Learn More Services
Know About Our Team
Learn More About Us
Our essence is rooted in being honest and straight forward. We advise and advocate what we truly believe.
Our team and collective efforts allow free flow of information and knowledge from top to bottom and vice versa.
Teamwork is rooted in affluence DNA and we very much acknowledge the outcome of team work.
We firmly believe that Confidentiality is the cornerstone of our Profession and strive to maintain it to the fullest possible extent.
We believe that the simplest solution is the best one.
We understand only our profession and we are devoted to it. We are cent percent committed to the delivery of quality services to our clients.
Explore the latest GST Update, judgments and news for January 2024! Stay updated on important developments in Goods and Service Tax to keep informed.
Kavin Hp Gas Gramin Vitrak Vs The Commissioner Of Commercial Taxes(2023-VIL-896-MAD)
The issue at Hand:
In this case, a petitioner involved in the trade of Petroleum Gases encountered complications regarding the belated claim of Input Tax Credit (ITC) owing to financial constraints. The tax authorities rejected the ITC asserting that the delay in submitting GSTR-3B (tax returns) lacked a valid justification.
The petitioner contended that technical hurdles arose as the prescribed Form GSTR-2, designed for ITC claims, was not officially taken into implementation. The unavailability of the said form incapacitated the petitioner to file the claims electronically. The court acknowledged these challenges and underscored the absence of a functional mechanism for ITC claims.
Ultimately, the court overturned the tax authorities’ decisions, highlighting the unavailability of GSTR-2, which hindered electronic filing. It directed the authorities to permit manual returns and reassess ITC claims. The court emphasized the necessity of adopting a practical approach, particularly in the absence of a well-established system.
The key takeaways from this case include the struggles the petitioner faced in promptly claiming ITC due to technical issues and the non-existence of necessary forms. The court emphasized the significance of addressing practical challenges by allowing manual returns when electronic filing is not viable. The ruling underscores the need for a more accessible system for ITC claims, taking into account the real-world difficulties encountered by businesses.
The dispute pertaining to reversal of ITC in case of default in payment of tax by supplier is settled?
In the recent judgment pronounced by the Supreme Court in the case of Assistant Commissioner of State Tax, Ballygunje and Others Vs Suncraft Energy Pvt. Ltd. [2023-VIL-99-SC], Apex Court dismissed the SLP filed by the department against the Calcutta High Court judgment. In this case, Calcutta HC passed an Order in favor of the assessed against which the department had gone into appeal before SC. The said decision of HC is discussed below.
Summary of HC judgment:
Suncraft Energy Private Limited and another Vs The Assistant Commissioner, State Tax, Ballygunge Charge & others [2023-VIL-487-CAL]
In this case, the department disputed the ITC claimed by the petitioner on the ground that neither the supplier’s invoices were reflected in GSTR-2A of the Appellant nor the supplier had remitted the tax collected. Petitioner in its support has submitted a copy of tax invoices along with a bank statement substantiating the payment to said vendor. Also, the petitioner submitted that the department has not conducted any inquiry on the supplier particularly when the clarification (Press release dated 18 October 2018) was issued that furnishing of outward supplies in Form GSTR-1 by the supplier and the facility to view the same in Form GSTR 2A by the recipient is in nature of taxpayer facilitation and does not impact the ability of taxpayers to avail ITC on the self-assessment basis in consonance with provisions of Section 16 of CGST Act.
Honorable High Court accepting the contention of the petitioner held that the department without resorting to any action against the supplier has completely ignored the tax invoices and bank statements submitted by the petitioner and therefore this action by the department is arbitrary. Therefore, before directing the petitioner to reverse the ITC and remit the same to the Government, the department ought to have taken action against the supplier. Hence, HC accepted the writ and held that the demand raised on the petitioner in this case is non-sustainable and to be set aside.
Being aggrieved by this Order, the department had filed the SLP before the Apex Court.
Position after the above judgment:
In light of the above judgment, the immediate question that comes to mind is whether the issue pertaining to the reversal of ITC in case of default in payment of tax by vendor is settled.
To answer the above, we need to consider the following positions:
Hence, at this stage, it is difficult to conclude that the issue pertaining to the reversal of ITC in the case where the supplier has not remitted the tax to the Government is settled. Therefore, it will be crucial to track the positions which HC may take now in light of the above-referred judgments.
Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement
CLICK HERE DECEMBER GST UPDATES
Valuation opinion requires the right blend of analysis, experience and professional judgement. Our team has a Registered Valuer as required under
We provide financial, tax and corporate law due diligence support to our clients for inbound and outbound transactions.
ESOPs are one of the important tools to attract and retain employees and have long term career with the organization.
There are several compliances specified under FEMA for Indian Companies having FDI and ODI (Indian entities having investments in overseas Joint Venture
We carry experience of 15 years for registration of the NBCF with the RBI or carry out the process for change in management and control of the NBFC.
FinTech Companies are broadly categorized into digital payments or digital lending Companies. At Affluence,
India has emerged as one of the most attractive destinations not only for investments
We provide the entire gamut of Corporate Law Services, essential in rapidly changing regulatory and corporate environment.
SEBI plays an important role in regulating all the players operating in the Indian capital markets. It attempts to protect the interest of investors and aims at
We provide advisory and support services to the corporates/other entities, devising and structuring solutions for stress mitigation in their enterprises/units.
On the journey of transformation of a private company into a public company, success depends a great deal on a coordinated team
The efforts of any management in modern business environment are towards enhancing a shareholder’s value. The taxes (both direct and indirect) and
We at Affluence, adopt a comprehensive approach for implementation and compliances related to the GST and with an object to offer seamless services to our clients listed below.
In the fast-changing environment, procuring and retaining skilled staff is a challenge. Specially in the case of SMEs, in the absence of accounting manual
Today’s businesses across the globe increasingly seek better decision-making and stronger internal controls in order to attain greater shareholder value.
‘Startup India’ is a flagship initiative of the Government of India, intended to catalyze startup culture and build a strong and inclusive ecosystem for innovation and
Assurance and accounting services are directed towards supporting stakeholders such as lenders and investors. Our standardized
Director stand in a fiduciary position with the Company and Director will be held liable if Director do not act diligently in discharging his/her duties.
People are our greatest asset and we believe in our people. Our multi disciplinary team would always go that extra mile to ensure that all the client deliverables are prepared within agreed time frame to technical standards and presentational quality. Our success is greatly dependent on quality and performance of our people.
