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Search results for: gst on rent

Services Provided by Directors to Companies are Not Taxable Under GST RCM

CBIC: Renting Services by Directors Are Not Taxable Under GST RCM

The companies would not be needed to deduct the GST under the reverse charge mechanism (RCM), the central board of indirect taxes and Customs (CBIC) stated on the services like immovable property furnished on rent via the directors in his personal capacity. The clarification followed the goods and services tax GST council’s decision, made at […]

Companies Facing Obstacles Due to GST Notices Issued by States

GST: Businesses Facing Difficulties with Notice from Different States

Businesses are in dilemma responding to increasing GST notices from different state departments, as most companies handle taxation issues centrally. Especially service-based businesses face barriers to differentiation as per each state. These letters from various states request specific documents and representations as part of tax scrutiny. Furthermore, the frequency of such notices has dramatically increased […]

Delhi High Court's Order for Kritika Agarwal

Delhi HC: No Cancellation of a GSTIN on the Mere Instructions of Different Authority

The High Court of Delhi in the case of Kritika Agarwal Vs. Union of India and ORS. has ruled that GST Number cannot be cancelled just on the grounds of the direction of another authority. The petitioner is primarily aggrieved over her GST Registration cancellation. The petitioner has also requested reimbursement of Rs. 20,00,000 (Rupees […]

Summary of Assam GST Circular Number 01/2023

Assam Govt Demands a Valid Rent Agreement for GST Registration

The Assam Goods and Services Tax (GST) Department, on 7th July, issued a circular to combat fraudulent registrations and tax evasion. They now require individuals or organisations to provide a valid rental agreement or lease deed when registering for GST. The department discovered that several dishonest people and organisations were obtaining GST registration by submitting […]

GST Authorities vs Mineral Transporters Over Service Classification

GST Authorities Treat Rental Services While Mineral Transporters Paying Under RCM

Numerous legal disputes have resulted from the GST demand for the delivery of materials, such as coal, to mining businesses. While tax officials depend on a circular released in August, carriers, and experts, disagree that such a method is not justified. Transportation vs rental services is the main points of disagreement. Mining firms used to […]

Maharashtra GST AAAR's Order for CHEP India Private Limited

MH GST AAAR: Biz to Pay Lease Rental Services When Moving Goods B/W State Branches

In a recent ruling by the Maharashtra AAAR (Appellate Authority of Advance Ruling), it has been stated that businesses moving goods between branches in different states are required to pay taxes under the category of lease rental service. This decision came about when a case involving CIPL (a fictional company) was brought before the AAAR. […]

Uttarakhand GST AAR's Order for M/S Uttarakhand Public Financial Management Project

UK AAR: GST Must be Charged on Mileage Basis When Using Motor Vehicle Rental Services

An order has been directed by the Uttarakhand Authority of Advance Ruling (AAR), according to the order, availing motor vehicle rental services, GST is subject to be paid on monthly rental, overnight charges, and fuel on a mileage basis. The appellant, M/S Uttarakhand Public Financial Management Project, receives motor vehicle hire services from M/S Baba […]

SC's Order for Myrayash Hotels Pvt. Ltd.

Supreme Court Refers Constitutional Validity of GST on Lease/Rent Payments to 9-Judge Constitution Bench

In a civil appeal that is currently pending before the bench of nine judges, the Supreme Court mentioned a case that addressed the question of the constitutional legality of GST on lease/rent payments. According to the ruling of a bench comprising of Justice M.R. Shah and Justice Sanjay Karol, there is no stay against the […]

Odisha AAR's Order for M/s. Indian Metals and Ferro Alloys Ltd

Renting Guest House from Residential Bring GST Under RCM: Odisha AAR

Under Reverse Charge Mechanism (RCM), the Odisha Authority of Advance Ruling (AAR) held that GST should be levied on renting the residential premises on rent as a guest house. Case Fact Petitioner Opinion An advance ruling has been filed by the petitioner on whether the rented residences would be utilised as a guest house through […]

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