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Footwear major <keyword id="19980586" type="General" weightage="80" keywordseo="bata-india" source="keywords">Bata India</keyword> has received a notice from the <keyword id="19980587" type="General" weightage="50" keywordseo="state-tax-officer" source="keywords">State Tax Officer</keyword>, Anna Salai Assessment Circle, Chennai, amounting to Rs 60.56 crore, the company said in a filing to the bourses on Thursday. The notice dated December 27, 2023, pertains to several issues raised in a final audit report on December 25, for the 2018-19 financial year, according to the filing. The issues raised include differences in turnover on outward supplies in the monthly GST returns, differences in tax on outward supplies in the GSTR-9 &amp; GSTR-9C returns, excess <keyword id="19980589" type="General" weightage="50" keywordseo="input-tax-credit" source="keywords">Input Tax Credit</keyword> (<keyword id="19896958" type="General" weightage="80" keywordseo="itc" source="keywords">ITC</keyword>) availed, and <keyword id="19980588" type="General" weightage="50" keywordseo="itc-reversal" source="keywords">ITC Reversal</keyword> on credit note. The company said it initially received an audit notice on April 27, 2023, and submitted relevant documents in response. Bata India was given a personal hearing on January 10, 2024, to present its case and provide further information on the disputed issues, as per the filing. The company expressed confidence in its ability to defend the case before the authorities concerned. "It is believed that the company has a good case to defend the matters without any material financial impact," Bata India said. SEE ALSO:<a href="https://www.businessinsider.in/business/auto/webstories/new-electric-scooter-simple-dot-one-comparison-with-ola-s1-pro-electric-scooter/slidelist/106343351.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/webstories/new-electric-scooter-simple-dot-one-comparison-with-ola-s1-pro-electric-scooter/slidelist/106343351.cms" target="_blank">Simple Dot One vs Ola S1 Pro – price, range and features compared</a><a href="https://www.businessinsider.in/business/auto/news/popular-luxury-cars-in-india-in-2023/slidelist/106325299.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/news/popular-luxury-cars-in-india-in-2023/slidelist/106325299.cms" target="_blank">Mercedes-AMG SL 55 Roadster to Volvo C40 Recharge – The most popular luxury cars in India this year</a><a href="https://www.businessinsider.in/tech/mobile/news/iqoo-12-vs-oneplus-11-vs-samsung-galaxy-s23-the-battle-of-the-affordable-flagships/articleshow/106200031.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/iqoo-12-vs-oneplus-11-vs-samsung-galaxy-s23-the-battle-of-the-affordable-flagships/articleshow/106200031.cms" target="_blank">iQOO 12 vs OnePlus 11 vs Samsung Galaxy S23 – the battle of the affordable flagships</a>

Bata India gets ₹60 crore sales tax notice

New Delhi, Mar 3 () GST officers in Delhi have busted a racket of fake invoicing worth Rs 7,896 crore using a network of 23 shell companies. The officers of Anti Evasion wing of Central Tax, Delhi West Commissionerate have busted a major racket of fake invoicing of Rs 7,896 crore involving fraudulent Input Tax Credit (ITC) of Rs 1,709 crore, using a network of 23 shell companies, Finance Ministry said in a statement. These companies procured and generated invoices without the actual supply of goods and availed as well as passed on input tax credit. Two persons were arrested on February 29, and were remanded to 14 days judicial custody. The accused persons were evading tax by creating several dummy firms for the purpose of passing on input tax credit by generating fake invoices. "They also used banking transactions to make input tax credit appear genuine. These firms issued the fake invoices to buyers, who availed fraudulent input tax credit without actually receiving any goods and defrauded the exchequer by way of availing ineligible input tax credit towards GST liability," the statement added. JD DRRDRR

GST officials bust fake invoicing racket

<keyword id="19983534" type="General" weightage="100" keywordseo="Hero-MotoCorp" source="keywords" meta.keywordsubtype="org" meta.entityname="Hero MotoCorp" meta.hostid="83" meta.entityid="Hero MotoCorp">Hero MotoCorp</keyword> on Sunday said it has received a <keyword id="19901479" type="General" weightage="20" keywordseo="demand-notice" source="keywords">demand notice</keyword> of over Rs 17 crore from <keyword id="22828708" type="General" weightage="20" keywordseo="Delhi-GST-authorities" source="keywords">Delhi GST authorities</keyword>. The company has received an order for disallowance of <keyword id="19980589" type="General" weightage="20" keywordseo="input-tax-credit" source="keywords">input tax credit</keyword> for FY 2019-20 from the Office of the <keyword id="20263022" type="General" weightage="20" keywordseo="gst-officer" source="keywords">GST Officer</keyword>, <keyword id="22830157" type="General" weightage="20" keywordseo="Government-of-NCT-of-Delhi" source="keywords" meta.keywordsubtype="org" meta.entityname="Government of NCT of Delhi" meta.hostid="83" meta.entityid="Government of NCT of Delhi">Government of NCT of Delhi</keyword>, the two-wheeler major said in a <keyword id="19954258" type="General" weightage="20" keywordseo="regulatory-filing" source="keywords">regulatory filing</keyword>. The company said the tax demand is for Rs 9,38,66,513, interest Rs 7,32,15,880 and penalty Rs 93,86,651 as per the notice. Based on the company's assessment, the tax demand is not maintainable in law, it added. The input tax credit disallowed by the office of the GST Officer, New Delhi, was rightfully claimed by the company as per the provisions of the GST law but disallowed on account of the supplier's non-compliance, which is not attributable to the company, <keyword id="7029" type="General" weightage="20" keywordseo="Hero" source="Orion">Hero</keyword> MotoCorp said. Accordingly, the company shall take appropriate steps, including filing an appeal, it added. There is no material impact on financials, operations or other activities of the company, Hero MotoCorp said.

Hero MotoCorp gets over Rs 17 crore tax notice from Delhi GST authorities

Gandhinagar: The <keyword id="19895344" type="General" weightage="20" keywordseo="Enforcement-Directorate" source="keywords" meta.keywordsubtype="org" meta.entityname="Enforcement Directorate" meta.hostid="83" meta.entityid="Enforcement Directorate">Enforcement Directorate</keyword> on Thursday conducted multi-city searches in Gujarat in connection with a <keyword id="19899231" type="General" weightage="20" keywordseo="money-laundering" source="keywords">money laundering</keyword> case linked to a GST "fraud" in which eight people, including a journalist, were arrested recently by the state police, official sources said. About 23 premises in cities of Rajkot, Junagadh, Ahmedabad, Bhavnagar and Veraval were being raided by the federal agency after a case was filed under the Prevention of Money Laundering Act (PMLA), the sources said. Premises linked to arrested journalist <keyword id="23517167" type="General" weightage="20" keywordseo="Mahesh-Langa" source="keywords">Mahesh Langa</keyword>, who works with <keyword id="21256671" type="General" weightage="20" keywordseo="The-Hindu" source="keywords" meta.keywordsubtype="org" meta.entityname="The Hindu" meta.hostid="83" meta.entityid="The Hindu">The Hindu</keyword> newspaper, were also being covered. The money laundering case stems from an FIR of the Ahmedabad Police Crime Branch. The city Crime Branch registered the FIR against several persons and entities after getting a complaint from the Central GST over an alleged scam involving shell firms set up to defraud the government through <keyword id="23577822" type="General" weightage="20" keywordseo="bogus-input-tax-credits" source="keywords">bogus input tax credits</keyword> and fraudulent transactions. Langa along with seven others was arrested after the Central GST found some suspicious transactions in bogus firms floated in the name of his wife and father using forged documents. After the registration of the FIR, the Crime Branch and Gujarat's Economic Offences Wing raided 14 locations across the state, including in Ahmedabad, Junagadh, Surat, Kheda and Bhavnagar. According to the Crime Branch, more than 200 fraudulently created firms worked across the country in an organised manner to defraud the government exchequer by availing bogus input tax credits and forged documents and identities were used to create these firms for tax evasion.

ED conducts raids in Gujarat in GST fraud case

Airlines seem to be preparing for turbulence with the implementation of the GST regime as certain segments of aviation business, including movement of spare parts, might attract more taxes, according to PTI news report. While the Goods and <keyword id="645517" type="COMPANY" weightage="20" keywordseo="services-tax">Services Tax</keyword> (GST) is set to be in place from July 1, lack of clarity on certain areas pertaining to airlines business have raised concerns of higher operational costs, according to industry executives. Operating in a highly competitive market where the margins are wafer thin, airlines are in a fix over the possibility of movement of "stocks (equipment or aircraft parts)" being taxed under the GST. In addition, the government has not given any tax relief with regard to import of aircraft and its spare parts. Besides, the executives feel that input tax credit should be extended for economy class travel and not just for business class travel. On the basis of GST framework announced, airline industry executives said there is no clarification or exemption to the carriers with respect to "movement of stocks from one state to another when it is not for resale but for captive use". "If I have to shift a tyre or an engine, then I have to pay GST before moving it... This means that movement of stock (equipment or spare part) even for captive purpose will attract tax. Such a practice is not there anywhere else," a senior executive at a leading airline said. Such a system, if implemented, would mean that airlines would be forced to either pay for every "stock movement" or having an inventory at places of operations and the latter would result in higher expenses, the executive noted. Another sticking point is that input tax credit is only available for business class travel and not for economy class travel -- a segment where there are more number of passengers. Input tax credit allows an entity to deduct the levies paid for the inputs while paying the taxes on the final output. Since GST is applicable for goods as well as services, input tax credit provides a leeway for the entities concerned. "As input tax credit on inputs is not available for economy class (under the GST), it would result in costs to the airlines," the executive said. According to executives, GST payments on procurement of goods, import of aircraft, aircraft spares are not available for economy class travel. With the country's domestic aviation market growing at double digits for more than two years, domestic carriers are looking to attract more passengers and the resultant competitive fares along with rise fuel costs have impacted their overall profitability. Against this backdrop, executives feel that higher taxes on different fronts could further put pressure on the airline business. The GST rates have been fixed at 5 and 12 per cent for domestic and international tickets, respectively.

GST may make operational costs of airlines in India costlier

New Delhi, Mar 2 () GST officials have arrested three persons involved in floating 17 fake firms and wrongfully availing credit on taxes paid on input worth Rs 436 crore by issuing fake invoices. Officers of the Central GST Delhi East Commissionerate detected that the fraudulently availed input tax credit by these firms was used to file refund claims to the tune of Rs 11.55 crore, an official statement said. "During investigation it came to light that a major Hawala operation was being run by the accused persons in connivance with certain bank employees (under investigation)," the statement issued by CGST Delhi East said. During investigation it was found that the 17 firms existed only on paper and had been floated for passing on input tax credit by generation of fake invoices. The three accused -- Asif Khan, Rajeev Chhatwal and Arjun Sharma -- were arrested on March 1 and remanded to judicial custody till March 13. The trio, operating a total of 17 fake firms, procured invoices without actual supply of goods and availed and passed on input tax credit fraudulently to the tune of Rs 436 crore. The accused are related to each other and were evading investigation for the last one month. JD DRRDRR

GST officials detect fake invoices, arrest 3 in Delhi

New Delhi, Dec 10 () A Parliamentary panel on finance on Tuesday observed that the Goods and Services Tax (GST) collection has slowed down in recent months and asked the government to prevent misuse of input tax credit.
 Two years after its launch, the government has begun the review of GST, including a possible resetting of rates along with the slabs, the Standing Committee on Finance headed by Jayant Sinha said in its report tabled in Parliament.
 "In this connection, the committee are constrained to observe that GST collections have somewhat slowed down in recent months as compared to the target. The committee would therefore expect the government to resolve all the troubling issues related to GST at the earliest to achieve the desired revenue buoyancy," the panel said.
 GST revenue collection crossed the Rs 1 lakh crore mark after a gap of three months in November, with the revenue growing by 6 per cent to Rs 1.03 lakh crore in the month. The collection stood at Rs 95,380 crore in October.
 "The committee would also urge the Department of Revenue to remain vigilant so as to prevent misuse of provisions as input tax credit and enhance monitoring of overall compliance," the committee said.
 It further asked the revenue department to have systematic reports and conduct feedback surveys from taxpayers to evaluate whether GST is operating smoothly.
 On large amount of tax refunds and the accruing interests on it, the committee said the processes should be revisited to dispense with the "need for raising realistic demands as also payments of disproportionately large advance tax by assesses".
 In 2017-18, the direct tax refunds stood at Rs 1.52 lakh crore and Rs 17,603 crore as interest, which rose to Rs 1.61 lakh crore and Rs 20,566 crore respectively in 2018-19.
 It also suggested that the interest component in tax refunds should be reflected in the Union Budget itself so that it passes through parliamentary scrutiny and also has a deterrent effect.
 Further, in order to broaden the tax base, it asked the government to bring the new Direct Tax Code in line with the global best practices, keeping in view the country's economic needs.
 For assessment year 2018-19, the committee noted that the number of taxpayers were 8.45 crore, out of which 8.04 crore were individual taxpayers.
 "Assuming the total population of the country to be 130 crore, the percentage of taxpayers in India works out to be a mere 6.2 per cent. The committee would, therefore, urge the department to reformulate their policies/strategies so as to have wider tax base, which would help the country move towards a truly comprehensive direct tax regime," the committee said.
 In a separate report, the committee asked the Department of Economic Affairs, Expenditure and Financial Services to expedite the payments to vendors and contractors so that the private sector participants doing business with the government are not placed under financial stress.
 "In addition, timely payments are necessary to maintain transaction velocity in the economy," it added. KPM ABM

Par panel asks govt to prevent misuse of input tax credit under GST as collection slows

New Delhi, Mar 12 () GST rates on mobile phones, fertilisers, man-made fabrics and garments are likely to be hiked to 18 per cent in the next GST Council meeting on March 14. Experts said the rate hike would improve working capital position of the manufactures as it would correct the inverted duty structure but may lead to increase in price of the finished goods. Currently, under the goods and services tax (GST), certain manufactured goods attract a tax rate of 5 per cent or 12 per cent while their inputs, input services and capital goods attract GST at the higher rate of 18 per cent or 28 per cent. The manufacturers have to claim a refund of accumulated input tax credit (ITC) where the tax rate on input is higher than the finished goods. According to sources, the refund claimed on account of inverted rate structure is about Rs 20,000 crore per year and there is a need to correct this anomaly. Significant items in inverted rate structure are fertilisers, mobiles, footwears, man-made yarns and fabrics, renewable energy devices, and tractors. A number of other smaller items like utensils also attract inverted duty structure. "The GST Council will take up in phases the correction of inverted duty on items as per the recommendation of the officers' committee. On Saturday, 4 items -- mobiles, fertiliser, footwear and man-made fibre, fabric and garments -- would come up for correction," the official said. Currently, cellphones attract a GST rate of 12 per cent, while its inputs are taxed at 18 per cent. "There is hardly any justification for retaining mobile at the slab rate of 12 per cent, while many items like TV, torches, geyser, iron, heaters, mixer, juicers, etc, attract GST at a higher rate," the official added. In the pre-GST era, under the dual excise scheme, a manufacturer had two options for excise duty -- basic excise duty (BED) at 2 per cent or 1 per cent without CENVAT Credit, and BED at 12.5 per cent with CENVAT credit. Imported mobile phones were being subjected to additional duty of customs (equal to higher of the BED) at 12.5 per cent. In central excise, there was no provision for refund of input tax credit on account of inverted duty structure. While fertiliser was originally placed in 12 per cent slab, the Council later lowered the rate to 5 per cent. A total of Rs 6,000 crore have been claimed as input tax credit refund on fertilisers from July 2017 till date. Fertiliser manufacturers have been claiming lower rate on other inputs like ammonia and sulphur. Besides, 18 per cent rate on services and capital goods adds to duty inversion, the official added. The total pre-GST tax incidence, including central excise, tax on inputs, average VAT, CST and octroi, on fertilisers was estimated to be about 9.75 per cent. Besides, the duty inversion in man-made fibre (MMF) value chain has led to a total refund claim of about Rs 1,600 crore so far on man-made yarn and another Rs 2,300 crore on fabrics and other textile items. The MMF value chain such as polyester, acrylic and viscose has unlike GST rate structure. While fibre attracts GST at the rate of 18 per cent, their value-add products, namely yarns, attract GST at the rate of 12 per cent. Thus, there exists an inversion at fibre to yarn stage. Fabrics, however, attract GST at the rate of 5 per cent. The textiles sector currently has a differential GST rate of 5, 12 and 18 per cent. This leads to difficulty in issuing and claiming of refunds. With regard to footwear, the Council in June last year had lowered GST rate to 5 per cent on items worth up to Rs 1,000, while those above this value attract 18 per cent duty. However, inputs used by the sector attract GST rate in the range of 5-18 per cent. EY Tax Partner Abhishek Jain said, "An increase in the rate of GST for some of these products should help liquidating the accumulated credits and thereby bettering the working capital costs for businesses manufacturing these goods. However, the rate increase on these goods may result in price hike and, thereby, may impact demand of these goods." AMRG &amp; Associates Senior Partner Rajat Mohan said, "Economy is going through a rough patch and any further increase in tax rates would run negative sentiment throughout the entire sector and push the demands further down deteriorating the overall economic stability in the country." JD HRS

GST on cellphones, fertiliser, man-made fabric, garments may be hiked to 18 pc

New Delhi, The <keyword id="65338" type="COMPANY" weightage="20" keywordseo="Income-Tax-Department">Income Tax Department</keyword> on Monday carried out <keyword id="10539618" type="UNKNOWN" weightage="20" keywordseo="limited-verification-exercise">limited verification exercise</keyword> at the <keyword id="183089" type="PERSON" weightage="20" keywordseo="office-premises">office premises</keyword> of the <keyword id="61966" type="COMPANY" weightage="20" keywordseo="Zee-group">Zee Group</keyword> and <keyword id="90593" type="DOMAIN" weightage="20" keywordseo="Larsen-and-Toubro">Larsen and Toubro</keyword> to verify into their bogus inputs about tax credit, official said. A senior IT official said, "There are no searches or raids but we are carrying out limited verification exercise at the offices of the <keyword id="147676" type="PERSON" weightage="20" keywordseo="Larsen">Larsen</keyword> and <keyword id="304986" type="COMPANY" weightage="20" keywordseo="Toubro">Toubro</keyword> and Zee group as we had information that they had claimed bogus input tax credit." The official said that it is basically a follow up exercise and there is limited action on both the groups. "We are covering these group and the companies related to these groups on account of this bogus input taxes," the official added. The official, however, refused to share the details of the offices where the verification process is being carried out. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-beml-hcl-tech-infosys-tech-mahindra-tcs-ril-tata-motors-hero-moto-tvs-and-others/articleshow/80089765.cms">Top stocks to watch — BEML, HCL Tech, Infosys, Tech Mahindra, TCS, RIL, Tata Motors Hero Moto, TVS, and others</a> <a href="https://www.businessinsider.in/business/auto/news/checkout-upcoming-new-cars-in-year-2021/slidelist/80025993.cms">Upcoming new cars in India in 2021 of Maruti, Tata, MG, Audi</a> <a href="https://www.businessinsider.in/india/news/pongal-plus-election-dole-cash-rice-sugar-cashews-and-clothes-for-210-million-people-in-tamil-nadu/articleshow/80091546.cms">Pongal plus election dole: Cash, rice, sugar, cashews and clothes for 210 million people in Tamil Nadu</a> <a href="https://www.businessinsider.in/business/auto/news/tata-motors-stock-surge-the-early-trading-hours-today-after-the-company-reported-a-21-increase-in-total-vehicle-sales/articleshow/80092876.cms">Tata Motors’ rallies over 3% as it outshines Mahindra and Maruti in December sales</a>

L&T and Zee Group accused of filing 'bogus' tax claims — verification underway

New Delhi, Apr 19 () The government is unlikely to exempt GST on medical items like ventilators, PPEs, masks, test kits and sanitisers, as it would lead to blocked input tax credit (ITC), thereby increasing the cost of manufacturing and increase the price for consumers. There have been demands from certain sections to exempt GST on certain items like ventilators, personal protective equipment (PPEs), masks, test kits and sanitisers that are essential items for treatment of COVID-19 saying that GST exemption on these items would lead to reduction in prices. Currently, GST rate on ventilator is 12 per cent; on mask, it is 5 per cent; on test kits, it is 12 per cent; on sanitiser, it is 18 per cent; and on PPE, it is 5 per cent (costing up to Rs 1,000) and 12 per cent (if the cost is more that Rs 1,000 per piece). Sources said GST exemption on such items would lead to blocked input tax credit (ITC), thereby increasing the cost of manufacturing and a higher price for consumers. GST exemption on such items would jeopardise the interest of the industry and would not result in any significant gains to consumer, they said adding that in the past, GST exemption on sanitary napkin has led to similar situation for the domestic manufacturers. The sources said that while consumers do not gain from GST exemption on these items, the compliance burden would increase for manufacturers as they would be required to maintain separate account of inputs, input services and capital goods used for manufacture of these items. In case, they are not in a position to maintain separate account, they shall be required to reverse the input tax credit on all inputs/ input services used in manufacture of exempted PPE after applying detailed calculations. Further, exempting these items would lead to blockage of ITC for domestic manufacturer but importers would not suffer any such blockage, the sources added. Earlier this month, the government exempted basic customs duty and health cess on these items (except sanitiser) till September 30. The sources said that while the elimination of customs duty may have been detrimental to domestic manufacturing, it was done to meet the immediate need of such goods to deal with the COVID-19 pandemic, considering that domestic supply may not have been sufficient to meet the increased requirement. JD HRS

Govt unlikely to exempt GST on masks, ventilators, PPEs as it would lead to blocking of ITC

New Delhi, Jan 6 () Telecom industry on Monday urged the government to facilitate funding for telecom companies at lower interest rates to help them reduce capital costs.
Representatives from the industry met telecom ministry officials to communicate their suggestions to help the debt-ridden sector. The DoT, which has given time till Tuesday to send in written recommendations, will compile these demands and send them to the Finance Ministry for consideration in the forthcoming Budget.
According to a senior government official, most demands made were on similar lines as before, including reduction in Universal Service Obligation Fund (USOF) levy and licence fees.
The official added that one of the recommendations was related to input line credit.
Besides, the industry has also sought facilitation of funding at lower interest rates to telecom companies, removal of GST on licence fee, spectrum usage charges (SUC) and on payment of spectrum charges, and refund of accumulated input tax credit, the official said.
They have also urged that telecom towers be included in definition of plant and machinery for input tax credit, and further promotion of Make in India by setting up a dedicated fund that can be used by purchaser of telecom equipment.
One of the representatives present in the meeting said the industry has requested setting up of a working group with stakeholders from the telecom ministry, Telecom Regulatory Authority of India (Trai) and the industry, which will work on preparing guidelines for adopting the principle of input line credit.
The representative said that the telecom industry is capital intensive and needs to generate funds from domestic sources at affordable rates.
"We have requested the government to facilitate funding at lower rate of interest so as to plough more funds for network upgradation, maintenance and expansion," another representative said.
Other recommendations included reduction in USOF contribution to 3 per cent, and license fee to 1 per cent of adjusted gross revenue (AGR).
The industry also sought that the payment of regulatory levy should be exempted from tax under GST. SR SR
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You Searched For "input tax credit" and got 11 results

Bata India gets ₹60 crore sales tax notice

PTI

GST officials bust fake invoicing racket

PTI

Hero MotoCorp gets over Rs 17 crore tax notice from Delhi GST authorities

PTI

ED conducts raids in Gujarat in GST fraud case

PTI

GST may make operational costs of airlines in India costlier

BI India Bureau

GST officials detect fake invoices, arrest 3 in Delhi

PTI

Par panel asks govt to prevent misuse of input tax credit under GST as collection slows

PTI

GST on cellphones, fertiliser, man-made fabric, garments may be hiked to 18 pc

PTI

L&T and Zee Group accused of filing 'bogus' tax claims — verification underway

IANS

Govt unlikely to exempt GST on masks, ventilators, PPEs as it would lead to blocking of ITC

PTI

Telecom ind urges govt to facilitate funding at lower interest rates; seeks reduction in levies

PTI

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