KEY TAKEAWAYS OF GST COMPOSITION SCHEME

KEY TAKEAWAYS OF GST COMPOSITION SCHEME

What’s the GST COMPOSITION SCHEME?

The GST Composition Scheme is designed for small taxpayers to reduce the burden of tax enforcement. Small taxpayers do not need to file monthly GST returns, and they need to pay marginal GST at a fixed turnover rate. Any company with an annual turnover of up to 1.5 Crore can opt for GST registration under the composition scheme.

Who cannot opt for the scheme of composition?

·       Manufacturer of ice cream, pan masala, or tobacco

·       Businesses that supply goods through an e-commerce operator

·       Relief of taxpayers providing exempt supplies

·       Supplier of services other than service providers for restaurants

·       Casual taxable person or non-resident taxable person

GST COMPOSITION SCHEME REGISTRATIONS:

The Composition System is a simple and easy scheme for taxpayers under the GST. Small taxpayers can get rid of tiring GST required documents and pay GST at a fixed turnover rate. Any taxpayer whose revenue is less than Rs. 1.5 crore* can opt for this scheme.

*Central Board of Indirect Taxes and Customs notified the increase to the limit from Rs 1.0 Crore to Rs. 1.5 Crores.

Voluntary Registrations:

In order to benefit from the benefits of this program, taxpayers must register on a voluntary basis. If as the case may be the taxpayer’s yearly income turnover reaches 75 lakh, it will be moved to the normal scheme. Taxpayers who are already part of the composition of GST must register on a voluntary basis under this scheme.

 

The GST Rate applicable for Gst Composition Scheme 

The tax rate or recommended for different categories of Gst  Composition Scheme registered persons has been defined below:

Format of GST Invoice for GST Composition Scheme

The GST Composite Dealer in GST shall not issue a tax invoice and shall only issue a Bill of supply containing the following details:

a) Name, GSTIN, and address of the supplier
b) a serial number not exceeding 16 characters, in one or various series, containing alphabets or numerals or special characters
c) date of its issue
d) Name, address, and GST Tax Identification Number or Unique Identity Number, if registered, of the recipient
e) HSN Code for goods or services
f) Particular of goods or services or both
g) Value of supply of goods or services or both after considering discount or abatement, if any;
h) a signature or digital signature of the supplier or his authorized representative
COMPARISON BETWEEN. COMPOSITION SCHEME VS REGULAR SCHEME
  Composition Scheme Regular Scheme
Filling of GST Return Composition taxpayers needed to file quarterly return. Ordinary taxpayers needed to file the monthly return.
Issue of Tax Invoice Composition taxpayers can not issue tax invoices to their clients. Normal taxpayers can issue a tax invoice to their clients.
Applicable Tax Rate Composition taxpayers need to pay nominal GST at a fixed rate of turnover, which is normally 1-5%. The tax rate for regular taxpayers’ goods and services, which is from 0-28%.
Input Credit Composition taxpayers cannot avail of ITC benefits. Normal taxpayers can avail of ITC benefits.
Regular Compliance Relaxed Compliance in order to safeguard small businessmen. Normal compliance required.

The validity of the levy on composition

It focuses on the fulfillment of the conditions discussed above but the person qualified for the scheme can also opt-out of the scheme by filing an application. In the event that the Proper Officer has grounds to suspect that the taxpayer is not eligible for the scheme or has contravened any of the Rules or Actions, the Proper Officer may issue a notice of cause followed by an order rejecting the scheme.

GST Compliance Regulations of the Composition Scheme

Composition Scheme Rules under the GST specify for the submission of various forms intended for the respective purposes, followed by a deadline for the submission of the following forms:

Form Required The objective of filling FORM Timeline of compliance 
GST CMP-01 To opt into the scheme by provisional GST Registration holder before the appointed date or within thirty days of the said date
GST CMP-02 Intimation of willingness to opt into the scheme for GST registered normal taxpayers Prior to the commencement of FY
GST CMP-03 Details of stock and inward supplies from registered and unregistered  persons Required to comply within ninety days of the exercise of the option
GST CMP-04 Intimation of withdrawal from the scheme Required to comply within seven days of the occurrence of the event
GST CMP-05 Show cause notice on contravention of Rules or Act by a proper officer On any contravention
GST CMP-06 Needed to reply to show cause notice Required to comply within fifteen days
GST CMP-07 Issue of Order Required to comply within thirty days
GST REG-01 Required for Registration under GST Composition scheme before the appointed date
GST ITC-01 Details of semi-finished, inputs in stocks & finished goods thirty days of withdrawing option
GST ITC-03 Needed for intimation of ITC available Required to comply within Sixty days of commencement of the FY.

Prohibition & Conditions on Composition Lev scheme

The person opting for the scheme must not be a casual taxable person or a non-resident taxable person. The goods kept by him in stock on the appointed date shall not be purchased from a place outside his state. Therefore the products should not be listed as:

  • Branch outside the State
  • Agents or principals located outside the territory of the State
  • Purchase of the Interstate
  • Goods Imported

Where taxpayers deal with unregistered individuals, the tax must be paid or no stock must be kept.

It is not a manufacturer of products that may be notified by the Government during the preceding financial year.

Compulsory show of invoices with the words “composure of taxable persons not liable for tax on supplies”

Compulsory display of the words “Composition Taxable Citizen” on each notice and sign displayed at a prominent location

The advantage under GST Composition Scheme

  • High Liquidity
  • Less Compliance
  • Reduced tax liability

Prohibition of GST Composition Scheme

  • No Inter-state business
  • Pay tax from own pocket
  • No Credit of Input Tax

Books of Accounts & Records to be maintained by dealer :

  • Registered persons who have opted for a composition scheme are not expected to maintain an inventory of products received and supplied by him.
  • It is also not bound to maintain and preserve an account containing information of tax payable, tax collected, ITC, etc.
  • Most other regulations relating to accounts and records shall extend to individuals who have opted for a composition scheme.
  • In order to file GSTR-4, the registered individual should retain and maintain fair details of the outward supply and inward supply at the rate of tax. It should also be prudent to hold specifics of the invoice for inward supplies and the supplier wise.

Penalties: –

If the taxable person is not eligible for the scheme of the composition of the GST, the tax authorities may impose a penalty equal to the amount of tax on the taxable person along with his tax liability. Be patient while using this scheme and paying taxes. The penalty shall be levied in compliance with the provisions of Section 73 or 74 where a person represents inaccurate information under the composition scheme.

www.carajput.com;GST; GSTR-4 due date

  1. What exactly is Form GSTR 4 Annual Return:-Annual GSTR 4 Annual Return for each Financial Year will be submitted by all Composition Taxpayers (w.e.f 01 April 2019). For those taxpayers who have opted for GST Composition Scheme in the new indirect tax regime, the GSTR-4 form is an annual return. Under the GST composition scheme, taxpayers will be required to file one return for each fiscal year only. The taxpayers will also be required to file CMP-08 for the payment in each qtr of the year. The expected date for each CMP-08 filing is the 18th of every succeeding quarter
  2. Who is supposed to file Form GSTR-4 Annual Return: All Composition Dealers who have preferred composition scheme for some time, must file GSTR 4 on a yearly basis from 01.04.2019 on. Both registration composite taxpayers are required to file a tax return. A taxpayer who opts for a Composition Scheme is required to file GSTR-4, except for –Non-resident taxable citizen
    Taxpayers who are eligible to collect TCS
    Distributors of Input Operation
    Taxpayers liable to deduct TDS
    Composing taxable citizen
    OIDAR Suppliers (Online Information and Database Access or Retrieval)
  3. May Nil GSTR 4 Annual report filed: you can register the report of Zero for the financial year if you have:
  • NOT made any outward supply
  • NOT received any goods/services
  • Have NO other liability to report
  • Have filed all Form CMP-08 as Nil
  1. Due date of filing GSTR 4 & GST CMP-08 Payment Form: It must be filed by 31/10/2020 for FY 2019-20 and the due date for GST CMP 08 Due Date for FY 2020-21
Quarterly Period  Timeline Dates
1st Quarter – April to June 2020 18th July 2020
2nd Quarter – July to September 2020 18th October 2020
3rd Quarter – October to December 2020 18th January 2021
4th Quarter – January to March 2021 18th April 2021
  • Required to file Form GSTR-4 Annual return: Click on Services-Return-Annual Return-Select FY 2019-20-Search-GSTR 4- File Return to login into your dashboard.
  • Process step to be taken care of during the filling of GSTR 4:
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    www.carajput.com; GST GSTR4

  • The File key is only activated if:
  • No additional cash is required for liabilities
  • You tapped on the checkbox for the declaration
  • You picked the approved signatory information from the drop-down list
  • The surplus balance paid by GST CMP-08, which is included in the derogatory declaration of responsibility, will also be added to liabilities if any.
  • If the available balance in the electronic cash ledger is less than the amount needed to cover the liabilities, you can directly generate the voucher by clicking on the Build CHALLAN button.
  • Taxes and late payments are drawn up automatically in Table-8, but interest is the feedback of the customer. Liabilities can only be discharged by an automated cash ledger.
  • The inward supply data (from Table 4B, 4C, and 4D for each tax rate) will be auto-drawn in Table-6 only after the Taxpayer has pressed the ‘Continue to register’ button. The balance before that is shown as ‘0’ (zero)
  • After entering outward supply information in Table-6 and pressing the “Proceed to register” button, RCM-based liability is auto-populated from the details provided in Table 4B, 4C, and 4D. Table-6 indicates then the gross tax obligation
  • The taxpayer has to enter the descriptions of the outward supplies in Table-6 (Row 12-16) of GSTR-4 manually.
  • Overview of self-assessed liability is auto-populated on the basis of filed Form CMP-08 in Table-5 of the GSTR-4 Annual Return & is uneditable.
  • The GST amount in Table-4 of GSTR-4 is basically auto calculation made on the input of the values fed in Taxable Value and tax rate fields. However, the GST amount is editable in the table. The CESS shall be paid by the taxpayer.
  • The cumulative revenue is expected to be entered over the last year and if there is no sale or revenue in the last year of the company or if it is not registered, it could be zero.
  • The annual GSTR 4 return submission will be triggered after the taxpayer has completed the filing of all quarters of the CMP-08 for that fiscal year.

Note: Point to be considered while using offline Tool

  1. A few Important points to consider before filing GSTR 4:
  • Form GSTR 4 can be filed only if, all applicable quarterly statements in Form CMP 08 of that financial year, have been filed.
  • Form GSTR-4 Annual Return, once filed, can’t be revised
  • After successfully filing, ARN will be generated and intimated through email and SMS
  • Currently, only online filing has been enabled on the portal. Shortly, an offline tool to file Form GSTR-4 Annual Return will also be made available.
  1. New updates in Form GSTR 4Current features of GSTR 4 Return Form
  • The GSTR 4 annual return due date has been extended again until 31 October 2020 for the year 2019-20 Read more
  • Let us understand how to create use offline techniques to plan Form GSTR 4 Annual Composition Taxpayer Return. The GST platform has created an offline excel tool for all tax-paying citizens to help them obtain their GSTR 4 annual return form
  • GSTR 4 Returns shall be filed on an annual basis for compounding taxable individuals. The last date of filing of the GSTR-4 (CMP-08) payment form is the 18th of the month following the section. GSTR 4 (CMP-08) returns may be filed on 18 April, 18 July, 18 October, and 18 January, and so on.
  • GSTR – 4 The form is submitted by all taxpayers enrolled under the composition scheme.
  • Business enterprises listed under the composition system would be expected to pay tax at fixed rates on a regular basis without the use of an input tax credit facility.
  • The taxpayer would be allowed to show the overall amount of products purchased over a given time and the tax collected at the composition rate
  1. Annual Return Form GST-4 Available on the GST Server.

    www.carajput.com;GST GSTR4

    www.carajput.com; GST GSTR4

Currently, the GSTN has agreed to encourage residents, assessors, and companies to file GSTR 4 on an annual basis. This has been achieved because of the community’s demand. The form is also available on the site, which further eased the assessment and the taxpayers in identifying and submitting the form as per their approval.

11. Recent Council GST Meeting with regard to for Composition Traders

  • GSTR 4 return is required to be submitted on a quarterly basis instead of on a quarterly basis with the tax paid on a quarterly basis.
  • The GST Council expanded the annual turnover cap to 1.50 Crores, effective from 1 April 2019.
  • GST threshold of 6% relevant to the Composition Scheme for service providers and sales of up to 50 lakh per year
  • Note: The aforementioned changes shall be taken following the official notification of the govt.

12. Does the GSTR 4 be revised?

After filing on the GSTN Site, GSTR-4 can not be updated.

13. Is there a penalty for the late filing of GSTR 4?

A delayed fee of Rs. 200 per day shall be charged if the GSTR-4 is not filed within the due date. The cumulative late fee can not, nevertheless, exceed Rs. 5,000.

14. The basic term normally used in GSTR 4

  • SAC – Services Accounting Code
  • B2C – From registered person to unregistered person
  • UQC – Unit Quantity Code
  • POS – Place of Supply of Goods and Services
  • GSTIN – Goods and Services Taxpayer Identification Number
  • UIN – Unique Identification Number
  • HSN – Harmonised System of Nomenclature
  • B2B – From one registered person to another registered person

Going to conclude

Any person who opts for the Gst Composition Scheme shall be deemed to have opted for all places of business having the same registered PAN. Therefore you cannot want any of the places of business to be registered under the scheme.

The rules of the Gst Composition Scheme under the GST were supposed to be strict and strict for the individuals using the Composition Scheme.

You may like a few other posts 

GST Return compliances calendar- Nov 2020

SALIENT FEATURES OF NEW GST SYSTEM IN INDIA

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GSTN enable auto-populated in the E-invoice information into GST Return -1

Delayed in payment of GST then Intt to be paid on net GST liability from Sep 1, 2020.

Rajput Jain and 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)

Key updates on GST- Compliance 2020

Key updates on GST- Compliance 2020

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www.carajput.com; GST

Background

Adhering to tax-related compliance introduced by the Indian government is obligatory for taxpayers in India. Failure to comply with the due dates for filing GST returns as well as the GST rules which result in the government imposing severe penalties on taxpayers in India. The tax compliances have experienced a complete improvement in the last 6 months. Given the prevailing Coron-19 pandemics, the entire compliance schedule has been changed.

It is not only about income tax but also about GST. We’ve been reviewing income tax compliances over the past week and now we’re going to cover compliances that need to be completed by August 31 to escape fines and late fees. Tax compliance was difficult, especially during the COVID period, when human health and safety were of primary importance. All the GST compliance requirements, the deadlines for which are August 31, 2020, are given below.

GST Milestones expiring 31 August 2020

Many deadlines for GST implementation expired on August 31, 2020. To prevent late payments and fines, it is important to recall those due dates and to file the returns. Let’s see which time-limit expires on August 31, 2020.

After taking into account the notifications the final deadlines will be as follows: 
 2 Yr  from the prescribed date falls between Final due date to submit a refund application
1st January 2020 to 19th March 2020 The respective day between 1st January 2020 to 19th March 2020
20th March 2020 to 31st March 2020 31st August 2020

Due to COVID 19 Situation and after Hon’ble FM Ms. Nirmala Sitharaman Ji “Corona is an act of God” and business loss now is the time to avoid late Fee, Interest, and Penalties.

Deadlines are as under:

·Refund Application FY 2017-18: Online thru Form GST RFD-01

·GSTR-4 (FY 2019-20): Filed by Composition Taxable Person (Notification No. 59/2020).

·GSTR-5: Filed by Non- Resident taxable person.

·ITC 04: ITC-04 is related to job worker and submitted by the principal every quarter. The last date of ITC 04 of the 4th quarter of 2019-20 and the first quarter of 2020-21 is 31st August 2020. (Notification No. 55/2020 dated 27.06.2020).

·As per Notification No. 55/2020 dated 27.06.2020, the due date for the month of March 2020 to July 2020 is extended to 31st August 2020 (Point No. 5 to 9).

·GSTR-5A: Filed by OIDAR service providers.

·GSTR-6: Filed by Input Service Distributors (ISD).

·GSTR-7: Filed by TDS deductor.

·GSTR-8: Filed by E-commerce Operator.

Letter of Undertaking (LUT) FY 2020-21: Notification No. 55/2020 Letter of Undertaking (LUT) is a document that exporters can file to export goods or services without having to pay taxes. Any registered individual will be able to supply LUT in GST RFD 11 type and export products without paying the integrated fee.

Other related GST compliances (except few provisions covered in the exclusion clause of N.N 55/2020-CT dated 27.06.2020) falls during the period 20.03.2020 to 30.08.2020 and which has not been made.

As per the latest notification released on December 26, 2019, provisional ITC has now been restricted to 10% instead of 20% of the eligible ITC (as per 2A). The new restriction has come into effect from January 1, 2020. It is important to complete ITC matching in order to claim accurate provisional ITC before filing GSTR 3B. Should you happen to cross the limit, it will result in legal repercussions & heavy tax penalty (up to 24%)

How should you tackle this?

– Reconcile your GSTR 2A & Purchase register every month.

– Communicate the mismatches to your vendors.

– Claim only the matched transaction’s ITC in your 3B.

– Keep a proper track of ITC’s pertaining to Quarterly Filing vendors to claim later.

To help you with this complex & heavily manpower driven activity, Rajput Jain and associates have come up with an advanced reconciliation tool to keep you afloat of all the possible discrepancies & help you claim the right amount of ITC.

E-Invoicing: E-Invoicing is soon becoming necessary, We built a knowledge pool for fast integration. Details are an attached post : 

Details about the E- Invoices 

Applicability of E-invoice Framework for GST

Complete coverage about online information Database access or retrieval(OIDAR)

Basic details of Invoice registration Portalirp on GST

Moving to the September GST compliance timeline, here is a detailed description of our September compliance calendar:

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www.carajput.com; GST Planner

GST Returns Application late fee

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The late fee according to the GST Act is Rs. 100 a day per statute. So it’s under CGST 100 and under SGST 100. Max is Rs. 200 / day. The maximum amount is Rs 5,000/-. No late fees are paid on IGST.

Submission of return is mandatory under GST. And if there is no trade, you will have to file a refund from Zero. You can not file a return until you register the return of the previous month/quarter. Late filing of GST return would also have a cascading impact and will lead to heavy fines and penalties. The GSTR-1’s late filing fee is deposited in GSTR-3B ‘s liability ledger directly after such a delay.

Interest / Late Fee to be paid

The interest per annual is 18 percent. It must be based on the amount of outstanding tax owed by the taxpayer. It is to be calculated at the time of payment on the Net tax liability identified in the ledger. The time span is from the next day after filing due date to the final payment date.

Prosecution in GST 

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www.carajput.com; GST Prosecution

So here is the expectation that the compliances will be completed before all these extended due dates.

GST Return compliances calendar- Nov 2020

SALIENT FEATURES OF NEW GST SYSTEM IN INDIA

Key points of 42nd GST council Meeting headed By FM N. Sitharaman

E-Commerces Platform under GST

Composition levy scheme under GST

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)

Applicability of E-Invoice Framework for GST

All about the GST E-Invoice Framework with applicability from the portal

www.carajput.com; E-INVOIVE PORTAL

www.carajput.com; E-INVOICE PORTAL

What is the E-Invoice Framework under GST?

GST e-invoice is the adoption of the digital invoice for goods and services provided by the business created on the GST portal of the Government. Thought has been paid to the idea of a GST e-invoice generation framework for reducing GST evasion.

The GST officers have come to a conclusion by providing companies with a program that makes it mandatory for them to produce ‘e-invoice’ for each sale on the GST portal of government. This scheme will only apply to those whose turnover rate is above the defined threshold i.e. the government will set a threshold for them.

An official said businesses dropping below a certain level will be given a unique number each time an e-invoice is produced. The corporations will compare the amount with the invoices written in the sales report and pay taxes for verification.

Know About-Basic Details of E-invoice under GST

  GST for E-invoicing – Introduce the GST e-invoicing of bills under the GST system

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www.carajput.com; E-INVOICE

The 39th meeting of the GST Council also agreed to introduce the GST e-invoicing of bills under the GST system and the applicability of QR codes in view of the currently held coronavirus pandemic as from 1 October 2020.

A version of the GST E-Invoicing Trial introduced 

Finally, the government has introduced the GST e-invoicing trial version of the common invoicing system that was discussed earlier in the GST Council meeting. The GST e-invoicing will have several categories in which e-invoice will be filled by the taxpayer according to turnover and other parameters. Every taxpayer is expected to have more than 500 crores of turnover to fill GST e-invoicing via the government portal itself.

IRPs’ position for e-invoicing under GST

After dozens of consultations, E-invoicing was eventually introduced on a voluntary basis for GST registered companies in India from 1 January. The developer of e-invoicing APIs is implemented essentially to submit B2B invoices organized to the GST framework. In fact, real-time transaction invoice monitoring would reduce the risk of last-minute problems due to pendency.

Invoice Registration Portal(IRP) – Apart from other modes, the first Invoice Registration Portal allows for invoice registration on the GST system. API mode

IRP aims to incorporate the e-invoicing program into the company invoicing framework for taxpayers.

The portal also lets the taxpayer get credentials he can access APIs from. Registration for the connection to the API will be complete once the OTP is entered on the checked mobile number and email Id.

RP provides details of the integration of the business systems into their e-invoice systems via APIs

Code extracts and master data are given to learn the logic and concepts properly.

By understanding and checking the API methods, developers can boost the performance of APIs with the help of the portal.

Also read-Basic details of IRP on GST

GST E-Invoice Framework Available

Industries would be expected to produce the entire GST e-invoice containing all the value of the sales.

E-Invoicing Under GST Time Period with Requirements for Business Turnover

Sales more than 500 Crores-Beginning October 1st, 2020

Remark:

  1. “The roll-out of e-invoicing would be important for companies with a turnover of more than 500 crs from 1 October onwards.”
  2. “Seek to exclude any class of registered persons capturing dynamic QR code and the date to be extended to 01.10.2020 for the introduction of QR code.”
  3. “Aim to exclude a certain class of registered individuals from issuing e-invoices and extended to 01.10.2020 the date of e-invoicing.”
  4. To the above-mentioned firms, GST e-invoicing is compulsory as of 1 October 2020. Those with turnover up to 100 Crore, voluntary, and trial basis start as per the sources from 1st October 2020.
  5. with effect from 1st October 2020, a supplier whose aggregate turnover exceeds 500 crore rupees in the financial year shall have a Fast Response (QR) code to an unregistered individual (B2C Invoice).
  6. The official also gave an example in which if Rs 1,000 is the minimum fixed invoice then there are high chances that the businesses would be able to divide the bills and they will escape the invoice that will be created due to the threshold.

System to produce e-invoice for under the GST E-invoice generation process

The GST e-invoice generation process will be the same as the e-way bill created on the https:/ewaybill.nic.in/portal or the GST payments made on the GSTN portal.

The GST e-invoice generation system will replace the e-way bill produced for the movement of goods as a centralized government platform would be used to generate invoices. The e-way bill is currently only produced for those moving goods which cost more than Rs 50,000.

The official also added that there will be no hassle for companies to file the GST returns after the e-tax invoice generation program kicks off, since the data will be auto-filled invoice wise in the return form.

“We’ll have to review global models led by countries like Latin America, South Korea, and Europe,” the official said. We should also look at ways of motivating businesses to follow the process of producing e-invoices.

Along with the officer’s committee, it is entirely the responsibility of the state, central tax officials, and GST Network Chief Executive to implement the e-invoice under the GST program to reduce the burden of producing invoices and enforcement. The committee is given a deadline by next month to finalize the preliminary report.

The main goal of the generation of e-invoices is to test the evasion of GST. After two years of GST implementation, the government is now pursuing anti-evasion initiatives to boost revenue and enforcement.

Only 20 lakhs fall under the composition scheme from the 1.21 Crore listed firms.

The GST e-invoice generation system would minimize the dual effort, as well as the manual involvement in filing and reviewing tax returns, according to a tax expert.

It said, “The tax department could limit the frequency of mandatory departmental audits in case e-invoice procurements are made to encourage businesses to follow the new framework.”

List of Invoice Registration Portal(IRPs) under GST E-invoicing

Following dozens of discussions, e-invoicing was eventually introduced on a voluntary basis for GST registered enterprises in India from 1 January. E-invoicing or electronic invoicing is implemented primarily for the structured recording of B2B invoices to the GST system. In fact, real-time transaction invoice monitoring would reduce the risk of last-minute problems due to pendency.

The target for Invoice Registration Portal(IRPs)

Invoice Registration Portal(IRP) – In addition to other modes, the first Invoice Registration Portal provides for invoice registration on the GST system via API mode.

IRP aims to incorporate the e-invoicing program into the company invoicing framework for taxpayers.

The portal also lets the taxpayer get credentials he can access APIs from. Registration for the connection to the API will be complete once the OTP is entered on the checked mobile number and email Id.

IRP provides descriptions of the integration of the business processes through APIs into their e-invoice processes.

Code extracts and master data are given to learn the logic and concepts properly.

By understanding and checking the API methods, developers can boost the performance of APIs with the help of the portal.

New e-invoicing update under GST framework

In addition to improving the GST structure, the board has now moved to legitimize a new GST e-invoicing or electronic invoicing in a channelized manner for reporting business to business ( B2B) supplies to the GST scheme. The rule will be voluntary in effect as from 1 January 2020.

As any new rule calls for the establishment of a clear norm to accomplish the target in effect. After consultations with trade/industry bodies and representatives of ICAI, the basic standard for e-invoicing is finalized to ensure the absolute applicability of the existing e-invoicing under the GST regime. There was no set norm for e-invoicing up to now.

The e-invoicing function is guided in such a way that e-invoices created by one software are controlled by software that removes the need to re-enter the digits for a fresh entry. Adoption of this specific standard would allow the seller, buyer, bank, or agent, or any other person concerned to read by a computer and thereby restrict the unnecessary data, minimizing errors. This is the main aim behind improving the e-invoicing GST structure.

It was in the 37th meeting of the GST Council chaired by Union FM Nirmala Sitharaman, the design of the new e-invoice system was discussed and accepted, and the same is released on the GST portal along with the schemes.

Also, read the links below;

E-invoice Mechanisum Under GST

E-invoice details are auto-populated in the respective GSTR-1

How to charge GST on expenses in an invoice?

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)

Basis Concept on Applicability of E-Way Bill

Basis Concept on Applicability of E-Way Bill

www.carajput.com;GST E-way bill

www.carajput.com; GST E-way bill

E-Way Bill is a digitally produced paper that must be produced for the transportation of more than Rs. 50,000 products from one place to another anywhere in India, except Delhi. For the transport of products inside Delhi, an e-way bill is needed if the value of goods exceeds Rs . 1 Lakhs.

This documentation must be produced electronically for the transport of goods, regardless of whether the transport is inter-state or intra-state. The e-way bill created in any State shall be valid in any State or Union territory of India.

Who is responsible for generating the e-way bill?

The e-way bill under the GST regime is expected to be produced

  1. Any licensed individual responsible for the movement of products of shipment
  2. In the case of supply ( e.g. sales); or
  3. For reasons other than supply ( e.g. return of sales, transfer of branches, etc.); or
  4. Due to the inward supply of the unregistered individual
  5. Any unregistered individual who triggers the movement of products.

Some of the important points to be noted for goods transported by road are as follows:

  1. E-Way Bill is not required for all transactions carried out by a taxable individual.
  2. the E-Way Bill is necessary For all transactions involving the transportation of goods, whether by way of supply or not,.
  3. E-Way Bill is required in transactions involving products but viewed as a supply of services such as the leasing of products or the distribution of food drinks.
  4. E-Way Bill is not needed, where products purchased in the supply of services do not involve the movement of goods.
  5. E-Way Bill is necessary, where the movement of the value of the goods is more than Rs. 50,000/-as an interstate supply.
  6. E-Way Bill is necessary, where the movement of the value of the products is more than Rs. 1.00000/-as intrastate supply.
  7. The automobile number and transporter ID in part B should be given
  8. Where the goods are transported by the supplier, the supplier must provide the carrier with the details required for the generation of the e-way bill in Part-A.
  9. On the basis of the information received by the manufacturer, the carrier creates an e-way bill by performing Part B.
  10. If the goods are transferred by the supplier in a vehicle of their own or by a hired vehicle, the supplier may fill out the data in Part B.
  11. If the carrier has received information on the transport or vehicle number, etc., a unique e-way billing number or EBN may be issued.
  12. Unless the vehicle is modified during transit, the carrier may have to correct the transport information in the e-way bill on the GST portal.
  13. Goods can only be carried with the description of Part-A:
    1. When goods are transferred within less than 50 km of the State from the place of the manufacturer to the carrier for delivery;
    2. b) If goods are shipped from the source to the receiver for a distance of fewer than 50 km.
  14. The E-way bill created on the GST portal is valid for all States and Union Territories.
  15. For distances of up to 100 km, the created E-way bill is valid for one day. The e-way bill will be valid for an additional day for every 100 km.
  16. If the transport can not be completed within the period of validity due to certain unforeseen situations, the carrier may generate a new e-way bill by updating the transport details.
  17. Cause for transport may be any kind of supply, return on sales, own use, jobs, etc.
  18. When there are several vehicles involved in the transport of products, the manufacturer will issue the invoice until the first shipment is completed and, with each subsequent shipment, copies of the accompanying distribution vouchers and a copy of the invoice should be given. Nevertheless, the initial invoice will be submitted with the last shipment.

The circumstances where E-Way is not needed : 

In the following cases, the generation of e-Way Bill is not necessary:

  1. The mode of carriage is a non-motor vehicle
  2. Goods transported from the customs terminal, airport, air cargo complex, or land customs station to the Inland Container Depot (ICD) or Container Freight Station (CFS) for customs clearance.
  3. Goods held under customs control or under customs seal
  4. Goods transported under the Customs Bond from ICD to the customs port or from one customs station to another.
  5. Transit cargo transported from or to Nepal or Bhutan
  6. Movement of products triggered by the establishment of the defense under the Ministry of Defense as consignee or consignee
  7. Vacuum Cargo /containers are being shipped
  8. In the case Consignor transporting goods to or from the place of business and a weighbridge at a distance of 20 km, accompanied by a Delivery Challenge.
  9. In the case Goods to be shipped by rail where the Consignor of goods is a federal government, a state government, or a local authority.
  10. In the case of Goods specified as exempt from E-Way bill requirements in the respective State / Union Territory of the GST Regulations.
  11. In case Transportation of certain defined goods-includes the list of exempt supplies of goods, annexed to Rule 138(14), goods classified as non-delivery as set out in Schedule III, other schedules of notifications of the Central Tax Rate. (PDF of the Products List).

Note: Part B of the e-Way Bill is not necessary to be filled if the gap between the consignee or consignee and the carrier is less than 50 km and the transport is in the same state.

What to do to make an eWay Bill

E-Way Bill can be created from the e-Way Bill Portal. The only thing you need is a Portal username. For a comprehensive step-by-step e-Way Bill Generation guide, check out our online e-Way Bill Generation Guide.

www.carajput.com; GST E-way bill

Records/ document or information needed for the creation of eWay Bill

  • Invoice / Bill of Supply / Challenge relating to the shipment of goods
  • Road transport – ID of the driver or vehicle number
  • Transport by rail, air or ship – ID of the carrier, the number of the transport document and the date of the document

you may also read the related links:

Blocking the E-way bill creation system if fails to file GSTR-3B

Short Introduction of E-way bill under GST

Don’t confuse for GST e-way bill genration

Introduction of E-way bill under GST

A quick review of E-way Bill

GST E-way Bill Rollout deferred

GST E-way bill Implementation

For more information about the case, please feel free to contact Rajput Jain &       Associates by phone (+91 11 9555 555 480 ), or e-mail (info@carajput.com).

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)

GST: Late fee capped at Rs. 500/- for each GSTR-3B Return

GST: Late fee capped at Rs. 500/- for each GSTR-3B Return and waives off late fee on late GST return filing

www.carajput.com;GST No late Fees

www.carajput.com; GST No late Fees

For each GSTR-3B return, a late fee of Rs. 500/- is capped.

In the perspective of the GST taxpayers’ massive relief the government has chosen to limit, on the basis of the condition that such GSTR-3B reports are filed prior to 30 September 2020, a late maximum fee of Form GSTR-3B to Rs 50/- (only 500) by tax return for the tax period July 2017 to July 2020.

Notice was provided to include zero late fees if no tax liability exists; and if there is any tax liability, the GSTR-3B returns filed by 30 September 2020 will be subject to a maximum late fee of Rs. 500 for such returns.

Thanks to further flexibility in the deferred fee paid for tax periods between May 2020 and July 2020, numerous representations have been issued. In order to clean up past pendency of returns between July 2017 and January 2020, relief has been issued for February 2020 of April 2020 in addition to previously granted. In addition, the design and implementation of a standard late payment are easier on an automated common portal.

The late fee for the return is only limited to Rs. 500/- if it is filed before 30 September 2020.

www.carajput.com;GSTR-4 Late Fees

www.carajput.com; GSTR-4 Late Fees

Summary of Important Due date of July and Aug 2020

 

www.carajput.com; Prosecution in GST

www.carajput.com; Prosecution in GST

Related links are:

a common mistake is done while filing GSTR-1

Blocking the E-way bill creation system if fails to file GSTR-3B

Extension of the due date of GSTR-1

E-invoice details are auto-populated in the respective GSTR-1

Rajput Jain & Associates

www.carajput.com

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)

Why Virtual Office is an essential address for small Indian firms.

Why Virtual Office Address is essential to Indian small businesses.

www.carajput.com;Virtual Office

www.carajput.com; Virtual Office

Business prospects have plenty of needs and requirements and most company owners look forward to some of the new technologies that are available ahead to assist them in the company of scale. There are tons of ways in which new business owners are trying to implement to make sure they are ready to develop their business quickly. The saddest reality is, the idea of a virtual office address is not known to a lot of businesses, especially to small companies.

Virtual Office Address for Business Registration

Most are not aware that having a virtual office address can have an immense effect on their business and can help them hit a speed not connected to the conventional environment of their offices.

What is the address of the virtual office?

The aim is to get a legislator’s answer in a room when you are not running an efficient office when you take up a virtual job. To make it simpler, without running an office there, you will have the place’s address.

Tons of confusion emerges in the mind when the idea of virtual offices is stated. The idea is basic, all you have to learn is that virtual offices almost seem to have an address. The only difference is that you would actually just have an address and not an actual physical location. This means that you actually don’t have to have a real office, you’re just going to have a main place address and buy a website. It’ll help you save tons of the investment in the capital you simply allocated for equivalent with this virtual office idea.

Today, if you’re a small company, you have to consider a lot of things, like the use of virtual offices. Several benefits, particularly for small businesses, relate to having a virtual office. The following advantages will confirm that while running the company at its best, you will expand your business in a very fast phase in the short term.

Values for small businesses in India Virtual Office address

The benefits that you can actually reap as a small business will be a significant factor in the overall success of your business model, which also demonstrates that methods of your company scaling can be much quicker than traditional routes. The main advantage you’re going to have is that the savings you receive from a virtual office address in India.

www.carajput.com;GST Virtual Office

www.carajput.com; GST Virtual Office

Economical Virtual Office Address Services for GST Registration

Savings of the capital

There are countless things you just have to confirm before you start a business and one of the first goals is to have enough money to spend when your company has a dry spell. This suggests that each process you do with your company must be cost-effective, and often it’s important especially for a replacement company.

You will save 70% of your investment with a virtual office because the bulk of your money is not invested in operating an actual office. This rise in savings in your investments will help you broaden your business strategies and also help you do a lot of complex work on other investments.

Huge presence to Small Business

We all know how important the presence of your business is as a little business owner. The more and more scope you have in the business, the more ready you are to build a client database. You are ready to develop your products on the path in no time by increasing the customer base and, in no time, your products will have huge market demand, so long as the product or the service you provide is of good quality. 

Adding a knowledgeable outlook

Hundreds of factors contribute to the professional identity of a small company, but the bulk of the effort comes from a place of the company. This gives your company enormous credibility. A key position specifically means that all leading specialist businesses are situated in prime locations and that you have a high level of services. You have met the need to create an expert face for your company with a virtual office address at a prime location.

www.carajput.com; Virtual Office

www.carajput.com; Virtual Office

Prime Virtual Office Address at Cheapest Prices

Attracting more business opportunities

When you have been figured out that your company will improve drastically and in no time if your services are equally successful, you will face tremendous demand. Your enterprise will draw more business opportunities than ever, as an organization with an honest reputation in an excellent location.

Access to items from the virtual office services at the workplace.

Different facilities like email, training rooms, conference rooms, etc. can also be accessed at extra cost with a virtual office in India. This means that you are going to do business efficiently within a short time and that massive business investment will also take place within a short period.

You may also read the link given below:

Guidelines for mobile virtual network operators set to launch themselves in India

Virtual Office Facility in India

Virtual CFO Outsourcing Services in India

Nuts and bolts of a virtual CFO engagement

What is a virtual CFO?

You simply have to try and locate a virtual office provider such as www.carajput.com and make a reservation right away. By contacting us on www.carajput.com you will always book a virtual office and ensure a reservation now!

If you’ve got any questions please visit the website and contact our skilled support team for a detailed look.

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)

GST newest Notifications: CBIC GST Extension Notifications dated 24 June 2020

GST latest Notifications: Analysis of CBIC Notifications on GST extensions dated 24 June 2020

www.carajput.com;GST 40th Council meeting

www.carajput.com; GST 40th Council meeting

Today, CBIC issued various notifications to implement the recommendations of the 40th GST Council meeting as follows: CBIC Notifications signed on 24.06.2020 regarding interest waiver and late fees. On 24 June 2020, the CBIC released multiple notifications of GST. The synopsis of those updates is here.

Notice No. 49/2020 – Central Tax: Implementing some aspects of the Finance Act, 2020

Notification No. 50/2020 – Central Tax: Notification of GST rates for individuals taxable in composition under Rule 7 of the CGST Rules

GSTR-3B-Interest rate waiver: Notification No.51/2020-Central Tax 24.06.2020: To put certain provisions of the Finance Act into force, 2020.

Notification No. 52/2020 – Central Tax: GST waiver for taxpayers who’ve not filed GSTR-3B for tax dates between July 2017 and January 2020 shall be informed as stated earlier at the 40th meeting of the GST Council. In CGST Notification No. 52/2020 dated 24 June 2020, the CBIC notified that between 1 July 2020 and 30 September 2020, Zero GSTR-3B could be filed without a late fee for the above duration. Furthermore, it shall be limited to a maximum of Rs 250 per return per month per act for the remaining taxpayers.

A late fee exemption also moved the last GSTR-1 deadlines from March to June 2020 as of June 30th, 2020. The latest timelines for monthly filing without even a late fee charge will be from March to June 2020, 10th, 24th, 28th July 2020, and 5th August 2020 respectively. The last date for the GSTR-1 quarterly is 17th July and 3rd August 2020 for the quarters January-March 2020 and April-June 2020.

Big taxpayers have not been informed of further extensions for filing GSTR-3B from February to May 2020, with an annual turnover of more than Rs 5 Crore in the previous financial year. Furthermore, no interest should have been paid from the respective due dates of February to April 2020, i.e. 20th of the following month, for the first 15 days respectively. After that, interest at a 9 percent p.a. reduced rate. Any further delay in GST payments would have been imposed till 24 June 2020.

www.carajput.com;GST 40th Council meeting

www.carajput.com; GST 40th Council meeting

Initially, taxpayers with an aggregate annual turnover of up to Rs 5 crore in the last financial year have their due date staggered as 22nd # or 24th # of their next month, depending on the state / UT from which they run their main place of business. For the exception of May 2020, its due date staggered as July 12th # or 14th # # 2020. Furthermore, in the exception, August 2020 also comes with yesterday’s due date extended to 1st # or 3rd # # October 2020.

The CBIC has abolished the taxpayer bifurcation based on the annual sales up to Rs 1.5 crore or between Rs 1.5 crore and Rs 5 crore. Correctly, as per yesterday’s 40th meeting of the GST Council, the late fee and the interest waiver will continue until September 2020

GSTR-1-Late Fees / Penalty Waiver: Notification No.53/2020-Central Tax 24.06.2020: Conditional waiver of late fees for all GSTR 1 registered persons for months/quarters ending March to June 2020, if submitted by the time set.

www.carajput.com;GST 40th Council meeting

www.carajput.com; GST 40th Council meeting

GSTR-3B-Extension of the deadline for Aug 2020: Notification No.54/2020-Central Tax 24.06.2020: extension of the deadline for submission of GSTR 3B to 1/3 October 2020

 

www.carajput.com;GST Relief to small business

www.carajput.com; GST Relief to small business

Summary of Important Due date of July and Aug 2020

Thanks

Rajput Jain & Associates

www.carajput.com

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)

Whirlpool convicted & imposed a penalty of Rs 4.07 lakh by NAA for denying customers the benefit of the GST rate reduction.

Whirlpool convicted in accordance with Rs. 4,07,451/- of profiteering by the National Anti Profiteering Authority on its fridges

www.carajput.com; GST

www.carajput.com; GST

NAA discovered the long-term consumer corporation Whirlpool of India convicted of not having to pass on a GST rate reduction advantage of more than Rs 4.07 lakh to its refrigerator purchasers. Kerala State Screening Committee Anti-Profiteering (NAA) vs. Whirlpool India Ltd.

The concise details of the matter are that the petitioner had made reference a case against Whirlpool to the Standing Committee on Anti-Profit-making alleging profiteering on the supply of fridge Whirlpool (HSN code 84182100), by not passing on the benefit of reducing tax rate w. e. f. 1 July 2017 Pursuant to Section 171 of the CGST Act, 2017, by way of a substantial price decrease.

Few justifications by the defendant and the authority to reply

The plaintiff contended that the rise in prices could not be created because of other commercial factors, which had the impact of placing unlawful restraint on his fundamental right and was consequently in accordance with Article 19(1)(g) of the Indian Constitution.

In this relation, it would also be important to state that section 171(1) requires only the participant to pass on the advantage of the reduction in taxes to the purchasers and does not require him to set his prices in accordance with any authority direction. The above profit was provided by the government to ordinary buyers by sacrificing their valuable tax revenue which the respondent can not be permitted to misappropriate and enrich themselves at the detriment of unorganized, voiceless, and vulnerable common buyers. The respondent is free to exercise his right to trade and set prices, but under the pretext that it infringes his right to trade, he can not deny the above benefit.

The defendant also argued that the product’s manufacturing cost (BOM) had experienced a rise since August 2016 due to a rise in the cost of raw materials which had been computerized to come at the MAP at the end of each and every month.

In this relation, it would also be necessary to note that on the very date from which the tax rate was reduced, there was no reason for the respondent to increase its basic price. There is also no justification for ascertaining why the respondent had not raised its price every month during the period from August 2016 to June 2017 when he computed the MAP every month.

The representative also claimed that there had been an increase in the total freight cost in 2017 compared to Rs. 29 per unit in 2016, which was expected to be added to the price.

As mentioned above, the defendant had no reason to raise its price on the occasion of the reduction in taxes, and thus the respondent’s argument is frivolous and not bonafide, which was made with an ulterior purpose for the betterment of the tax cut.

Held by Authority: on the grounds of the details of the matter, the amount profited by Whirlpool shall be determined as Rs. 4,07,451/-. The Respondent is instructed to lower the price with the above-mentioned product and also to deposit the benefited amount together with interest at 18 percent. A notice of cause shall be issued to him to illustrate why the punishment under the GST Act should not be enforced on him.

Prosecution under GST are as under 

 

www.carajput.com;GST Prosecution

www.carajput.com; GST Prosecution

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)

Corporate And Professional Updates on 16th July 2019

Direct tax Updates:

Image result for Direct tax hd Pics
  • CBDT has issued Clarification regarding taxability of income earned by a non-resident investor from off-shore investments routed through an Alternate Investment Fund.
  • Govt has re-calibrated and fixed the direct taxes collection target for this financial year at Rs 13.35 lakh crore, a task that the CBDT chief said is difficult but achievable. He also said that the government can only think of further “lowering” corporate tax rates once the exemptions and deductions in this sector are phased out.
  • Govt has ruled out a rollback of the ‘super-rich’ tax on foreign portfolio investors (FPIs) organised as trusts or AOP. The tax on such FPIs will yield an estimated Rs 400 crore, as against the overall revenue gain of Rs 12,000 crore from the surcharge.The move will hit 40% of the FPIs.
  • Income Tax Return (ITR) filing compulsory for persons who deposit over Rs 1 crore in a current account in a year, spend over Rs 2 lakh on foreign travel or have an annual electricity bill of more than Rs 1 lakh.
  • Persons receiving income upto Rs. 50 lakh from salary/1 house property/other income, file Income Tax Return SAHAJ by 31.07.2019. Avoid late fee of Rs. 5000.

Indirect tax Updates:

  • The pending decision to introduce parity in GST rates on government and private lottery is unlikely to feature in the meeting. Sources said the meeting of group of ministers (GoM) mandated to deliberate on the issue of lottery was cancelled at the last moment. It is learnt that the decision to cancel the GoM meeting was taken to prevent any possible violation of the model code of conduct, which has set in on Sunday following the announcement of general elections to the Lok Sabha by the Election Commission of India.
  • The law review committee and the fitment committee under the GST Council deliberated on setting up the guidelines for taxpayers after the rates on underconstruction houses were slashed in the last Council meeting on February 24. The GST rate for affordable houses was reduced to 1 per cent, while that for all other underconstruction houses was reduced to 5 per cent.
  • The need for detailed guidelines or rules was borne from the fact that the rate reduction made builders ineligible to avail input-tax credit (ITC) in the value chain, which would bring back informal cash channels to the real estate business. The committees are said to have gone ahead with the mandatory requirement for builders to procure 80 per cent of their inputs from registered dealers in the formal sector. The new rates and rules come into force on April 1.  In addition, the rules would specify the extent to which the opening input-tax credit on April 1 could be used by builders. It is likely that the Council would take a decision to utilise credit to the extent of the completion of the housing project.
  • Experts said the projects that are nearing completion would benefit the most from the rules, which are learnt to have been submitted to the GST Council. It is yet not known as to which authority would certify the extent of completion, but experts said it would be subject to audit nonetheless. The guidelines would also have the methodology to deal with properties which have a mix of residential and commercial spaces.

Other updates:

  • Exports fall for first time in nine months amid trade tensions
  • Shriram Transport looking to raise up to₹10,000 crore through NCDs
  • Sun Pharma Surges 3.6% After Morgan Stanley Double Upgrade
  • IRDAI may Relax Rules for Pension Plans & Ulips, Make Surrenders Easy
  • Aditya Birla Fashion acquires 51% stake in Finesse International for ₹60 crore
  • Securitisation Market Records 50% Growth in Q1
  • India’s steel exports fall 34% to 6.36 MT in 2018-19
  • Govt may issue sovereign bonds in phases, first lot to be of $3-4 billion
  • Manipal Hospitals set to buy Medanta for ₹6,000 crore
  • MFs differ with banks over DHFL resolution, may opt for the DRT route
  • Customers forgotten in rush for electric vehicles, says TVS Motor chairman
  • Exports contract 9.71% in June; trade deficit narrows to $15.28 b
  • Sun Pharma launches capsules for lipid disorder treatment in US
  • NCLAT order on Essar Steel has rewritten IBC rules: Lenders
  • Ashok Leyland temporarily shuts Pantnagar plant
  • IndiGo secures credit facility worth ₹2,577 crore amidst promoters dispute
  • NIIF may invest $100 million in Multiples PE’s third fund
  • Ambuja looks to expand cement capacities with buys in RMCs, aggregates
  • BHEL, CONCOR tie up for rail-based logistics terminal at Haridwar
  • Reckitt Benckiser and Apollo Hospitals tie up to launch ‘Arogya Rakshak’
  • ‘Amazon Prime Video, ZEE5 in talks for a platform deal’
  • Govt diverting around Rs 17,000 crore from petrol and diesel cess kitty
  • Investors flee debt funds as credit quality slumps to lowest in 16 months
  • USFDA completes Chennai facility audit with zero observations: Natco Pharma
  • Sales improve 16% in the first quarter: Tata Steel
  • NTPC raises ₹4,300 cr through bonds
  • Sensex Rises 160 Points on Infy Surge, Macro Data
  • Hero Electric eyes South India for new plant
  • Real estate developers at risk as stress in credit market dries up funding
  • Cotton Greaves increases stake in electric two-wheeler maker Ampere

Key Due Dates:

  • 07-07-2019 – Deposit of TDS/TCS for the month of June 2019.
  • 07-07-2019 -Equalisation levy deposit which is withheld at the time of payment by the service  recipient where the annual payment made to one service provider exceeds Rs.1,00,000 in one  financial year for the specified and notified services.
  • 10-07-2019 – GSTR 8 for E-Commerce Companies for the m/o June 2019.
  • 10-07-2019 – Filing GSTR-7 (for assessee who is required to deduct TDS under GST) for the m/o June 2019.
  • 10-07-2019 – Issue of TDS Certificate for salary for the financial year 2018-19.
  • 11-07-2019 – GSTR-1 for the month of June 2019 for taxpayers with Annual Aggregate turnover more than 1.50 Crore.
  •  13-07-2019 – GSTR-6 for Input Service Distributor.
  • 14-07-2019 – Issue of TDS Certificate for tax deducted under section 194-IA/194-IB in m/o           May’19.
  • 15-07- 2019 – Quarterly statement of TCS for the quarter ending 30 June, 2019.
  • 15-07-2019- ESI/PF Payment for m/o June 2019.
  • 15-07-2019- FLA Report it is required to be submitted directly by all Indian Companies which have received  FDI or made FDI abroad for m/o June 2019.
  • 18-07-2019- GSTR-4 Quarterly return for taxpayers opting for composition scheme.
  • 20-07-2019 – GSTR-3B for the m/o June 2019.
  • 20-07-2019 – GSTR-5 for the m/o June 2019.
  • 20-07-2019 – GSTR-5A for the m/o June 2019.
  • 25-07-2019-  EPF return filing for the month of June 2019.
  • 30 -07-2019 -Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2019.
  • 30-07-2019 – Furnishing challan-cum-statement in respect of tax deducted u/s 194-IA/194IB in     month of June’19.
  • 31-07-19 – GSTR-1 for June Quarter applicable for taxpayers with Annual Aggregate turnover upto Rs. 1.50/- Crore.
  • 31-07- 2019 – Quarterly statement of TDS for the quarter ending 30 June, 2019.
  • 31-07- 2019 – Income Tax return for the F.Y 2018-19 (A.Y 2019-20) for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report u/s 92E.
  • 31-07-2019- Payment of Professional Tax and Shop and Establishments taxes.
  • 31-07-2019- Form 67 Due date for claimimg Foreign Tax Credit,upload statement of Foreign income offered for tax for previous year 2018-19 and of Foreign tax deducted or paid on such incomes.

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)

GST ROLL-OUT – COMPLETE TRANSFORMATION OF THE INDIRECT TAXATION LANDSCAPE

GST ROLL-OUT – COMPLETE TRANSFORMATION OF THE INDIRECT TAXATION LANDSCAPE:

www.carajput.com; GST

www.carajput.com; GST

Goods and Services Tax (GST), a historic tax reform, will come into effect from tomorrow i.e.1st July, 2017. GST will completely transform the Indirect Taxation landscape in the country involving both the Central and State levies. In a departure from the normal practice, GST will be administered together by the Centre and States.

To commemorate the historic occasion, a function will be held in the Central Hall of Parliament on the mid-night of 30th June – 1st July, 2017. The occasion will be graced by the Hon’ble President, Hon’ble Vice President,  Hon’ble Prime Minister, Hon’ble Speaker of Lok Sabha and Hon’ble Union Finance Minister among other dignitaries.

GST SO IMPORTANT: –

The biggest tax reform since independence – GST – will pave the way for realization of the goal of One Nation – One Tax – One Market. GST will benefit all the stakeholders namely industry, government and consumer. It will lower the cost of goods and services, give a boost to the economy and make the products and services globally competitive, giving a major boost to ‘Make in India’ initiative. Under the GST regime, exports will be zero-rated in entirety unlike the present system where refund of some of the taxes does not take place due to fragmented nature of indirect taxes between the Centre and the States. GST will make India a common market with common tax rates & procedures and remove economic barriers. GST is largely technology driven and will reduce the human interface to a great extent. GST is expected to improve ease of doing business in India.

In the majority of supplies of goods, the tax incidence approved by the GST Council is much lower than the present combined indirect tax rates levied [on account of central excise duty rates / embedded central excise duty rates / service tax post-clearance embedding, VAT rates or weighted average VAT rates, cascading of VAT over excise duty and tax incidence on account of CST, Octroi, Entry Tax, etc.] by the Centre and State(s).

The journey of GST after the Constitutional Amendment Act, 2016

After the assent of the Hon’ble President on 8th September, 2016, the 101th Constitutional Amendment Act, 2016 came into existence. The GST Council was constituted on 15.9.2016.

Since its formation in September 2016 the GST Council has held 18 meetings. The Finance Ministers of all the States or their representative along with State and Central govt officials have participated in these extensive meetings and formulated the law and procedure to implement this historic tax reform. It was a mammoth task involving 27000+ man hours of intensive work. More than 200 meetings of the officers of the Centre and States took place in different parts of the country to expedite the implementation of GST.

While framing GST Acts and Rules, enhanced ‘Ease of doing business’ for the taxpayers was a key consideration and accordingly the roles and responsibilities of the States and Central govt have been defined. In a short span of time, the GST council has cleared GST laws, GST Rules, Tax rate structure including Compensation Cess, Classification of goods and services into different rate slabs, exemptions, thresholds, structure for tax administration, etc. All the decisions of the Council were taken with consensus. While formulating the Acts and Rules, extensive participatory consultations with trade and industry including other significant stakeholders were undertaken. Feedback was also obtained by posting draft Acts and Rules on the websites and inviting comments from the public.

On 29th March, 2017, the Hon’ble Finance Minister of India tabled four Goods and Services Tax (GST) Bills for consideration and passage in the Lok Sabha namely The Central Goods and Services Tax (CGST) Bill, 2017, The Integrated Goods and Services Tax (IGST) Bill, 2017, The Union Territories Goods and Services Tax (UTGST) Bill, 2017 and the GST (Compensation to States) Bill, 2017. They were passed by the Lok Sabha on 29th March, 2017 and by the Rajya Sabha on 6th April, 2017.

The GST Council has decided the final structure of GST as follows:

  • The threshold limit for exemption from levy of GST is Rs. 20 lakhfor the States except for the Special Category, where it is Rs 10 Lakh.
  • A four slab tax rate structure of 5%12%18%and 28% has been adopted for GST.
  • A cess would be levied on certain goods such as luxury cars, aerated drinks, pan masala and tobacco products, over and above the GST rate of 28%for payment of compensation to the states.
  • The threshold for availing the Composition scheme is Rs. 75 lakhexcept for special category States where it is Rs. 50 lakh and they are required to file quarterly returns only. Certain categories of manufacturers, service providers (except restaurants) are out of the Composition Scheme.

Other Important Features of GST : Few things to know before GST rollout. GST will be rolled out from July 1, 2017 and just before its implementation the Govt. had issued various notifications on GST:

  • There is a requirement to mention HSN code of items in tax invoice under GST. Now the Govt. has given some relief to small assessees with annual turnover uptoRs 1.5 crores. They are not required to mention HSN code in their tax invoice. Taxpayers having turnover in the range of Rs 1.5-5 crore will be required to mention only two digits of HSN code and taxpayers with turnover more than Rs 5 crore will be required to mention four digits of HSN code.
  • Now the Govt. has given exemption from reverse charge in those cases wherein the value of goods or services does not exceed Rs 5000 and such goods or services are received by registered person from the unregistered person.
  • Earlier Military canteens (‘Canteen Stores Department’)were not required to pay any indirect tax on purchase of goods. Now Military canteens will be required to pay GST at the time of purchase of goods and they would be entitled to refund of 50 percent of inputtax under GST.
  • Now e-commerce operators (like Ola, Uber) are required to pay GST on radio taxi services.
  • Now e-commerce operators (like MMT, Oyo rooms) are required to pay GST on services of hotel accommodation only when such hotels are not registered under GST.
  • Exemption from reverse charge has been given to registered person on purchase of second hand goods from unregistered person subject to the condition that buyer will pay GST on its subsequent sales.
  • Now builders would not be able to claim credit of unutilized input tax on supply of construction services.
  • Earlier UN and Foreign diplomatic missions were not required to pay any indirect taxes. Now they are required to pay GST and they will be entitled to claim a refund of GST subsequently.
  • GST will be be levied at rate of 5% on various goods used for petroleum operations subject to some conditions.
  • Any services provided by Panchayat will not be liable to GST.
  • GST envisages all transactions and processes to be done only through electronic mode, to achieve non-intrusive administration.  This will minimise tax payers physical interaction with the tax officials.
  • GST provides for the facility of auto-populated monthly returns and annual return.
  • It also facilitates the taxpayers by prescribing grant of refund within 60 days, and provisional release of 90% refund to exporters within 7 days. Further facilitation measures include interest payment if refund is not sanctioned in time, and refund to be directly credited to bank accounts.
  • Comprehensive transitional provisions for ensuring smooth transition of existing taxpayers to GST regime, credit for available stocks, etc.
  • Anti-profiteering provisions for protection of consumer rights.
  • Income tax department has said PAN that are not linked to Aadhaar by July 1 will not be cancelled, stepping in to calm the panic caused by a notification issued on wednesday. CBDT
  • The Centre is planning to integrate the direct and indirect taxation systems for all indirect taxpayers by linking the GST number with the permanent account number (PAN) issued by the income tax department, reports Shrimi Choudhary.
  • With the advent of GST today the Centre is now planning to integrate the direct and indirect taxation systems for all indirect taxpayers by linking the GST number with PAN.
  • No GST on Local supplies of second hand goods by unregistered person to registered who charges GST on further sale. Notification 10(CT) (Rate) dated 28.6.2017.
  • Other provisions include system of GST Compliance Rating, etc.

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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)