Tax and Law Advisor

GST News Highlights 23rd Oct 2018

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Six arrests under GST for first time
The State GST department nabbed six persons in connection with tax evasion by issuing fake bills to get the input tax credit illegally. The department took the step following raids at more than 100 traders and manufacturers of the edible oil in the state from June to September this year.

Food expenses recovered from employees for canteen services will attract GST, rules AAAR
Recovery of food expenses from employees for the canteen service provided by the company will attract Goods and Services Tax (GST), according to the Appellate Authority for Advance Ruling (AAAR).
In view of the recent AR orders and the earlier press release, not only recovery for food expenses, but even other employee benefits may need to be evaluated to determine their taxability, by looking at the employment arrangement, contract, consideration charged etc,” he said.

Asian Paints: Benefits of lower GST in Q2 come at cost; volumes surge 12%
Asian Paints’ September 2018 quarter (Q2) numbers show that benefits of higher volumes have come at a cost. Consolidated net profit reported by the paint major was not only 14.8 lower than the year-ago quarter but also below the street’s expectations.
High inflationary pressure, besides expected start-up cost on its new Mysuru plant, hurt the company’s bottom-line. The recent cut in goods and services tax (GST) might have helped the company to push up its volumes, which rose by 12 per cent on expected lines and drove the top-line.

Source: Law Crux

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