GST - Decomplexing
By Soumitra Mishra
Advent of GST effective 1st July, 2017 plunged many business sectors into chaos and uncertainty. One such industry was the transportation of passengers. Many variations like renting of a motor cab, contract carriage, stage carriage, radio taxi etc. along with different rate and ITC conditions, made it one of the most complex of sectors. For one of our client engaged in providing passenger transportation services, the main problem was categorization of their services. What made the issue more complicated is the multiplicity of notifications. In a short span of 4 months, more than six notifications were issued. We helped the client by showing the various permutation and combination of vehicle type, number of passengers, service type, rate of tax, ITC eligibility etc which enabled them to operate with clarity.
GST – Tran 1 - Assurance
Consequent to huge transitional ITC claims under GST, a letter dated 11/09/2017 was released by CBEC directing its officials to verify all GST credit transitional claims of over Rs. 1 crore. One of our clients was having huge transitional credit claim and were sceptical since the release of the letter and deemed it necessary to ensure correct transition of their credit. We were entrusted with the responsibility to verify the legality of their claim. A thorough scrutiny involved documentation by our resources and enabled us to assure them the correctness of their transitional ITC claim. The client was very happy to file their transitional ITC claim as assured by us.