Corporate and Professional Updates on 14th January 2019

Indirect Tax Updates:

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  • Indian businesses may soon be able to amend goods and services tax (GST) return mandated for carrying forward tax credit from the previous regime for non-IT related errors as well. The GST Council has directed a committee for IT grievance Redressal to quickly draw up a solution that will give relief to industry. Thousands of crores of tax credit claimed by businesses have been denied because of errors in the filing of returns, prompting many to approach judiciary.
  • In Favour of Consumer the revenue department is planning to make it mandatory for composition dealers and service providers to declare their GST registration status in invoices to ensure that they do not charge any tax from buyers. The measure, once implemented, would check the widespread practice of composition dealers of charging GST from purchasers and not depositing it with the exchequer.
  • The Department of Revenue is also planning to launch a campaign to educate consumers that the dealers opting for composition scheme are not required to charge the goods and services tax (GST) from purchasers.
  • The GST composition scheme, traders and manufacturers are required to pay only 1per cent GST on goods which otherwise attract a higher levy of 5, 12 or 18%. Such dealers are also not permitted to charge GST from the purchaser Of the 1.17 crore businesses registered under GST, about 20 lakh have opted for composition scheme.
  • The Central Board of Indirect Taxes and Customs (CBIC), businesses will have to mandatorily mention in the invoice generated by them that they are composition dealers and, hence, are not required to charge GST. “Simultaneously, we will educate consumers that they should not pay GST while buying goods from composition scheme dealers,” the official said. To ease compliance burden for small businesses, the GST law provides for composition scheme.
  • The GST law does not provide for any appeal on issues related to TRAN1 or TRAN2 and thus many taxpayers filed writs in high court and also secured favorable orders holding the view that bona fide errors should be considered by the government. A number of taxpayers had lobbied the government and the GST Council to allow amendments.
  • Businesses looking to claim tax credit of the pre-GST period under GST could file TRAN1. The government had allowed revision of TRAN1 until December 27, 2017. Many businesses missed doing so and ended up losing large transitional credits, even for typographical errors. The GST Council had allowed a liberal scheme for claiming credit in lieu of taxes paid under the previous regime against GST liabilities. Businesses could claim credit even if they did not have proof of payment under the deemed benefit provision.
  • “Transition credits have been challenging for all businesses and the IT grievance Redressal committee should ideally be considering all issues for the entire period instead of a sunset period and clarify that all genuine errors, whether arising from the GSTN portal issues or committed by the taxpayers would be condoned unless there is mala fide intent according to MS Mani, partner, at Deloitte India.

RBI Updates:

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  • Reserve Bank of India is working towards setting a rule that would link the remuneration of bank CEOs to parameters like balance sheet size of a bank, loan delinquency, profits and governance record. The proposed framework is expected to provide a broad template to the board of directors of banks while approving increase in salary, performance bonus and stock options to the senior most executive. The regulatory guidance that exists today is a general directive on the remuneration of senior officials in broad functions like ‘business’, ‘control’ and ‘risk’.
  • RBI clears the remuneration of a bank CEO and has the powers to claw back a slice of it in case of non-performance or governance lapses. However, a framework would ensure that the board does not have to shoot in the dark while approving the package for the CEO and referring it to RBI for its clearance,” a person aware of the plan told ET.

Other Updates:

  • Fiscal deficit target for 2018-19 likely to be breached.
  • Only 22% shareholders exit IDBI Bank following open offer by LIC.
  • Govt to construct 44 strategic roads along the India-China border.
  • CII calls for agri sector tax sops in Budget 2019.
  • FICCI for cut in corporate tax rate in Budget.
  • Oil output cut: Saudis say OPEC+ move provided a lifeline to US shale.

FAQ’s INSURANCE SECTOR:

QUES. Will the requirements of Letter of Undertaking or Bond be required to be complied with in the case of Life Insurance Premium where the conditions of export of services are satisfied before or at the time of supply of the Life Insurance Service?

ANS. Yes. As per Section 16(3) of the IGST Act, 2017, read with Rule 96A of the CGST Rules, 2017, an exporter is required to submit a Letter of Undertaking or Bond in case the export of service is made without payment of integrated tax.

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.

Key Due Dates:

  • TCS return for Dec Quarter for all tax collectors is 15/01/2019.
  • E-Payment of PF for the month of December is 15/01/2019.
  • Payment of TDS for the purchase of Property for December is 30/01/2019.

Quote of the Day:

A professional who doesn’t deliver as committed is not just lazy, he is a liar.

Disclaimer:

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

GST Registration on 8th December 2018

How to do GST registration for the branches and business verticals?

  • As per the CGST Act, in union territory it is necessary to be registered under GST for those suppliers who sell taxable goods and services.
  • There is a provision made for the GST registration Rules for getting GST registration for the branches.

GST Registration for Business vertical and Branches in the Different States:

  • The GST registration is mandatory in each state and union territory for the person who sells the taxable goods and services where the taxable goods and services are created.
  • For Example: If a cloth shop is open in the state of Haryana and Chennai then it is necessary to get registration no. in the state of Haryana and Chennai.

GSTIN Format:

  • In GSTIN No., the First 2 numbers in the GST registration number are connected to the state of registration. If the Business is running in any two states, then the 1st two number of the GSTIN would change, and the PAN would remain same in case more than 1 GST registration in a state then the firm code would also change
  • In the GSTIN format, the first 2 numbers in the GST registration number are connected to the state of the registration. Hence, If the business leverage in the 2 different states, then the 1st two numbers of the GSTIN would change, while the PAN of the organization would be the remain the same. Also, in the case of the more than 1 GST registrations in the state, then the firm code would also change.

GST Registration for Branches within a State:

In same state separate GST can also be obtained for the business having multiple business verticals. For the Different GST within a state following condition must be satisfied:

  • Have more than one business vertical. Business vertical means a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services which are subject to risks and returns that are different from those of the other business verticals.
  • The business must not be registered to pay tax under the GST Composition Scheme.
  • All separately registered business verticals have to pay tax on supply of goods or services to another registered business vertical of the same business and have to issue a tax invoice for such supply.

Getting Registration for the Branches:

  • GST registration for the branches or different business verticals in the same state can be obtained in FORM GST REG- 01. The GST registration Is applied in the Form GST REG-01 by all the Business.
  • When the application for the GST registration submitted then it will send to an officer for the verification and it takes 7 days to finish the process and generate the GST certification. It is must show the principal place of the additional place.

Disclaimer:

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

DON’T WORRY, CONTACT US FOR TOTAL GST RETURN SOLUTION

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Not able to file your GST Return – Don’t worry, contact us for total GST Return solution- file your GSTR-1 now with a per day penalty of Rs 50/-.

GST RETURNS

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

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

If you have not been able file GSTR-1 for some problem or other please contact us for immediate solution. You can file your GSTR-1 now with a per day penalty of Rs 50/-.Our panel of Technical expert are able to resolve all the error in your return.

Due date for GSTR-1 for turnover uptoRs 1.5 cr

Period (Quarterly)Due dates

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

Due date for GSTR-1 for more than Rs 1.5 cr

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

GSTR-2  and GSTR-3 . GSTR-2 and  GSTR-3 have been putt off till Mach 2018 . GSTR-6 which is required to be filed monthly by ISD (Input Service Distributes) is open now the govtportal . Last date for GSTR-6 for July is also 31st December.

Others GSTR filing extensions

Return Revised Due Date Old Due Date
GSTR-5 (for Non Resident) 31st Jan 2018 11th Dec 2017
GSTR-5A(By person supplying OIDAR) 31st Jan 2018 15th Dec 2017
GSTR-4 (for Composition Dealers) 24th Dec 2017 18th October 2017
GSTR-6 (for Input Service Distributor) 31st Dec 2017 13th August 2017

All taxpayers would file return in FORM GSTR-3B along with payment of tax by 20th of the succeeding month till March, 2018.

Details of inputs or capital goods sent and received back from the job worker need to be furnished by the taxpayers on a quarterly basis in Form GST ITC-04. For preparing and uploading of this statement, an excel offline tool has been made available on GST Portal. GST Council Recommends Extension ST ITC-04 (Details of goods/ capital goods sent to job worker and received back) for the quarter July 2017 to Sept. 2017 Unto 31 Dec. 2017. 

GSTR-3B Return

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

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

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

 Reduction of GST Return Penalty

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

GST on Advances Received

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

E-Way Bill

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

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

GST REGISTRATION

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

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

 GST COMPOSITION SCHEME

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

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

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

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

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

Reverse Charge Mechanism

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

TDS and TCS Provisions Postponed

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

Email us on info@carajput.com or vist on www.carajput.comfor guaranteed GSTR filing solution. List of services we offer and charges involved in it.
1. Return filing assistance for Return GSTR 3B – Rs. 3000/- for monthly.

2. Return filing assistance including invoice upload from xls up to 200 inv /month
(a) Rs. 5000/- (3 monthly pack)
(b) Rs. 18000/- (Annual Pack)
(c) Rs. 3000/- (Monthly Pack)
3. Return filing assistance including invoice upload from xls from 201 to 500 inv /month
(a) Rs. 8000/- (3 Monthly Pack)
(b) Rs. 25,000/- (Annual Pack)
(c) Rs. 5000/- (Monthly Pack)

 

4. Return filing assistance including invoice upload from xls from 501 + per month –
(a) Rs. 30,000/- (3 Monthly Pack)
(b) Rs. 50,000/- (Annual Pack)
(c) Rs. 10,000/- (Monthly Pack)

5.GSTR 4 – Rs15000/- (Yearly pack)
6.GSTR 6 – Rs. 15000/- (Yearly pack)
7.ITC-04 – Rs. 15000/- (Yearly pack)
8. One-time assistance- Rs.5,000/-

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.

 

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

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

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GST RETURNS

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

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

EXTENSION OF GSTR-1 FILING DUE DATES

For Assessees with aggregate turnover up to 1.5 crores

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

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

For assessees with aggregate turnover exceeding 1.5 crores

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

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

OTHER GSTR FILLING EXTENSIONS

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

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

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

31-December-2017       GSTR-3B Return

GSTR-3B Return

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

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

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

Reduction of GST Return Penalty

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

GST on Advances Received

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

E-Way Bill

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

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

GST REGISTRATION

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

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

GST COMPOSITION SCHEME

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

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

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

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

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

Reverse Charge Mechanism

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

TDS and TCS Provisions Postponed

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

Disclaimer:

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