Daily Archives: May 10, 2017

Interest cannot be demanded from first day of month under Rule 7(2)(a) of GST ITC : ICAI – GST Rules Issue 24

By | May 10, 2017

 Payment of interest Rule 7(2)(a) of draft GST ITC Rules provides that where the aggregate of the amounts calculated finally in respect of ‘D1’ and ‘D2’ exceeds the aggregate of the amounts determined under sub-rule (1) in respect of ‘D1’ and ‘D2’, such excess shall be added to the output tax liability of the registered… Read More »

Reference of Input Services missing in Rule 7(1)(d) of GST ITC Rules : ICAI – GST Rules Issue 23

By | May 10, 2017

Reference of Input Services missing in Rule 7(1)(d) Clause d of Rule 7(1) of draft GST ITC Rules provides that the amount of input tax, out of ‘T’, in respect of inputs on which credit is not available under sub-section (5) of Section 17, be denoted as ‘T3’. Issue Rule 7(1)(d) provides for exclusion of… Read More »

Provide for Transfer of GST ITC on shifting of factory from one State to another : ICAI – GST Rules Issue 22

By | May 10, 2017

Input tax credit (ITC) on shifting of factory from one State to another   A manufacturer having factory in West Bengal is discharging central excise duty and VAT/CST, as applicable, while clearing the goods manufactured at the said factory. He is intending to shift the entire factory set up to a new site in Maharashtra.… Read More »

Correct spelling of Chartered Accountant under Rule 5 of ITC Rules : ICAI – GST Rules Issue 21

By | May 10, 2017

Correction of spelling of Chartered Accountant under Rule 5 of ITC Rules Under rule 5 of draft GST ITC Rules in clause d the spelling of Chartered Accountant is mistakenly written as Chartered Account. Suggestion It is suggested that spelling mistake be corrected with words Chartered Accountant. Source ICAI Suggestions on GST Rules Submitted to… Read More »

Make GST ITC rules for distribution of credit by ISD to Single recipient directly : ICAI – GST Rules Issue 20

By | May 10, 2017

 Distribution of input tax credit by Input Service Distributor Rule 4(d) of draft GST ITC Rules provides for the manner of distribution of ITC by an Input Service Distributor. The input tax credit that is required to be distributed in accordance with the provisions of clause (d) and (e) of sub-section (2) of Section 20… Read More »

Rule 7 Cenvat Credit Rules 2004 – Manner of distribution of credit by input service distributor

By | May 10, 2017

1 [Manner of distribution of credit by input service distributor. 7. The input service distributor shall distribute the CENVAT credit in respect of the service tax paid on the input service to its manufacturing units or unit providing output service or an outsourced manufacturing units, as defined in Explanation 4, subject to the following conditions, namely… Read More »

Redraft Rule 4 of GST ITC Rules- Distribution of credit by ISD : ICAI – GST Rules Issue 19

By | May 10, 2017

Distribution of credit by ISD Rule 4 of draft GST ITC Rules provides for a mechanism for distribution of credit by ISD Issue The said Rule provides for distribution of credit in the ‘same month’ which also includes all ‘ineligible credits’. Suggestion It is suggested that Rule 4 be suitably amended to: a) permit distribution… Read More »

Delete Wrong reference in Rule 3(b) of GST ITC Rules : ICAI – GST Rules Issue 18

By | May 10, 2017

Drafting anomaly & reference in the Rule 3 Rule 3(b) of draft GST ITC Rules provides that banking company or a financial institution shall avail the credit of tax paid on inputs and input services referred to in the second proviso to sub-section (4) of Section 16 and not covered under clause (a). Issue The Rule… Read More »