Page 49 - GSTL_21st May 2020_Vol 36_Part 3

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No GST figures before June 30

One has to wait for one and a half months more to find out the GST col-
lections even for April. The Government did not release the GST collection fig-
ures for April on May 1. There was speculation that this was done to hide the
record low revenues. Revenue Secretary A.B. Pandey attributed this to deferment
of filing returns to May 5. “Will come to know about GST collections by June 30
only,” Pandey said.
[Source : Business Standard, New Delhi, dated 14-5-2020]

Do not deny Input Tax Credit
This refers to ‘Companies Face Input Tax Credit Denial on Goods De-
stroyed’ by Vinod Mahanta and Sachin Dave (May 14). There are various other
provisions under the Goods and Services Tax (GST) law for disallowing Input
Tax Credit (ITC) availed on inputs and input services, apart from the reversal of
ITC on goods destroyed. In case payment is not made within 180 days to the
vendor, ITC availed on such inputs is required to be reversed. Similarly, when
goods are lost or stolen, free supply ITC is not allowed.
Further, ITC is required to be reversed on the goods being supplied free
of cost to the needy during COVID-19 relief operations. In fact, accumulated ITC
is an issue if there is no sale of goods. All such provisions need to be relaxed dur-
ing lockdown due to the COVID-19 pandemic. The Central Government has giv-
en relief on the compliance front but it needs to look into such provisions, includ-
ing refund of accumulated GST during this period.
[Source : The Economic Times, New Delhi, dated 15-5-2020]

GST on Director salaries : Notices served despite diverse
AAR Rulings
Even as Authorities of Advance Rulings (AARs) differ on the liability to
pay the GST on salaries paid by firms to Directors, some States have already

GST LAW TIMES  21st May 2020  49