Page 55 - GSTL_2nd July 2020 _Vol 38_Part 1

2020 ] NEWS DESK J29
Centralised AAAR put on fast track
India has fast tracked creation of a Centralised Appellate Authority of
Advance Rulings, wary of divergence in rulings by regional bodies leading to
confusion in the three-year old Goods and Services Tax regime.
Discussions have picked up pace to bring into effect to the proposed
body, Government officials said.
One of the officials said the need to set up the umbrella body has gained
momentum after the Central Board of Indirect Taxes and Customs had to clarify
on the applicable rates in certain situations, on more than one occasion.
“The intent of setting up AARs at the Joint Commissioner level was to
ensure that taxpayers get clarity at the lowest level itself, without having the
need to approach a higher authority... it was meant to ease things for taxpayers,
but it hasn’t worked out,” said another official, asking not to be named as the
discussions have just begun.
Officials said the key issue of allowing all taxpayers to approach the cen-
tralised authority and not just those parties that have got conflicting orders in
different jurisdictions in a particular case, is being re-considered.
“If I am a large company having entities in different States and have got
contrary orders from different AARs, only then can I approach the Central Ap-
pellate Authority... it defeats the purpose of having a Central appellate, because
such cases would be very few in numbers,” a second official said.
[Source : The Economic Times, New Delhi, dated 23-6-2020]

Companies can’t claim ITC on GST paid for hiring vehicles
for employee transportation — AAR

Companies will not be able to claim Input Tax Credit (ITC) for GST paid
on hiring commercial vehicles for transportation of employees, if providing such
a service is not obligatory under any law, the Authority for Advance Ruling
(AAR) has said.
On an application filed by Prasar Bharti Broadcasting Corporation (All
India Radio), Shimla, the Himachal Pradesh Bench of AAR cited Goods and Ser-
vices Tax (GST) law to State ITC shall be available on fulfilment of one condition
- “such goods or services or both shall be obligatory for an employer to provide
to its employees under any law for the time being force”.
The applicant, who is a public service broadcaster, sought to know
whether ITC will be available on taxi hiring services like pickup/drop-off staff,
including ladies and handicapped employees, in odd hours.
[Based on The Indian Express, New Delhi, dated 22-6-2020]

C.B.I. & C. notifies relief measures
No late fee on nil tax liability, ` 500 late fee cap if returns filed by July 1
The Central Board of Indirect Taxes and Customs has notified waiver of
late fee, capping of late fee at ` 500 in some cases, interest payable on late pay-
ments and the extension of due dates for businesses to file their Goods and Ser-
vice Tax returns for the COVID-19 impacted period to October.
GST LAW TIMES  2nd July 2020  55