E-Way Bill Penalties: A Comprehensive Guide to Avoid Mistakes
What is an E-Way Bill? The e-way bill contains vital information about the consignment, including about the consignor, consignee, point of origin, and destination. It is an important document in which all relevant shipment information is uploaded in the GST portal before shipping. It is part of the compliance mechanism and helps curb tax evasion. […]
Mastering GST Reconciliation: A Comprehensive Guide with Essential Tips
Introduction: Effective GST reconciliation not only helps in avoiding penalties but also provides valuable insights into the health of your business operations. In this guide, we’re going to explore GST reconciliation and give you some handy tips to make it easier. Understanding GST Reconciliation: GST reconciliation involves matching the data filed by businesses in their […]
Understanding HSN Codes: A Comprehensive Guide
What is an HSN Code? The Harmonized System of Nomenclature (HSN) code is an internationally accepted system of product classification developed by the World Customs Organization (WCO). It assigns a unique code to each product, facilitating uniform classification across borders. Originally developed in 1988, the HSN system has undergone several revisions to accommodate evolving trade […]
Navigating the Maze of Taxpayer Audits in the GST Regime
In the maze of tax rules, audits are like guards making sure taxpayers and the taxman do everything right. In India, under the GST system, audits are super important for checking if taxpayers follow the rules in the CGST Act, 2017. Let’s explore the details of taxpayer audits and understand the basic principles, rights, and […]
Understanding GST on Commission from Foreign Entities in Foreign Currency
When businesses from different countries trade with each other, they often pay commissions to each other. These commissions are sometimes paid in foreign money. When this happens, it affects how taxes work under India’s Goods and Services Tax (GST) rules. Let’s take a closer look at how GST applies to commissions from foreign entities in […]
Streamlining Tax Compliance: GSTN’s Enhanced E-Invoicing Initiatives
As we mark the one-year anniversary of the successful implementation of the additional five new IRP portals, the e-invoice master information portal, and the e-invoice QR Code Verifier app, GSTN is delighted to introduce the revamped e-invoice master information portal: https://einvoice.gst.gov.in. This upgrade represents our commitment to continuously enhancing taxpayer services. Let’s delve into the […]
Understanding Inverted Duty Structure under GST and How to Claim Refunds
Understanding Inverted Duty Structure: The Inverted Duty Structure refers to a scenario where the tax rate on inputs (raw materials, components, etc.) is higher than the tax rate on the output (finished goods). This misalignment can lead to the accumulation of excess input tax credit (ITC) and liquidity issues for businesses. New formula as per […]
Supreme Court Affirms Madras High Court’s Judgment of not allowing ITC of Input services in GST refund of Inverted Duty Structure
A ruling of Supreme Court in the case of Union of India & Ors. vs. VKC Footsteps India Pvt Ltd. has ended the uncertainty over whether refunds of unutilized input tax credit (ITC) are available for goods and services tax (GST) purposes on “input services” under an inverted duty structure. The high courts of Gujarat […]
Taxpayer Alert: Identifying and Reporting Fake GST Summons with DGGI/CBIC
The DGGI and CBIC have noticed a trend where individuals with malicious intent create and distribute fake summons to taxpayers. These taxpayers may or may not be under investigation. The fraudulent summons appear legitimate because they include a Document Identification Number (DIN), even though these DINs are not issued by the DGGI for such cases. […]
GST Refund Process: Understanding the Cash Ledger
Electronic Cash Ledger: Electronic cash ledger is a cash ledger maintained in the electronic form on the GST portal. Electronic cash ledger contains details of all the deposits made by a taxpayer under GST. Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) is also reflected in electronic cash ledger of the taxpayer. […]