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GST News Highlights 24th Oct 2018

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Vehicle owners to pay 18% under GST for pollution check
The Goa bench of the AAR passed the ruling on an application filed by Venkatesh Automobiles on whether the service provided for issuing ‘Pollution Under Control’ (PUC) certificate on behalf of the state government is exempted from the Goods and Services Tax (GST).
“The activity of issuance of Pollution Under Control certificate for vehicles issued by the applicant is not covered under SAC (Services Accounting Code) 9991 and is covered under residual entry and hence, should be taxed @ 18 per cent GST,” the AAR said.

Are GST norms posing hurdle in listing of RVNL, other PSUs?
As per the conditions, an entity in which the government stake is above 90% is liable to pay 12% GST for work contracts executed on behalf of the Central government, state government or any local authority. However, if the government holding goes below 90%, the applicable GST rate is 18%.
So, in the case of RVNL, a company which executes only Indian Railway contracts, while 10% equity shares will be offered to the public under its proposed IPO. An additional around 0.5% will be offered to employees, as has been done in the case of another railway PSU Ircon International, effectively bringing the government holding in the firm to less than 90%.

50 crore GST burglary, three arrested including CA-lawyer

The team of Director General of GST Intelligence sat in Noida, Uttar Pradesh, after showing wind and air business in the name of alleged firms of Ghaziabad , has busted a whopping Rs 297 crore. The investigation team claims to have stolen the GST of 50 crore directly from the fraud . The team of Director General of GST Intelligence captured three members, a CA, a lawyer and his associate, who were found guilty of the treasure of the country. The three were presented in the special CJM court on Tuesday in Meerut. From where the three were sent to jail in judicial custody.

GST coupled with entertainment tax is becoming a challenge for the film industry
At the box office front, the film industry is enjoying a strong run in 2018. However, the sector is still dealing with the spillover effect of goods and services tax (GST) that came into effect last year. While players of the entertainment space saw the unified tax system as a ray of hope, it has increased the tax burden on the industry.

Source: Law Crux GST 

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