Complexity of GST framework — how companies can avoid fraud

The Goods and Services Tax (GST) was implemented with the primary aim of simplifying the taxation system. However, despite concerted efforts by authorities to achieve this goal, the GST framework remains inherently complex. This complexity not only poses challenges for taxpayers but also creates loopholes that can be exploited by fraudulent entities, leading to significant revenue losses for the government.

Perquisites provided by the employer to the employee under the contractual agreement would not be considered as Supply under GST

The Gujarat AAR in the matter of Kohler India Corporation (P.) Ltd., In re [Advance Ruling No. GUJ/GAAR/R/2024/03 dated January 05, 2024], held that where the Applicant under the Factories Act, 1948 (“the Factories Act”) entered into a contract with the canteen service provider (“CSP”) to provide canteen facilities to workers, then the deductions made by […]

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