Practice Area
GST
Indian Goods and Services Tax (GST) is an indirect tax replacing many indirect taxes in India like the Central Excise duty, Service Tax, State VAT, and many other Taxes. The GST has subsumed major Seven Taxes and now the GST is a single domestic supply based indirect tax law in India. The Goods and Service Tax Act 2017 was passed by the Indian Parliament on 29.03.2017 and has come into implementation on 01.07.2017. Indeed, the work for the GST had started a long back. In the year 2000 a committee was formed to draft GST law. This process took a long period of 17 years. In 2017, the GST Bill was passed in the Lok Sabha and the Rajya Sabha and on 01.07.2017, the GST Law came into force in India.
The Goods and Services Tax is levied at the point of supply of goods and services. Goods and Services Tax Law in India is a destination based tax which is levied on value addition basis. GST is levied at every point of sale. In the case of intra state sales, Central GST and State GST are charged. IGST is levied at the level of inter state sales and Imports into India.
GST (Goods and Services Tax) related cases are legal cases that often arise in relation to the violation of various GST laws and procedures in India. Some common types of GST-related issues that are often faced by the Trade are:
1. Non-payment of GST: If a person or business fails to pay the GST on their supplies of goods or services, they may face legal action by the tax authorities.
2. Input tax credit (ITC) related cases: Input tax credit is a credit that businesses can claim for the GST paid on their purchases. If a person or business is found to have claimed ITC that they are not entitled to, they may face legal issues.
3. GST registration-related cases: A person or business that is required to register for GST but fails to do so may face legal action.
4. GST evasion cases: If a person or business intentionally avoids paying GST or provides false information to evade GST, they may face legal issues.
5. Classification disputes: GST laws in India have specific rules for determining the rate of GST applicable to different types of goods and services. Disputes can arise over the proper classification of goods or services for GST purposes.
6. Refund related cases: If a person or business is eligible for a GST refund but the refund is not granted, they may need to initiate legal proceedings to claim the refund.
In summary, GST matters are new and very recent issues often difficult to comprehend. These matters generally evolve into different types of issues like problems related to GST Registration, issues of Payment of Taxes, problems of Input Tax Credit, cases of Tax Evasion, Classification matters and Refunds issues. It is important for businesses to comply with GST laws and procedures in order to avoid such issues and the associated fines and penalties.
