I. Extension of time under Karasamadhana Scheme, 2021 by Government of Karnataka
The government of Karnataka has extended the time for completion of assessment or re-assessment or rectification, withdrawal of an appeal under Karasamadhana Scheme, 2021.
The government of Karnataka has extended the time limit for availing the benefit waiver scheme under Karasamadhana Scheme. The said scheme grants waiver of 100% of arrears of penalty and interest payable by a dealer under the Karnataka Sales Tax Act, 1957 and CST Act, 1956. It’s a great opportunity to resolve the legacy disputes under the abovementioned Acts.
Hereinbelow relevant links:
Karasamadhana Scheme, 2021 [User Manual]
II. J&K Govt. withdrew certain state tax incentives to the industry because of the new Industrial Policy
Jammu and Kashmir reimbursement of State Taxes for encouraging large investments for Industrial Development in the State of Jammu and Kashmir scheme has been withdrawn w.e.f. 01.04.2021. The Scheme has been withdrawn as new incentives have been introduced in the form of new Industrial Policy.
GST (J&K) – Notification bearing no. Nil dated 16.07.2021. Notification may be accessed here.
III. Clarification by Delhi regarding the applicability of exemption on the construction of the road
Clarification regarding applicability of GST on the activity of construction of road where considerations are received in deferred payment (annuity)-reg. | Circular No. 2/2021 – GST (Delhi) dated 16.07.2021
Issue: Whether GST is applicable for the construction of roads when some payment is made through annuity?
Clarification: Competiting entries are heading 9954 and heading 9967. 9967 is exempt. Circular specified that entry 9967 exempt GST on annuity (annual toll) for the service by way of access to a road or a bridge on payment. And construction of the road on some payment of annuity is deferent from annuity as contemplated by heading 9967, and such construction services will fall under 9954 and will be taxed accordingly. Central Government has issued the same circular bearing no. 150/06/2021 – GST dated 17.06.2021.
Circular may be accessed here.
IV. Clarification by Delhi regarding the applicability of GST on supply of Mid-Day Meal funded by government grants and/or corporate donations
Clarification regarding applicability of GST on supply of food in Anganwadis and Schools -reg. | Circular No. 1/2021 – GST (Delhi) dated 14.07.2021
Issue: Whether serving of food in schools under the Mid-Day Meals Scheme would be exempt if such supplies are funded by government grants and/or corporate donations?
Clarification: Serving of food to anganwadi shall also be covered by exemption [Entry 66 clause (b)(ii) of notification No. 12/2017-State Tax (Rate) dated 30th June, 2017], whether sponsored by the government or through a donation from corporates. Central Government has issued the same circular bearing no. 149/05/2021 – GST dated 17.06.2021.
Circular may be accessed here.