New Clarification on ITC Entitlement for Insurance Companies on Motor Vehicle Repair Expenses in Rajasthan
On July 9, 2024, the Government of Rajasthan clarified ITC rules for insurance companies:
ITC Claim: Allowed on repair invoices reimbursed by insurers.
Non-Network Garages:
Separate Invoices: ITC for the approved claim amount only.
Consolidated Invoices: ITC limited to the reimbursed amount.
Invoice Name: ITC not available if the invoice isn’t issued in the insurance company’s name.
Govt. of Rajasthan issues Clarity on Taxability of Loans Between Overseas Affiliates and Indian Affiliates
On July 9, 2024, the Government of Rajasthan clarified that providing loans by an overseas affiliate to an Indian affiliate, or by a person to a related person, is not considered a taxable supply under GST if the only consideration is interest or discount. Services related to granting loans or credit are fully exempt from GST when no additional fees or charges are involved.
Rajasthan’s Latest Tax Clarification: Good News for Telecom Companies
On July 9, 2024, the Department of Commercial Tax in Rajasthan clarified that telecom companies can claim Input Tax Credit (ITC) on materials like ducts and manholes used in their optical fiber cable (OFC) networks.
New Notification on Input Tax Credit Reversal for Discounts
On July 9, 2024, the Department of Commercial Tax, Rajasthan, issued a notification detailing how to handle discounts given after a supply and associated ITC reversals. The update provides a mechanism for verifying compliance with the proportional reversal of ITC by recipients for discounts given through tax credit notes issued after the supply.
Government of Rajasthan issues New clarification on Time Limit in respect of RCM Supplies received from Unregistered Persons
On July 9, 2024, the Department of Commercial Tax, Rajasthan, clarified the process for claiming Input Tax Credit (ITC) on Reverse Charge Mechanism (RCM) supplies from unregistered suppliers. The notification outlines procedural aspects and time limits for availing ITC, emphasizing compliance with invoice issuance and tax payment requirements.
Understanding the New Bihar Financial Rules: A Boost for Local Businesses
On July 16, 2024, the Government of Bihar amended the Bihar Financial Rules, 1950, through the Bihar Financial (Amendment) Rules, 2024. The key update is:
Rule 131B: The Bihar Government can now create special policies to prioritize local businesses for procurement of goods and services. These policies will take precedence over existing and future procurement rules.
The Government issues Important clarification on the time of supply of services of spectrum usage and other similar services under GST
On July 9, 2024, the Government of Rajasthan clarified the time of supply for spectrum usage and similar services under GST:
GST Payment Timing
Reverse Charge Supply
Natural Resource Allocation: Similar time of supply rules apply to government allocations of natural resources with upfront or deferred payments, considered continuous supply under the CGST Act.
The Government of Rajasthan issues Important clarification on the taxability of salvage/wreck value
On July 9, 2024, the Government of Rajasthan clarified the taxability of salvage/wreck value in motor vehicle damage claims:
GST on Vehicle Insurance Services
Salvage Value Deduction
Salvage as Property
West Bengal Governments New GST Amendment
On July 16, 2024, the Government of West Bengal revised the minimum wages for employees in 30 scheduled employments. The updated rates will be effective from July 1, 2024, to December 31, 2024.
Haryana Government Issues New GST Amendment
On July 15, 2024, the Government of Haryana amended notification No.36/ST-2, dated June 30, 2017, regarding agricultural farm produce under GST. The update clarifies that packages of agricultural produce larger than 25 kilograms or 25 liters will not be considered “pre-packaged and labelled” for GST purposes.
