GST Credit on Motor Vehicle - Section 17(5)
GST is not easy I think you all also agree, and Section 17(5) of the CGST/SGST Act is a tough one to understand
Well after reading the bare act, various articles of other GST experts and consulting with other GST Consultants I have tried answering some queries related to Blocked Credit in respect of Motor Vehicles and other conveyances
Section 17(5) reads as follows
(5) Not withstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:-
(a) motor vehicles and other conveyances except when they are used -
(i) for making the following taxable supplies, namely:-
(A) further supply of such vehicles or conveyances; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles or conveyances;
(ii) for the transportation of goods;
Question 1
Company A is in Trading/Manufacturing Business. They have purchased a truck to transport goods to its customers. Can it avail the credit of GST it has paid on such Vehicle purchased??*
Answer 1:
As per my view the credit can be availed as the Vehicle is used for Transportation of goods. Therefore the same is in compliance with the exception provided by Section 17(5)*
Question 2:
Company A also purchased a car for use by its employees in the discharge of their duties or otherwise. Can it avail the credit of GST it has paid on such car purchased?
Answer2:
The answer is No as the car purchased is not used for any of the purposes specified above that is neither the car is used for further sale(as Company A is in Trading of goods) nor Company A is in business of Transportation of passengers nor Company A is business of imparting training of driving such Car and nor the car is used in Transportation of goods.
As none of the condition is fulfilled, there is no GST Credit availability.*
Question 3:
Now the third question that may come to ones mind is that whether GST credit of repair/insurance of the abovesaid truck or car available?
*Answer 3:*
There are two school of thoughts.
Section says "17(5) which says ‘’tax credit shall not be available in respect of following, namely………..”
First view is that "in respect of" of only include purchase, hence credit allowable on expenses w.r.t. motor vehicles.
However, As per second view,
the GST credit of repair /insurance of the Truck shall be available but not of the car.In Here, the wording of Section 17(5) which says ‘’tax credit shall not be available in respect of following, namely………..”The words in respect of shall include purchase, repair, insurance and all related expenses to such vehicle or conveyance.
So if credit is available of GST on Vehicle purchased, then Credit on all expenses related to that vehicle shall be available.
Further, if credit is not available of GST on Vehicle purchased, the credit on all expenses related to that vehicle shall also be blocked
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CBDT has released parameters for manual selection of Income Tax Returns for Complete Income Tax Scrutiny during financial year 2018-19 vide Instruction No. 04/2018 Dated: 20th August 2018.
Niti Aayog has suggested the government to bring down import duty on gold from the existing level of 10 per cent and also slash the GST rate on the precious metal from the current 3 per cent. It has also recommended the govt to review and revamp the gold monetisation scheme and the sovereign gold bond scheme and introduce new gold savings account in banks.
CBIC extends the due dates for filing Form GSTR-3B for the m/o JUL’18 & AUG’ 18 for the registered persons in the flood affected Kerala, Kodagu district in Karnataka and Mahe in the UT of Puducherry to 05.10.18 & 10.10.18 respectively– NotiNo.36/2018 – CT, dt.24.08.18.
The office of the state GST (erstwhile commercial tax department) has issued a notification offering existing taxpayers a window till August 31 to complete their migration to GST.
SEBI extended the trading timings in securities lending and borrowing (SLB) segment by over two hours till 5 pm. "It has been decided to permit stock exchanges to set their trading hours in the SLB Segment... between 9 AM and 5 PM," the Securities and Exchange Board of India (Sebi) said in a circular.
ICAI releases ICAI Valuation Standards effective for the valuation reports issued on or after 1st July, 2018. https://resource.cdn.icai.org/51432vsb41162.pdf.
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No Penalty on Refund of Advance from Customers in Cash under a Bonafide Belief: ITAT [Read Order]
Read more at: http://www.taxscan.in/penalty-refund-advance-customers-cash-bonafide-belief-itat/27516/
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Election 2018: ICAI restricts publication of Photographs of Candidates in Journals, Newsletters etc*
Read more at: http://www.taxscan.in/election-2018-icai-restricts-publication-photographs-candidates-journals-newsletters/27541/
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MCA
As per the extant rules, in respect of an individual who is in possession of Duplicate/Multiple DINs, he can retain the Oldest DIN only. DINs obtained later have to be surrendered. Further DIN once associated is NOT eligible for surrender. Stakeholders may kindly take note and plan accordingly.
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Govt to make it compulsory for unlisted companies to issue shares in demat form
The government will soon make it mandatory for unlisted companies to issue new shares only in the dematerialised form . Besides, the unlisted corporates would have to ensure that shares are transferred only in dematerialised (demat) or electronic form.
Read more at:
//economictimes.indiatimes.com/articleshow/65550598.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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Non-filing of financials by companies to be decriminalised
In a major relief to the corporate sector, non-filing of financials by the companies with the government may soon be decriminalised and recategorised as a civil offence punishable with fine only. Currently, non-filing of financial statement and annual return is a criminal offence with a provision of imprisonment as well as fine.
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Now, FPIs need to fill only one form for registration, bank a/c, demat and PAN
The government has introduced a single application form for foreign investors to enter into the domestic capital market as part of the exercise to improve ease of doing business.
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SEBI
SEBI, with a view to facilitate physical settlement of equity derivatives contracts, market regulator has extended the trading timings in the securities lending and borrowing (SLB) segment till 5 pm. Currently, trading is allowed in the segment from 9.55 am till 3.30 pm. The SLB mechanism allows short-sellers to borrow securities for making deliveries. The move is aimed at facilitating physical settlement of equity derivatives contracts. The decision comes after the markets watchdog in May permitted exchanges to extend the trading time in equity derivatives contracts by more than eight hours till almost midnight from October 1. The extended timing is similar to the trading hours for commodity derivatives segment, which is presently fixed between 10 am and 11.55 pm. The move was part of SEBI’s efforts to enable integration of stocks and commodities trading on a single exchange.
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Govt panel suggests ways to curb shell companies, de-clog NCLT
🍬There were more than 11.89 lakh active companies at the end of June. Out of them, 71,506 were public companies and over 11.10 lakh companies were private ones, as per data compiled by the ministry.
⛱According to the officials, having shares in the dematerialised form would also bolster the Know Your Client (KYC) framework for unlisted companies and prevent instances such as pledging of duplicate shares
🚥 Officials said that to begin with, issuance of new shares and transfer of shares by unlisted companies would have to compulsorily be in the demat form and that the decision has been taken after extensive discussions with stakeholders. With respect to issuance of bonus shares and stock split also, the entities would have to issue them in the demat form, they added.
🍍 the unlisted corporates would have to ensure that shares are transferred only in dematerialised (demat) or electronic form.
🍧 Initially, these regulatory requirements, expected to be effective from the first week of October, would cover more than 70,000 public companies, two senior government officials told PTI.
Source input
https://www.financialexpress.com/market/dematerialisation-of-shares-government-to-make-it-compulsory-for-unlisted-companies-to-issue-shares-in-demat-form/1293502/
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First National CSR Awards: MCA invites entries for nominations
🥧The Corporate Affairs Ministry (MCA) has invited entries for nominations for the first ever National CSR Awards from central ministries/Departments; State and Union Territories Governments; professional institutions (ICAI, ICSI and ICMAI) and national level trade and industry chambers.
🍭 A nominating organisation can nominate up to a total of 10 entries in all categories of Awards. Companies may directly submit their applications in a suitable category to these organisations.
⛱The nominations can be made on www.csr.gov.in. Last date for submission of application and nominations is September 30.
🚥In all, there are 20 prizes for National CSR Awards, an official release said.
🍇There are three categories of Awards. These are. ' Corporate Awards for Excellence in CSR';
'Corporate Awards in CSR in Challenging Circumstances' and awards based on contribution to National Priority Schemes.
Srivats.kr@thehindu.co.in
https://www.thehindubusinessline.com/news/first-national-csr-awards-mca-invites-entries-for-nominations/article24780134.ece
