Category: Mohan & Chandrasekhar

Online gaming co. based out of Bengaluru learnt to have been served a show cause notice by GST Intelligence Wing, to the tune of approximately Rs. 21,000 cr for allegedly indulging in 'betting' & 'gambling'; Intelligence Wing show cause claims that the same is liable to GST at 28% on the 'face value' of collections made; According to Dept. sources, this is one of the largest ever indirect tax claims; This may lead to more show cause notices on other gaming cos to the tune of several thousands of crores: Sources

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DETERMINATION OF NATURE OF SUPPLY Section 7(1) Subject to the provisions of section 10, supply of goods, where the location of the supplier and the place of supply are in–– (a) two different States;  (b) two different Union territories; or  (c) a State and a Union territory, shall be treated as a supply of goods in the course of inter-State trade or commerce

A company or any other entity who have registered themselves under MSME and facing problems to recover long pending dues from their customers may approach the MSME department to take action against them. Following process shall be followed by such MSMEs entity: Register your company/LLP/Partnership etc. as an MSME and obtain a MSME certificate [Udyog Aadhaar Number (UAN)].Keep record of all formal purchase orders from customers and delivery proofs for all orders.On all your invoices, mention, “your entity name and UAN” along with a note that “Delayed payments beyond 45 days attracts interest at a rate three times of the bank rate notified by RBI, compounded with Monthly interest”.

Free Samples and giftsThe free samples or gifts given for example in pharma industry without any consideration will not be treated as “supply” under GST (unless it is covered under Schedule 1). Input tax credit with respect to such free samples or gifts should be reversed.