Gujarat high court has given some relief to the exporters who have been charged for illegally availing tax exemptions as the court has told the anti-smuggling intelligence agency to behold their action against them.
Directorate of Revenue Intelligence (DRI) was asked by the Gujarat high court to stay for any strict actions against the petitioners or the exporters and also asked to review the pre-import conditions in the case.
According to the amendment in GST law, that all those exporters having advance authorization licenses must duly follow pre-import conditions in order to take away the tax exemptions.
The pre-import conditions were analyzed by the high court bench of Justices Akil Kureshi and BN Karia and then asked the Directorate of Revenue Intelligence to hold the actions against the exporters.
Tax experts stated that “It is very encouraging that the Gujarat High Court ordered that no coercive action can be taken against the petitioners .”
The GST council earlier made a panel for studying the issues of exporters and panel is underway to report the actual condition of the export industry under GST.
Most of the exporter community is currently going through tough times as there are a lot of refund issues stuck on the behalf of the tax department and between the exporters have crossed the pre-import condition otherwise then the actual GST law.
I am running a small business in NCR and I could not pay GST because my business is running at a loss. I have a few questions and would seek your advice:
1. Do I need to do anything to make use of GST late fee waiver?
2. Is the interest fee (18% is very high) waived as well?
3. Is there a provision to request extension in payment or request monthly payment instead of one time payment?
4. If I am not sure of certain rules how GST is applied for my business, can I ask for request for Advanced Ruling under GST?
5. If yes, will I be charged late fee and interest until I hear back on my request for Advanced Ruling?
(1) No, the late fee cannot be waived in any case even business is at the loss
(2) If GST is payable and is paid late after the due date interest need to be paid and cannot be waived
(3) Payment is made monthly only as monthly return filing liability is there, late fee, interest to be paid only at the time of filing the monthly return.
(4) Yes, you can make an application to advance ruling authority for such clarification.
(5) Late fee and interest applicability in case of an advance ruling are not specified in the law, please contact GST practitioner for same.