Major Changes To GST To Help Small Companies, Exporters: 10 Points

The Goods and Services Tax Council, or GST Council opted for a course correction against the backdrop of stinging attacks on the government. “Today’s recommendations will immensely help small and medium business,” PM Modi later said in a series of tweets.

Three months after rolling out the Goods and Services Tax, the GST council on Friday carried out major changes to the new national tax regime to ease compliance norms for small and medium companies and reduced tax rates on nearly two dozen items. Finance Minister Arun Jaitley, who heads the council, also announced businesses with a turnover of up to 1.5 crores would be allowed quarterly filings. The review comes after feedback and complaints from businesses and amid criticism from the opposition over the way GST has been implemented.

Here is your 10-point cheat sheet to this story:

  1. The focus of today’s meeting was on relief for small and medium traders and exporters, crucial to Prime Minister Narendra Modi’s plans to create millions of more jobs, who have been hurt by the massive tax overhaul.
  2. Finance Minister Arun Jaitley said the decisions took into account the experiences over the last three months, were aimed at raising revenue and easing compliance. One such decision was to let businesses with less than 1.5 crores annual turnover – that make up for nearly 90 per cent of tax assesses but contribute very little tax – file returns and pay taxes on a quarterly, rather than monthly basis.
  3. The GST council also agreed to raise the threshold for the composition scheme – which allows small traders to pay a standard tax rate – from Rs. 75 lakh in turnover to Rs. 1 crore. These establishments pay standard tax rates; 1 per cent for traders, 2 per cent for manufacturers and 5 per cent for restaurants.
  4. Mr Jaitley said the reverse charge mechanism was being suspended till March 2018. This rule shifts the liability to pay the tax on the buyer rather than the seller and kick in if a supplier is not registered under GST to check tax evasion.
  5. For exporters who had complained their working capital was locked up, the GST council meet told the government to start issuing refund cheques from 10 October. By 1 April next year, the council also targeted to have e-wallets for every exporter where a notional amount will be credited as an advance credit to pay their taxes.
  6. The GST rates for textiles including zari, unbranded ayurvedic medicines, plastic and e-waste have been slashed by the council, which is made up of state finance ministers, officials from both states and the Centre and is headed by union Finance Minister Arun Jaitley.
  7. Earlier this week central bank RBI cautioned that “teething problems” with GST had impacted the manufacturing sector. The RBI governor has suggested simplifying GST to boost growth.
  8. The changes recommended by the GST Council today appear to take into account that some more ground work was required. Accordingly, it was decided to defer registration of tax deduction and collection at source 31 March next year. Goods transporters who had threatened to go on strike were also told services provided to unregistered entities would be exempted from GST.
  9. As he made a strong defence of the government’s economic policies on Wednesday, PM Modi also promised to fix problems in GST cited by businesses. “We have seen closely what is working and what is not… We are not orthodox and conservative. We also don’t know everything. But if something needs to be done, we shall do it,” he has said.
  10. The course correction comes against the backdrop of stinging attacks on the government for what the opposition alleges was a hurried and sloppy implementation of the mega tax reform. Congress leader Rahul Gandhi has accused the government of crushing small business with a complicated process.

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100 FAQs on GST answered by Central Board of Excise and Customs

As the nation is all set to implement the Goods and Services Tax from July 1, the Narendra Modi government is flooded with queries from businessmen to government employees. Along with publishing advertorials detailing various aspects about the GST in various traditional mainstream media outlets, the government is also taking queries of the citizens on various social media platforms.

Here we bring you 100 frequently asked questions on the GST answered by the Central Board of Excise and Customs:

1. Does aggregate turnover include value of inward supplies received on which RCM is payable?

Ans. Refer Section 2(6) of CGST Act. Aggregate turnover does not include value of inward supplies on which tax is payable on reverse charge basis.

2. What if the dealer migrated with wrong PAN as the status of firm was changed from proprietorship to partnership?

Ans. New registration would be required as partnership firm would have new PAN.

3. A taxable person’s business is in many states. All supplies are below 10 Lakhs. He makes an Inter State supply from one state. Is he liable for registration?

Ans. He is liable to register if the aggregate turnover (all India) is more than 20 lacs or if he is engaged in inter-State supplies.

4. Can we use provisional GSTIN or do we get new GSTIN? Can we start using provisional GSTIN till new one is issued?

Ans. Provisional GSTIN (PID) should be converted into final GSTIN within 90 days. Yes, provisional GSTIN can be used till final GSTIN is issued. PID and final GSTIN would be same.

5. Whether trader of country liquor is required to migrate to GST from VAT as liquor is out of GST law?

Ans. If the person is involved in 100% supply of goods which are not liable for GST, then no registration is required.

6. Not liable to tax as mentioned u/s 23 of CGST means nil rated supply or abated value of supply?

Ans. Not liable to tax means supplies which is not leviable to tax under the CGST/SGST/IGST Act. Please refer to definition under Section 2(78) of the CGST Act.

7. Whether civil contractor doing projects in various states requires separate registration for all states or a single registration at state of head office will suffice?

Ans. A supplier of service will have to register at the location from where he is supplying services.

8. Whether aggregate turnover includes turnover of supplies on which tax is payable by the recipient under reverse charge?

Ans. Outward supplies on which tax is paid on reverse charge basis by the recipient will be included in the aggregate turnover of the supplier.

9. If there are two SEZ units within same state, whether two registrations are required to be obtained?

Ans. SEZs under same PAN in a state require one registration. Please see proviso to rule 8(1) of CGST Rules.

10. Is an advocate providing interstate supply chargeable under Reverse Charge liable for registration?

Ans. Exemption from registration has been provided to such suppliers who are making only those supplies on which recipient is liable to discharge GST under RCM. 11. When is registration in other state required? Will giving service from Nasik to other state require registration in other state? Ans. If services are being provided from Nasik then registration is required to be taken only in Maharashtra and IGST to be paid on inter-state supplies.

12. I have migrated under GST but want to register as ISD. Whether I can apply now & what is the procedure?

Ans. A separate & new registration is required for ISD. New registrations are being opened from 0800 hrs. on 25.06.2017.

13. I have enrolled in GST but I forgot to enter SAC codes. What should I do? The status is migrated.

Ans. The same can be filled while filing FORM REG-26 for converting provisional ID to final registration.

14. I have ST number on individual name and have migrated to GST.I wish to transfer this on my proprietorship firm.

Ans. This conversion may be done while filling FORM REG-26 for converting provisional ID to final registration.

15. Please tell if rental income up to 20 lacs attracts GST or attracts any other charge? Ans. GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category States). For computing aggregate supplies turnover of all supplies made by you would be added.

16. If someone trades only 0% GST items (grains, pulses) then is it necessary to register for GST, if the turnover exceeds ?20 lacs?

Ans. A person dealing with 100% exempted supply is not liable to register irrespective of turnover.

17. Is it correct that person dealing exclusively in NIL rated or exempt goods/ services liable to register if turnover >20/10 Lakh?

Ans. There is no liability of registration if the person is dealing with 100% exempt supplies.

18. If I register voluntarily though turnover is less than 20 Lakhs, am I required to pay tax from 1st supply I make post registration?

Ans. Yes, you would be treated as a normal taxable person.

19. Whether a separate GSTIN would be allotted to a registered person for deducting TDS (he has PAN and TAN as well)?

Ans. Separate registration as tax deductor is required.

20. Is separate registration required for trading and manufacturing by same entity in one state?

Ans. There will be only one registration per State for all activities.

21. I am registered in TN and getting the service from unregistered dealer of AP, should I take registration in AP to discharge GST under RCM?

Ans. Any person who makes make interstate taxable supply is required to take registration. Therefore, in this case AP dealer shall take registration and pay tax.

22. Is there any concept of area based exemption under GST?

Ans. There will be no area based exemptions in GST.

23. If a company in Maharashtra holds only one event in Delhi, will they have to register in Delhi? Will paying IGST from Maharashtra suffice?

Ans. Only if you provide any supply from Delhi you need to take registration in Delhi. Else, registration at Mumbai is sufficient (and pay IGST on supplies made from Mumbai to Delhi)

24. How long can I wait to register in GST ?

Ans. An unregistered person has 30 days to complete its registration formalities from its date of liability to obtain registration.

25. What If I am not liable to register under GST but I was registered under Service tax ? Ans. You can apply for cancellation of Provisional ID on or before July 31, 2017.

26. When turnover of agents will be added to that of the principal for registration?

Ans. No.

27. If I am not an existing taxpayer and wish to newly register under GST, when can I do so?

Ans. You would be able to apply for new registration at the GST Portal gst.gov.in from 0800 hrs. on 25th June 2017

REFUND

28. I have a pending export refund in Service Tax. What will happen? Ans. Refunds under earlier laws will be given under the respective laws only.

29. As an exporter, how do I ensure that my working capital is not blocked as refunds? Ans. Appropriate provisions have been made in the law by providing for grant of 90 per cent refund on provisional basis within 7 days from filing of registration.

CESS

30. What will be the impact of GST on coal? Will the clean energy Cess on coal go or will it stay?

Ans. Clean Environmental Cess on coal will be replaced by GST Compensation Cess.

COMPOSITION SCHEME

31. Suppose I am in composition scheme in GST. If I purchase goods from unregistered person, then GST will be paid to Government by me or not?

Ans. Yes, you will be liable to pay tax on reverse charge basis for supplies from unregistered person.

CUSTOMS

32. What duties will be levied on import of goods? Customs duty and cess as applicable + IGST+ GST compensation cess.

Ans. IGST and GST compensation cess shall be paid after adding all customs duty and customs cess to the value of imports.

EXPORTS

33. Present procedures have Service Tax on Nepal, But no Goods Tax on Nepal. But, With GST, what tax will apply?

Ans. The export procedure for Nepal would be same as that to other countries.

34. Are there exemptions for SEZ? How will a SEZ transaction happen in GST regime? Ans. Supplies to SEZs are zero-rated supplies as defined in Section 16 of IGST Act.

35. How would the sale and purchase of goods to and from SEZ will be treated? Will it be export / input?

Ans. Supply to SEZs is zero rated supplies and supplies by SEZs are treated as imports.

36. Please clarify status of international export freight under GST as the same was exempt under POPS rules.

Ans. It is zero rated in most countries. POS for transport of goods determinable in terms of sec 12(8) or sect 13(8) of IGST Act, 2017, depending upon location of service provider/service receiver. Exports are treated as zero rated supplies.

37. When goods are being imported from SEZ who will pay IGST?

Ans. Such supply is treated as import and present procedure of payment of duty continues with the variation that IGST is levied in place of CVD.

38. Who will pay IGST when goods are procured from SEZ?

Ans. Today importer is paying both BCD and CVD. Such supply is treated as import and present procedure of payment continues with the variation that IGST is levied in place of CVD.

INPUT TAX CREDIT

39. Is SGST of Rajasthan charged by supplier on purchase from Rajasthan can be utilize for payment of SGST in Madhya Pradesh?

Ans. SGST of one State cannot be utilised for discharging of output tax liability of another State.

40. How one can use SGST credit for the payment of IGST on another state? SGST Credit can be used for payment of IGST liability under the same GSTIN only.

41. Can one State CGST be used to pay another state CGST?

Ans. The CGST and SGST Credit for a State can be utilized for payment of their respective CGST/SGST liabilities within that State for the same GSTIN only.

42. In case of service supplied, should the credit be given to the state where it is billed or the state it is rendered?

Ans. Tax will be collected in the State from which the supply is made. The supplier will collect IGST and the recipient will take IGST credit.

43. Company is engaged in manufacturing of cement and power. Which rule to be referred for reversal of credit related to power business? Ans. Detailed rules for reversal of ITC when the supplier is providing exempted and non-exempted supplies have been provided in ITC Rules.

44. How will the credit/debit note from unregistered supplier be reported to GSTN and ITC claimed in the same?

Ans. Like invoice, credit/debit notes on behalf of unregistered person will be given by registered person only. Further, GSTR2 provides for reporting of same by the recipient.

INVOICE

45. A shop sells taxable & exempt products to the same person (B2C), is it required to issue tax invoice and bill of supply separately?

Ans. In such a case the person can issue one tax invoice for the taxable invoice and also declare exempted supply in the same invoice.

46. Do registered dealers have to record Aadhaar/PAN while selling goods to unregistered dealers?

Ans. There is no requirement to take Aadhaar / PAN details of the customer under the GST Act.

47. All expenses like freight / transport / packing which are charged in Sales Invoice are taxable in GST? How to charge in bill?

Ans. All expenses will have to be included in the value and invoice needs to be issued accordingly. Please refer to Section 15 of CGST Act and Invoice Rules.

48. Can we move construction material to builders on delivery challan and issue tax invoice post completion of activity?

Ans. If the goods are meant to be supplied in the course of construction an invoice is necessary. If the goods are tools which are to be used for construction then delivery challan should be issued.

49. How to treat following transaction in GST (i) Delivered supply shortages in Transit. (ii) Customer gets less quantity and pays less.

Ans. The supplier may issue credit note to the customers and adjust his liability.

50. Should we issue Self Invoice for GST liability discharge on RCM or GST can be discharge through expenses booking voucher?

Ans. For RCM liabilities tax invoice has to be issued on self.

RETURNS

51. What would be done on tax paid on advance receipt if advance has to be refunded in any circumstance?

Ans. Advance refunded can be adjusted in return.

52. Do registered dealers have to upload sale details of unregistered dealers also in GST? Ans. Generally not. But required in case of inter-State supplies having invoice value of more than Rs 2.50 lakh.

53. How to incorporate two supplies in return for pharma with same HSN code of four digits but having different tax rates?

Ans. Returns provide for furnishing rate wise details.

SUPPLY

54. Should we discharge GST liability for all reverse charge having small amounts of Transaction or any amount limit is there?

Ans. It has been decided that Rs 5,000 per day exemption will be given in respect of supplies received from unregistered person. For supplies above this amount, a monthly consolidated bill can be raised.

55. What is treatment of promotional item given free to end consumers by FMCG companies?

Ans. Tax will be charged only on the total consideration charged for such supply.

56. How to comply with 9(4) of CGST Act if POS is in another state of the unregistered supplier?

Ans. Any person making inter-state supply has to compulsorily obtain registration and therefore in such cases, section 9(4) will not come into play.

57. Under supply from unregistered dealer the purchaser have to pay GST on RCM basis.so whether stipend paid to intern will also come under RCM?

Ans. Stipend paid to interns will be employer-employee transactions. Hence, not liable for GST.

58. Salary by partnership firm to Partners as per Income Tax Act liable to GST?

Ans. Salary will not be liable for GST.

59. Sec 9(4) of CGST Act 2017. Do I need to pay under RCM if I purchase stationary worth Rs.100 from an unregistered stationery shop?

Ans. It has been decided that Rs 5,000 per day exemption will be given in respect of supplies received from unregistered person.

60. What is the treatment of promotional item given free to end consumers by FMCG companies? If taxable, whether ITC is allowed?

Ans. Tax is payable on consideration received for the supply.

61. Whether GST will be leviable in case of returnable packing material like drums supplied with finished goods?

Ans. GST will be levied on the value charged for the supply only.

62. How will disposal of scrap be treated in GST?

Ans. If the disposal is in the course or furtherance of business purposes, it will be considered as a supply.

63. I am from MP and providing service to a customer in Maharashtra. I outsource the work to a service provider in Maharashtra, what tax i need to charge?

Ans. Generally these will be two supplies where the supplier from MP will charge IGST from the recipient in Maharashtra. Whereas, the service provider in Maharashtra will charge IGST from the recipient in MP.

64. If address of buyer is Punjab and place of supply is same state of supplier (Rajasthan), then IGST will apply or CGST/SGST?

Ans. If the place of supply and the location of the supplier are in the same state then it will be intra-state supply and CGST / SGST will be applicable.

65. Why is bifurcation of cash deposit as CGST-SGST-IGST required? Is cash held against a GSTIN, to be adjusted via return u/s 39?

Ans. Three levies are under three different statutes and are required to be separately accounted for.

66. What is the difference in between ‘Nil rated’, ‘taxable at 0 per cent’ and exempted goods and services?

Ans. Especially in relation with ITC exempt supply includes Nil rated (taxable at zero per cent) and non-taxable supplies and no ITC is available for such supplies.

67. Will professional tax will be abolished in Maharashtra after introducing of GST?

Ans. Professional tax is not a tax on supply of goods or services but on being in a profession. Professional tax not subsumed in GST.

68. Employer provides bus service, meal coupon, telephone at residence, gives vehicle for official and personal use, uniform and shoes, any GST?

Ans. Where the value of such supplies is in the nature of gifts, no GST will apply till value of such gifts exceeds Rs 50,000 in a financial year.

69. The definition of composite supply and the description of same under Section 8 differ. Please explain consequences.

Ans. Section 2(30) defines what will be considered as a composite supply. Whereas, Section 8 provides that in case of a composite supply, the treatment for tax rate etc. will be that of principal supply.

70. Whether slump sale will attract GST. If yes then under which Section?

Ans. It will have the same treatment as normal supply.

71. Salary by Partnership firm to Partners as per Income Tax Act liable to GST?

Ans. Partners are not employees of the firm. Salary will not be leviable of GST.

TRANSITION

72. How do I avail transition credit?

Ans. Transition credit can be availed by filing the respective forms under transition rules upto September 30, 2017.

73. Please provide the clarity on area based exemption 50/2003 in UK and HP.

Ans. Area based exemptions will not be continued under GST. It will be operated through the route of reimbursement as prescribed.

74. We manufactured excisable goods. But unit availed the exception benefits 50/2003. What about my dealers stock?

Ans. The dealer will get deemed credit at the rate of 40 per cent / 60 per cent of the CGST paid on supply of such goods in GST. If the goods are branded and greater than Rs 25,000, full credit using CTD can be availed.

75. A trader buys from manufacturer not registered in excise as his turnover is below 1.5cr. Then in such case can trader take ITC on stock up to 40 per cent?

Ans. Yes, deemed credit will be available subject to satisfaction of other conditions as prescribed.

76. I am a trader. I have excise paid purchase invoice. Whether I can claim credit of full excise duty on closing stock of July 1, 2017?

Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

77. If a trader purchases directly from manufacturer and has documents showing excise, will he get full excise credit or 40 per cent of CGST?

Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

78. If an FSD purchases directly from manufacturer and has value cum excise duty and excise duty is not separately shown will he get full credit?

Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

79. Is the full excise credit also available to traders who purchases directly from manufacturers and excise is separately shown in invoice?

Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

80. In June 17 VAT return no amount carried forward and held stock of Rs 50 lakh. Then can we take credit of that stock or not?

Ans. The supplier would be eligible to carry forward the closing balance of ITC from VAT return for June 17.

81. What will be the impact of closing stock which has been already paid vat on 1st July? Ans. The supplier would be eligible to carry forward ITC on such stock from VAT return for June 17.

82. If in VAT return refund claimed in June 17 and no balance credit in GST. Then what’s the position of submission of Form C Refund claimed under existing law will be handled as per the provisions of the existing law. Form C to be submitted in terms of provision of Rule 1(1) of Transition Rules.

83. Some service was provided on June 28, 2017 but invoice will be raised on July 5, 2017. Whether we have to charge Service Tax or GST?

Ans. If Point of Tax arises after appointed date, then GST will be chargeable on such supply.

84. Would we be eligible for credit on Capital Goods in transit and received post GST? Ans. No provision for such credit is there in GST law.

85. What about VAT balance pending on transition date? Ans. Balance VAT credit in the return will be transferred to new provisional ID as SGST

Credit

86. What about deemed export against Form H?

Ans. Form H will not be there in GST.

87. Who will bear tax difference on closing stocks as on June 30, 2017? Whether the manufacturer/dealer or government?

Ans. Closing ITC in VAT return will be allowed to be carry forward in GST.

88. How will we get input credit on stock in hand for spare parts billed from other state, excise, CST and entry tax paid?

Ans. For all inputs with duty paying documents available respective CGST/SGST credit will be available. But credit of CST will not be available.

89. A trader buys from manufacturer not registered in excise as his turnover is below 1.5 crore. Then in such case can traders take ITC on stock up to 40 per cent?

Ans. Deemed credit will be available on stock in hand provided the conditions of section 140(3) read with Rule 1(4) of Transition Rules are satisfied.

90. Whether we will be eligible for credit of duty paid on Capital Goods in transit and received post GST?

Ans. No such provision in GST.

91. Can ITC of Swachh Bharat Cess or Krishi Kalyan Cess be carried forward under GST? Ans. No.

92. Will Clean Energy CESS on imported Coal at the rate of Rs 400 PMT continue to be applicable in GST?

Ans. No. Clean Energy Cess is being repealed. Coal, however, will be subject to compensation cess at the rate of Rs 400 per tonne.

93. Whether closing balance of education cess and secondary higher education cess prior to March 1, 2015 can be carried forward in GST?

Ans. No, it will not be carried forward in GST as it is not covered by definition of “eligible duties and taxes” under Section 140 of the CGST Act.

94. Can you clarify for 40 per cent benefit on closing stock does one year limit apply or not?

Ans. Deemed credit will be available for all stock procured within a 1 year period.

95. Till what time is transition credit available? Where do I need to declare my input stock?

Ans. The window to declare transition credit forms is three months from the appointed day. Please refer to transition rules for more details. UTGST

96. Will there be GST in Andaman and Nicobar Islands as previously there was no VAT? Ans. Yes. For supplies within Andaman and Nicobar Islands, CGST plus UTGST would be leviable.

OTHERS

97. Whether IGST would be levied twice on high seas sales? First on high seas sales and second on custom clearance. IGST paid on 1 available as ITC?

Ans. IGST shall be levied only once on imports.

98. Will Krishi Mandi Fee (imposed in U.P.) be waived off in GST? Ans. GST does not concern such fee so GST does not affect it.

99. Is E-Way Bill applicable from July 1, 2017?

Ans. The present system for E-way Bill in states will continue till the E-Way Bill procedures are finalised.

100. Is there a sunset clause for Anti-Profiteering law? Ans. Yes, the sunset clause for Anti-profiteering Authority is of two years.

Source : Press Release

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Last Date for filing of return in FORM GSTR-3B

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

                                                Government of India
                                                 Ministry of Finance
                                              Department of Revenue
                                  Central Board of Excise and Customs
                                   Notification No. 35/2017 – Central Tax

                                                                                                   New Delhi, 15th September, 2017

G.S.R. …..(E).— In exercise of the powers conferred by section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) read with sub-rule (5) of rule 61 of the Central Goods and Services Tax Rules, 2017 and notification No. 21/2017-Central Tax dated the 08th August, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide G.S.R. number 997 (E), the Commissioner, on the recommendations of the Council, hereby specifies that the return for the month as specified in column (2) of the Table below shall be furnished in FORM GSTR-3B electronically through the common portal on or before the last dates as specified in the corresponding entry in column (3) of the said Table,
namely:-

Table

Sr. No. Month  Last Date for filing of return in
FORM GSTR-3B
(1) (2) (3)
1. August, 2017 20th September, 2017
2. September, 2017 20th October, 2017
3. October, 2017 20th November, 2017
4. November, 2017 20th December, 2017
5. December, 2017 20th January, 2018

2. Payment of taxes for discharge of tax liability as per FORM GSTR-3B:

Every registered person furnishing the return in FORM GSTR-3B shall, subject to the provisions of section 49 of the said Act, discharge his liability towards tax, interest, penalty, fees or any other amount payable under the said Act by debiting the electronic cash ledger or electronic  credit ledger, as the case may be, not later than the last date, as detailed in column (3) of the said Table, on which he is required to furnish the said return.

                                                                                                           [F. No.349 /74 /2017-GST (Pt.)]

                                                                                                                     (Dr. Sreeparvathy S.L.)

 

Under Secretary to the Government of India

Source : Press Release

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Advise for contacting VidyaSunil & Associates;

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Cell No. : +91 9739834819

 

GST council meet: Here’s some Major Announcements

The GST council today announced major cuts in taxes of various items and announced
various measures to support exporters and small businesses.

“It’s almost three months since GST roll out..returns have been filed for first two months as well. So it was a time to deliberate on its effect on various trades and the transition,”
Finance Minister Arun Jaitley said in a press briefing after the meeting of GST Council.

Keeping in view of the liquidity problem being faced by the exporters, the Council has
decided to immediately start refund process for the month of July by 10th October while
exporters can get refund of August by 18th October.

“As a long term solution, an e-wallet will be created for every exporter where a notional
amount will be given in advance…the refund will be offset later against that amount,”
Jaitley said

The e-wallet option will be launched by 1st April, Jaitley added.

For small businesses, the it has been decided to increase the limit of composition scheme
to Rs 1 crore. So now the small business can now file returns on a quarterly basis. This,
Jaitley said, has been done to increase compliance. Under this, resturant businesses will
pay GST at 5% rate, traders will pay 1% while manufacturing composition will be 2%.

Jaitley also revealed that about 72 lakh taxpayers have been migrated to the GST system while 25-26 lakh are new taxpayers under the new taxation system.
He said that a majority of them have less than Rs 1 crore of turnover.

Meanwhile, the FM said that the GST Council has decided to revise tax of many items including sliced mango (12 to 5%), khakra chapati (12 to 5%), ICDS food packages (5 from 18%), unbranded namkeen (5%), unbranded ayurvedi medicine (12 to 5%), plastice waster (18 to 5%), rubber waste (18 to 5%), paper waste (5 from 12%), man made yard (12%) etc.

In total, rates have been revised for 27 items. Service providers with revenue below Rs 20 lakh have been exempted from iGST as well.

GST , which was launched in July, is a landmark reform which turned India’s 29 states into a single market for the first time.

But small and medium-sized enterprises, crucial to Prime Minister Narendra Modi’s plans to create millions more of jobs, have been hurt by the massive tax overhaul that added layers of extra bureaucracy for firms and hit exports.

SUMMARY 

  • Businesses with annual turnover of upto INR 1.5 Crores
    • Quarterly filing of GSTR 1, 2 and 3 along with the payment of tax from 3rd Quarter of the Financial Year, i.e October to December 2017. GSTR 1,2 and 3 are to be filed monthly for the months of July, August and September. Till December, monthly filing of GSTR 3B is also required.
    • Need not pay GST at the time of receipt of advances for supply of goods
  • Service providers:
    • Exemption from GST Registration if the aggregate turnover is less than INR 20 Lacs (INR 10 Lacs in special category state except J&K) even if making inter-state supplies of services
    • TDS/TCS provisions postponed till 31st March 2018
    • Services provided by a GTA to unregistered persons exempted from GST
  • Composition scheme:
    • Eligibility raised to INR 1 crore except for special category state (Except J&K and Uttarakhand), which is increased to INR 75 Lacs from INR 50 Lacs
    • Businesses providing exempted services now eligible for composition scheme
  • Reverse charge mechanism applicable for purchases from unregistered dealers shall be suspended till 31st March 2018
  • E-way bill system shall be rolled out nationwide from 1st April, 2018
  • Last date for filling GSTR-4 for 1st Quarter shall be extended to 15th November, 2017
  • Last date for filling GSTR-6 by ISD for the month of July, August and September, 2017 shall be extended to 15th November 2017

Source : Economic Times / Press Release

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GST: Centre sets up committee to receive profiteering complaints

A four member standing committee, comprising tax officials of the Centre and states, has been set up to receive complaints of undue profiteering by any entity under the new goods and services tax (GST) regime.

The standing committee on antiprofiteering will act asacomplaint processing machinery and will refer any cases it finds fit for investigation to the Directorate General of Safeguards (DGS).

The setting up of the panel, with two officials of the Central Board of Excise and Customs (CBEC) and one each from Delhi and Haryana tax department, sets in motion the antiprofiteering clause under the GST.

CBEC officials Himanshu Gupta, Principal Commissioner, GST Delhi andOPDadhich, principal, commissioner Customs (preventive) Delhi, as alsoHRajesh Prasad, commissioner (sales tax), Delhi, and Ashima Brar, excise and taxation commissioner, Haryana, are members of the committee, according to an official order.

The antiprofiteering mechanism was proposed to enable the benefit of lower taxation in the GST with the subsuming of overadozen central and state taxes like excise duty, service tax and valueadded tax and end to taxontax, is passed on to consumers.

Businesses or entities not passing on the benefit can be referred to the committee.

The detailed procedure for approaching the committees will be announced soon, officials said.

Revenue Secretary Hasmukh Adhia had last week said that the government has notified the ´standing committee´ comprising four officers —two each from the Centre and states —but the names of the officers were not in public domain.

According to the structure of the antiprofiteering mechanism in the GST regime, complaints which are of local nature would be first sent to the statelevel ´screening committee´, while those of national level would be sent to the ´standing committee´.

If the complaints have merit, then the respective committees would refer the cases for further investigation to the DGS.

The DGS would generally take about three months to complete the investigation and send the report to the antiprofiteering authority.

Although, the members of the antiprofiteering authority, to be headed byasecretarylevel officer with four joint secretaryrank officers as members, are yet to be finalised, Adhia had said adding that the authority would be in place by the time the DGS investigation on the complaints is complete.

The GST was rolled out from July 1 and the government has advised businesses to pass on the benefit of any cost reduction to buyers.

The Business Standard, New Delhi, 14th September 2017

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Revision of Due Dates for filing of GST Returns

Press Information Bureau
Government of India
Ministry of Finance
09-September-2017 20:19 IST

Recommendations made by the GST Council in the 21st meeting at Hyderabad on 9th September, 2017

The GST Council, in its 21st meeting held at Hyderabad on 9th September 2017, has recommended the following measures to facilitate taxpayers:

  1. a)In view of the difficulties being faced by taxpayers in filing returns, the following revised schedule has been approved:
Sl. No. Details / Return Tax Period Revised due date
1 GSTR-1 July, 2017 10-Oct-17
For registered persons with aggregate turnover of more than Rs. 100 crores, the due date shall be 3rdOctober 2017
2 GSTR-2 July, 2017 31-Oct-17
3 GSTR-3 July, 2017 10-Nov-17
4 GSTR-4 July-September, 2017 18-Oct-17 (no change)
Table-4 under GSTR-4 not to be filled for the quarter July-September 2017. Requirement of filing GSTR-4A for this quarter is dispensed with.
5 GSTR-6 July, 2017 13-Oct-17

Due dates for filing of the above mentioned returns for subsequent periods shall be notified at a later date.

  1. b)GSTR-3B will continue to be filed for the months of August to December, 2017.
  2. c)A registered person (whether migrated or new registrant), who could not opt for composition scheme, shall be given the option to avail composition till 30th September 2017 and such registered person shall be permitted to avail the benefit of composition scheme with effect from 1st October, 2017.
  3. d)Presently, any person making inter-state taxable supplies is not eligible for threshold exemption of Rs. 20 lacs (Rs. 10 lacs in special category states except J & K) and is liable for registration. It has been decided to allow an exemption from registration to persons making inter-State taxable supplies of handicraft goods upto aggregate turnover of Rs. 20 lacs as long as the person has a Permanent Account Number (PAN) and the goods move under the cover of an e-way bill, irrespective of the value of the consignment.
  4. e)Presently, a job worker making inter-State taxable supply of job work service is not eligible for threshold exemption of Rs. 20 lacs (Rs. 10 lacs in special category states except J & K) and is liable for registration.  It has been decided to exempt those job workers from obtaining registration who are making inter-State taxable supply of job work service to a registered person as long as the goods move under the cover of an e-way bill, irrespective of the value of the consignment. This exemption will not be available to job work in relation to jewellery, goldsmiths’ and silversmiths’ wares as covered under Chapter 71 which do not require e-way bill.
  5. f)FORM GST TRAN-1 can be revised once.
  6. g)The due date for submission of FORM GST TRAN-1 has been extended by one month i.e. 31st October, 2017.
  7. h)The registration for persons liable to deduct tax at source (TDS) and collect tax at source (TCS) will commence from 18th September 2017. However, the date from which TDS and TCS will be deducted or collected will be notified by the Council later.
  8. The GST Council has decided to set up a committee consisting of officers from both the Centre and the States under the chairmanship of the Revenue Secretary to examine the issues related to exports.
  9. The GST Council has also decided to constitute a Group of Ministers to monitor and resolve the IT challenges faced during GST implementation.

 

Source : PIB – Press Information Bureau ; Ministry of Finance – Government of India

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The government notification also exempts Central Tax leviable on intra-state supplies of second-hand goods.

No GST on second-hand goods if sold cheaper

The buying and selling of second-hand goods will not attract Goods and Services Tax (GST) if sold at a price cheaper than the purchase price, the government said on Saturday.

Rule 32(5) of the Central Goods and Services Tax (CGST) Rules, 2017, provides that where a taxable supply is provided by a person dealing in buying and selling of second hand goods or used goods as such or after such minor processing which does not change the nature of the goods and where no input tax credit has been availed on the purchase of such goods, the value of supply shall be the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored. This is known as the margin scheme.
The clarification comes after doubts were raised regarding the applicability of the Margin Scheme under the GST for dealers in secondhand goods in general and for dealers in old and used empty bottles in particular.

“The value will be the difference between selling and purchase price and where the value of such supply is negative it shall be ignored, provided there is no change in nature of goods and credit on purchased second-hand goods is not availed by the dealer. In case the value determined is negative, i.e. goods are sold at loss then tax will not be payable,” GST expert Pritam Mahure told IANS.

Thus, Margin Scheme can be availed of by any registered person dealing in buying and selling of second-hand goods (including old and used empty bottles) and who satisfies the conditions as laid down in Rule 32(5) of the Central Goods and Services Tax Rules, 2017.
Rule 32(5) of the CGST Rules is a special sub-rule for the person buying and selling second-hand goods (for instance used cars, television and mobiles).

Source : Economic Times

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