Category Archives: SSI, Small & Micro Enterprise, MSME

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 rates changed for 30 items, deadline for GSTR 1 filing extended to October

In a significant development, the government today decided to rejig GST rates for as many as 30 items. The decision was made at the GST Council meeting held in Hyderabad.

If GST was making you anxious about your small car buying plan this Diwali, there is some relief for you. Finance minister Arun Jaitley announced no change in tax for small cars.

“There will be no additional burden on small car buyers,” the FM said after the 21st meeting of the GST Council.

Jaitley said there will be a status quo on tax rates on 1200cc petrol and 1500 cc diesel cars. The council decided to increase to raise total tax on midsize cars from 43% to 45%. Tax on large cars was raised to 48% from 43%.

On SUVs, total tax would now be 50% instead of 43%. There was no increase in total tax on 13-seater vehicles.

Here is how it stacks up for now:

► Small cars, 13-seater vehicles & hybrid cars : No change
► Mid-size cars increased by 2%
► Large cars increased by 5%
► SUVs increased by 7%

Progress of implementation was on of the biggest issues before the GST Council, FM Jaitley told the media after the meeting.

The FM said overall GST collection has been quite robust at Rs 95,000 crore for July, with 70% of those registered already filing their returns.

The council reviewed the working of the GST network (GSTN), which had got overloaded on two or three occasions.

The deadline for filing GSTR 1 has been extended to October 10, Jaitley said. The original deadline was tomorrow, i.e. September 10.

The government decided to appoint a committee to ensure smooth transition to the new tax regime, Jaitley said.

The four key issues discussed in the meeting were- imposition of cess on cars, reduction of rate in aam aadmi goods, car leasing issues and new framework for trademark.

GST, the four-tier tax structure of 5, 12, 18 and 28 percent, came into force on July 1.

GST Council is a federal forum with both centre and states in India on board. It is made of the union finance minister (as Chairman), the union minister of state in charge of revenue or finance, the Minister in charge of finance or taxation or any other minister, nominated by each state government.

The GST council has decided that small traders with turnover below 20 lakh selling handicraft outside their state will not have to register.

Source : Economic Times

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Details required for GST Registration

  1. Valid E-mail Address :

 

  1. Valid Mobile Number :

 

  1. Bank Account details

Bank name:

Account number:

Account type:

IFSC Code of all the bank accounts maintained:

  1. Details related to business

Registered name as per VAT:

Registered name as per PAN:

PAN number of the Business:

Constitution of Business: Partnership Firm / Private Ltd. Co. / Individual,

Address of Business:

Details of State VAT: Karnataka

Excise Registration No. :

   Note: Since GST Number is pan based, only one registration in a state can be migrated to the GST Portal.

          Details related to promoters/ partners/ directors

Name:

Father’s name:

Date of Birth:

Address:

Email ID:

Cell No. :

PAN number:

Passport (if not a citizen of India)

 

Details related to authorized signatory

Name:

Father’s name:

Date of Birth:

Address:

Email ID:

Cell No. :

PAN number:

Passport (if not a citizen of India)

Note: More than one authorized signatory can also be added.

 

Details related to Principal Place of business

Address:

Email ID:

Phone number:

 

Business Premises: Owned or leased,

Nature of activity carried on:

 

Details related to Additional place of business:

Address

Email ID

Phone number

Owned or leased

Nature of activity carried on

 

Details of goods and services supplied

HSN code for products for products / SAC code for services.

Maximum 5 products can be added in the application.

 

Documents Required for Enrollment  

Proof of Constitution of Business

  • In case of Partnership firm: Partnership Deed of Partnership Firm

(PDF and JPEG format in maximum size of 1 MB)

  • In case of others:

Relevant Proof of Constitution, (In case of Proprietors, Existing VAT Registration certificate / Central Excise Registration Certificate / ST registration certificate be uploaded)

Photograph of Promoters/ Partners/ Karta of HUF JPEG – Size 100 KB

 

Proof of Appointment of Authorized Signatory (Board Resolution in case of Companies / Authorization letter in case of others entities)

In file PDF or JPEG with Size 1 MB

 

Photograph of Authorized Signatory: In JPEG file with Size 100 KB

 

Proof of Principal place of business: Valid Rental Agreement or Sale Deed / Municipal Tax Receipt PDF or JPEG – Size 1 MB

 

Opening page of Bank Passbook/ Statement containing Bank Account Number, Address of Branch, Address of Account holder and few transaction details PDF and JPEG : Size 1 MB

 

Digital Signature Formalities

Please sign across the photo @ specified place with Blue ink only. Kindly do not fill the application; we will take care of this.

 

Provide PAN Copy and for Address Proof*** (Please read : Address Proof document as in Application Form – Kindly provide one of those)  duly attested by your personal bank manager.  Attestation shall be in “Blue Ink Only”.

 

Kindly take note that the Bank Manager has to specify the following below details without fail:

  1. Name
  2. Designation
  3. Office address
  4. Contact no. (Office landline or his cell no.) Along with their
  5. Email id.

 

You will receive a verification call to the given mobile number and DSC passwords will be sent to the provided mail ID ( for Download)

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GSTN Registrations Set to Open Doors for E-Commerce Vendors

Small businesses won’t face the risk of their products being taken off online marketplaces

E-commerce com panies such as Amazon, Flip kart and Swiggy concerne about losing business after th rollout of the goods and services tax (GST) on July 1 shouldn’ have to worry about being for ced to exclude pro ducts sold by unregistered vendors.

The GST Network, which provides the new tax regime’s technological backbone, plans to start registra tion of new taxpayers soon to ensure there is no disruption in online commerce.“Registration for first-time taxpayers will open soon in about a week’s time,“ said a GSTN official.

All vendors on ecommerce platforms have to be registered on the GST Network.That’s because online market platforms have to mandatorily collect tax on any payment they make to a supplier.

The market places have been grappling with the matter as a d substantial number of vendors e fall below the tax threshold and hence aren’t registered with the  tax authorities of either the states or the Centre.

Many of these are small businesses, some even operating from home. Another set of sellers were only offering taxexempt items on these platforms and hence were not required to pay tax or register with the tax department.

Industry representatives who recently met finance ministry officials to lobby them on the issue were told that registration would be opened up soon, an e-commerce executive told ET.

GSTN had only opened enrol ment for existing taxpayers who were migrating to GST from either value-added tax, service tax or central excise duty and not for fresh registrants.Thursday was last day for enrolment in the second round.

The third round will open on June 25. It is expected that registration of the first-time vendors will begin before that. While early registration will be good, the government can consider providing some relief to vendors, experts said.

“Alternatively, the government may want to consider giving a relaxation to vendors to obtain the registration after GST is implemented till say the first GST return is filed.“The first GST returns have to be filed on August 10.

Source : The Economic Times New Delhi, 16th June 2017

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It’s time for start-ups to move to the next level: NASSCOM

The Indian start-up ecosystem is evolving and it is time for stakeholders to move to the next level and collaborate with the external eco-system, said KS Vishwanathan, Vice President at Nasscom.nasscom_leadership_shot

“It is now time for the companies to move to the next level of mid-stage and growth,” Vishwanathan, who is also head of Nasscom’s 10,000 Start-ups programme, in a interview.

A start-up is said to evolve through four stages – early stage (idea or prototype), mid-stage (prototype to product), growth stage (product business) and mature stage (business to scale).

The National Association of Software and Services Companies (Nasscom) is a trade association of Indian information technology and business process outsourcing industry. He also added that startups should begin collaborating with the external ecosystem, like academia and international alliances.

According to Nasscom, at present there are 10,000-12,000 startups, out of which 5,500-5,700 are technology start-ups — and between 80,000-100,000 people are directly employed in the business.

“Every year around 1,300 new start-ups get added and about 300 get dropped,” said Vishwanathan.

“In India, the success rate of startups is at 28% (compared to 10% in the US), which is very high. We should not worry about it. The key thing is to understand whether the idea is viable or not. If it is not, then it is better to fail early and then recover or get out of it and start something afresh,” he added.

About 60% of technology start-ups are in the business-to-consumer space and 40% are in business-to-business space.

The ambitious 10,000 Start-ups programme was started by the association in 2013 to scale up the ecosystem of such companies by 10 times in 10 years. The programme is supported by the government and industry and managed by Nasscom. “So far, we have impacted 1,500 start-ups,” he said.

The association provides working spaces to startups, gives them starter kits designed by Microsoft, Google and IBM. Also, nine warehouses funded by respective state governments and sponsored by technology providers like Microsoft, IBM, Google, Facebook, Kotak Bank and Digital Ocean have been provided for start-ups.

Additionally, the programme has nurtured 6,000 startups through a virtual programme. Talking about the roadmap ahead, Vishwanathan said: “We hope to touch 10,000 virtual training (programmes) in the next four years.”

“The programme gives special importance to women entrepreneurs,” said Vishwanathan, adding that female entrepreneurs comprised only 2% of the startup pie four years ago and it has gone up now to 11%.

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SMEs will benefit from composition scheme, says CBEC chief

Central Board of Excise and Customs (CBEC) Chairperson Vanaja Sarna has said that small and medium enterprises engaged in trade, manufacturing and restaurants business will benefit under the new limit of the Composition Scheme for the GST.

“Everybody will get the benefit, those who are already listed in the services or the traders or manufacturers among services… without any change in the rate that is already listed in the section,” Sarna told.

On Sunday, the GST Council decided to allow traders, manufacturers and restaurants with turnover of up to Rs 75 lakh to avail the composition scheme. The bar was earlier set at Rs 50 lakh.

Under the scheme, traders with turnover of up to Rs 75 lakh will be required to pay one per cent tax, while manufacturers will have to pay two per cent and companies engaged in restaurant business five per cent.

“Initially it was up to Rs 50 lakh. The Section 10 of the Act provides it to be increased up to Rs 1 crore. There was a discussion about the difficulties of the small and medium sector and because the central excise assessees were actually exempt below Rs one and a half crore, so it was felt it could be a hardship to them,” Sarna elaborated.

“So the council deliberated a lot on this and finally came to a conclusion that it would be appropriate to make it Rs 75 lakh instead of Rs 50 lakh and that may cover the concern of the small and medium sector.”

However, the business which avail the scheme will not be eligible for input tax credit.

Source: India.com

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Small Traders want penal norms delayed

With 60 per cent of the country’s small traders yet to be computerised, wholesalers and traders are demanding amnesty from penal provisions of GST for atleast nine months.

A large number of small traders are still not educated about GST and there are expected to be teething problem for them in the initial phase.

GST is expected to replace hand-written receipts as traders will need to maintain computerised records and file returns online. For that they will need to upgrade their existing business format and link digital payment with GST among other things.

“We are asking for interim period for general traders for whom so far no interaction has been initiated by the government and they are still unaware of nitty-gritty of GST. Since GST is a new thing for the trading community interim period will be best suited  to bring more people under GST net,” said Praveen Khandelwal, Secretary General, Confederation of All India Traders ( CAIT).

He said that when VAT was introduced there was around three years as transition period. Khandelwal said that during the trial period no penal action should be taken against any trader for procedural lapses.

As per the GST Council decision, traders in the country with revenue above Rs 20 lakh have to register for GST. “Till now GST rules have not been completely been framed. There are many things in pipeline. Trading community across country need to be informed about GST and GST is entirely different kind of taxation system against current tax regime. So it is obvious that during its operations there may be procedure lapse by the trading community,” he said.

“Still 60 per cent of the small businesses in the country  has not adopted computerisation which is a major challenge because GST is technology based taxation system,” he added.

Source: The Asian Age

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