Quick Review of the latest updates of Goods and Services Tax:

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GST Updates:

  1. Four Important ConditionsTo 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 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 a intra-state sale or inter-state sale. And accordingly SGST, CGST & IGST will be determined.

Situation for determining Place of Supply of Goods:

A)Where the supply involves movement of goods- Place of Supply is the Place where 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 personby 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 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 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.

Government released draft norms on GST advance ruling and appeals and revision.

GST applies on Free Supplies in course or furtherance of business to related or distinct persons. Gifts to staff upto 50,000 pa exempt. Scheduleedule I.

Under GST Word Family used in several places like definition of agriculturist means spouse, children & Dependent Parents, grand-parents, brothers & sisters.

Complete your GST Migration by 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 roll out on 1st July, 2017.

Under GST SEZ Unit or Developer to take separate registration even if another unit of entity outside SEZ already has separate registration in 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 appointed date.

Under 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.

Under GST every registered person to keep in physical /electronic form, books of account at Principal & EVERY related place of business mentioned in his RC.

Under GST The Word Family used at several places such as definition of agriculturist means spouse, children, Dependent Parents, grand-parents, brothers & sisters.


Query:  Whether a person suo moto can apply for revocation of cancellation of registration whose registration has been cancelled by the proper officer and what is the time limit for submitting such application?

Answer Yes, a person whose registration has been cancelled by the proper officer suo moto can apply for revocation and such application has to be submitted within thirty days from the date of service of cancellation order.

Query: So far as registration is concerned, what could be the liabilities on transfer of business?

Answer:  The transferee or the successor shall be liable to be registered with effect from such transfer or succession and he will have to obtain a fresh registration with effect from such date. (Scheduleedule III of MGL).

Query: What will be the time of supply when invoice is not issued and date of payment or date of completion of provision of service are also not ascertainable ?

Answer:  The time of supply shall be the date on which the recipient shows the receipt of services in his books of accounts.

Query: Kindly clarify – Whether the Department through the proper officer, can suo-moto proceed with registration of a Person under GST Act?

Answer: Yes. In terms of sub-section (5) of Section 19, where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action that is, or may be taken under the MGL, or under any other law for the time being in force, proceed to register such person.

Query: Kindly clarify whether registration is  compulsory for the Govt. organization?

Answer A unique identification number (ID) would be given by the respective state tax authorities through GST portal to Government authorities / PSUs not making outwards supplies of GST goods (and thus not liable to obtain GST registration) but are making inter-state purchases.

Query: Kindly clarify the classification of goods and services under GST regime?

Answer:  HSN (Harmonised System of Nomenclature) code shall be used for classifying the goods under the GST regime. Taxpayers whose turnover is above Rs. 1.5 crores but below Rs. 5 crores shall use 2 digit code and the taxpayers whose turnover is Rs. 5 crores and above shall use 4 digit code. Taxpayers whose turnover is below Rs. 1.5 crores are not required to mention HSN Code in their invoices. Services will be classified as per the Services Accounting Code (SAC)

Query:  Whether summary assessment order to be necessarily passed against the taxable person?

Answer: No. In certain cases like when goods are under transportation or are stored in a warehouse, and the taxable person in respect of such goods cannot be 131 ascertained, the person in charge of such goods shall be deemed to be the taxable person and will be assessed to tax.

Query: In case of e-commerce operator, is it mandatory for him to obtain registration under GST?

Answer:   Yes. Section 19 r/w Schedule-III of the MGL, provides that the threshold exemption is not available to e-commerce operators and they would be liable to be registered irrespective of the value of supply made by them.

Query: Kindly clarify the treatment of transactions of supply of goods for use but without transfer of title in such goods?

Answer:  The transactions of supply of goods for use without transfer of title in such goods to recipient will be considered a transaction of supply of services as provided in Schedule II of Model GST Law.

Query: Kindly clarify the applicability of valuation rules of GST.

Answer:  Valuation Rules of GST are applicable when

(i)            Consideration not in money terms;

(ii)          parties are related or supply by any specified category of supplier;                                      and

(iii)         transaction value declared is not reliable.

Query: Who will adjudicate the cases and pass orders under GST Regime?

Answer: The duly appointed adjudicating authorities shall adjudicate the matters other than appeals in the GST Regime. As per sec. 2(4), ‘adjudicating authority’ means any authority competent to pass any order or decision under this act, but does not include the Board, the First Appellate Authority and the Appellate Tribunal. Thus, adjudicating authority would exclude the Board itself (CBEC or CBIT) and appellate authorities viz first appellate authority and appellate tribunal.

Query: What would be the treatment for supply of goods by unincorporated associations to its members under GST Regime?

Answer:  Supply of goods by unincorporated associations to its members have been considered as supply of goods. Clause 6 of Scheduleedule II of model GST Law provides that supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration shall be treated as supply of goods.

Query: Does the threshold exemption limit will be applicable to a taxable person required to pay GST under reverse charge basis?

Answer:  Any taxable person, who has an obligation to pay tax on reverse charge basis, will not get the benefit of INR 20 lakhs (general) or 10 lakhs (for north-east states) threshold limit. Thus, the reverse charge liability will start from the very first transaction, irrespective of its amount, on which tax liability is to be paid on reverse charge basis.

Query: Under GST Regime, whether unregistered person would also be included under taxable persons?

Answer As per sec 9(1) of the model GST Law, a taxable person means person:

  1. Who carries on any business in any place in India and who is registered under GST Law, or
  2. Who carries on any business in any place in India and who is required to be registered under Schedule III of the Act.

Therefore, an unregistered person would be considered as taxable person.

Query: How to deal with transactions involving transfer of the right to use goods under GST Regime?

Answer:  The transactions of transfer of goods which were being taxed as a sale transaction under the state VAT law will be considered as transaction of supply of services as provided in clause 5(g) of the schedule II of Model GST Law.

Query: Whether GST will be payable on goods which are removed for purpose other than supply?

Answer:  Goods are said to be removed when they are given to transporter for taking those goods to recipient or when goods are collected by recipient personally or through an agent. Any other movement of goods will not be considered removal for the purpose of GST.

Query: Kindly clarify the treatment of work contract including transfer of property in goods for the purpose of GST.

Answer:  According to schedule – II to the Model GST law, works contract including transfer of property in goods (whether as goods or in some other form), involved in the execution of a works contract, shall be treated as supply of service.

Major Role: Secretarial, Legal Compliances and FEMA Compliances, Banking related documentation, etc. The work done is categorized below:

Secretarial & legal compliances:

Filing of replies for notices of strike off of Companies · Advisory services to Corporates- Legal opinions · Incorporation of Companies as per Companies Act, 2013

Preparation of Directors’ Report, Management Discussion and Analysis, Corporate Governance Report, · Convening of Board Meetings and EGM of Private and Public Limited Companies · Preparation of various e – Forms CHG-1, CHG-4, INC 7, INC 1, INC 22, INC 24, MR1, GNL 2, DIR 12 and addendum forms & Annual returns filing of the Private and Public Limited Companies. · Filing of MGT-14 for various purposes.

Handling XBRL and non XBRL Annual Filings, E-forms and Secretarial Compliances with MCA portal · Prepare Minutes of Board Meetings, Annual General Meetings & Extra-Ordinary General Meetings. · Drafting of various documents, e.g. Notice, Resolutions, Board Report, Minutes, etc. · Work relating to increase in authorized capital, alteration in MOA, change of name, change of registered office. · Apply & obtaining of DIN & DSC of class 2 and class 3.

Maintaining the statutory register & records under Companies, Act 2013

Liasoning & dealing with Registrar of Companies, Revenue Department, DGFT etc. · Preparation of share certificates & payment of stamp duty online on allotment of shares of the Company. · Inspection of Company document by paying requisite fees in MCA -21.

Allotment of Shares through Preferential cum Private Placement Basis and Right Issue.

Preparation of various Board resolutions & authorization letters for various purposes like execution of MOU, lease deed, sale deed, registration in sales tax, service tax, VAT, obtaining license from PESO and various other industries

Vetting of various agreements like Lease Agreements, Takeover agreement, Shareholder agreement, etc. · Formation & winding up of LLPs

Compliance in relation to appointment and remuneration of KMP in accordance with Companies Act, 2013. · Issue of Debentures · E-voting

FEMA, DGFT & other related Compliances:

Online Reporting of FDI to RBI through AD banker in ARF form. · Filing of online FCGPR with RBI · Filing of Foreign Liabilities & Assets return (FLA) with RBI · Compliances related to Downstream Investment · Application and online modification of IEC with DGFT, also done some compliances related to the application of EPCG license. · Liasoning with various Banks for the documents like KYC, UIN, FCGPR registration no. & other acknowledgements related to FDI.

Application of Registration Cum Membership Certificate (RCMC) from Federation of Indian Export Organization (FIEO). · Liasoning with NIC. · Registration of Trust under FCRA (Foreign Contribution Regulation Act) · Registration of Societies and Trusts.

Banking, Demat, Pledge & other Compliances:

Preparing Due Diligence Report of the Company · Preparing Search Report of the Company · Vetting of the availing of term loan and working capital limits documents with various Banks. · Opening of Bank accounts · Preparation of Corporate Action Information Forms for the demat of shares · Opening of Demat Account of Individuals & Companies. · Pledging of shares with the Bank. · Liasoning with Depository, Depository Participant & RTA in relation to the demat of shares. · Entering into agreement with Depository for opening of demat account of Companies. · Application of PAN & TAN of Companies

Application of Trademarks, Copyrights and other Intellectual Properties: Application of trademarks, copyrights, patents, designs, logos and filing their replies.

Attending hearing We provide services to CA firms, Corporates, individuals into their own business for ROC and other related work. We look forward to the opportunity to work with you in the near future.

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