Quick Review of the latest updates of GST

Quick Review of the latest updates of GST

GST Updates:

1. Four Important conditions to be fulfilled before you can Claim Input Tax Credit  under  GST:

• • The Buyer should be in possession of Tax Invoice / Debit or Credit Note / Supplementary Invoice issued by a supplier registered under the GST Act.
  • The said goods/services have been received.
  • Returns (Form GSTR-3) have been filed.
  • The tax charged has been paid to the government by the supplier.
  • Place of Supply is very important to determine whether a transaction is an intra-state sale or an inter-state sale. And accordingly SGST, CGST & IGST will be determined.

The situation for determining Place of Supply of Goods:

• A)Where the supply involves movement of goods- Place of Supply is the Place where the movement of Goods Terminates.
• B) Where goods are delivered by the Supplier to a recipient or any other person on the direction of a third person by way of transfer of documents of title of goods – Principal place of business of third person (the place which is mentioned in the registration certificate).
• C)Where the supply involves no movement of goods-Place of Supply shall be the location of such goods at the time of the delivery to the recipient.
• D) Where goods involve Installation/assembly at the site- Place of Supply shall be the Place of such installation or assembly
• E) Where the goods are supplied on board a conveyance, such as a vessel, an aircraft, a train or a motor vehicle- Place of supply shall be the location at which such goods are taken on board. For example, Goods sold in Aircraft, Cruise, etc
• F) Where supply involves export & import of goods.- Goods Imported or exported are always Treated Inter state supply and IGST will be Charged.

Registration for GST enrolment to reopen on June 1 for 15 days as 6.05 million entities has enrolled them with the GSTN system.

• IGST to be deposited again if CGST & SGST/ UTGST paid by mistake instead of IGST but no interest to be paid. Use excess payment for relevant GST. IGST, CGST, SGST deposited cannot be adjusted against each other. Only IGST, CGST & SGST input tax credit can be adjusted in specified order.
• GST Migration for existing taxpayers has been temporarily discontinued by GSTN w.e.f. 1st May 2017.
• Credit of GST paid on inward supplies of goods and services can be claimed only within 1 year from date of relevant tax invoice.
• In the goods and services tax (GST) era, movement of goods worth more than Rs 50,000 within or outside a state will require securing an e-way bill by prior online registration of the consignment.
• GST panel works out rates for 6,000 items. Ahead of the Goods and Services Tax (GST) Council meeting in Srinagar from Thursday, the Centre and states seem arrived at the consensus of the Rates.
• Under Final GST Bill, Supplies of specified Goods & Services from Unregistered person to registered person to be taxable under Reverse Charge.
• Centre issues 8 GST Rules viz. Composition Rules, Valuation Rules, Transition Rules, ITC Rules, Revised Invoice Rules, Revised Payment Rules, Revised Refund Rules and Revised Registration Rules. Visit www.Cbec.gov.in to download.
• GST Council has decided that Education, healthcare and pilgrimages will continue to be out of service tax net even under the GST regime.
• Rules for GST Returns, Registration, Payment of GST, Invoicing & Refunds finalized.  Rules for ITC, Valuation, Transition etc. tentatively final.
• Every entity registered under the proposed GST might have to maintain separate accounts relating to each activity. This is a part of the draft GST rules on accounts and records released by the Centre.
• The government released draft norms on GST advance ruling and appeals and revision.
• GST applies on Free Supplies in the course or furtherance of business to related or distinct persons. Gifts to staff up to 50,000 pa exempt. Scheduleedule I.
• Under GST Word Family used in several places like the definition of agriculturist means spouse, children & Dependent Parents, grand-parents, brothers & sisters.
• Complete your GST Migration by the extended date of 30-4-2017. Unused Provisional IDs may be cancelled after that. Source www.gst.gov.in/enrolplan.
• GST council to debate tax on services,
• Cess applicable on CGST & IGST on vehicles, cold drinks, pan masala, tobacco, solid fuels made from coal, lignite etc& other specified supplies.
• Rajya Sabha passes all 4 GST Bills (CGST, IGST, UTGST, State Compensation Bill) without any amendments. Now the State Governments to pass respective SGST Law before GST rollout on 1st July 2017.
• Under GST SEZ Unit or Developer to take separate registration even if another unit of an entity outside SEZ already has separate registration in the same state.
• Under GST to carry forward input tax credit under existing laws and on stock, assesses to file GST TRAN-1 on www.gst.gov.in in 60 days from the appointed date.
• GST Supplier MUST maintain Stock records of raw materials, finished goods, scrap etc (including gifts, goods lost). Composition supplier exempt.
• No need for Traders dealing only in petrol, diesel & other exempt or zero-rated goods to register under GST. Register if deal in other goods also.

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