Page 48 - GSTL_ 28th May 2020_Vol 36_Part 4

J108 GST LAW TIMES [ Vol. 36
filed within the prescribed time-limits but because of the error on the part of au-
thorities, the deficiency memo was not provided within 15 days and when appli-
cation is filed afresh, the same gets barred by time,” according to the representa-
tion to C.B.I. & C.
[Source : The Economic Times, New Delhi, dated 21-5-2020]

GST Officials seek Directors’ remuneration info
Inquiries after 2 AARs gave conflicting orders
Goods and Services Tax Authorities in some States have sent notices to
companies seeking information about the remuneration of Directors and the tax
paid on them. This comes as only a few companies have started operations fol-
lowing the staggered opening up of the nationwide lockdown to counter the
COVID-19 outbreak.
The inquiries come on the heels of conflicting orders passed by the Au-
thority of Advance Ruling in two States on the applicability of GST on the remu-
neration of Directors. The AAR, Rajasthan said Director remuneration is under
the ambit of GST, while the AAR, Karnataka ruled it was not.
“The conflicting Advance Ruling judgments on GST applicability on Di-
rector’s remuneration has caused doubt in the minds of authorities at the field
level, potentially causing unnecessary litigation,” said Bipin Sapra, a Partner at
EY.
The Tax Authorities in States including Chhattisgarh, Uttar Pradesh and
Maharashtra have sent out the notices seeking information, said people familiar
with the matter.
[Source : The Economic Times, New Delhi, dated 19-5-2020]

Calamity Cess on GST : Plan on Government table to tide
over COVID crisis

In line with the Disaster Relief Cess introduced in Kerala last year fol-
lowing the monsoon floods of 2018, the Central Government is considering a Ca-
lamity Cess on Goods and Services Tax (GST) to tide over the economic crisis
triggered by the coronavirus pandemic, The Indian Express has learnt.
Sources said that a proposal to raise additional revenue from GST, ex-
cluding goods and services in the five per cent. slab, is with the Finance Ministry.
However, when contacted by The Indian Express, at least two State Fi-
nance Ministers - from Kerala and Assam - said that such a move would “not be
a good idea” as the industry is already facing a “huge crisis”. The issue will be
raised at the next GST Council meeting, which is expected to be held in a few
weeks, sources said.
Kerala is the only State to have levied such a Cess using the Constitu-
tional provision, clause (4)(F) of Article 279A, which refers to “any special rate or
rates for a specified period to raise additional resources during any natural ca-
lamity or disaster”.

GST LAW TIMES  28th May 2020  48
( A108 )