is entirely voluntary.

    A business falling under the financial threshold of both MSME Registration and GST Registration is strongly advised to obtain both these registrations for their businesses to ensure that your business continues to stay legally compliant and at the same time has opportunities of growth and government benefits. After obtaining these business registrations in India, one must remember to timely file MSME returns and GST Returns as per the GST law and practice

    The first step however is definitely to obtain these registrations. Are you looking to obtain your GST Registration and Udyam Registration? Look no further! TMWala is here.

    Wish to read more? Click the link to know more: https://legalguruindia.com/udyam-registration-msme/

    Link to GST’s official government portal: https://www.gst.gov.in

  • GST on Plots, Property and More

    The Goods and Services Tax (GST) 2017, has ushered in substantial changes to the Indian real estate industry today. These changes are impacting land transactions as whole, but also sale of developed plots, completed houses, and townships. Comprehending these implications is important for all developers, investors, and buyers.

    In order to comply with taxation and maximize financial planning as both buyers and sellers it is pertinent to understand the law at hand. Lets learn about the applicability of GST and GST rate on various types of property transactions and latest changes in the law.

    1. Understanding GST Applicability in Real Estate

    When it comes to real estate transactions, the GST rates really depend on the “nature of the sale.” In simpler terms, the law makes a distinction between selling land, selling properties that are still under construction, and selling properties that are ready to move into.

    1.1 GST on Sale of Plots

    The sale of undeveloped land is exempt from GST. This is in accordance to Schedule III of CGST Act, 2017, sale of land is neither supply of goods nor supply of services. So, if a person sells a plot of land without any development, it does not attract GST.

    But this exemption is only for “pure land” transaction. If any services or development activity is done on the land before sale, it may attract GST.

    1.2 GST on Developed Plots

    When land is sold with infrastructural development – roads, drainage, water pipelines, sewage systems, lighting – GST becomes applicable. Government has clarified through various advance rulings that such developments are “supply of services” and are liable to GST.

    GST Rate: GST rate on developed plots is 18% but only on development cost and not on land value itself.

    Recent Clarifications: AAR in multiple cases has held that GST is payable on the portion of the transaction attributable to land development.

    Case Law: In a ruling by Madhya Pradesh AAR (2020, it was held that any plot sold with infrastructure development is supply of service and liable to GST.

    2. GST on Fully Constructed Houses and Apartments

    The taxation of fully constructed houses depends on whether the completion certificate has been issued at the time of sale.

    2.1 Ready-to-Move-in Houses (No GST)

    If a house or apartment is sold after obtaining the completion certificate from the relevant authority, it is treated as an immovable property.

    Since GST does not apply to the sale of immovable property, no tax is levied on such transactions.

    Example: If a person buys a ready-to-move-in apartment from a builder, no GST is applicable.

    2.2 Under-Construction Properties (GST Applicable)

    The sale of an under-construction property is considered a supply of service and is taxable under GST.

    GST Rate:5% (without Input Tax Credit) for standard under-construction residential properties.

    1% for affordable housing projects.

    If a person books a flat before completion and makes payments in instalments, GST is applicable on each instalment.

    2.3 GST on Joint Development Agreements (JDAs)

    In a Joint Development Agreement or a JDA, a landowner collaborates with a developer to construct residential or commercial properties. JDAs involve different GST implications:

    • Developer’s Obligation: The developer has to pay GST on the sale of constructed units before receiving the completion certificate.
    • Landowner’s Obligation: If the landowner sells a share of developed property before receiving the completion certificate, GST is applicable.

    GST Rate: The sale of under-construction flats by the developer attracts a 5% or 1% GST, depending on the project type.

    Input Tax Credit (ITC): The GST rates on real estate projects do not allow ITC benefits, meaning developers cannot claim credit for GST paid on inputs like cement and steel.

    3. GST on Township Developments and Infrastructure Projects

    Township developments involve multiple aspects, such as residential units, commercial spaces, infrastructure development, and common amenities. The GST applicability varies for each component:

    Residential Units: Under-construction units attract GST at 5% or 1%.

    Common Infrastructure Development: The cost of roads, parks, water supply, and sewage treatment attracts 18% GST on the service portion.

    Commercial Spaces: The sale of under-construction commercial units attracts 12% GST with ITC benefits.

    4. Recent Changes in GST for Real Estate

    4.1 GST Council’s Impact

    As per the 34th meeting of the GST Council in 2019, the GST rates were revised for real estate to provide relief to homebuyers. The revised rates that are 5% and 1% were introduced without ITC to prevent tax evasion and ensure a simplified tax structure.

    4.2 GST Exemptions for Affordable Housing

    The government defines affordable housing as:

    • A unit priced up to ₹45 lakhs.
    • A unit size of up to 60 sq. meters in metropolitan cities.
    • A unit size of up to 90 sq. meters in non-metro cities.

    Such projects benefit from a lower GST rate of 1%, making housing more affordable for middle-class buyers.

    4.3 ITC Restrictions and its Impact

    Developers cannot claim Input Tax Credit (ITC) on building materials if they opt for the new tax rates. Without ITC, developers have to include GST costs in pricing, potentially increasing property rates. Some developers prefer the old 12% GST rate with ITC to reduce input costs.

    5. Practical Challenges and Compliance Issues

    5.1 Lack of Clarity in Developed Plot Taxation

    While developed plots are taxable, there is no standardized formula to separate land value from the development cost. Developers and tax authorities often dispute the taxable portion.

    5.2 Documentation and Compliance

    Buyers and sellers must ensure that invoices clearly distinguish land cost and development cost to avoid unnecessary tax liabilities.

    Thus, the developers must comply with the anti-profiteering measures to prevent price hikes in lieu of tax rate changes.

    Conclusion

    Understanding GST implications on real estate transactions is essential for both buyers and developers. While the sale of raw land and completed properties remains tax-free, transactions involving under-construction properties and developed plots attract GST.

    Key Takeaways

    • Sale of undeveloped plots is exempt from GST.
    • Developed plots attract 18% GST on the development component.
    • Under-construction properties attract 5% GST (1% for affordable housing).
    • Fully constructed houses with a completion certificate are not subject to GST.
    • Township developments have varying GST rates depending on the services included.
    • Recent changes in GST rates have removed ITC benefits for new residential projects.

    By staying informed about tax rate changes, ITC provisions, and compliance requirements, developers and homebuyers can navigate GST laws effectively and make informed real estate decisions.

    Author Details- Apoorva Lamba (2nd Year Student Madhav Mahavidyalya,Jiwaji University,Gwalior)

    References- 

    https://getswipe.in/blog/article/gst-on-sale-of-land-and-plots

    https://elplaw.in/wp-content/uploads/2023/10/Sale-of-Developed-Plot-Recent-GST-Circular-has-foxed-Developers.pdf

    You Might Also Like- 

    https://legalguruindia.com/blog-input-tax-credit-guide/

  • GST on Pharmaceuticals, Ayurveda and Medicines

    The rollout Goods and Services Tax (GST) has shaken up how the pharmaceutical industry in India handles taxes. When GST kicked off on July 1, 2017, and it took the place of several indirect taxes like VAT, Excise Duty, and CST setting up a single tax system under the government’s vision of One Nation, One Tax. GST has had a big effect on pharmaceuticals, changing their prices how they’re distributed, and what companies need to do to ensure compliance. Let’s dive into GST rate on Pharmaceuticals, ayurvedic and medicine.

    Let’s take a look at the GST rates that apply, what’s exempt, how input tax credit (ITC) works, what companies need to do to comply, and what the government policies indicate. Understanding how GST works for medicines matters to everyone from the people who make them, to the shops that sell them, and especially the folks who consume them.

    GST Rates on Medicines

    The GST framework categorizes medicines into different tax slabs. 

    1. The Essentials and Life-Saving Drugs (5% GST)

    Drugs on the National List of Essential Medicines (NLEM) have a 5% GST rate to make them affordable.

    This group covers the necessary medications. It includes medicines for diseases like cancer, diabetes, HIV, malaria, TB, heart diseases, and other such long-term health issues. You’ll find the drugs eligible for this tax rate vide Notification No. 1/2017-Central Tax (Rate), from June 28, 2017.

    2. General Medicines and Formulations (12% GST)

    Most drugs, like antibiotics, pain relievers anti-inflammatory meds, and vitamin supplements, belong to this group. Traditional Indian medical practices like Ayurveda, Unani, Siddha, and even Homeopathy medicines also attract a 12% GST rate vide Notification No. 12/2017-Central Tax (Rate) lists the GST rates for these products.

    3. Over-the-Counter (OTC) Medicines (18% GST)

    Non-prescription drugs dietary add-ons, and health-boosting items come with an 18% GST Rate. This covers energy drinks, protein powders, beauty and dermatological treatments, and lifestyle drugs like weight loss aids.

    For Example: Products like omega-3 pills, Vitamin D and herbal dietary supplements belong to this group.

    4. GST on Medical Devices and Equipment

    5% GST: Devices that save lives such as dialysis machines, pacemakers, and crucial implants.

    12% GST: Common medical gear including syringes surgical gloves, bandages, and nebulizers.

    18% GST: Advanced diagnostic and imaging tools like MRI machines, CT scanners, and X-ray machines.

    GST Exemptions on Medicines

    To keep healthcare affordable, the government has exempted certain medicines and medical supplies from GST. These exclusions include:

    1. Blood and Blood Components 

    Human blood and its components are exempt from GST due to their critical and essential nature.

    Notification No. 9/2017-Central Tax (Rate) exempts blood and related medical products.

    2. COVID-19 Medications and Vaccines

    During COVID-19 in order to support public health initiatives, vaccines and medicines for pandemic control were momentarily GST-exempt.

    Temporary tax relief on COVID-19-related medical supplies like Remdesivir, Tocilizumab, and Amphotericin B was granted as per Notification No. 05/2021-Central Tax (Rate), dated 14th June 2021.

    3. Ayurvedic and Homoeopathic Medicines-Government Schemes

    Often times tax exempted Ayurvedic and homoeopathic medications supplied to government hospitals and fall under varied welfare initiatives. This is in line with government policies where they want to promote traditional Indian medical practices.

    GST on Pharmaceutical Supply Chains

    Manufacturing, distribution, and retailing all fall under GST compliance in the pharmaceutical supply chain. Important elements are:

    1. Input Tax Credit (ITC) in Pharma

    Manufacturers and suppliers can actually get an Input Tax Credit (ITC) on things like raw materials, packaging, and transportation costs. But there are some conditions:

    • You can’t claim ITC for medicines given out as free samples or promotional goodies.
    • Also, any GST paid on expired or damaged stock? Nope, can’t get that back.

    2. Impact on Drug Prices

    Now, about drug pricing—GST has replaced a bunch of different taxes, which has made things simpler and helped level the playing field. But there’s still a worry about high GST on active pharmaceutical ingredients (APIs) because that can drive up costs for manufacturers for both international and local markets. This in turn makes the Indian Pharmaceutical Industry less competitive than Chinese Pharmaceutical Industry, where the Government actively incentivizes APIs.

    When it comes to essential medicines, the 5% GST rate really does play a role in keeping them affordable. But, you know, over-the-counter and wellness products? They face steeper taxes, which can really hit consumers.

    3. Ayurvedic and Herbal Medicines

    These types, includes Ayurveda, Siddha and Homeopathic, along with a few more traditional cures are taxed at 12% GST rate. However, if they’re marketed as cosmetics or wellness items, well, that rate bumps up to 18%.

    For instance, take Ayurvedic toothpaste—yep, that one’s got an 18% GST tag. But if you’re looking at herbal cough syrups, those are at 12%!

    Navigating Compliance and Documentation for the Pharma Industry

    1. GST Registration

    If you run a pharma business and your annual turnover is over ₹40 lakh (or ₹20 lakh in some states), then you have got to get GST registered. 

    2. GST Returns

    Alright, so here’s how returns work:

    GSTR-1: This is your monthly return where you detail all your outward supplies.

    GSTR-3B: Think of this as a summary return that covers your tax liability and claims for input tax credit.

    GSTR-9: Its annual and brings together all your transactions throughout the year.

    3. E-Invoicing Requirements

    Now, if your business is raking in more than ₹10 crore, e-invoicing is mandatory for you. This helps with real-time validation of invoices via the GST Network (GSTN). So, don’t skip this!

    4. Anti-Profiteering Measures

    Here’s something important: if there’s a reduction in GST rates, you must pass that on to your consumers. That means lowering the MRP of your medicines. It’s only fair, right?

    Recent GST Updates for the Pharmaceutical Industry

    1. GST Council’s 47th Meeting (2022)

    During this meeting, they decided to cut the GST on certain cancer drugs from 12% to just 5%. Also, orthopaedic implants and assistive devices continue to remain exempt!

    2. GST Rate Rationalization (What’s Coming Up)

    The GST Council is looking into proposals to lower GST on active pharmaceutical ingredients (APIs) and raw materials. The goal? To help reduce manufacturing costs across the board.

    Practical Implications for Businesses and Consumers

    For Pharma Businesses:

    • You really gotta classify your medicines and medical devices accurately. Otherwise, tax disputes can come knocking.
    • Proper invoicing? Super important! It keeps your ITC claims smooth and helps avoid compliance headaches.
    • Don’t forget about e-invoicing and filing your GST returns on time. Falling behind could mean penalties.

    For Consumers:

    • Good news: essential medicines have lower GST, making them more affordable.
    • Always check the GST breakdown on your bills. You want to make sure the right tax is being applied.
    • Keep an eye on MRP reductions when GST rates drop—businesses are required to pass on those savings!

    In a nutshell, GST has really streamlined the taxation process for the pharmaceutical sector. It’s done away with multiple levies and brought in a unified tax structure. While it’s made essential medicines more affordable, yet we see higher tax rates on non-essential items and wellness products. For businesses, staying compliant with GST regulations, keeping invoices in check, and planning taxes wisely are key to avoiding issues. And for consumers? Staying informed about GST rates and exemptions helps you make smarter, cost-effective healthcare choices. Just remember, knowledge is power!

    Author Details- Apoorva Lamba (2nd Year Student Madhav Mahavidyalya,Jiwaji University,Gwalior)

    References–

    https://cleartax.in/s/impact-of-gst-rate-on-pharmaceutical-industry

    https://piceapp.com/blogs/ayurvedic-medicine-gst-rate

    https://razorpay.com/learn/gst-on-medicines/

    You might also like- 

    https://legalguruindia.com/blog-medical-labels/

    https://legalguruindia.com/blog-gst-registration/

  • Crack the Code: GST on Atta, Flour & Food Grains Explained

    With the rollout of the Goods and Services Tax (GST) in 2017, various Indian industries have experienced significant shifts in the way they are taxed. The essential food products, including atta (wheat flour) and other grains, have experienced these said shifts as well. Although the government has left the essential food staples out of GST, there is still a distinction in what is charged and on what grounds. This difference holds in the case of branded and non-branded, packaged and non-packaged commodities, so it becomes an important factor in determining tax applicability.

    Let’s immerse ourselves in the GST on atta and grains, dissecting concepts such as branded, enforceable rights, and actionable claims, and grasping the legalities in the process.

    GST Applicability on Atta and Grains

    When it comes to GST, food grains and flour are categorized into two main groups based on their branding and packaging:

    1. Non-Branded Items and Unpackaged Products (Exempted)

    Raw food grains like wheat, rice, and pulses, including loose or bulk atta without any branding or branded packaging, are exempt from the usually applicable GST rate of 5%. This exemption is put in place by the government to keep essential food items affordable for everyone.

    According to the Central Government’s Notification No. 2/2017, dated 28/06/2017, unbranded and unpackaged food grains and atta are to be categorized under the exempted list. This means that if atta or food grains are sold without a brand name or packaging, they are not subject to GST.

    Freight Exemption: The transportation of unbranded food grains and atta by rail or road is also exempt from GST. According to Notification No. 12/2017-Central Tax (Rate), dated 28th June 2017, GST is not levied on freight charges related to transporting unbranded food products.

    2. Branded and Packaged Products (5% GST)

    When atta and grains are sold in a unit container and bear a registered or a protected brand name, they attract a 5% GST on atta. This includes products packaged and labeled for retail sale under a ‘legally protected brand.

    For instance, if a company produces branded atta under a protected name, it must collect 5% GST on the sale price of that product. Branded products, even if they are in small retail packets or bags, are classified under this category and thus are subject to GST.

    Case Law: In the case of Naga Limited [AAR-TN 2018], the court ruled that if a supplier relinquishes their enforceable rights over a brand name, they may be eligible for GST exemption, despite using a brand name on their product.

    Packaging Requirements for Non-Branded Atta to Qualify for GST Exemption and be considered non-branded are:

    • The packaging is not to bear any registered trademark or brand name.
    • To carry a disclaimer stating that the brand owner has let go of any enforceable right or actionable claim over the brand name.
    • Not to be sealed in a unit container that suggests branding.
    • If these conditions are met, then the GST exemption applies even if the product is labeled with a name.

    However, file your GST with TMWala with a very reliable process.

    What is an Enforceable Right and Actionable Claim?

    In Atta and grains, the branding and packaging aspect plays a decisive role in determining whether GST is applicable or not. Two key legal concepts govern this distinction:

    1. Enforceable Right

    An enforceable right is the legal right a brand owner has to prevent others from using their brand name. If a business owns a trademark and can legally enforce this trademark against infringement, the brand is protected under the law. Products with such trademarks are not eligible for GST exemption and will be taxed at 5% GST on atta, flour, and food grains.

    For example, brands like “Patanjali” or “Aashirvaad” have enforceable rights over their brand names, and as such, their products are subject to GST on atta.

    2. Actionable Claim

    An actionable claim refers to a claim to a debt or beneficial interest that can be enforced by legal action. So, if a supplier voluntarily forgoes the right to enforce their trademark (e.g., by adding a disclaimer stating they do not hold enforceable rights), GST exemption may be claimed. Example: Many brands in the market label their products as unbranded to avoid GST, even though they use an identifiable name. If they do not legally enforce their brand rights, they are eligible for GST exemption.

    Recent Government Clarifications and Rulings

    1. CBIC Clarification (2017)-The Central Board of Indirect Taxes and Customs (CBIC) clarified that packaged food grains and branded flour attract 5% GST, while loose, unbranded products remain exempt.
    2. Notification No. 1/2017-Central Tax (Rate), dated 28th June 2017-Defined unit container and registered brand name as determining factors for GST levy. Also clarified that businesses renouncing actionable claims over a brand name can avail a tax exemption.
    3. Advance Ruling by Karnataka AAR (2018) – [Sakthi Murugan Flour Mills] confirmed that atta sold under a registered trademark in sealed packs attracts 5% GST.
    4. Exemption of Freight for Non-Branded Grains and Atta-Exemption of tax is placed on the transportation of rice, pulses, flour, and food grains by vessel or rail through Notification No. 12/2017-Central Tax Rate dated 28th June 2017.

    This has been done to reduce the cost of transportation of staple foods in order to make them affordable for consumers.

    Practical Implications for Businesses and Consumers

    For Businesses:

    • An enforceable right is the legal right a brand owner has to prevent others from using their brand name. If a business owns a trademark and can legally enforce this trademark against infringement, the brand is protected under the law. Products with such trademarks are not eligible for GST exemption and will be taxed at 5%. For example, brands like “Patanjali” or “Aashirvaad” have enforceable rights over their brand names, and as such, their products are subject to GST.
    • Documentation and Compliance: Businesses should ensure proper documentation and declarations to avoid disputes regarding GST applicability. For example, when selling non-branded atta, companies must ensure that their packaging follows the GST exemption criteria.
    • Avoiding Disputes: To avoid litigation, businesses should maintain clear documentation and may even consider filing a declaration with the GST authorities when they relinquish enforceable rights over a brand name.
    • For non-branded atta, proper disclaimers must be included on the packaging to maintain GST exemption.

    Link to similar articles: https://legalguruindia.com/blog-role-of-msmes-in-boosting-the-indian-economy/

    For Consumers:

    • Pricing Impact: Understanding that branded and packaged products come with a 5% GST can help consumers make more informed choices when purchasing atta and other grains.
    • Cost-Effective Choices: Loose, unbranded grains and flour are often more affordable because they are not subject to GST, making them an attractive option for cost-conscious consumers.
    • Cost-Effective Choices: Loose, unbranded grains and flour are often more affordable because they are not subject to GST, making them an attractive option for cost-conscious consumers.

    Implications for Small and Local Producers

    Small-scale producers who do not have a registered trademark or a protected brand name can take advantage of the GST exemption by ensuring that their products are unbranded and unpackaged. This provides a cost-effective way for them to sell essential food products without the burden of the tax, which can lower the price for consumers and improve their market competitiveness. However, they must be vigilant in ensuring that their packaging complies with the conditions set out by the government to maintain GST exemption.

    Local and regional brands that are not widely recognized can consider voluntarily relinquishing their enforceable rights over their brand to gain GST exemption, but they should weigh the long-term benefits of branding against short-term tax savings. In such cases, businesses should assess the effect of this decision on their brand’s growth and consumer perception.

    Future Developments and Policy Changes

    While the current structure provides clear guidelines for GST on branded and non-branded atta and food grains, the government may revise these tax policies in the future. Changes could include:

    • Adjusting the GST rate for certain food products to reflect inflation or economic conditions.
    • Further clarifications or exemptions for small producers to ensure the affordability of food grains.
    • Proposals for new tax slabs for specific regional or organic products that are sold in limited areas or based on local sourcing.

    Know more about the new tax slab by reading this article:- https://legalguruindia.com/gst-2-0-for-the-common-man-and-the-economy/

    As such, businesses and consumers must remain agile and responsive to any future changes in the GST framework for food grains and atta. Being proactive and staying informed through government bulletins and updates will allow both groups to take advantage of any changes that benefit them.

    Conclusion: Navigating the GST Maze

    The framework of GST on atta, food grains, and flour aims to balance taxation with affordability, ensuring that essential food items remain accessible to all. While unbranded and unpackaged essentials are exempt from tax, branded and packaged products face a 5% GST. Businesses can navigate this framework by making informed decisions about branding, packaging, and compliance.

    By staying updated on government notifications, rulings, and any new developments, both producers and consumers can optimize their understanding of GST implications and ensure compliance while also making cost-effective choices. Ultimately, the goal is to create a more efficient, transparent, and sustainable taxation system that benefits both businesses and consumers in the long run.

    Need assistance with GST Registration? TMWala provides expert guidance for simple and convenient business registration. Contact us today!

    Author: Apoorva Lamba, 2nd Year LLB. Student of Madhav Mahavidyalaya, Jiwaji University, Gwalior

  • How GST and Financial Year-End Planning Impact Your Trademark Registration

    In the ever-evolving landscape of the Indian business world, the taxation policies and intellectual property rights often intersect at varied points impacting the way businesses manage their assets. One such critical intersection is between the GST and Financial Year and trademark registration. While GST affects some very integral aspects of business operations, its impact on trademark registration in India is sometimes overlooked.

    As the month end along with GST and Financial Year 2024-25 filling approaches, businesses must plan strategically. One must ensure to optimize their tax benefits, ensure the necessary compliance, and safeguard their intellectual property. Let’s explore how GST and Financial Year affects trademark and trademark registration in India, and how businesses can bring into line their trademark strategies with financial year-end planning, and what measures they can and should take to minimize costs and maximize efficiency.

    GST and Its Role in Trademark Registration

    What is GST?

    The Goods and Services Tax (GST) is an indirect form of taxation which was introduced in India on July 1, 2017. It famously replaced a manifold of indirect taxes such as service tax, VAT, and excise duty and more. GST as the name suggests is levied on the supply of goods and services. GST and Financial Year are crucial aspects businesses must consider for compliance. These also include professional and legal services, those of which are associated with trademark registration.

    Although GST may not apply directly to the act of registering a trademark by itself, but it is applicable to various services related to trademarks. Some of which may include legal consultancy, licensing, renewals, and litigation. Businesses and individuals seeking trademark registration and trademark protection must understand the GST and Financial Year are crucial aspects businesses must consider for compliance. implications at large to ensure compliance and avoid any unnecessary financial burdens in form either penalties or charges.

    Taxes on Trademark-Related Services

    The following services incur the Goods and Services Tax (GST):

    1. Legal and Consultancy Services

    Most companies will acquire the services of a legal consultant or a Trademark Search and Filing Agent for trademark registration, as it is considered a professional service. This service also incurs a GST which increases the cost of attaining trademark protection. This is another cost that has to be factored into the budget of businesses during the GST and Financial Year planning.

    2. Trademark Registration and Renewal

    Trademarks in India are legally protected for a period of ten years; thus, they should be renewed to maintain legal protection. Therefore, expenses for services related to the maintenance of trademarks which includes legal counsel and filing requests and other forms have also been incorporated in the GST. Companies that do not budget for renewals are liable to incur GST and Financial Year burdens.

    3. Licensing and Assignment of Trademarks

    Trademark owners earn income for permitting other businesses to use their trademark, whether it is through licensing or assigning. According to GST and Financial Year, the act of granting permission or associated with the transfer of rights to a trademark is also taxable. Therefore, income from licensing the trademark is taxable, so businesses must ensure they use the tax and file the appropriate returns.

    Trademark Registration and Renewals Timing

    Strategic timing of trademark applications and renewals can help businesses get the most out of GST and Financial Year. These processes may allow companies to claim input tax credits sooner, which may improve cash flow management.

    Businesses should register their trademarks by March 31 to get GST and Financial Year tax benefits in the current fiscal year. 

    Auditing Trademark Expenses Financially

    A financial audit before the end of the financial year ensures that all trademark-related expenses, including GST payments, are correctly recorded. This practice helps businesses find tax-saving opportunities, avoid compliance issues, and prepare for tax filings each year. GST Compliance of Trademark Holders for GST Compliance. Businesses involved in trademark-related transactions need to stay in compliance with GST. 

    These steps can help businesses stay compliant: 

    Businesses involved in trademark licensing need to figure out if they need to register for GST. If the turnover exceeds the prescribed limit, then GST registration is mandatory.

    • Issuing GST-Compliant Invoices: Proper invoicing ensures that businesses can claim input tax credits and comply with GST regulations.
    • Timely GST Return Filing: Businesses should file their GST returns regularly, including all trademark-related transactions, to avoid legal issues and penalties.

    Implications of Non-Compliance

    Non-compliance with GST and Financial Year regulations can have severe consequences, including:

    1. Financial Penalties

    Failing to comply with GST obligations can result in penalties, increasing the financial burden on businesses. This can be particularly challenging for startups and small enterprises with limited resources.

    2. Legal Repercussions

    Non-compliance with GST and Financial Year laws related to trademark transactions may lead to legal disputes, affecting the company’s reputation and operations. Businesses may face litigation if they fail to collect or pay GST on trademark-related services.

    3. Denial of Input Tax Credit (ITC)

    Incorrect GST and Financial Year filings or failure to claim ITC on trademark expenses can lead to higher tax liabilities. Businesses must ensure that all GST payments related to trademark services are recorded accurately to maximize tax benefits.

    Best Practices for Managing GST and Trademark Registration

    To minimize tax liabilities and ensure smooth trademark registration processes, businesses should follow these best practices:

    1. Engage Professionals

    Consulting with tax and legal professionals helps businesses navigate the complexities of GST and trademark registration. Experts can provide guidance on claiming ITC, maintaining compliance, and optimizing financial planning.

    2. Implement Efficient Accounting Systems

    Using advanced accounting software can streamline GST compliance by tracking trademark-related expenses and automating tax calculations. This reduces errors and ensures timely filing of GST returns.

    3. Regular Training and Awareness Programs

    Businesses should educate their finance and legal teams about GST regulations and their impact on trademark transactions. Regular training programs help employees stay updated on compliance requirements and avoid costly mistakes.

    4. Proactive Financial Planning

    Instead of treating trademark registration as an isolated legal requirement, businesses should integrate it into their overall financial strategy. Planning trademark-related expenses alongside GST obligations ensures a smoother and more efficient financial year-end process.

    Conclusion

    Understanding how GST affects trademark registration in India is essential for businesses looking to protect their brand while maintaining financial compliance. With the Financial Year 2024-25 approaching, strategic planning can help businesses optimize tax benefits, ensure compliance, and streamline trademark registration and renewal processes.

    By aligning GST considerations with trademark strategies, businesses can safeguard their intellectual property, minimize financial risks, and contribute to a transparent and efficient economic environment. Proactive planning and adherence to GST regulations will ultimately help businesses enhance their financial health while securing their brand identity in a competitive market.

    By implementing these strategies, businesses can not only safeguard their trademarks but also optimize their financial and tax planning to stay ahead in the ever-evolving business environment.

    Wish to read similar articles? Click the link to read more: https://legalguruindia.com/blog-how-the-new-trademark-law-changes-impact-indian-startups-in-2025/

    Link to Official Government GST Portal: https://www.gst.gov.in

    Author: Apoorva Lamba, 2nd Year LLB. Student of Madhav Mahavidyalaya, Jiwaji University, Gwalior

  • All About Input Tax Credit (ITC) for New Entrepreneurs

    All About Input Tax Credit (ITC) for New Entrepreneurs

    Starting a new business is an exciting journey, but it can also feel a bit like diving into a maze, especially when it comes to managing taxes. One of the most beneficial yet complex tax concepts for new business owners is the Input Tax Credit (ITC). This tax break can significantly reduce your GST liability, leaving more funds in your business pocket. In this guide, we’ll break down what ITC is, how to use it, and common pitfalls to avoid, all in a way that’s easy to digest.

    What is Input Tax Credit (ITC), and Why Should You Care?

    Simply put, Input Tax Credit is a mechanism that lets you reduce your tax liability by claiming credits for the tax paid on your business purchases. Think of it as a cashback system, but instead of getting cash, you’re reducing your taxes. Say you bought goods or services for your business and paid GST on them. Later, when you sell products or services and collect GST from your customers, you can offset the GST you paid earlier against what you owe. This means you only pay the net amount!

    For example, if you paid INR 500 in GST on supplies and collect INR 700 in GST from sales, you only need to pay INR 200 as the final GST payment. The ITC has saved you INR 500 here, effectively lowering your tax burden.

    How Does ITC Work? The Simple Steps to Claiming Your Credit

    Claiming ITC might sound complicated, but once you know the basics, it’s a walk in the park. Here’s a step-by-step breakdown to make things crystal clear.

    1. Make Sure You’re Eligible

    Eligibility is key. First, your business must be registered under GST, and the tax invoices on your purchases must contain valid GST registration numbers. Also, the goods or services should be used strictly for business purposes, not for personal use, to qualify for ITC.

    2. Get Your Invoices in Order

    Your suppliers play a major role here! They must upload their GST returns correctly because only when they do, will the tax credits reflect in your GST account (Form GSTR-2B). The best practice here? Work with reliable suppliers who understand the GST process well.

    3. File Your Own Returns

    Filing returns on the GST Portal (https://gst.gov.in/) on time is crucial to avoid any delays in claiming your ITC. File using GSTR-3B, a form you’ll fill out monthly or quarterly based on your filing frequency. It shows all your purchases and sales, so ensure your entries match those of your suppliers.

    4. Claim the Right Amount

    You’re entitled to claim only the amount that’s been paid by your supplier to the government. If there’s any unpaid tax or discrepancy, your ITC claim may be limited. Double-check that all details match, and you’ll be set.

    ITC Pitfalls to Avoid: Common Mistakes and How to Steer Clear of Them

    As a new business owner, mistakes can happen, but some ITC errors can cost you more than just a headache. Here are some common pitfalls and tips on how to avoid them.

    1. Mixing Personal and Business Expenses

    It’s tempting to lump all expenses together, but remember: only business-related expenses are eligible for ITC. Use separate bank accounts and bookkeeping for your business to keep things clean.

    2. Ignoring ITC Deadlines

    ITC isn’t forever. You can only claim it up to a year from the invoice date or until September of the following financial year. So, staying on top of deadlines is a must, especially for end-of-year purchases.

    3. Not Reconciling GSTR-2B with Supplier Data

    Your suppliers’ data must match your records. If your supplier forgets to upload their returns or makes an error, it affects your ITC claim. Regular reconciliation can help prevent these discrepancies.

    4. Forgetting to Reverse ITC

    Certain conditions require you to reverse ITC. For example, if you haven’t paid your supplier within 180 days, you’ll need to reverse the credit. The good news? You can reclaim it once you pay them. Keep track of unpaid bills to avoid unintentional reversals.

    The Benefits of ITC for Your Cash Flow

    Now, let’s talk about what ITC really does for you in practical terms. It’s not just a tax technicality; it’s a major benefit to your business’s cash flow. Imagine you don’t claim ITC. That’s extra GST money you’re paying from your pocket, which could have gone into scaling your business. By regularly claiming ITC, you’re essentially injecting more cash into your operations without any additional income.

    ITC Restrictions: Not All Purchases Are Equal

    There are certain expenses where you can’t claim ITC. Knowing these will save you from unnecessary effort in claiming ineligible credits.

    1. Personal Expenses: Any goods or services used partly for personal use (like a personal laptop you sometimes use for business) won’t qualify for ITC.
    2. Capital Goods: While some capital goods qualify for ITC, items like motor vehicles for personal use do not. It’s worth checking the detailed GST rules here.
    3. Memberships and Healthcare: Health insurance for employees, club memberships, and travel benefits for employees don’t qualify for ITC.
    4. Restaurant and Entertainment Expenses: Meals and entertainment costs are outside the scope of ITC, so enjoy that business lunch but don’t count on a tax credit.

    Being aware of these limits ensures that you’re maximizing the benefits of ITC without wasting time on non-qualifying expenses.

    ITC Ledger: The Hero Tool-

    The Input Tax Credit (ITC) Ledger on the GST portal is an indispensable tool for businesses aiming for precision in tax management. With ITC playing a critical role in optimizing cash flow, the ITC Ledger’s digital interface offers businesses comprehensive tracking, accessible management, and transparency over their tax credits—simplifying the process of claiming, utilizing, and monitoring tax credits across CGST, SGST, and IGST.

    What Sets the ITC Ledger Apart?

    1. Up-to-the-Minute Updates: Each entry in the ITC Ledger updates in real time, allowing businesses to monitor their credits and obligations as they accrue. This live visibility aids in proactive tax planning and assists in staying informed, helping ensure accurate filing each period.
    2. Accurate Record-Keeping: The ledger provides a detailed breakdown of each transaction, showing connections between the credit claim, the supplier’s invoice, and its status on GSTR-2B. By offering this level of specificity, the ledger empowers businesses to keep clean records, track credits efficiently, and pre-emptively address any discrepancies.
    3. Enhanced Compliance Assurance: With the ITC Ledger, businesses can confirm the alignment between their claimed credits and supplier filings. This feature mitigates the risk of claiming ineligible credits, ensuring compliance with GST regulations and minimizing the likelihood of potential penalties.

    Accessing and leveraging the ITC Ledger

    To access the ledger, users simply log into the GST portal, navigate to Services > Ledger > Electronic Credit Ledger, where they will find separate breakdowns for CGST, SGST, and IGST credits. This ledger not only serves as a source of reference for monthly or quarterly returns but also as an essential record for strategic financial management. Users can download or print statements directly from the portal, facilitating collaboration with accountants and improving preparedness for audits.

    In a landscape where compliance and cash flow optimization are paramount, the ITC Ledger represents a sophisticated tool that enhances efficiency, promotes financial clarity, and supports more agile business operations.

    Wrapping Up: Make ITC Work for Your Business

    Input Tax Credit is a powerful tool for managing your GST liability and improving cash flow. For new businesses, especially, every bit of cash saved can fuel growth and expansion. To maximize your ITC, stay organized, work with reliable suppliers, and ensure accurate record-keeping. With a bit of discipline and an understanding of the rules, ITC can be a game-changer in supporting your business’s financial health.

    Know more about ITC by clicking here TMWala Use these tips to make the most of ITC, and you’ll see the benefits reflected in your balance sheet over time. Remember, it’s not just about paying less tax; it’s about building a lean, efficient business that has the financial resources to thrive. Happy claiming!

    Author: Apoorva Lamba, 2nd Year LLB. Student of Madhav Mahavidyalaya, Jiwaji University, Gwalior

  • GST on Hospitality, Banquet, and Catering Services

    Discover how GST affects hospitality, banquet, and catering services this wedding season. Learn about GST rates on hotel bookings, GST on hotel rooms, GST on banquet hall, and catering services, including tips on managing costs, avoiding tax surprises, and understanding Input Tax Credit (ITC). Stay informed about the GST rates for weddings and ensure your special day stays within budget.

    The wedding season brings a whirlwind of celebrations, elaborate venues, and sumptuous feasts. But amidst all the glitz, one factor that often catches couples and families off guard is the impact of Goods and Services Tax GST on hospitality, banquet, and catering services, including the GST rate on restaurant services. GST is not just another line item on your bill; it can significantly affect your wedding budget. Let’s break a few myths and learn a few handy GST tips to help you navigate through the season.

    GST on Hotel Bookings and Accommodations

    Like most weddings these days, if your wedding festivities include out-of-town guests or a destination wedding, hotel bookings are likely on your list. Under GST, different tax rates apply to hotel room tariffs based on the room’s nightly rate, also referred to as GST on hotel rooms:

    Here’s a neat table showing the GST rates based on room tariff:

    Room Tariff (Per Night)    GST Rate
     ₹0 – ₹7,500            12%
    Above ₹7,500                        18%

    GST Rates for Hotels based on Room Tariff (Effective from 18-07-2022 and onwards)

    This table helps clarify how GST is applied to hotel room bookings based on the room’s nightly rate, ensuring you can budget accordingly for your accommodations. Be careful while checking the GST rates on your bill. When planning a luxury wedding, it’s wise to account for the added tax on those swanky suites. A tip for budget-conscious couples is to look for hotels with tariffs just below a higher slab, as this can help reduce GST costs.

    GST on Banquet Hall and Catering Services

    Renting banquet halls for events such as weddings involves different GST rates depending on the nature of services provided, commonly referred to as GST on banquet hall or GST on marriage hall bookings. When both “supply of goods” (like food and beverages) and “supply of services” (venue rental and related amenities) are offered as a package, it qualifies as a “composite supply” under GST law. In this case, the entire package is taxed based on the predominant supply, typically the venue rental. While the standard GST rate for banquet services is 18%, a reduced rate of 5% may apply under specific circumstances.

    When 5% GST Applies

    • Event-Specific Rentals

    The reduced 5% GST rate is applicable when the banquet hall is rented specifically for personal events, such as weddings or family functions, including GST on marriage hall usage. The 5% covers the rental of the venue itself, potentially extending to any basic amenities provided as part of the hall rental, such as seating, stage arrangements, or lighting.

    • Non-Air-Conditioned Venues

    The 5% rate is primarily reserved for non-air-conditioned banquet halls. If the venue is equipped with air conditioning, the GST rate rises to 18%, reflecting the additional luxury and services provided. This distinction aims to standardize tax rates according to the level of amenities offered.

    • Bundled Catering Services

    When a banquet hall rental is combined with catering services in a single package, the GST remains at 5%, provided the principal supply is considered to be the rental of the hall itself. In other words, the overall nature of the service should focus on providing the venue, with catering seen as an incidental part of the offering. This aligns with how GST for catering services may be treated in bundled scenarios. This ensures that the lower GST rate can still be applied even when additional services are included.

    • Supplier Compliance

    For the reduced rate to apply, the supplier must be registered under GST and fully compliant with applicable tax regulations. This means that the supplier needs to issue a valid GST invoice and follow other procedural requirements, ensuring that the transaction meets all legal standards for taxation at the lower rate.

    • Non-Commercial Use

    The 5% GST rate is typically applicable when the banquet hall is rented for non-commercial purposes, such as weddings, anniversary celebrations, or other personal events where the primary objective is not profit-making. For commercial events such as corporate functions, trade shows, or exhibitions, the GST rate would usually be higher, often defaulting to 18%.

    Special Criteria for the 5% GST Rate

    The reduced 5% GST rate only applies if the event takes place at a location other than “specified premises,” which include places with special tax considerations, such as hotels that provide lodging along with venue services. Additionally, the supplier must not be connected to or based within such “specified premises.” In simpler terms, if the banquet hall is part of a hotel offering accommodation services or located within the hotel grounds, the standard GST rate of 18% would apply.

    GST on Catering Services

    Catering services on their own are taxed at a standard 18% GST rate, commonly known as the catering services GST rate. This includes charges for food, beverages, and serving arrangements. If the catering service is separate from the banquet hall rental, the GST rate remains consistent as per the GST for catering services. In cases where the catering service is part of a package deal with the banquet hall, it may be included in the overall composite supply, potentially qualifying for the reduced 5% rate if the rental is considered the primary service.

    GST on Combined Packages

    When banquet hall rentals, accommodation, and catering services are bundled together in one package, the GST calculations can become complex. Each service is taxed based on its individual rate if the invoice itemizes the charges. However, if the venue provides an all-inclusive rate without itemizing each component, it is crucial to ensure clarity on how the GST is applied to avoid any instances of double taxation.

    Whether you’re renting a simple hall or booking a luxurious wedding package, understanding GST implications helps you manage costs more effectively. When planning an event, especially one as grand as an Indian wedding, consider clarifying the tax details to avoid surprises and ensure compliance with GST regulations.

    Alcohol and GST: An Excluded Category

    Here’s where things get interesting: GST does not apply to alcohol. Since liquor falls under state excise duty, it is not covered by GST. So, when you order that signature cocktail or a bar service for the reception, remember that the tax on alcohol will be separate from the GST applied to catering or banquet services.

    Input Tax Credit (ITC) for Wedding Planners and Vendors

    One aspect of GST that vendors often navigate is the Input Tax Credit (ITC), which allows them to offset the GST they pay on their purchases (like decorations, flowers, or catering supplies) against the GST they charge customers. While this is more relevant to wedding planners and vendors, it’s good for customers to be aware of, especially if they’re dealing with different suppliers and coordinating services on their own.

    If you want a clearer breakdown of how Input Tax Credit works and how much you can actually save, check out our detailed Input Tax Credit (ITC) guide, where we explain eligibility, documentation, and real examples in simple terms.

    GST Registration Threshold for Wedding Vendors

    Many wedding-related services are provided by small vendors such as local florists, decorators, and photographers. As a customer, it’s important to know that vendors with an annual turnover of less than ₹20 lakh (₹10 lakh for special category states) are not required to register for GST. This means they won’t charge GST on their services. If you’re dealing with smaller vendors, be sure to check their GST registration status to know whether GST applies.

    If you want to understand whether a vendor actually needs to be registered and how the GST thresholds apply in real scenarios, you can explore our GST Registration page for a clear breakdown of rules, process, and compliance tips.

    Tips for Managing GST Costs During the Wedding Season

    1. Negotiate All-Inclusive Packages: If a venue offers an all-inclusive package (banquet, catering, decoration), ask for a breakdown and negotiate the GST charges accordingly.

    2. Book Early to Avoid Higher Rates: Hotels may adjust room tariffs based on demand. Booking rooms early can help lock in rates before a higher GST slab applies.

    3. Leverage Vendor Discounts and Input Tax Credit (ITC): If coordinating directly with vendors, ensure they use their ITC benefit to provide more competitive pricing.

    4. Double-Check Bills for Correct GST Calculations: Mistakes in GST calculations can occur. Review your bills for any discrepancies in GST rates or double charges.

    Planning a wedding may be about love, but managing the budget. That’s a different kind of commitment!

    Understanding GST and how it applies to the hospitality, banquet, and catering services can help you navigate wedding expenses more efficiently. With proper planning, transparency in billing, and awareness of the different tax rates, you can make sure the wedding season is a celebration of joy rather than a stress-inducing financial event. So, as you gear up for the wedding bells, remember to keep an eye on the taxman lurking in the background and plan for a day that’s memorable not only for its festivities but also for its smart financial planning!

    Link to the official GST portal: https://www.gst.gov.in

    FAQs

    1. Is GST on hotel accommodation calculated on the discounted price?
      No. GST is calculated on the declared tariff per room per day, not on the discounted or actual amount charged.
    2. Are hotel rooms with tariffs up to ₹1,000 exempt from GST?
      Yes. Hotel accommodation with a declared tariff up to ₹1,000 per day is fully exempt from GST.
    3. What is the GST rate on hotel rooms above ₹1,000?
      12 percent GST applies for declared tariff from ₹1,001 to ₹7,499.
      18 percent GST applies for declared tariff of ₹7,500 and above.
    4. What is the GST rate on banquet hall services?
      Banquet hall services attract 18 percent GST with Input Tax Credit eligibility.
    5. Is there any GST exemption for marriage halls?
      No. Marriage halls are taxed at 18 percent GST, the same as banquet halls.
    6. What is the GST rate on outdoor catering services?
      Outdoor catering services are taxed at 18 percent GST with Input Tax Credit eligibility.
    7. What is the GST rate on restaurant services?
      Restaurant services attract 5 percent GST. Input Tax Credit is not available.
    8. How is GST applied when a banquet hall and catering are provided together?
      The supply is treated as a composite supply and taxed at 18 percent GST on the total value.
    9. What is the GST rate on event management services?
      Event management services attract 18 percent GST with Input Tax Credit eligibility
    10. What determines the place of supply for hospitality services?
      For services related to immovable property, the place of supply is the location of the property or venue.

  • GST RETURNS: BASICS EVERY ENTREPRENUER SHOULD KNOW ABOUT GST AND GSTR 

    Starting your own business is no easy caveat. Adding to it is the need to understand the Goods and Services Tax (GST) and GST Returns (GSTR) which is crucial for first time entrepreneurs. While your CA and Lawyer may use these terms daily its necessary that you speak the jargon too or at least understand it to run a successful enterprise.

    What is GST?

    Goods and Services Tax (GST) is a comprehensive, indirect tax i.e. Not levied on customer directly but on goods and services provided. It’s a Point-of-Sale tax levied on the sale of goods and services in India at sale. It replaced multiple indirect taxes like VAT, service tax, and excise duty, creating a unified tax system under one nation, one tax approach.The primary GST slabs for any regular taxpayers are presently pegged at 0% (nil-rated), 5%, 12%, 18% & 28%.

    Types of GST:

    • CGST (Central GST): Collected by the central government on intra-state sales i.e., Sales of goods and services made within the same state or Union Territory.
    • SGST/UGST (State/Union Territory GST): Collected by state/UT governments on intra-state sales.
    • IGST (Integrated GST): Collected on inter-state sales i.e. Sale of goods and services between 2 or more states can also include Import, export or supply to a Special Economic Zone (SEZ), or even include Export Oriented Units etc.

    Thus, understanding GST is important as it provides for a simplified tax structure as GST simplifies compliance by merging multiple taxes into one. It helps avoiding penalties by regular filing of GST returns. Missing deadlines can lead to fines and legal issues. And lastly for claiming Input Tax Credit (ITC) by businesses. You claim credits on taxes paid for business-related purchases, reducing overall tax liability.

    Simplifying GSTR (GST Returns)

    GST Returns (GSTR) are periodic filings submitted to the GST portal, detailing a business’s sales, purchases, tax collected, and tax paid. Different types of GSTR forms are used depending on the nature of the business. They can be filed monthly, quarterly and annually.

    Types of GST Returns:

    1. GSTR-1: Monthly or Quarterly Return for Outward Supplies

    • What it is: GSTR-1 is used to report details of sales or outward supplies made during a specific period.
    • Frequency: Filed monthly for businesses with annual turnover above ₹5 crores, or quarterly for smaller businesses.
    • Example: If you sold goods worth ₹1 lakh to customers in January, you’ll list those sales in the GSTR-1 for that month or quarter. The data includes customer details, invoice numbers, and sales amounts.

    2. GSTR-2A and GSTR-2B: Auto-Generated Forms for Inward Supplies and ITC

    • GSTR-2A: A dynamic, real-time form showing purchases reported by your suppliers. It gets updated whenever your suppliers file GSTR-1.
    • GSTR-2B: A static statement generated monthly that helps in claiming Input Tax Credit (ITC). It remains unchanged even if the supplier modifies their filings later.
    • Example: If a supplier reported selling goods worth ₹50,000 to you in January, this would appear in GSTR-2A and GSTR-2B, enabling you to claim input tax credit on the purchase.

    3. GSTR-3B: Monthly Self-Declaration for Summary of Sales, Purchases, and Tax

    • What it is: A simpler form used to declare total sales, purchases, tax payable, and tax paid for a given month.
    • Example: If you had sales of ₹2 lakhs and claimed an input tax credit of ₹20,000, you would report these figures in GSTR-3B for the month, along with the total tax amount you need to pay.

    4. GSTR-4: Annual Return for Composition Scheme Taxpayers

    • What it is: Filed once a year by small businesses under the composition scheme who pay a fixed tax rate.
    • Example: If a small trader with a turnover below ₹1.5 crores opted for the composition scheme, they would file GSTR-4 annually, summarizing total sales and tax paid.

    5. GSTR-9: Annual Return Consolidating All Returns Filed

    • What it is: A comprehensive summary of all the monthly or quarterly returns (like GSTR-1 and GSTR-3B) filed during the financial year.
    • Example: At the end of the financial year, you compile data from all returns to fill GSTR-9, ensuring that all details of sales, purchases, taxes paid, and ITC claimed are accurate.

    Why Each Return Matters:

    • GSTR-1 helps match the sales figures reported by suppliers.
    • GSTR-2A and 2B ensure that ITC claims are verified.
    • GSTR-3B allows timely tax payments.
    • GSTR-4 simplifies compliance for small taxpayers.
    • GSTR-9 provides a final annual reconciliation.

    You can easily file these your GST Portal. It is important to do so to ensure Compliance with Law as by filing returns on time ensures you stay legally compliant. It can also help in claiming Input Tax Credit (ITC). Regular filing enables you to claim ITC for reducing tax liabilities. And finally bettering Cash Flow Management along with accurate records help in forecasting tax outflows and managing cash reserves.

    Consequences of Non-Compliance Include:

    Penalties: Late filing incurs a late fee (up to ₹100 per day for CGST and SGST), plus interest on outstanding tax.

    Blocked ITC: Not filing timely returns can restrict the ability to claim input tax credits.

    Legal Implications: Persistent non-compliance can lead to legal actions or cancellation of GST registration.

    As they say you think compliance is expensive try non-compliance!

    Practical Tips for Entrepreneurs

    • Use Accounting Software: Tools like Tally or QuickBooks can simplify GST filing.
    • Maintain Accurate Records: Ensure all invoices and financial documents are up-to-date.
    • Hire a Tax Consultant: For complex GST matters, professional guidance can be invaluable.
    • Stay Updated: GST rules change regularly across industries and multiple government schemes provide tax benefits to new entrepreneurs as well; keep track of notifications and amendments.

    Thus, GST is not just a tax system; it’s a business tool that, when understood well, can optimize cash flow, streamline compliance, and improve overall financial health. For entrepreneurs, mastering the basics of GST and GSTR is essential to avoid legal hurdles and make the most of tax benefits.

    Author: Apoorva Lamba, 2nd Year LLB. Student of Madhav Mahavidyalaya, Jiwaji University, Gwalior

    Link to similar articles: https://legalguruindia.com/blog-reverse-charge-mechanism/

    Link to Official GST Portal: https://www.gst.gov.in