Basis Concept on Applicability of E-Way Bill

Basis Concept on Applicability of E-Way Bill

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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.

 

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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

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)

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

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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 

 

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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)

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

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# 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”.

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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)

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

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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 ...

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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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www.carajput.com; Value of Supply

What is the Value of Supply?

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

Example: A goes to a shop of B and purchases a 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 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 15th January 2019

Indirect Updates:

Related image

  • The GST council Has Announced allowing the composition schemes to file one annual return with a simple explanation, while earlierb they have to file the return quarterly is a relief for many small and medium-sized enterprises. The payment of taxes still needs to be done on a quarterly basis. As per the analysts it will take some pressure off from the SMEs working Capital cycles.
  • Compliance and relaxation in GST applicability by the GST Council in terms of the return filing process could provide some relief for SMEs. Reserve Bank of India’s one-time restructuring scheme for MSME loans could provide some breather to SMEs in terms of easing a part of their working capital requirements, having continuity in maintaining credit lines and thereby prevent defaults to banks.
  • Increased tax compliance led to a spike in the working capital requirements of SMEs post-GST implementation in 2017. Technology glitches while filing monthly returns led to delayed tax refunds. These factors weighed on the credit profiles of SMEs.

RBI Updates:

Image result for hd pics on RBI

  • The Inflation Rate of Retail declined to an 18-month low of 2.19 per cent. The wholesale inflation rate also came down to 3.8 per cent, the lowest in eight months. Falling fuel and food prices caused inflation to fall, according to the data. Inflation at 18-month low, gives RBI room to ease monetary policy The core retail inflation rate touched a nine-month low of 5.6 per cent
  • As per the Advance Estimates, gross domestic product (GDP) growth for 2018-19 or FY19 was pegged at 7.2 per cent. This is lower than the RBI’s projection of 7.4 per cent and the finance ministry’s estimate of 7.5 per cent growth.
  • In the monetary policy statement, the RBI had forecast the retail inflation rate to be between 2.7 per cent and 3.2 per cent in the second half of FY19. The consumer food price index contracted 2.51 per cent in December; in November, it had contracted 2.61 per cent. Food prices were dragged down by a decline in prices of pulses and vegetables, sugar and eggs. The pulses and products index has been contracting since December 2016, while vegetables have been contracting since July 2018.
  • The former contracted 7.13 per cent in December; the latter 16.14 per cent. At the aggregate level, the consumer food and beverages index has now contracted for three straight months. Softer global crude oil prices also dragged down the fuel and light inflation rate to 4.5 per cent in December from 7.39 per cent in November. We are expecting further moderation in inflation in the coming months.

Other Updates:

  • December retail inflation at 18-month low of 2.19%.
  • FinMin wants PSU banks to reduce govt equity to 52%.
  • REITs may generate 14% return annually to investors.
  • may fall short of Rs 2.45-trn non-tax revenue target despite RBI funds.
  • Listed realty developers saddled with unsold properties worth Rs 1 trillion.
  • Crude steel output falls 1.4% to 8.936 mt in Dec.
  • Storage norms in e-commerce policy: Govt asks e-retailers to store payments data within India.
  • Only 12-13% of workforce under pension covers: Hemant G Contractor, As per PFRDA chairman.

FAQ’s On GST:

QUES.  When service tax was paid on or before 30th June, 2017 for the services to be provided, but subsequently not provided, whether refund claim can be made under Section 142(5) of the CGST Act?

ANS. Section 142(5) of the CGST Act, 2017 specifically provides for refund of tax paid under the Finance Act, 1994 in respect of services not provided. The same shall be disposed off in accordance with the provisions of the Chapter V of the Finance Act, 1994.

QUES. Can the input tax credit of Krishi Kalyan Cess be carried forward?

ANS. No. It is not permitted in terms of section 140(1) of the CGST Act, 2017 read with Rule 117(1) of the CGST Rules, 2017.

KEY Due Dates:

  • Due date of GSTR 3B for the month of December 2018 is 20th January 2019.
  • Payment of ESI of December is 15th January 2019.
  • TDS Return By all the Deducter for December Quater is 30th January 2019.

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 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.”

We look forward for your valuable comment www.carajput.com

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com   E: info@carajput.com T: 011-233-4-3333, 9-555-555-480

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 UPDATE May 26, 2017

PROFESSIONAL UPDATE FOR THE DAY

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Direct Tax:

Bogus purchases: In view of the Supreme Court’s order in Vijay Proteins Ltd vs. CIT whereby the verdicts of the Gujarat High Court in Sanjay Oilcake Industries vs. CIT 316 ITR 274 (Guj) and N.K. Industries Ltd vs. Dy. CIT were confirmed, the AO has to accept the law and verify whether the transaction is genuine or not on the basis of the aforesaid three judgments CIT vs. M/s Carpet Mahal (Rajasthan High Court)

ITAT Kolkata held that in absence of fresh material indicating escaped income, the AO cannot assume jurisdiction to reopen already concluded assessment. A.C.I.T., Circle-2(1) Vs M/s. BNK E Solution Pvt. Ltd. (ITAT Kolkata)

 Indirect Tax:

SC dismisses assessee’s SLP, thereby upholds levy of service tax on commission received by automobile dealer from Maruti Finance, a unit of Maruti Udyog Ltd. (Maruti) under ‘business auxiliary service’ (BAS) u/s 65(105) of Finance Act, 1994; HC had earlier dismissed assessee’s writ petition rejecting his plea that, since Maruti had already deposited service tax amount, hence, it (i.e. assessee) cannot be asked to satisfy outstanding demand as same would amount to ‘double taxation’  [TS-127-SC-2017-ST]

FAQ on GST

Query:  What is the time limit for issuance of invoice in case of supply of service stopped before completion of the service?

Answer: In situation when supply of service cease under a contract before completion of supply. The invoice would be issued to the extent of supply which has been made before such cessation.

Other Updates

Central Government directed Income-tax authorities under section 116 of the Income-tax Act, 1961, having headquarters at the places specified, to exercise the powers and perform the functions of the ‘Authority’ under the Prohibition of Benami Property Transactions Act, 1988.

Under GST Casual taxable person or Non-resident taxable person cannot opt for Composition scheme under GST. (Rule 3(1) (a) of Composition Rules).

GST Council may reconsider the proposed 43 per cent tax on hybrid cars at its meeting next week after the auto industry voiced disappointment over the steep rate hike.

RBI issued Regulatory requirements for issue of Pre-paid Payment Instruments by Co-operative Banks which have installed ATMs and issued ATM cum Debit cards to introduce semi-closed Prepaid Payment Instruments (PPIs) for payment of utility bills / essential services up to a limit of Rs.10, 000.

Union Cabinet scrapped the 25-year-old Foreign Investment Promotion Board (FIPB), which has been overseeing foreign direct investment (FDI) proposals requiring government approval.ICAI issued Important Clarification on Amendment to Paragraph 17 of Revised Guidance Note on Audit of Consolidated Financial Statements.

LIVE Webcast on SFT in Form 61A under Rule 114E on 26.5.17 from 3-5 PM addressed by DIT (I&CI) -organized by DTC, ICAI. Visit www.icai.org

Key dates:

Advance Information for 1st fortnight of June functions with booking cost > Rs. 1 lakh in Banquet Halls, hotels etc. in DVAT: 27/05/2017

Issue of TCS Certificates by collectors for quarter ended March: 30/05/2017

Issue of TDS certificate to employee:31/05/2017

TDS returns for march quarter by ALL deductors:31/05/2017

Quote of the Day:

“Remember your yesterdays, dream your tomorrows and live your todays..”

” The biggest challenge in life is being yourself… In a world trying to make you like everyone else.”.”

We look forward for your valuable comment www.carajput.com

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com    E: info@carajput.com   T: 011-233-4-3333, 9-555-555-480

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.

The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, Etc for resolving their doubts or for clarifications.

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 UPDATE May 25, 2017

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Direct Tax:

ITAT Delhi held that Medical illness and that to be in the nature of the typhoid fever and UTI is definitely reasonable cause for non- appearing on the date and therefore, no penalty should be levied u/s 271(1)(b) in such circumstances as the same is covered under exception of ‘reasonable cause’ as enshrined in section 273B. Sangeeta Sawhney Vs. ACIT (ITAT Delhi)

Delhi High Court held that Addition is justified for Voluntarily admitted tax liability retracted after 2 years PR. CIT (C)-2 Vs Avinash Kumar Setai (Delhi High Court)

 Indirect Tax:

  • High court held that Section 35L is being amended so as to clarify that determination of disputes relating to tax ability or excisability of goods is covered under the term ‘determination of any question having a relation to rate of duty’ and hence, appeal against Tribunal orders in such matters would lie before the Supreme Court. Commissioner Service Tax Vs DLF Golf Resorts Ltd. (Punjab & Haryana High Court)
  • MCA has revised the versions of e Forms – Form DIR-3C and Form RD – 1 (Applications made to Regional Director) are being revised w.e.f. 11th May, 2017.

Key dates:

Advance Information for 1st fortnight of June functions with booking cost > Rs. 1 lakh in Banquet Halls, hotels etc. in DVAT: 27/05/2017

Issue of TCS Certificates by collectors for quarter ended March: 30/05/2017

 Other Updates:

Takeaways of Final GST Rules passed by GST Council:

 

In its 14th meeting in Srinagar on 18th and 19th May,2017 the all-powerful GST council cleared seven rules pertaining to different aspects of GST. These rules relate to Registration, Input Tax Credit, Payment, Refund, Invoice, Valuation and Composition and have paved the way for the rollout of GST from July 1, 2017. The key highlights of these final GST Rules are as follows:

Registration:

1)  PAN is mandatory for taking registration under GST. PAN will be validated by CBDT. After successful validation, registration will be granted.

2)  If a person has a SEZ unit, then he is required to make separate registration application for that unit. Similarly, a separate application of registration is required for becoming Input Service Distributor.

3)  A non- resident seeking registration under Non-Resident Taxable Person has to appoint an authorized signatory who will sign the application of registration. That person must be resident of India having a valid PAN.

4)  A person registered under GST is required to display his certificate of registration at a prominent location at his principal place of business and GST Number on the name board at entry of his principal place of business.

5)  Physical verification of place of business will not be conducted to grant registration under GST. But officer can do physical verification after granting of registration, if he is satisfied that it is necessary to do the same. He must upload verification report on GST Portal within 15 working days after verification.

Invoice:

6)  Tax invoice in case of supply of taxable services must be issued within 30 days of date of supply of services. However, time limit for banking company, insurance company or financial institutions is 45 days.

7)  The invoice shall be in triplicate for Supply of Goods and in duplicate for Supply of Services.

8)   The serial number of invoices issued will be furnished electronically on GST Portal.

9)  On receiving advance, Receipt Voucher will be issued. If rate is not determinable, tax is to be paid at 18%. If nature of supply is not determinable, it will be treated as Inter-State Supply.

10)  If reverse charge is applicable, the recipient will issue Payment Voucher.

Payment:

11)  Electronic Liability Register shall be maintained for each person liable to pay tax on the GST Portal.

12)  Electronic Credit Ledger and Electronic Cash Ledger shall also be maintained on the GST Portal for the person eligible for input tax credit and for person liable to pay tax respectively.

13)  Tax will be paid only through internet banking, RTGS, NEFT or Debit and Credit Cards. However, over the counter payment is allowed through authorized banks for the amount up to Rs.10,000 per challan per tax period.

Refund:

14)  A separate formula is prescribed for Maximum Refund in case of inverted duty structure, i.e., GST rate is higher on Inputs than on Output Supply.

15)  Refund application shall be filed electronically on GST Portal.

16)  The grant of provisional refund shall be made if person clamming refund has not been prosecuted during any period of 5 years preceding the tax period for which refund is claimed. However, the following 2 condition mentioned in Draft Refund rules have been deleted:

a)     The assessee should have a GST compliance rating of not less than

b)     The assessee should not have any pending proceeding or appeal on any issue.

17  17)   If Commissioner wants to withhold refund, order must be issued along with reasons of withholding refund.

Valuation:

18)  The value of supply made by principal to its agent or made to any related person shall be 90% of price charged for the supply of like kind and quality to unrelated person.

19)  The value of a token, coupon or a voucher shall be equal to the money value of goods redeemable against such token or voucher or coupon.

20)  The expense incurred by a supplier as a pure agent will not form value of supply and shall be excluded. The supplier will be treated as pure agent on complying with following three conditions:

a)     He makes payment to third party on authorization by such recipient.

b)     The payment made by pure agent on behalf of recipient has been shown separately on invoice.

c)     The supplies procured from third party by pure agent on behalf of recipient are in addition to services he supplies on his own account.

Earlier, in draft rules, 8 conditions were prescribed. Now, only these three conditions have to be fulfilled.

Input Tax Credit:

21)  The person eligible to take credit in respect of input of goods held in stock after registration is required to file a declaration on GST Portal that he is eligible for input tax credit within 30 days.

22)  ITC would not be available to registered person if tax has been paid by supplier after issuing demand order on account of fraud, wilful misstatement or suppression of facts.

23)  The time limit to claim input tax credit is not applicable to re-claim credit reversed earlier due to non-payment of consideration to supplier.

Composition:

24)  Following persons will not be eligible for composition scheme:

a)     Casual taxable person or non-resident taxable person

b)     Person having goods in stock which were purchased in course of inter-State trade or from unregistered person

25)  Rates of Taxes for Composition Levy

a)     Manufacturers, other than manufacturers of such goods as may be notified by the Government – at 1%

b)     Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II – at 2%

c)     Any other supplier – at 0.5%

Quote of the Day:

“Take rest; a field that has rested gives a bountiful crop.”

We look forward for your valuable comment www.carajput.com

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com    E: info@carajput.com   T: 011-233-4-3333, 9-555-555-480

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)