Critical Issues of GST

Critical Issues of GST

This presentation is on the Critical Issues of GST. It is drafted by Advocate PK Mittal. This presentation covers the various issues in GST and various judgements in this regard.

Coverage:

• Definitions
• Issues
• Judgements

Definitions Covered:

Section 7 of CGST Act, “Supply” 

• (a) all forms of supply of goods or services or both 
• (b): for consideration
• (c): in the course or furtherance of business; 
• Schedule-I talks of supplies without consideration; 
• Schedule III: Certain activities or transaction which are neither supply of goods nor service and hence not taxable at all. 
• Clause I of Schedule-III: Services by an employee to the employer in the course of or in relation to his employment. 

Section 2(52) Goods means 

• (a) every kind of immovable property except; 
• (b) Money;
• (c) Securities; but includes 
• (d) Actionable claim or growing crops, grass and things attached to or forming part of the land but agreed to severed before supply; 

Section 2(102) Services:

means anything other than goods, money or securities; 

Explanation: It is clarified that “services” include facilitating or arranging transactions in securities;

Issues:

Whether these transactions are taxable under GST or not:

1. Recovery of any amount towards medical insurance, food canteen services & recovery of salary already paid.
2. Recovery of any amount towards Health club/ Gym, Crèches facility, Car Parking facility, T-shirts/ Diaries, Books/ Journals subscription, Group medi-claim/ Personal accident insurance taken for all employees.
3. Sale of used assets like laptop/desktop to employees.
4. Recovery for loss of assets.
5. A bonus is given to employees like Diwali Bonus, Festive Offer.
6. Group insurance policies
7.  Contribution to CSR & related activities
8. Amount spent on CSR
9. Donation made during COVID 2019 period
10. Non-working directors i.e. Nominee, Independent, Ordinary, Part-Time Director.
11. Valuation of Service
12. Input Tax Credit – Section 16(1)
13. Fundamental Requirements for Availing ITC
14. Time Limit for Utilizing ITC.
15. Deputation/Sharing of Services of Employees.
16. Joint Employment

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