GSTN has provided guidelines on the facility for the registration of IRPs made available on the GST Portal

The facility for the registration of IRPs made available on the GST Portal

  • Insolvency Resolution Professionals / Resolution Professionals (IRPs / RPs), named to conduct corporate insolvency resolution proceedings for corporate debtors, in the form of notice. No 11/2020-CT of 21 March 2020 may apply for a new registration on the GST Portal, on behalf of the Corporate Debtors, in each of the States or Union Territories, on the PAN and CIN of the Corporate Debtor, where the Corporate Debtor was registered earlier, within thirty days of their appointment as IRP / RP.
  • The Registration Explanation should be picked as Corporate Debtor undergoing the Corporate Insolvency Resolution Process with IRP/RP ” from the drop-down menu.
  • The day of the commencement of operations for IRP / RPs will be the day of their appointment. Their compliance duties may also fall into force from the date of their appointment.
  • The person named as IRP / RP shall be the Primary Approved Signator of the newly registered Company.
  • Information as stated in the original registration of the Corporate Debtors shall be entered in the Main Place of Business / Additional Place of Business.
  • The new form for registration shall would have been sent electronically to the GST Website under the IRP / RP DSC.
  • New IRP / RP registration will only be needed once. In the event of a change in IRP / RP, a change of the approved signatory will be called after the original appointment and not the appointment of a different individual needing a new register.
  • In cases where the RP is not the same as the IRP, or in cases where a different IRP / RP is appointed in the middle of the insolvency process, a change in the GST system may be made through a non-core change in the registration form.
  • The adjustment to the Primary Authorized Signatory information on the site can be made either by the authorized signatory of the Company or by the competent court officer (if the former authorized signatory may not exchange the credentials with his successor) at the request of the IRP / RP.

Amendment in Section 140 of the CGST Act 2017: Intends to formalise the gap in the law and to put an end to legal proceedings.

Backdated amendment in Section 140 of the CGST Act 2017: intends to formalise the gap in the law and to put an end to legal proceedings. – Notification No. 43/2020-Central Taxes, dated 16.05.2020

TRANSITIONAL PROVISIONS FOR ITC NOTIFY U / S 140 OF CGST ACT

  • CBDT INFORMED PROVISIONS U / S TRANSITIONAL PROVISIONS FOR ITC
  • TRANSITIONAL CENVAT CREDIT – ENACTED PROVISIONS EFFECTIVE FROM 18.05.2020

CBDT, Ministry of Finance, (Department of Revenue) vide Notification No. 43/2020 –Canter  Tax dated 16 May 2020 has released notification requesting the entry into force of Section 128 of the Finance Act 2020 to amend Section 140 of the CGST Act w.e.f. 01.07.2017.

What was the change to Section 140 of the CGST Act, 2017?

Section 140 of the CGST Act deals with transitional GST payments. The terms “within that period” have been used in the various clauses of Section 140 of the CGST Act, 2017 of the Finance Act, 2020. The said change has a retrospective effect from 1 July 2017, i.e. the very first day of introduction of the GST. However, until now, that provision of the Finance Act 2020 has not been put into force. The reform has now been enforced by CBIC empty Notice No. 43/2020-Central Tax dated 16.05.2020 from 18 May 2020.

What was the need for an amendment?

Previous to the amendment referred to above, Section 140 did not include a time limit on the use of transitional GST credits. However, Rule 117 of the CGST Rules 2017 does contain a time limit, but in the past two years, different writs have been filed by taxpayers before the High Courts challenging the validity of the time limit laid down in Rule 117 of the CGST Rules 2017 for the use of transitional credits under the GST.

The High Courts held that the CGST Rules could not supersede the CGST Act. Since the CGST Act does not allow any time limit for the use of transitional credits under the GST, therefore, the CGST Rules that set the time limit for the use of transitional credits are unconstitutional. There has since been pending lawsuits surrounding the legitimacy of Rule 117.

The amendment referred to above seeks to regularize the gap in the law and to put an end to the dispute with regard to the validity of Rule 117 of the CGST Rules.

What will be the effective date of amendment?

While the above amendments to section 140 of the CGST Act is valid as of 01 July 2017, section 128 of the finance bill 2020 (through which the above amendment was made) has been in force as of 18 May 2020. This means that the law does not plan to reverse the actions of taxpayers until 18 May 2020.

KEY DIFFERENCE IN THE AMENDMENT IN SECTION 140 OF THE CGST ACT 2017 ARE PROVIDE IN THE BELOW ANALYSIS:

Before Amendment After Amendment (Section 128 of Finance Act, 2020)
(1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law in such manner as may be prescribed: (1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the “within such time and” in such manner as may be prescribed:
(2) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, credit of the unavailed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: (2) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, credit of the unavailed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the  “within such time and” in such manner as may be prescribed:
(3) A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012—Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:–– (3) A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012—Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished  “goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to” the following conditions, namely:––
(5) A registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs or input services received on or after the appointed day but the duty or tax in respect of which has been paid by the supplier under the existing law, subject to the condition that the invoice or any other duty or tax paying document of the same was recorded in the books of account of such person within a period of thirty days from the appointed day: (5) A registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs or input services received on or after the appointed day but the duty or tax in respect of which has been paid by the supplier under the  “existing law, within such time and in such manner as may be prescribed”, subject to the condition that the invoice or any other duty or tax paying document of the same was recorded in the books of account of such person within a period of thirty days from the appointed day:
(6) A registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:–– (6) A registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to subject to the following conditions, namely:––
(7) Notwithstanding anything to the contrary contained in this Act, the input tax credit on account of any services received prior to the appointed day by an Input Service Distributor shall be eligible for distribution as credit under this Act even if the invoices relating to such services are received on or after the appointed day. (7) Notwithstanding anything to the contrary contained in this Act, the input tax credit on account of any services received prior to the appointed day by an Input Service Distributor shall be eligible for distribution as “credit under this Act, within such time and in such manner as may be prescribed, even if” the invoices relating to such services are received on or after the appointed day.
(8) Where a registered person having centralised registration under the existing law has obtained a registration under this Act, such person shall be allowed to take, in his electronic credit ledger, credit of the amount of CENVAT credit carried forward in a return, furnished under the existing law by him, in respect of the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: (8) Where a registered person having centralised registration under the existing law has obtained a registration under this Act, such person shall be allowed to take, in his electronic credit ledger, credit of the amount of CENVAT credit carried forward in a return, furnished under the existing law by him, in respect of the period ending with the day immediately preceding the appointed day  “within such time and in such manner”  as may be prescribed:
(9) Where any CENVAT credit availed for the input services provided under the existing law has been reversed due to non-payment of the consideration within a period of three months, such credit can be reclaimed subject to the condition that the registered person has made the payment of the consideration for that supply of services within a period of three months from the appointed day. (9) Where any CENVAT credit availed for the input services provided under the existing law has been reversed due to non-payment of the consideration within a period of three months, such  “credit can be reclaimed within such time and in such manner as may be prescribed, subject to” the condition that the registered person has made the payment of the consideration for that supply of services within a period of three months from the appointed day.

Enacted Provisions informed on 16 May and come into operation on 18 May 2020.

Link: https:/www.cbic.gov.in / sources/htdocs-cbec / gst / notfctn-43-central-tax-english-2020.pdf

Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Latest Indirect Tax Update by the Council on Goods and Services Tax India

Current Indirect Tax Update by the Indian Goods and Services Tax Council

Home Page of Central Board of Indirect Taxes and Customs

# CBIC has explained that an application for a refund may be submitted before 30.06.2020 as the duration of two years is between 20.03.2020 and 29.06.2020.

# CBIC has clarified that an application for a letter of undertaking (LUT) for export without payment of tax may be filed for F.Y. until 30.06.2020. 2020–21.

# CBIC has explained that where taxes have been paid in respect of any supply which has been returned / canceled subsequently, the taxpayer may demand the refund in Form GST RFD-01 if there is no corresponding production liability for the adjustment of the Credit Note.

# Form GST PMT-09 is now available on the GST Site, and can be used to transfer cash balances from one tax head to another tax head.

# CBIC instructed FORM GST PMT-09 of the move of balances in Cash Ledger from one head (Tax / Interest / Fee, CGST / SGST / IGST) to another head (Tax / Interest / Fee, CGST / SGST / IGST). The form has been enabled on the GST Portal and can be filed as required.

# 30.06.2020 is the latest due date of GSTR-1 for the months of March, April and May, 20 and Q4 (2019-20) for all taxpayers irrespective of turnover.

# CBIC has instructed that a registered person will be able to file NIL returns in the form GSTR-3B via a sms service using a registered mobile number and must be checked by an OTP obtained on a registered mobile number.

# Established composition Taxable person to file CMP-08 for Q4 (2019-20) by 07.07.2020 instead of 18.04.2020 and file GSTR-4 for FY 2019-20 by 15.07.2020 instead of 30.04.2020.

# 05.05.2020 is the due date for filing GSTR-3B for taxpayers with a cumulative turnover of more than INR 5 crores for the month of March, 20. Note-filing GSTR-3B by the latter date will not grant you an extra expense burden on interest and late fees. However, you will file 9 percent interest and zero late fees over GSTR-3B before 24.06.2020.

# CBIC has notified that GSTR 3B has been verified by the Electronic Verification Code (EVC) during the period from 21.04.2020 to 30.06.2020.

# Budget 2020 revised Section 51 of the GST Act to eliminate the requirement that the tax deductor grants the “GST TDS Certificate.”

Note-To collects the deducted TDS, you need to sign in to the “GST Server” and go to the “Returns-TDS and TCS Credit Earned” page. The moment you submit such a return, the amount of TDS deducted will come in “Electronic Cash Ledger” and, interestingly, the same amount may also be deducted from RCM’s liability.

# Condition of ITC @ 110 percent of eligible ITC in 2A (if available) to be checked “cumulatively” for the months of Feb to Sep, 20 as per CBIC Notification.

THE DUE DATE TO FILE GSTR-3B: # Cautiously respond to the due dates of GSTR-3B relevant in your case for the coming months (as shown in the Master Updates above). When you are considering selecting a due date with a decreased interest (* *) above, choose the same option in these situations:

  • If your net tax obligation is “Nil,” no interest can be paid in that situation.
  • If you have to pay tax by some Interest Rate loan, more than 9 percent p.a.
  • February, 2020:
    • Nominated 04.04.2020 is the due date for filing GSTR-3B for taxpayers with Turnover > INR 5 crores. * *
    • Nominated 29.06.2020 is the due date for filing GSTR-3B for taxpayers with Turnover < = INR 5 crores but > INR 1.50 crores in the previous year.
    • Nominated 30.06.2020 is the due date of the GSTR-3B file for taxpayers with Turnover < = INR 1.50 crores in the previous year.
  • March, 2020:
    • Nominated 05.05.2020 is the due date to file GSTR-3B for taxpayers with Turnover > INR 5 crores.
    • Nominated 29.06.2020 is the due date to file GSTR-3B for taxpayers with Turnover < = INR 5 crores yet > INR 1.50 crores in the previous year.
    • Nominated 03.07.2020 is the due date of the GSTR-3B file for taxpayers with Turnover < = INR 1.50 crores in the previous year.
  • April, 2020:
    • nominated 04.06.2020 is the due date for filing GSTR-3B for taxpayers with Turnover > INR 5 crores.
    • Nominated 30.06.2020 is the due date for filing GSTR-3B for taxpayers with Turnover < = INR 5 crores yet > INR 1.50 crores in the previous year.
    • Nominated 06.07.2020 is the due date of the GSTR-3B file for taxpayers with Turnover < = INR 1.50 crores in the previous year.

Note : If not filed before the due date but filed before 24.06.2020, then decreased interest @ 9 per cent p.a. It would be available without any LATE FEES.

  • May, 2020:
    • The due date for filing GSTR-3B by taxpayers with Turnover > INR 5 crores is 27.06.2020.
    • 07.2020 is the due date for the filing of GSTR-3B by taxpayers with Turnover < = INR 5 Crores AND Notes with the “22nd day of next month” as the earlier due date.
    • Nominated 14.07.2020 is the due date for the filing of GSTR-3B by taxpayers with Turnover < = INR 5 Crores AND Notes with the “24th day of next month” as the earlier due date.

Applicable Annual Report and GST Audit

# GSTR-9 (Annual Report) is expected to be submitted only by taxpayers with gross turnover in excess of INR 2 crores in the financial year 2018-19.

# GSTR-9C (Audited Reco. Statement) is expected to be submitted by taxpayers with an annual turnover of more than INR 5 crores in the financial year 2018-19.

# GSTR-9A (Annual Return by Arrangement Taxable Person) is not necessary to be filed for F.Y in any case. Financial Year 2018-19, since “Optional” is the same thing.

# CBIC has issued a Notification to exempt foreign airline companies w.r.t. from filing GSTR-9C (Reconciliation Statement) where the company complies with the provisions of the Foreign Company Compliance Act and is only required to file ‘Receipt and Payment Account’ for each GSTIN by 30 September of each year.

# The due date of GSTR-9 (Annual Return) and GSTR-9C (Audited Reco Statement) for FY 2018-19 has been extended to 30.09.2020. Note: GSTR-9 is required to be filed only by taxpayers with an aggregate turnover of more than INR 2 crores in the 2018-19 fiscal year. However, GSTR-9C is expected to be submitted only by taxpayers with an annual turnover of more than INR 5 crores in the 2018-19 fiscal year.

# Technical Words of caution for GSTR-9/9C:

  • Appreciable Estimates for GSTR-9 are self-populated for GSTR-1 and GSTR-3B for REFERENCE purposes only.
  • Appropriate In the event that the supplies indicated in GSTR-1 and/or GSTR-3B vary from the real supplies for some reason, the estimates are to be revised “manually” in Part II (B2B, B2C etc) and the “price due” number is to be revised “manually” in Table 9 of GSTR-9.
  • After changing Section II and Table 9, you can see a “payable discrepancy” in Table 9 after modifying the sums “Paying by Cash + Charged by ITC.” This balance will be compensated by the taxpayer via DRC-03. In case of excess already paying, the refund may be requested via RFD-01.
  • If paid as above, there is no provision to include the same differential number in GSTR-9C in the table “Auditor Recommendation”.

Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

SITUATIONS THAT WHICH MAY LEAD TO A GST REFUND OF CLAIMS

The Refund Process Under GST? - ExcelDataPro

What’s the GST refund?

Usually, when the GST paid is more than the GST liability, the GST refund situation arises. In the context of GST, the process of claiming a refund is standardized to avoid confusion. The mechanism is online and deadlines have also been set for the same thing.

What is the GST ARN number?

The ARN is a 15-digit application reference number that is recognized by the GST portal while submitting the GST Registration application. The ARN number helps to track the status of the GST portal application for registration. If the applicant already knows the number of his application for registration, it is much better, but if the applicant does not know his ARN, then this is the process to know the number of the application.

Situations that may lead to a refund of claims

A proper refund process is necessary for successful tax administration, as trade is encouraged by the release of restricted funds for the modernisation, growth and capital needs of a company. There are many cases in which refunds can be claimed. Here are some of them.  There are many cases in which refunds can be claimed. Here are some of them the circumstances which could lead to claims for refund include:

  1. The excess tax payment is due to error or omission.
  2. Exports of Product/Services
  3. Dealer Exports (including deemed export) goods / services on the basis of a refund or refund
  4. GST Refund if the embassies buy.
  5. Supplies to developers and units in special economic zones
  6. Refund of accrued input tax credit on account of inverted duty structure
  7. Refund of pre-deposit if any
  8. Refund will arising from court order/judgment/direction and decree of the Appellate Tribunal, Appellate Authority or any court of law
  9. Refund of taxes when embassies make purchases
  10. Finalisation of provisional assessment
  11. Excess payment because of an error
  12. Refund due to issuance of refund vouchers for taxes paid on advances against which commodities or services haven’t been supplied
  13. Finalization of the provisional assessment
  14. Tax refund for international tourists who paid GST on commodities within the country and carried to an international location when they depart India
  15. Refund of SGST and CGST paid by considering the supply in the course of inter-state commerce or trade
  16. ITC accumulation on the basis that the output is tax-exempt or zero-rated

Requirement of list of Documents for GST refund application

Applicants who wish to make a claim will have to submit detailed documents in addition to a refund claim. The documents prescribed for the same are standard documents. Therefore, for each claim, the primary document to be submitted is a statement of the relevant invoices relating to the claim. If the refund is made on account of the export of services, not including the invoice declaration, the relevant bank accounting certificates verifying receipt of payment in foreign currency should also be provided. In the event that a claim is made by the Supplier to the Special Economic Zones (SEZ) unit, the Authorized Officer will have to confirm receipt of such goods or services in the SEZ and submit the same along with the other documents. In addition, the SEZ unit will also have to make a declaration stating that the ITC tax paid by the supplier has not been used.

List of documents required for GST Refund Processing-

  1. Copy of Form RFD 01 A filed on the common portal-
  2. Copy of Statement 3 A of Form RFD 01 A generated on the common portal-
  3. Copy of Statement 3 of Form RFD 01 A
  4. Invoices relating to input and output services-
  5. BRC / FIRC for export of services-Company / Declaration in Form RFD 01 A

Refund Process under GST

In order to process a refund claim, the following procedure must be followed:
• Visit the GSTN portal and fill in the application form to claim the refund.

  • You will receive an email or an SMS containing an acknowledgement number after the application has been filed electronically.
  • The Cash and Return Ledger will be adjusted and the “Input Tax Credit Carry Forward” will be reduced automatically.
  • The request for refund, together with the documents you have submitted, will be examined by the authorities for a period of 30 days after the request for refund has been filed.
  • “Unjust enrichment” (explained below) is a concept that will be thoroughly scrutinized by the authorities. In the event that the application is not eligible, the refund will be transferred to the Consumer Welfare Fund (CWF).
  • In the event that the refund claimed by the individual exceeds the predetermined amount of the refund, a pre-audit procedure will be carried out before the refund is punished.
  • The payment of the refund shall be made electronically to the applicant’s account through NEFT, RTGS or ECS.
  • Individuals are allowed to submit their applications for refund at the end of each quarter.
  • If the amount of the refund is less than Rs.1000, no refund will be granted to the individual.

Process of refunding the GST for exports pursuant to the present return file

Unjust Enrichment

Due to the fact that GST is an indirect tax structure and that the consumer has to bear its incidence, it is usually assumed that the owner of the business will transfer the incidence of tax to the final consumer. For the same reason, any refund claim (excluding specified exceptions) is required to pass the “unjust enrichment” test. If such claims are punished, they shall first be transferred to the Consumer Welfare Fund. The test shall not apply to refund of accumulated ITC, refund of payment of incorrect tax, refund on account of exports, refund of tax paid on supplies, etc. In addition to the above-mentioned incidents, the “unjust enrichment” test must be carried out if the claim amount is to be received by the applicant.

Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

New GST refund procedure under the GST regime  

Analysis of Proposed GST Return Applicable from 01st July 2019 Part I

For GST REFUND: we have two scenario 

  1. a) Export with payment of IGST:

Form GST RFD-01/RFD-01A: GST export refund process will require the submission of the form RFD-01 (completely online) or RFD-01A (manual) in specific cases only.

(1) Export of goods: in the case of export of goods subject to payment of tax, no separate refund application is required, as the shipment bill itself will be treated as a refund application. The details entered in the form GSTR-1 will be matched to the details indicated in the shipping bill as filed with ICEGATE. The ICEGATE will then process the refund and credit on the same bank account as the taxpayer has indicated on its portal.

(2) Export of Services: a request for a separate refund in RFD-01A is required. Such a taxpayer must login to the GST portal and select Services > Refunds > Application for Refund > Export Services with Tax Payment > RFD-01A. Details on the export of services will need to be uploaded using the offline utility. It will also be necessary to provide the amount of refund and the bank account number in which the refund is to be credited. Upon successful filing, an Application Reference Number (ARN) will be generated which can be used to track the status of the refund application.

(b) Export without payment of IGST:

The process of refunding the GST for exports involves a different document in this case. The option to export goods without payment of tax may be used either in the context of a letter of undertaking (LUT) or a bond. In such cases, any ITC accumulated on unused input / input services will be available for refund. The LUT option is only available for a select number of exporters that meet the prescribed criteria. The procedure is similar to that for the export of services.

Form GST RFD-11: The LUT can be filed on the common portal in Form GST RFD-11 by accessing Services > User Services > Furnish Letter of Business (LUT). The required details are filled in and uploaded along with the digital signature as per the LUT filing procedure. The GST export refund process will not be complete without this submission.

In the case of a bond, it must be executed manually on a stamp paper, signed and submitted to the Deputy Assistant Commissioner, along with the relevant documents, such as Form RFD-11 on the taxpayer’s letterhead, bank guarantee, letter of authority, etc.

Form GST RFD-01/RFD-01A: Similar to the process of GST refund for exports in the event of a tax payment, this form should be used by taxpayers. Details relating to ITC attributable to zero-rated supplies must be entered and submitted on RFD-01 (completely online) or RFD-01A (manual). The taxpayer should confirm that RFD-11 has been filed. Upload the relevant documents and affix the digital signature to submit the form and the ARN will be generated for tracking.

The invoice declaration procedure in Form GSTR-1 is the same, except that ‘Without payment of tax’ must be selected in the GST Payment field.

GST export refund process under the new GST export refund process

The GST export refund process and the RFD-01A and RFD-11 refund application will remain the same under the new GST return system. In the return, there is a change in the reporting of export details. The following are the forms used to report the export refund details.

Form ANX-1: GST refund mechanism for exports under new GST returns will start with ANX-1. In this form, the export invoice details are to be uploaded in Table ‘3C – Exports with Tax Payment’ and Table ‘3D – Exports without Tax Payment’ depending on whether or not the IGST is paid for the supply.

For the tax period, all such export invoices on which the shipping bills / bill of export are available until the date of filing of the GST returns, i.e. on the 20th of the next month for monthly filers, or on the 25th of the month following the quarter for quarterly filers, must be reported. The remainder will be reported in the next tax year.

The details required in this field would be as follows:

  • Document details (invoice, credit or debit note, serial number, date, value)
  • HSN code (six-digit level)
  • Tax rate and taxable value
  • Relevant tax amounts (in the case of export with payment of tax)
  • Shipping bill / bill of export (no and date)

As soon as implementation begins, separate functionality will soon be b) It will then automate the process of refunding the GST for exports to a massive extent.

FORM RET-1: GST refund process for exports under the new GST return system will continue with the RET-1 declaration. The value and the amount of tax in relation to exports declared in ANX-1 will be auto-populated for outward supplies in Table 3A (rows 3 and 4). Therefore, the taxpayer simply has to verify the same and not re-enter the details.

New amendment return introduced: an amendment to the export details, whether or not with payment of IGST, may be made in ANX-1A to amend the original annex ANX-1 submitted for the tax period, either monthly or quarterly. This can be done by referring to the original details. These are going to be auto-populated to RET-1A. Note that an amendment to the export documents on which the refund has already been successfully claimed is not allowed. On the other hand, those export invoice details which have not been declared in previous periods may be reported in the current ANX-1 period itself.

Has the process of GST refunded for exports become easier?

The major change that can be seen is that there is an auto-population of details entered in ANX-1 to RET-1. It is different from the current / old system where GSTR-1 reporting is independent of GSTR-3B.

There will be an integrated facility for the importation of shipping bill details as well as an entry fee from ICEGATE to the GST portal for exports and imports. This manual document reporting process is temporary since the new GST system will have the portal auto-populating data directly from the ICEGATE database in the respective tables in the ANX-1 and 2 forms.

No changes were observed in the process of applying for refund in RFD-01/01A. When it comes to the export of goods, the filing of the shipping bill is considered to be an application for refund and continues under the new return filing system. In this case, quarterly return filers may have to wait longer for their refund to be processed.

Thus, the overall impact of the export reporting and refund claims under the new return filing system appears to be minor but definitely easier.

Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

How to Submit NIL GST-Return i.e Through the SMS and Company may file returns of GST without DSC

GST returns may be filed by SMS and Company may file GST returns without DSC

File GST Return Online in India | Types of GST Returns Filing ...

In a circular flow by CBIC, many obstacles to ease of compliance have been removed during the Covid-19 Annual Return Filing Date 2018-2019 extended to 30 September 2018.

Companies may also file GST returns without digital signatures (via EVM): the notification issued by the Board today stated that a registered person registered pursuant to the provisions of the Companies Act, 2013 (18 of 2013), during the period from the 21st day of April 2020 to the 30th day of June 2020, may also submit a return pursuant to section 39 of the FORM GST-3B verified by means of the EVM.

The Nil gst returns can be filed via SMS. : In addition, CGST Rule 67 was also amended and a new clause 67A was inserted, provided that the Board provided a means of providing the return of the short message service facility. According to that provision, a registered person who is required to provide the Nil return for a tax period under section 39 of the FORM GSTR-3B, any reference to electronic furnishings shall include the provision of the said return through a short message service using an officially registered mobile number and the said return shall be verified independently by a registered mobile number based solely on the One Time Password facility.

Procedure Filing Nil GSTR-1 Return –

Different categories of taxpayers are required to file different types of GST returns. As an illustration, we provide the procedure for filing the NIL GSTR-1 return in the following steps.

In order to file the NIL GST-1 return under the GST, one must follow the steps –

  1. Visit https:/www.gst.gov.in/;
  2. Provides the appropriate username and password;
  3. Navigate the Services path > Returns the Dashboard;
  4. Month and year to file a return must be selected from the drop-down list; 5. Select ‘Prepare online;’
  5. mention the fact the details of the Aggregate Turnover for the financial year and the Aggregate Turnover for the period;
  6. Select ‘B2C (Other)’ under ‘GSTR-1 Other details’ and provide details;
  7. Select the POS i.e. under the next screen. Place of Supply in the drop-down list;
  8. Click the back button;
  9. Click Generate GSTR – 1 Summary;
  10. Choose the checkbox and select ‘Preview;’
  11. Click the Submit button;
  12. Return can be filed using either DSC or EVC.

Penalty for non-filing of the Nil return –

penalty / late fee provisions are laid down in section 47 of the Central Goods and Service Tax Act, 2017. Penalty / late fee for failure to file a GST return as set out in section 47 is as set out in – The default taxpayer is required to pay a late INR 100 fee for each day that such failure continues. However, the maximum penalty / late fee may not exceed INR 5,000.

On the same line, as stated in Notice No. 6/2018 – Central Tax dated 23 January 2018, the penalty / late fee payable in case of return in FORM GSTR – 5A to INR 50 per day (INR 25 CGST and INR 25 SGST) has been reduced. In addition, it was clarified in that notice that, in the event that the total amount of integrated tax payable in return is NIL, i.e. in the particular case of NIL, the late fee payable would be INR 20 per day (INR 10 CGST and INR 10 SGST).

The Goods and Service Tax Council has approved an SMS system that will allow the registered taxpayer to file a NIL return via SMS. Businesses who are NIL filers, where there is no supply or purchase within a quarter, may file their quarterly return via SMS.

It should be noted that the above system for filing NIL returns through SMS is actually currently not in force and is likely to be implemented as of 1 January 2019.

Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

All you Know about documents required under the  GST Refund System

All you Know about documents required under the  GST Refund SystemDetails on GST Refund Process: GST Refund Claim Process Simplified ...

GST Refund System

As the Goods and Services Tax or GST emerged, various refund schemes and processes were also set in place. Subsequently, several requests for compensation were made by taxpayers and a generic form was adopted.

The conditions for cash flow and working capital of suppliers and exporters may be negatively affected if the refund were postponed. As a consequence, one of the goals of introducing the GST is to ensure that the refund process is simpler so that producers and exporters do not face difficulties due to delays. Through ensuring that the refund process is completed easily, tax administration can become more efficient.

The GST law includes rules on refunds and seeks to streamline and standardize the processes for refunds under the GST law. A uniform method has now been developed to make requests for refunds. The appeals process can be performed electronically in a timely manner.

Eligibility Criteria

Any registered taxable person, other than an input service distributor / component taxpayer / TDS deductor / TCS Collector, may claim the refund of taxes paid on exports under the following conditions:

  • The taxpayer who filed the form GSTR-1, providing the export details in Table 6A of GSTR-1, together with the Integrated Tax details of the shipment, may claim the refund.
  • The taxpayer who filed the form GSTR-3B shall be the return of the relevant tax period for which the refund may be claimed.

GST REFUND IN EXPORTS CASE WITHOUT PAYMENT OF IGST

The refund of the input tax credit is granted as follows:-

Refund Amount = (Turnover of zero rated supply of goods + Turnover of zero rated supply of services) x Net ITC Amount = Adjusted Total turnover

Where,

  1. “Refund amount” means the maximum refund which is admissible;
  2. “Net ITC means an input tax credit applied to inputs and input services during the relevant period;
  3. “Turnover of zero rated service delivery” means the value of zero rated service delivery made without payment of duty under bond or LUT
  4. “Turnover of zero rated service delivery” means the value of zero rated service delivery.
  5. “Adjusted total turnover” means the turnover excluding the value of exempt supplies, other than zero, during the relevant period
  6. The relevant period shall be the period for which the request for refund has been filed.

What is the deadline to claim the refund?

The time limit to claim the refund shall be 2 years from the date of the refund.

In each case, the relevant date is different.

Reason for GST Refund-                                         Relevant Date

  1. Overpayment of GST- Date of payment
  2. Export or deemed export of goods or services – Date of dispatch / loading / passing the border
  3. ITC accumulates as output is tax-exempt or zero-rated- The last date of the financial year to which the credit belongs
  4. Finalization of the provisional assessment- The date on which the tax is adjusted

Also, if the refund is paid with delay, the interest shall be 24 per cent p.a. It’s due to the government.

List of Documentary evidence required for GST Refund Processing

Exports of goods without payment of IGST

The application shall be accompanied by any of the following documentary evidence in the form of GST RFD-01, as applicable:

  1. Copy of the form RFD 01 A filed on the common portal & RNA (Application Reference Number).
  2. GSTR-3B / GSTR-3/GSTR 1 of the specific month
  3. Copy of the undertaking as referred to in Circular 24/2017
  4. Copy of the undertaking of no prosecution pursuant to Rule 91(1) of the CGST Rules of 2017.
  5. Statement 3 (Rule 89(2)(b) and (c)) 6. Statement 3A Rule 89(4) (Calculation of refunds).
  6. Invoices for export & invoices for input service 8. Bank Certificate / Foreign Inward Remittance Certificate Details.
  7. Copy Statement 1: Application for refund has not been filed with any other authority.
  8. 10. Copy Statement 2: No refund has been claimed against the respective invoices (ITC)
  9. Copy Declaration 3: Applicant did not contravene Rule 91(1) of the CGST Rules 2017 Requirement of no prosecution for the last 5 years
  10. Copy of Declaration 4:as per GST RFD-01
  11. Copy of Declaration 5: Drawback not used
  12. Copy of Declaration 6: Declaration on unfair enrichment

Export of services with or without payment of IGST

The application shall be usually accompanied, as generally applicable, by any of the following documentary evidence in the form GST RFD-01:

  1. Copy of the form GSTRFD-01 A filed on the common portal A&ARN print out.
  2. GSTR-3B / GSTR-3 print out of a given month.
  3. Statement-2 as provided for in Rule 89(2)(c) of the CGST Rules 2017
  4. Copy of the undertaking by the applicant pursuant to Circular 24/2017
  5. Copy of the Export & Input Services Invoice.
  6. Copy of the BRC / FIRC to export services
  7. Proceedings of no prosecution Rule 91(1) of CGST Rules 2017
  8. Filing of the declaration in accordance with GST RFD-01 of
  9. Filling the Declaration No Drawback was made available to
  10. Filling the declaration No export duty shall apply to exports
  11. Filling the declaration of unjust enrichment along with the CA certificate if the amount is more than 2 lakes.

Zero Rated Supplies to Special economic zone Unit / Special economic zone Developers

The request shall be accompanied by any of the following documentary evidence in the form GST RFD-01, as applicable:

  1. Copy of the form RFD 01 A filed on the common port & ARN.
  2. GSTR-3B / GSTR-3 Print of a special month.
  3. Copy of Statement-4 in accordance with Rule 89(2)(d) and (e)
  4. Copy of the undertaking by the applicant pursuant to paragraph 2.0 of Circular 24/2017
  5. Property officer’s endorsement of receipt of goods in SEZ (Provision Rule 89 of CGST Rules 2017).
  6. Copy of the undertaking of no prosecution pursuant to Rule 91(1) of the CGST Rules 2017.
  7. Tax invoices as laid down in Rule 46 of the CGST Rules 2017 8. Copy of the undertaking by SEZ developer / Unit as not claimed by ITC.

 Deemed exports

  1. Declaration of GST RFD-01 – (Claimed not to exceed ITC)
  2. Copy of the undertaking as referred to in Notice No. 49/2017 by receipt of the Supply stating no claims by Refund & ITC
  3. Statement-5B Rule 89(2)(g) of the CGST 2017 Rules 4. Printout GSTR-3B / GSTR-3
  4. Copy of GSTR RFD-01 & /ARN
  5. Copy of undertaking no prosecution Rule 91(i)
  6. Copy of the undertaking by the applicant as provided for in 24/2017

ITC accumulated as a result of the inverted tax structure

  1. Copy of the form RFD 01 A filed on the common port & ARN
  2. GST-3B / GST-3 of the month
  3. Copy of the undertaking as indicated in Circular 24/2017
  4. Copy of the undertaking of no prosecution pursuant to Rule 91(1) of the CGST Rules 2017.
  5. Refund Amount as provided for in Rule 89(5) of the CGST Rules 2017:
  6. Copy of the Statement 1 Rule 89(2)(h) of the CGST Rules 2017 and Article 54(3)(ii) of the CGST Act 2017
  7. Self-declaration of unwarranted enrichment along with the CA certificate if the amount is more than 2 lakes

Excess cash available in the cash ledger

  1. Copy of the form RFD 01 A filed on the common port & AMN
  2. Copy GSTR-3B/3 of the month
  3. Statement 7 pursuant to Rule 89(2)(k)
  4. Copy of Cash & Credit Ledger

 Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Complete Overview on Value of Supply In GST

Value of Supply

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What is Value of Supply?

Value of Supply in common terms is nothing but the amount paid by the recipient on supply to the supplier as consideration for supply.

Example: A goes to shop of B and purchases television. He pays amount of ` 20,000 as consideration for TV Purchased. Let’s decode the transaction between A and B.

(a) What is the nature of transaction: Supply of Television by B to A

(b) Who is the supplier: B

(c) Who is the recipient of supply: A

(d) What is the Value of Supply: ` 20,000.

(e) Who pays for the Value of Supply: A pays to B towards.

(f) Why amount is being paid by A to B for supply: A is paying ` 20000 as consideration to B for supply of Television

What is the value of supply of goods or services or both in GST:

Valuation rules determine value of goods or services or both on which tax under GST has to be charged. Valuation rules have been prescribed under GST for the purpose of determination of fair market value of goods or services or both supplied by the registered person.

How Valuation of Supply would be made -section 15(4):

Valuation of supply of goods or services or both made under section 15(4), would be as follows:

(a) Rule 27: Value of supply of goods or services where the consideration is not wholly in money.

(b) Rule 28: Value of supply of goods or services or both between distinct or related persons, other than through an agent.

(c) Rule 29: Value of supply of goods made or received through an agent.

(d) Rule 30: Value of supply of goods or services or both based on cost.

(e) Rule 31: Residual method for determination of value of supply of goods or services or both.

What is the relevance for ascertaining value of supply:

Value of supply is the figure upon which tax is levied and collected. What forms part of the value and what does not form part of the value of supply is required to be ascertained for correct levy of tax.

Past History of Taxation is full of instances wherein there have been in numerous disputes in ascertaining the value upon which tax would be levied and collected. The ongoing fight between the assesse and the tax regime of whether service tax would form part of the value of sales price for the levy of sales tax is an example of why guidelines for valuation are required to be precise and clear about what to include and what not to include.

Valuation of supply when a transaction is not in INR:

When exports are made the invoice may be raised by the taxpayer in Foreign Currency. The IGST (if any) charged in the invoice will be converted using RBI Exchange Rate.

RBI exchange rates are to be used in case of imports too. When reverse charge is applicable on imported supplies the invoice amount has to be converted using the RBI Exchange Rate.

Transaction value not to include Discount:

The value of the supply shall not include any discount that is given-

  • before or at the time of the supply if such discount has been duly recorded in the invoice, and
  • after the supply has been effected.

(i)      such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and

(ii)     Input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by recipient

Various Kinds of Discounts:

  • ‘In-bill’ discounts: Normally allowed
  • Cash discounts: GST is not a tax on recovery of dues towards supplies
  • Quantity discounts: Allowed subject to S.15(3)
  • Special Discounts:
    • Aggressive Marketing.
    • Difficult to fulfill S. 15(3) conditions.
    • Reverse case: Supply of services by the dealer to manufacturer.

Discounts ‘in-kind’:

  • Holiday packages
  • Gold coins
  • Motor Vehicle
  • Difficult to fulfill S. 15(3) conditions

Example: Holiday package by manufacturer to a dealer

Free Stocks:Similar to discount ‘in-kind’. These free supplies are not only taxable in the hands of manufacturer but ITC is also not available to the dealers. So, it is tax inefficient transaction

‘Buy one-take two’:It is not the case where the two units of stocks are bundled together with a single price assigned to them. Therefore, unless bundled together (e.g. 4 bars of soap) with preselected units of stock and a single price affixed, all other transactions of “buy one-take two” are individually taxable-the paid unit at the price paid and the free unit at the price determined by the valuation rules.

‘Nominal value supplies’:The value as per Rule 27. Second proviso to R. 28 may fail while passing through the test of “sole consideration”.

Liquidated damages: Upon analysing the definition of supply under GST law, it will result in a conclusion that there are actually two supplies which are taking place here: –

  • Main supply say, ‘works contract’ from contractor to the contractee
  • Liquidated Damages: Contractee also provides services to contractor in the form of agreeing to the obligation to tolerate an act in terms of 5(e) of Sch. II for which he receives consideration in the form of LD

‘Cashback coupons in product packaging’: The product being supplied to a customer contains a cash back coupon. It will not reduce the output tax liability. Cashback may represent the marketing expenses.

‘Cashback coupons provided by person other than supplier’: Like benefits given by e-com operators. These are only marketing expenses of the e-com operators.

‘Gift vouchers valid for subsequent supplies’: The customer is given credit points to avail on subsequent purchases. Subsequent sales value can be reduced.

‘Free ancillary articles’:Free bag with laptop. No tax on bag. No ITC reversal. These are only marketing expenses.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax advisor for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com for any query you can write to info@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480.

Due Dates of GSTR-1 Has been Extension and other GST Updates

Due Dates of GSTR-1 Has been Extension and other GST Updates

3 (2)

GST RETURNS

Owing to the issues with GSTR online portal and much to the relief of tax payers, the due date for filing of FORM GSTR-1 has been extended vide Notification No. 71/2017-Central Tax and 72/2017-Central Tax dated 29th December 2017. The previously announced due date of 31st December 2017 has been extended to 10th January 2018. The relief has been provided to assessees with aggregate turnover upto 1.5 crore as well as those with aggregate turnover over 1.5 crore.

For assessees with aggregate turnover upto 1.5 crore, the period for which extension has been granted is July to September 2017. There is no modification in due dates for the quarter of October to December 2017 and January to March 2018. On similar lines, extension for assessees with aggregate turnover exceeding 1.5 crore is for the period July to October 2017 and no changes have been provided in due dates of subsequent months. Revised due dates for furnishing FORM GSTR-1 is summarized below-

EXTENSION OF GSTR-1 FILING DUE DATES

For Assessees with aggregate turnover up to 1.5 crores

  1. No. Months involved  Due Date for filing GSTR-1
  2. July – September 2017        10th January 2018
  3. October – November 2017 15th February 2018
  4. January – March 2018           30th April 2018

Last date for filing of Monthly return in FORM GSTR-1 for for July-September , 2017 for Registered persons having Aggregate turnover of up to 1.5 crore ,  has been extended to 10thJanuary, 2018 from earlier due date of 31st December, 2017 ( NotificationNo.71/2017 ).

For assessees with aggregate turnover exceeding 1.5 crores

  1. No.  Months involved  Due Date for filing GSTR-1
  2. July – November 2017      10th January 2018
  3. December 2017          10th February 2018
  4. January 2018             10th March 2018
  5. February 2018           10th April 2018
  6. March 2018                10th May 2018

Last date for filing of Monthly return in FORM GSTR-1 for for July-October, 2017 for Registered persons having Aggregate turnover of more than Rs 1.5 crore , has been extended to 10th January, 2018 from earlier due date of 31st December, 2017 ( Notification No.72/2017 ).

OTHER GSTR FILLING EXTENSIONS

Return Due date               GSTR-5(for non-resident)

15-December-2017          GSTR-6(for input service distributor)

31-December-2017           ITC-04(for job worker ,for July-sept)

31-December-2017       GSTR-3B Return

GSTR-3B Return

GSTR-3B return will have to be filed by all taxpayers in addition to GSTR-1, GSTR-2 and GSTR-3 return.Earlier, GSTR-3B returns were to be filed for the month of July to December 2017.

IN 23rd council meeting, it has been announced that GSTR-3B return must be filed for all months from July 2017 to March 2018. The due date for GSTR-3B return will be the 20th of every month.

Late fees for GSTR-3B of July, Aug. and Sept waived. Any late fees paid for these months will be credited back in electronic cash ledger under Tax and can be utilized to make GST payments

Reduction of GST Return Penalty

In addition to the waiver of GST Return Penalty, the Government has also announced a reduction in GST return penalty for NIL GST returns. From October 2017, the GST return penalty for not filing NIL GST return has been reduced to Rs.20 per day instead of Rs. 200 per day.

GST on Advances Received

In 22nd GST Council, it has now been decided that taxpayers having annual aggregate turnover up to Rs. 1.5 crores will not be required to pay GST at the time of receipt of advances on account of supply of goods.

E-Way Bill

As per E-Way bill rules, any transportation of goods with a value of more than Rs.50, 000 would require an e-way bill. The GST council in earlier meeting in October had decided that E-way bill would be introduced in staggered manner from January 1 and subsequently nationwide from April1.

In the recent 24th GST council meeting was finally decided that the e-way bill is now introduced and will be applicable from 1st February 2018 across the nation. The nationwide e-way bill system will be ready to be rolled out on trail basis latest by 16 January 2018. Trade and transporters can start using thi system on voluntary basis from 16 January 2018.

GST REGISTRATION

Registration under GST was mandatory for entities undertaking inter-state supply of goods and/or services, irrespective of aggregate annual turnover.In the 22nd GST Council, it has been decided to exempt service providers from this condition. Hence, service providers will now be allowed to undertake inter-state sales of upto Rs.20 lakhs without obtaining GST registration.Further, this is exemption is also available for service providers supplying services through an e-commerce operator.

But person supply goods will still be required to obtain GST registration mandatorily (in case of inter -state supply)

GST COMPOSITION SCHEME

This scheme is intended for small businesses where compliance less.22nd GST Council has decided to increase the aggregate turnover to Rs.1 crore. (The aggregate turnover threshold for special category States, has also been   increased to Rs. 75 lacs from Rs. 50 lacs excepts J&K and Uttarakhand)

Person opting for composition scheme was restricted from providing any exempted/taxable service .but now a composite can provide exempted service also.

In 23rd GSTcouncil meeting the due date for enrolling under the increased threshold has been made available to both migrated and new taxpayers up to 31.03.2018.

The GST rate payable by GST Composition dealers has been harmonized for all taxpayers (traders or manufactures) at 1%. However, not change has been announced on the GST rate for composition scheme for restaurants.

GSTR 4 return must be filed by taxpayer registered under the GST composition scheme. GSTR4 is a quarterly return that was originally due on the 18th of month following respective quarter. But in 23 council meeting composition returns, GSTR-4 due date extended to 24 /December/2017 for July-September quarter

Reverse Charge Mechanism

Registered taxpayers were required to pay GST on reverse charge basis when they purchased from an unregistered person, the 22ndGST Council has decided to suspend the reverse charge mechanism till 31.03.2018. Now, registered taxpayers can purchase from unregistered persons without having to pay GST on reverse charge basis.

TDS and TCS Provisions Postponed

The Government has decided to postpone the TDS/TCS registration and operationalization to 31st March 2018.

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

CORPORATE AND PROFESSIONAL UPDATE August 26, 2017

CORPORATE AND PROFESSIONAL UPDATE August 26, 2017

Image result for corporate images hdDirect Tax:

  • Delhi ITAT upholds assessee’s Resale Price Method (RPM) over TPO’s TNMM for AYs 2003-04 to 2005-06 for benchmarking purchases of finished goods from AE for resale, holds that RPM is most appropriate method absent any value addition by assessee[TS-661-ITAT-2017(DEL) -TP]
  • The income tax department is open to lowering the withholding tax rate for foreign companies which have income in India, says CBDT chairman Sushil Chandra.
  • Supreme Court ruling the right to privacy as a fundamental right under the Constitution has triggered uncertainty over the mandatory linking of Aadhaar for stock trading brokers said they will now wait for the SC judgment that will test the validity of Aadhaar.

Indirect Tax:

  • CBEC made amendment in the Integrated Goods and Services Tax Act by way of notification no 8/2017- Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 683(E), dated the 28th June, 2017. Vide notification no 354/173/2017 –TRU, dated 22th August 2017.

GST Update

  • GST Authorities have issued clarification w.r.t selling of space for advertisement in print media on the basis of the queries being raised regarding GST applicability on the same. The rate is @ 5%.
  • IT Minister launched a GST filing and reconciliation solution product named ‘XaTTaX’. The product, developed by Sailotech, simplifies the filing of GST returns, claims for refund, raising invoices with comfort from home or workplace.

FAQ on GST

Query: What is the time limit beyond which the inputs/capital goods sent for job work shall be treated as supply?

Answer:The time limit prescribed for return of goods sent to job work under the exemption route is 1 year of being sent out (for inputs) and 3 years of being sent out (for capital goods). Therefore, if the inputs/ capital goods are returned to the principal after 1 year/ 3 years (as applicable), then such return of goods to the principal after the said period would be treated as ‘supply’. This time limit is not applicable to moulds and dies, jigs, fixtures, and tools

Corporate Law:

  • MCA made companies (Arrests in connection with Investigation by serious Fraud Investigation Office) Rules, 2017 which shall come into force on the date of their publication in the Official Gazette.Vide notification no ur2l20r3 cL-V, dated 24th august 2017
  • MCA amend the National Company Law Appellate Tribunal Rules, 2O16. These rules may be called the National Company Law Appellate Tribunal (Amendment) Rules’ 2O17 which shall come into force on the date of their publication in the official Gazette. Vide notification no 1/30/2013-CL-V, dated 23th August 2017
  • The Cabinet has approved a framework to speed up mergers of public sector banks, the first of which could take place by March. The mergers will not involve any cash but only share swaps.

Quotes of the day

“Plant your garden and decorate your own soul, instead of waiting for someone to bring you flowers.”

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