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    Case Study GVKN Society

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    debasisdg
    This case study examines GST compliance issues related to a large organization called GVKN Society. GVKN has over 30 branches across multiple states in India but is only registered for GST purposes at its head office in New Delhi. One of its branches, located in Santrapur, Maharashtra, organized a seminar that collected over Rs. 25 lakhs in subscriptions which were remitted to GVKN's central account in Delhi. This raises questions about whether GVKN has properly accounted for and remitted GST, as the seminar activities occurred in Maharashtra but GST was paid via the Delhi registration. Professionals working for GVKN could potentially be guilty of tort if they are aware of

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    Case Study GVKN Society

    Uploaded by

    debasisdg
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    This case study examines GST compliance issues related to a large organization called GVKN Society. GVKN has over 30 branches across multiple states in India but is only registered for GST purposes at its head office in New Delhi. One of its branches, located in Santrapur, Maharashtra, organized a seminar that collected over Rs. 25 lakhs in subscriptions which were remitted to GVKN's central account in Delhi. This raises questions about whether GVKN has properly accounted for and remitted GST, as the seminar activities occurred in Maharashtra but GST was paid via the Delhi registration. Professionals working for GVKN could potentially be guilty of tort if they are aware of

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    Case Study GVKN Society

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    This case study examines GST compliance issues related to a large organization called GVKN Society. GVKN has over 30 branches across multiple states in India but is only registered for GST purposes at its head office in New Delhi. One of its branches, located in Santrapur, Maharashtra, organized a seminar that collected over Rs. 25 lakhs in subscriptions which were remitted to GVKN's central account in Delhi. This raises questions about whether GVKN has properly accounted for and remitted GST, as the seminar activities occurred in Maharashtra but GST was paid via the Delhi registration. Professionals working for GVKN could potentially be guilty of tort if they are aware of

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    23 views3 pages

    Case Study GVKN Society

    Uploaded by

    debasisdg
    This case study examines GST compliance issues related to a large organization called GVKN Society. GVKN has over 30 branches across multiple states in India but is only registered for GST purposes at its head office in New Delhi. One of its branches, located in Santrapur, Maharashtra, organized a seminar that collected over Rs. 25 lakhs in subscriptions which were remitted to GVKN's central account in Delhi. This raises questions about whether GVKN has properly accounted for and remitted GST, as the seminar activities occurred in Maharashtra but GST was paid via the Delhi registration. Professionals working for GVKN could potentially be guilty of tort if they are aware of

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Case Study

    GST – Laws, Ethics & Standards

    IBBI: 50 hrs Course - Syllabus


    Common subject for L & B and P & M Valuers.
    (study case & try to answer as many questions as you can)
    Please read the following & then attempt the case study
    Sl.no.c : Laws General:
    a. Misrepresentation & Fraud
    b. Tort – Negligence
    c. Laws & compliance - GST
    1. Misrepresentation: False or untrue statement of material fact made by one party which
    affects the other party's decision in agreeing / deferring to a contract or its performance.
    2. Tort: When someone’s actions cause some type of harm to another, whether it be physical
    harm to another person, or harm to someone’s property or reputation.
    3. Tort: Professional Negligence:
    a. Person was not possessed of the requisite skill which he/she professed to have possessed.
    b. Person did not exercise, with reasonable competence in the given case, the skill which he/she
    did possess.

    Examples of Tort:
    a. A policeman on duty is witness to a crime and does not take appropriate action to protect
    citizen from harm and or apprehend the culprit.
    b. A doctor (physician) on duty does not take appropriate action to protect the life of a patient
    who is brought to his care
    c. An Auditor (Financial) does not report a transgression or attempt to evade taxes by his client
    -to the proper authorities - that comes to his attention as part of his engagement with his client.
    d. A Valuer does not advise the employer & does not include in his report - about the risks &
    uncertainties in the property assessed of which he is aware – that have an impact on its value.
    e. Any Professional / Businessman who makes a deliberate attempt at mis-representation with
    the objective of tax evasion

    Your 15 minutes time starts Now:


    Case Study:
    GVKN Society is a 30 year old organisation with > 30 branches spread all over India in multiple
    states. It is registered as a Society under Societies Act 1860. It has more than 8,000 members
    by some estimates and 16,000 members by some other estimates. The organisation is based on
    a Federal Model with its branches having substantial autonomy (and responsibility) reporting
    Case Study
    GST – Laws, Ethics & Standards

    to the head office at Delhi. All the key officers of the Society at HO & Branches, are directly
    elected and are responsible for the functions reposed in them. It had a turnover of more than
    1.5 crores in FY 16-17.
    GVKN is registered with GST w.e.f. from June 2017 and regularly submits GST challans every
    month. It is registered based on its head office (New Delhi) only. Branches are not registered
    under GST. GVKN conducted a seminar in Santrapur, Maharashtra - in the month of December
    2017.The Seminar was substantially organised & managed by the Santrapur branch. More than
    500 persons attended the seminar in Santrapur, and more than Rs.25 lakhs was collected as
    subscription. GVKN collects all subscriptions based on a centralised account located in New
    Delhi. GVKN has arranged to remit GST based on IGST (inter state GST) towards subscription
    charges received. GVKN maintains proper books of accounts. Its accounts are regularly audited
    and certificates as appropriate issued by its auditor.

    Answer the following:


    Q1: GST system is based on origin / receipt of invoices and location of receipt of payment.
    Answer: True / False
    Q2. GST is a destination based tax i.e consumption tax, which means tax will be levied where
    goods and services are consumed and will accrue to that state.
    Answer: True / False
    Q3: GST applicability is based on: where a supply is received at more than one establishment,
    (place of business and fixed establishment are different) – tax is determined based on the
    location of the establishment most directly concerned with the receipt of the supply
    Answer: True / False
    Q4. State of Maharashtra has been deprived of its rightful share to GST as a result of GVKN
    stand
    Answer: True / False
    Q5: Wrong classification of supply between interstate or intra-state and vice-versa may lead to
    hardship to the taxpayer
    Answer: True / False
    Q6: In your opinion the stand of GVKN registering only in HO Delhi is:
    Answer: Right / wrong
    Q7. In your opinion is GVKN guilty of misrepresentation?
    Answer: Yes / No
    Q8. In your opinion are the Professional officers of GVKN Society at H O Delhi are guilty of
    tort?
    Answer: Yes / No
    Case Study
    GST – Laws, Ethics & Standards

    Q9. In your opinion are the Professional officers of GVKN Society at Santrapur Branch are
    guilty of tort?
    Answer: Yes / No
    Q10. A professional becomes aware of mis-representation or tort as part of discharge of his
    duties – in your opinion: Tick the right option
    A. He should raise the issue and take appropriate steps towards compliance
    B. He should leave it to the Authorities to find out if at all – attempt risk management
    C. He should ignore knowledge and pretend not to be aware of the situation
    D. It is the duty of every professional who becomes aware to take appropriate action to remedy
    the situation within the meaning of law.

    I sincerely hope this tutorial has helped in better understanding of issues in:
    a. GST
    b. Misrepresentation
    c. Tort
    I shall be happy to receive your responses.

    P.K.Ranganathan

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