Page 11 - Banking Finance March 2021

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Industry News
Industry News
Industry News
Industry News
Industry News

Taxpayers' registration to be supplies furnished by his suppliers in 7.5 million standard cubic metres per
their GSTR-1, show 'significant day of gas it along with partner BP plc
suspended for anomalies in differences or anomalies', indicating of UK plans to produce this year from

GST return contravention of the provisions of the the new fields in KG-D6 block.
GST officers will suspend the GST Act. "ONGC too can look at this option now.
registration of taxpayers whose sales The new subsidiary can participate in
return or GSTR-1 forms show ONGC to form own any auction that ONGC will do for
"significant differences or anomalies" subsidiary to buy own gas incremental gas from KG-D5 block," a
from the return filed by their suppliers, The board of ONGC approved creation source said.
a move aimed at curbing tax evasion
of a new wholly-owned subsidiary Besides ensuring competition and fair
and safeguarding revenue.
company for gas and liquefied natural price discovery, the ONGC subsidiary
The Central Board of Indirect Taxes gas (LNG) business value chain subject can then sell the gas so sourced to
and Customs has issued a Standard to necessary approvals, according to firms such as Mangalore Refinery and
Operating Procedure (SOP) for the firm's third quarter earnings Petrochemicals Ltd (MRPL) at a
suspension of registration of a person announcement. margin.
on observance of such discrepancies/ "The company is being formed with the
anomalies which indicate violation of objective of sourcing, marketing and CECPA agreement with
the GST Act.
trading of natural gas, LNG business, Mauritius gets go ahead
As per the SOP, the registration of Hydrogen enriched CNG (HCNG), gas
specified taxpayers shall be suspended to power business, bio-energy/ bio-gas/ The Cabinet has approved the
and system-generated intimation for bio methane/ other biofuels business, Comprehensive Economic Cooperation
suspension and notice for cancellation etc," it said. and Partnership Agreement (CECPA)
of registration in form GST REG-31, between India and Mauritius to
containing the reasons of suspension, ONGC may use the new subsidiary to encourage and improve trade
shall be sent to such taxpayers on their buy any new gas that the firm produces between the two countries.
from fields such as KG-D5 in the Krishna
registered e-mail address. The agreement covers 310 export
Godavari basin, people with direct
The registration would be suspended knowledge of the matter said. items for the former, including
in cases where a comparison of the foodstuff and beverages (80 lines),
The Government had in October 2020
returns furnished by a registered agricultural products (25 lines), textile
person with the details of outward allowed affiliates of gas producers to and textile articles (27 lines), base
buy the fuel in open auction.
supplies furnished in form GSTR-1, or metals and articles thereof (32 lines),
the details of inward supplies derived This policy change allowed Reliance to electrical and electronic item (13 lines),
based on the details of outward buy two-thirds out of the additional plastics and chemicals (20 lines), wood

BANKING FINANCE | MARCH | 2021 | 11