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SC: Notice on Appeal Asking to Watch Out Mistakes in GST System

The Supreme court provides the notice to the central government on the appeal asking to plug existing loopholes inside the GST system, that leave out the entities like Google, Amazon, Facebook, etc. from the tax net, which makes a big loss to the exchequer.

SC Wants Clarification on GST Loopholes

The appeal furnished through the chartered accountant (CA) Pradeep Goyal stated that there was an asymmetry in the details collection from overseas online service providers. Despite there being a plan for the details to be filed for a B2C transaction there is no B2B transaction A helpful GST guide for consumers, B2B (Business to Business) and B2C (Business to Consumer) by SAG Infotech. We also included some important GST articles. read more the appeal furnished through the Charu Mathur.

This Comes Out with a Big Revenue Loss for the Nation

The appeal was argued through the senior advocate Sonia Mathur in the court on Wednesday. The three Judges which are led through the CJI SA Bobde dubbed it an excellent case while providing the notices to the finance ministry asking about its explanation upon the effective part.

The notices were sent to the Central Board of Direct Taxes (CBDT), the GST Council Get to know about GST (Goods and Services Tax) council 1st to 37th meeting updates and decisions taken by members. We have covered 1st meeting to last meeting decisions as well as the principal commissioner of the direct tax asking their perspective on the same. This is the second appeal asking to have these tech giant’s taxes in India. Another appeal has been already due in court.

PIL has said by directing that there are stronger loopholes in GST policy that should be plugged. The tax is to be obtained from the foreign firms in B2B transactions through the method of IGST for online data and Database Access and Retrieval (OIDAR) services.

It asks that the council had no mechanism to monitor the GST paid on OIDAR services taken through the nontaxable online recipients beneath the reverse charge basis. These facts are not been reported in GST returns Get to know the online procedure of filing GST returns in India. We provide each and every GST form according to the taxpayers category. It asked that most of these entities like Facebook, Amazon, and Netflix have no constant establishments in India and maintain their accounts in the foreign jurisdictions and are audited in those jurisdictions.

There is no regulation of the Indian government or access to their accounting records to validate compliance beneath GST law, they commented. There is no information held within the GST council upon the various individuals in the non-taxable territory providing OIDAR services in India.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous. View more posts
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