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February 23, 2022

Modus operandi relating to short payment of GST on Coaching Services detected

by CA Shivam Jaiswal in GST

Modus operandi relating to short payment of GST on Coaching Services detected

Government of India

Ministry of Finance

Department of Revenue

Central Board of Indirect Taxes & Customs

They say that the Budget is not an event; it’s a process. While the Budget was presented on the 1st of February, in the days since there have been a series of widespread consultation and discussion meetings with various stakeholders. Whereas, the officers of the Board have participated in a few, it is heartening to note that a large number of field formations across the country have taken the initiative to organize or participate in such outreach events. Such programmes play a crucial part in ensuring the efficacy of the changes announced in the Budget as well as in collating stakeholder feedback.

They say that the Budget is not an event; it’s a process. While the Budget was presented on the 1st of February, in the days since there have been a series of widespread consultation and discussion meetings with various stakeholders. Whereas, the officers of the Board have participated in a few, it is heartening to note that a large number of field formations across the country have taken the initiative to organize or participate in such outreach events. Such programmes play a crucial part in ensuring the efficacy of the changes announced in the Budget as well as in collating stakeholder feedback.

On the Anti-Evasion front, the Alwar CGST Commissionerate detected a modus operandi relating to short payment of GST on composite supply of Commercial Training or Coaching Services along with goods such as School Bags, Notebooks, T-Shirts, Sweat Shirts, Umbrellas etc. to their students. While the students were charged a lump sum amount for these services/goods, the Tax was deposited on individual supplies of bags, notebooks etc. These types of bundled services fall under the category of “Composite Supplies” and attract GST at the rate of 18%. An amount of Rs. 3.6 Crore has been recovered in the case.

In the week gone by, approval for empanelment of officers for promotion to the grade of Principal Chief Commissioners/Principal Directors General of Customs & Indirect Taxes for 2021 [Supplementary Panel] and 2022 [Regular Panel] was received. The promotion orders are in the works and will be issued soon. Heartiest Congratulations to the officers concerned.

Moving on, as part of Swachh Bharat campaign, CGST Ghaziabad Commissionerate installed an automatic Pencil Making Machine from Waste Paper. It utilises any waste paper, even old newspapers, to fabricate pencils. One hand it saves wood used for making pencils, on the other it helps put waste paper generated in the office to good use. I gather that it is proposed to donate these pencils to local government schools. My Congratulations to officers of the CGST Ghaziabad Commissionerate for their initiative.

Till next week!

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