Corporate and Professional Updates on 15th Jan. 2019
Indirect Updates:
- The GST council Has Announced allowing the composition schemes to file one annual return with a simple explanation, while earlier 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 preventing 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.
- The Inflation Rate of Retail declined to an 18-month low of 2.19 percent. The wholesale inflation rate also came down to 3.8 percent, the lowest in eight months. Falling fuel and food prices caused inflation to fall, according to the data. Inflation at an 18-month low, gives RBI room to ease monetary policy The core retail inflation rate touched a nine-month low of 5.6 percent
- As per the Advance Estimates, gross domestic product (GDP) growth for 2018-19 or FY19 was pegged at 7.2 percent. This is lower than the RBI’s projection of 7.4 percent and the finance ministry’s estimate of 7.5 percent growth.
- In the monetary policy statement, the RBI had forecast the retail inflation rate to be between 2.7 percent and 3.2 percent in the second half of FY19. The consumer food price index contracted 2.51 percent in December; in November, it had contracted 2.61 percent. 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 percent in December; the latter was 16.14 percent. 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 percent in December from 7.39 percent in November. We are expecting further moderation in inflation in the coming months.
Other Updates:
- December retail inflation at an 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 the 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.
Faqs 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:
- The 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 Deductor for December Quater is 30th January 2019.
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Rajput Jain & AssociatesRajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders.
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