Tag Archives: GST

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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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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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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Taxpayers have to file only one return under GST: Revenue Secy

Taxpayers have to file only one return under GST: Revenue Secy

The fear that three returns in a month and one annual return under the proposed Goods and Services Tax (GST) would make the whole process very cumbersome and compliance-heavy is unfounded and exaggerated, said Revenue Secretary Hasmukh Adhia in an interaction with media here today.

Explaining how filing returns would not be as cumbersome as it is made out to be, Adhia said that when a supplier uploads details of the sales invoices generated in the GST system, and files GST Return-I, the details from the suppliers GSTR-I automatically gets updated in the GST Return II (GSTR-II) of the purchaser. All the recipient needs to do is amend or modify and file the GSTR-II by 15th of every month.

By 17th of the month both the supplier and the recipient would have to reconcile the invoice details and file the third return (GSTR-III) by 20th of the month.

“So what looks like three returns in a month is effectively just one return, and the other two are taken care of with little efforts of the assessee” .

Under the GST, all registered taxable entities have to file three monthly returns and one annual return (see Table). The first return is for all the sales made by the taxpayer,  the second one is for the purchases and the third monthly return is a composite return of all sales and purchases. So, in a year a total 37 returns have to be filed by assessees.

Tax experts and businesses have expressed their concern that three returns in a month would mean a huge compliance burden on taxpayers especially for small traders and SMEs.

 Return Form What to file? By Whom?  By When?
 GSTR-1  Details of outward supplies of taxable goods and/or services effected  Registered Taxable Supplier  10th of the next month
 GSTR-2  Details of inward supplies of taxable goods and/or services effected claiming input tax credit  Registered Taxable Recipient  15th of the next month
 GSTR-3  Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax Registered Taxable Person  20th of the next month
 GSTR-9  Annual Return  Registered Taxable Person  31st December of next financial year

Source : Business Today

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E-commerce firms to deduct tax collected at source under GST

E-commerce operators like Flipkart and Snapdeal will have to deduct TCS (tax collected at source) while making payments to their suppliers, according to the new model GST law, which has done away with the definition of ‘aggregator’.
Explaining the changes in the provision, experts said the proposal will increase the compliance burden on e-commerce operators as they will have to deduct 2 per cent TCS and deposit it with the government. The measure  will not increase the incidence of taxation on consumers as the supplier will get tax credit for the TCS. The model GST law provides for 1 per cent TCS to be deducted by the E-commerce operators.
According to experts, this would mean that a similar amount will have to be levied on inter-state movement of goods, taking the total TCS deduction to 2 per cent although burden on consumers will not increase.
Mohan further said in case of return of goods by the consumer, the e-commerce companies will not have to deduct TCS as there is no actual sale.
The draft model GST law does not provide any definition of ‘aggregators’, saying that the government would later come out with a notification specifying which type of businesses would be covered under the term.
Aggregators mainly include Ola, Uber and UrbanClap which work as platforms for providing transport and other services. The TCS provision will not apply to aggregators.E-commerce companies will also have to file returns on the TCS deductions.The model law has defined ‘electronic commerce’ as supply of goods or services, including digital products, over electronic network.
‘Electronic commerce operator’ would mean those persons who own, operate or manage digital or electronic facility or platform for electronic commerce.

 

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States start looking for consultants for GST

States have started scouting for tax consultants to advise them on technical aspects of the goods and services tax (GST), which is planned to be rolled out from April next year.

With the Centre moving on to the fast track to meet the April 2017 deadline, the Punjab
government has initiated the process of appointing consultant to help it successfully
implement the new tax regime, which will subsume various state levies like octroi and sales tax.

According to sources, other states may also go in for consultants to assist the administration in the preparatory work for GST.

While the Punjab government is looking to appoint a consultant for two years, sources said
other states too would be looking at a similar timeline as the hurdles in implementation of GST are expected to come down in 12 years.

Among other things, the consultants will be required to suggest organisation structure of the department in the GST regime, strategy for transition period and ways to mitigate risks and checklist of tasks that need to be completed before introduction of GST.
Also, the consultant will be required to frame a communication strategy for administration visavis stakeholders such as industry and traders.

Also, the consultant will be imparting training on provisions of the GST Act/Rules and processes to officers of the department.

Besides, the entity will calculate the impact of GST implementation on state revenues keeping in view the present rate of tax in the state and the proposed rate of tax under GST.

Touted as the biggest tax reform since Independence, the GST will subsume excise, service tax, cess, VAT and other local levies and create a uniform market for seamless transfer of goods and services.

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