Buy 1 get 1 free’ deals to come under GST

Free samples and gifts offered with purchases as well as popular ‘buy-one-get-one-free’ deals may attract the proposed Goods and Services Tax (GST) levy which government plans to roll out from April 2017.
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Input tax credit cannot be denied because seller has not deposited the tax collected

Fact of the Case:- the petitioner is a partnership firm under the name and style of M/s Gheru Lal Bal Chand, engaged in the business of sale and purchase of cotton. The petitioner procures material from different persons and sells the same in terms of the provisions of the relevant Act and the Rules and the tax which is paid by the dealer after deduction of Input Tax Credit is paid in the treasury. The firm is registered under the provisions of Act as well as the Central Sales Tax Act, 1956 (in short, the 'Sales Tax Act'). As per the petitioner, the scheme under the Act is that on the sale of goods, tax calculated would be treated as "output tax". But if the purchases are made from within the State of Haryana, the tax paid on such purchases is to be set off from the out-put liability and resultant tax liability is paid by the selling dealer. The assessing authority observed that the petitioner was not entitled for deducting input tax credit as per provisions of Section 8 of the Act, because the Value Added Tax (VAT) dealers from whom the petitioner had purchased certain goods had not deposited the full tax in the State Treasury. The stand of the dealer, however, is that it made bona fide purchases from the selling dealers who were duly registered by the Assessing Authority under the Act and irrespective of the fact, whether they paid full tax or not, he should be allowed the necessary input Tax Credit. The said selling dealers discharged their tax liability and deposited the tax payable by them by deducting the input tax credit available to them.

Can two or more Premises be registered as one registrant under Excise?

Yes, two or more premises can be registered under excise as one registrant if :-
(i)   two or more premises of the same factory are located in a close area
(ii)  these premises are within the jurisdiction of a Central Excise Range and
(iii) the process undertaken there are interlinked and
(iv) the units are not operating under any of the area based exemption notifications,
 If above conditions are met, the Commissioner of Central Excise, may, subject to proper accountal of the movement of goods from one premise to other and such other conditions and limitations, as may be prescribed, allow single registration.

For more details refer the circular below:-
Circular No. 1016/4/2016-CX

Anti-Dumping Duty on import of Polytetrafluoroethylene

An Anti dumping duty has been imposed on import of Polytetrafluoroethylene or PTFE for Five Years as per Notification No. 23/2016-Customs (ADD) dated 06th June 2016. Notification is self explanatory and can be downloaded from the Link below:-

Notification No.23/2016-Customs (ADD)

GST Bill likely in monsoon session

India will attempt to keep the proposed Goods & Services Tax ( GST ) rate as moderate as possible and the government will push for passage of the bill introducing the levy in the upcoming monsoon session of Parliament, finance minister Arun Jaitley said. 

The GST will replace various indirect taxes with one simple tax , creating a boundary-less national market that some estimate will lift India's GDP by as much as 2%. According to the Constitution (122nd Amendment) Bill, the GST Council consisting of finance minister, minister of state for revenue and state finance ministers will recommend the tax rate. 

"At what rate the GST Council will start it, I don't know...there have been recommendations which have been made by expert committees, including the one that the ministry of finance had set up. I'm sure we will try to keep rates as moderate as possible," Jaitley told Japanese investors at a Make in India seminar organised by the Department of Industrial Policy & Promotion and the Confederation of Indian Industry.

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