GST INDIA NEWS – UPDATES – GSTSEVA https://www.gstseva.com A goods and service tax news updates and blog website GST India Sat, 08 Dec 2018 15:20:08 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.8 https://www.gstseva.com/wp-content/uploads/2017/07/gst-150x150.png GST INDIA NEWS – UPDATES – GSTSEVA https://www.gstseva.com 32 32 GST on real estate : an Important press release for home/flat buyers https://www.gstseva.com/gst-on-real-estate-an-important-press-release-for-home-flat-buyers Sat, 08 Dec 2018 15:12:58 +0000 https://www.gstseva.com/?p=9646 New Delhi: 8 December 2018 Ministry of Finance issued a press release to clarify the tax rate impact on Pre-GST and Post-GST property. 

The press release focusing on two issues:-

  1. comparing the tax rates between pre and post GST
  2. Applicability of tax in contrast where sale of constructed building take place with or without obtaining Completion Certificate

Below are details summarized by us and also the copy of press release  

 

Type of transactions                                      Effective RATE OF TAX

in GST
Effective tax  rate   
pre-GST i.e old regime 
OUR REMARKS                                                
Under Construction Building
                 Affordable Government Schemes                                                         
                 Other Than Affordable schemes               


8%



12%
15-18%Previously no
input credit i.e
ITC was 
available 

Apart from 1/3rd
rebate on
GST rate, builder must pass ITC
benefit
ON READY-TO-MOVE FLATS       Completion Certificate issued      NILNILGST NOT
applicable 

ON READY-TO-MOVE FLATS        
Completion Certificate
not-issued                                                 
8% and 12%15-18%Same as under
construction
property

Effective tax rate on complex, building, flat etc.

New Delhi: 8 December 2018, PIB news
 

It is brought to the notice of buyers of constructed property that there is no GST on sale of complex/ building and ready to move-in flats where sale takes place after issue of completion certificate by the competent authority. GST is applicable on sale of under construction property or ready to move-in flats where completion certificate has not been issued at the time of sale.

   Effective rate of tax and credit available to the builders for payment of tax are summarized in the table for pre-GST and GST regime.

Period

Output Tax Rate

Input Tax Credit details

Effective Rate of Tax

Pre- GST

Service Tax: 4.5%

VAT: 1% to 5%

(composition scheme)

Central Excise on most of the construction materials: 12.5%

VAT: 12.5 to 14.5%

Entry Tax: Yes

No input tax credit (ITC) of VAT and Central Excise duty paid on inputs was available to the builder for payment of output tax, hence it got embedded in the value of properties. Considering that goods constitute approximately 45% of the value, embedded ITC was approximately 10- 12%.

Effective pre-GST tax incidence: 15- 18%

GST

Affordable housing segment: 8%,

 

Other segment: 12% after 1/3rd abatement of value of land

Major construction materials, capital goods and input services used for construction of flats, houses, etc. attract GST of 18% or more.

ITC available and weighted average of ITC incidence is approximately 8 to10%.

Effective GST incidence,

for affordable segment and for other segment has not increased as compared to pre- GST regime.

 

Housing projects in the affordable segment such as Jawaharlal Nehru National Urban Renewal Mission, Rajiv Awas Yojana, Pradhan Mantri Awas Yojana or any other housing scheme of State Government etc., attract GST of 8%. For such projects, after offsetting input tax credit, the builder or developer in most cases will not be required to pay GST in cash as the builder would have enough ITC in his books of account to pay the output GST.

  For projects other than affordable segment, it is expected that the cost of the complex/ buildings/ flats would not have gone up due to implementation of GST. Builders are also required to pass on the benefits of lower tax burden to the buyers of property by way of reduced prices/ installments, where effective tax rate has been down.

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GST And other Indirect Tax Latest Updates-November 2018 https://www.gstseva.com/gst-and-other-indirect-tax-latest-updates-november-2018 Mon, 03 Dec 2018 15:42:05 +0000 https://www.gstseva.com/?p=9523 Indirect Taxes Updates

GST, Customs, Excise, Service Tax & VAT

Month November2018

CMA RAKESH BHALLA
By CMA Rakesh Bhalla
Past chairman NIRC of ICAI (CMA)
nancybhalla@yahoo.com

GST UPDATES

CBIC extended due date for filing Form GSTR-7 till 31stJanuary 2019

CBIC has extended time limit for furnishing return by a registered person required to deduct tax at source under provisions of section 51 of said Act in FORM GSTR – 7 of Central Goods and Services Tax Rules, 2017 under sub -section (3) of section 39 of the said Act read with rule 66 of the Central Goods and Services Tax Rules, 2017 for the months of October, 2018 to December, 2018 till the 31st day of January, 2019. (Refer Notification No. 66/2018 –Central Tax dated 29.11.2018)


TDS provisions under GST –Exemption to supplies from one PSU to another PSU: 

Provisions relating to Tax Deduction as Source (TDS) would not be applicable in respect of supply of goods or services or both from a public sector undertaking to another public sector undertaking. This exemption as provided through Notification No. 50/2018-Central Tax has been extended to such supplies with effect from 1-10-2018, the date when TDS provisions came into effect in the GST regime. (Refer Notification No. 61/2018-Central Tax, dated 05-11-2018)


CGST Rules –New Rule notified for recovery of dues under existing’ laws: 

New Rule 142A has been inserted in CGST Rules, 2017 for recovery of dues under ‘existing’ laws (i.e., central excise, service tax, VAT, etc.). Accordingly, a summary of order issued under any existing law creating demand of tax, interest, penalty or any other dues will be uploaded in FORM GST DRC-07A on the common portal. Demand will be posted in Part II of Electronic Liability Register in FORM GST PMT-01. FORM GST DRC-07A and FORM GST DRC-08A have also been notified for this purpose. Further, new Rule 83A has been inserted relating to examination of GST Practitioners. (Refer Notification No. 60/2018-Central Tax, dated 30-10-2018)


Job work -Form GST ITC-04 can be filed till 31-12-2018: 

Declaration in FORM GST ITC-04, in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another, during Jul 2017 to September, 2018 can now be furnished till 31st day of Dec.,2018. (Refer Notification No. 59/2018-Central Tax, dated 26-10-2018


Valuation–Interest on loan/credit by Del-credere agent when includible: 

CBIC has clarified that when del-credere agent (DCA) is not an agent of supplier, temporary short-term transaction-based loan provided by DCA to buyer is an independent supply of service by DCA to recipient on principal to principal basis and will not form part of value of supply of goods. Credit by DCA to recipient is not a separate supply, if DCA acts as an agent for principal. In such cases, value of interest charged for such credit is includible in value of supply of goods by DCA to recipient. Reiterating earlier Circular No. 57/31/2018-GST, dated 4-9-2018, it notes that where the invoice for supply of goods is issued by the DCA in his own name, the DCA would fall under ambit of agent. (Refer Circular No. 73/47/2018-GST, dated 5-11-2018)


Return of goods –Procedure to be followed:

CBIC has listed various procedures which may be followed by manufacturer, wholesaler/retailer for return of time expired goods.,return of such goods can be treated either as fresh supply and consequent issue of tax invoice, or by issue of credit note. In fresh supply, manufacturer destroying returned expired goods will be liable to reverse ITC availed on return supply, if any. Tax liability can only be adjusted in case of credit note, if same has been issued within limit specified under Section 34(2) of CGST Act. (Refer Circular No. 72/46/2018-GST, dated 26-10-2018)


Tea Board required to collect TCS from tea producers and auctioneers:

Tea Board of India is required to collect TCS from sellers (i.e. tea producers) on the net value of supply of goods i.e. tea; and from auctioneers of the tea on the net value of supply of Services (i.e. brokerage). Tea Board being the operator of the electronic auction system for trading of tea across the country including for collection and settlement of payments, falls under the category of electronic commerce operator liable to collect tax at source (TCS) under GST law.(Refer Circular No. 74/48/2018-GST, dated 5-11-2018).


Cancellation of GST registration –Procedure clarified:

Application for cancellation of GST registration is not to be rejected because of violation of 30 days deadline from the occurrence of the event warranting cancellation. Further, debit of ITC on available stock can be done at the time of submitting Form GSTR-10, whose last date has been extended till 31-12-2018, for the cancellations made by 30-9-2018. The requirement to debit the electronic credit and/or cash ledger by suitable amounts is not a prerequisite for applying for cancellation of registration. Taxpayers who have filed application for cancellation will not be required to file other returns. (Refer Circular No. 69/43/2018-GST, dated 26-10-2018)Registration of Casual Taxable Person & recovery of excess credit distributed by ISD-Clarified

CBIC has clarified that amount of advance tax required to be deposited by casual taxable person (CTP), while obtaining registration, is to be calculated after considering eligible ITC available to such person. It is also stated that a taxable person would not be treated as CTP beyond 180 days and would have to apply for normal registration by uploading document granting him permission to use premises for the exhibition. Also, advance tax is not required if normal registration is taken. 

This circular also clarifies on recovery of excess credit distributed by an Input Service Distributor. The excess credit so distributed shall be recovered from recipients along with interest and penalty if any. ISD would also be liable to a general penalty under Section 122(1)(ix) of the CGST Act. (Refer Circular No. 71/45/2018-GST, dated 26-10-2018)


Refund of ITC and IGST clarified:

CBIC has issued a circular clarifying certain issues on refund of ITC and IGST. since common portal at present does not have facility for fresh refund application once deficiency memo is issued, taxpayer will be required to submit rectified applications under earlier ARN only and there is no need to re credit ITC in electronic credit ledger. It also states that a suitable clarification would be issued separately for cases in which such re-credit has already been carried out. Further, clarifying latest amendments in the refund provisions of the CGST Rules, it is stated that exporters who have received capital goods under EPCG, either through import or through domestic procurement, can claim refund of IGST paid on exports. (Refer Circular No. 70/44/2018-GST, 26-10-2018)


Service of notice–‘Affixation’ only when other methods not practicable: 

Allahabad High Court has held that use of words ‘if none of the modes is practicable’ in Section 169 of the CGST Act clearly indicates that it is only after that all earlier mentioned methods are found as not practicable for service of notice that resort can be taken for affixation of same at some conspicuous place. The High Court observed that there was violation of natural justice as GST registration was cancelled without serving SCN. It also noted thatregistration was cancelled on basis of prima facie opinion without indicating material for same, and that there was nothing on record to establish the time, date and place and the manner in which service by affixation was resorted to. [KashiBartanBhandarv.State of UP -2018-VIL-499-ALH]


GST E-way Bill –Missing Zero in the mentioned distance, a typographical mistake:

Observing that distance between Kerala and Uttarakhand is a matter of record and thus verifiable, Kerala High Court has held that distance showed in e-way bill as 280 km, instead of 2800 km (one zero missing), was a typographical error, and a minor error. The High Court observed that CBIC had come across many minor discrepancies in e-way bills, resulting in summary detention of the goods, while it issued Circular No. 64/38/2018-GST dated 14-9-2018. Fact that goods under detention had very short shelf life, was also noted. [SabithaRiyaz v.UOI -2018-TIOL-156-HC-KERALA-GST]


Manual filing of TRAN-1 and GSTR-3B to avoid lapse of ITC:

In a case where the assessee was not able to distribute Input Tax Credit (ITC) brought forward from the erstwhile regime, due to some technical issues in uploading TRAN-1, Bombay High Court has directed the assessee to manually file copy of the revised TRAN-1, ITC-01 and GSTR-3B at Mumbai. The Court however refrained itself from giving directions to the Commissioners of Delhi, Gujarat and Karnataka where the branches to whom the credit was distributed, were located. [Indusind Media Communications v.UOI -2018-VIL-468-BOM]

Reg: Tool amortisation cost (dies and moulds supplied by vehicle manufacturer to component manufacturer on free of cost (‘FOC’) basis)shall be included in the value of components

The applicant was engaged in the manufacture of automotive components as per the specifications given by its customer. In order to manufacture the same, tailor-made tools were required. Such tools were provided by the customer to the applicant on FOC basis. 

AAR held that transfer of tools by the customer to the applicant will not qualify as supply under Clause 1 (Permanent transfer of business assets) of Schedule I of the CGST Act. This is because tools were given by customer to applicant temporarily and that too for limited purpose. AAR further states that amortized value of tools will be included in assessable value of components under Section 15(2)(b) of CGST Act which provides for inclusion of amount liable to be incurred by supplier but incurred by recipient. The applicant could not have manufactured components without such tools. Accordingly, the applicant was required to incur such cost which was incurred by the customer on its behalf. (Nash Industries (I) Private Limited, 2018-VIL-266-AAR)

TRANS-1 issue : Condition on exempted goods manufacturer / trader to avail credit of stock in hand only if duty paying document is not more than 12 months old as on July 1, 2017 [Section 140(3)(iv) of the Central Goods and Services Tax Act, 2017 (‘CGST Act’)] 

The Bombay High Court held that the provision is constitutional, for the following reasons :

– Assessee cannot pick and choose a condition for challenge by alleging that the availment is undisputedly conditional but one of the conditions having nexus with the availment is unconstitutional, arbitrary and excessive. 

-The right to avail transitional credit is neither indefeasible nor absolute under the existing law or in transitional arrangements set out or in the substantive provisions permitting availment of credit.

(JCB India Limited v. Union of India, 2018-VIL-165-BOM)

However, The Gujarat High Court held that provision is unconstitutional, for the following reasons 

– The credit was a vested right which cannot be taken away. 

– The condition imposed for availing such benefit has no rational or reasonable basis. 

 (Filco Trade Center Private Limited v. Union of India, 2018-VIL-403-GUJ)TRANS-1 issue : Restriction on right of a dealer to carry forward credit if the prescribed forms are not furnished within prescribed period [Proviso to Section 140(1) of the Gujarat Goods and Services Tax Act, 2017] 

The High Court held that the restriction is constitutional, for the following reasons: 

– A combined reading of relevant provisions shows that statutory provisions do not deny the benefit of credit where necessary declarations are furnished. Thus, no existing or vested right has been taken away. 

– The prescription of time limit within which necessary declarations must be made, is neither without authority nor unreasonable. (Willowood Chem Pvt Ltd v. Union of India, 2018-VIL-433-GUJ)


TRANS-1 issue : No credit on capital goods that were in transit as on July 1, 2017 

The Court held that not granting transitional credit on capital goods in transit on date of introduction of GST is not in violation of Constitution of India, 1950 on following grounds: 

– The distinction between inputs and capital goods is in not artificial or arbitrary and both form different and distinct classes 

– Taxing statutes contained self-sufficient scheme of levying computation and calculation of tax. The time in which a return is to be filed for purpose of assessment of tax cannot be dependent on will of a dealer (RSPL Limited v. Union of India, 2018-VIL-477-GUJ) 


Lotteries are ‘goods’ –GST leviable:

Relying on Supreme Court decision in case of Sunrise Associates, Calcutta High Court has held that lotteries are generally speaking ‘goods’ and come within definition of ‘actionable claims’. It was also held that actionable claims other than lottery, gambling and betting kept out of scope of CGST Act as per Schedule-III and therefore, lottery can be charged to tax under Central GST Act, 2017. Further, High Court held that it is within domain of GST Council to decide rate of tax and differential levy of tax is permissible. It, however, added that if a resolution adopted in the GST Council meeting breachesany fundamental right or any provision of the Constitution of India, the same can be adjudicated upon by a Writ Court. [Teesta Distributors v. Union of India -2018-VIL-455-WB]


Transport planning–Admissibility of exemption:

GST AAR Andhra Pradesh has held that consultancy services for preparation of transport studies such as Comprehensive Mobility Plan, Transit Oriented Development Plan, Integrated Public Transport Plan and consultancy services of preparation of detailed project reports on Metro Rail Projects, come within functions of municipality under Article 243W read with Twelfth Schedule to the Constitution of India. The AAR observed that urban transportation is part of urban planning which is entrusted to municipality, and that activities are covered under public amenities in the Twelfth Schedule. It was held that hence activities undertaken by applicant as governmental authority are covered by exemption under Not. No. 12/2017-Central Tax (Rate). [In RE: Amaravathi Metro Rail Corp Ltd-Ruling No. AAR/AP/07(GST)/2018, dated 2-7-2018, AAR Andhra Pradesh]


Job work for foreign entity liable to GST @ 18%:

GST AAR Andhra Pradesh has held that process of providing job work service to foreign principal, in premises of applicant as per specifications of recipient of services, is taxable under GST and liable to tax @ 18%. AAR in this regard held that place of supply for the transaction was location of the service where actually performed i.e., business premises of the applicant. [In RE: SynthiteIndustries -Ruling No. AAR/AP/08(GST)/2018, dated 20-8-2018, AAR Andhra Pradesh]


Toll charge not excludible from value of security service:

GST AAR West Bengal has held that toll charges paid by a security services provider providing services to the bank, are not excludible from value of the supply under Rule 33 of the CGST Rules, 2017. The AAR was of the view that GST will be payable on the entire value of the supply, including toll charges paid. The applicant was held as not acting as a ‘pure agent’ of the bank while paying toll charges. The toll charges were held as cost of service provided to the banks so that the vehicles can access roads/bridges to provide security services to the banks. [In RE: Premier Vigilance & Security Pvt Ltd. -20/WBAAR/2018-19 dated 2-11-2018, AAR West Bengal]


IIMs eligible for both Sl. 66(a) and 67 of Notification No. 12/2017-CT (Rate):

GST AAR West Bengal has held that Indian Institute of Management, Calcutta is an educational institution within the meaning of clause 2(y)(ii) of Notification No. 12/2017-Central Tax (Rate) and is eligible for benefit of Entry No. 66(a) of said notification, applicable to such educational institutions as such. The AAR, however, also observed that applicant would also be eligible for benefit under Entry No. 67 as it specifically concerns IIMs, and courses mentioned therein will be eligible under the specific entry even if not mentioned elsewhere. [In RE: Indian Institute of Management, Calcutta–Order No. 21/WBAAR/2018-19 dated 2-11-2018, AAR West Bengal]


Amount received from contract brewing units for use of IP, liable to GST:

Appellate Authority for Advance Rulings Karnataka has held that by permitting brewers to use trademarks owned by applicant, permitting acquisition of know-how on production and packaging of applicant’s beer, applicant has permitted the brewer to use intellectual property rights covered under clause 5(c) of the Schedule II of the CGST Act. The service supplied by the appellant was held classifiable under Service Code 999799 as ‘other services nowhere else classified’. Amount in the nature of reimbursement of expenses, received from brewers, was held liable to GST @ 18%. 

[In RE: United Breweries-Order No. KAR/AAAR/03/2018-19, dated 23-10-2018, AAAR Karnataka]

 


No concessional GST on works contract carried for business purposes:

Observing that main object of the company was to carry on business of purchasing, selling, trading of electrical energy, AAR GST Madhya Pradesh has held that projects by assesse applicant under various government schemes are carried out for business purposes. The applicant was hence denied the benefit of concessional rate of GST @ 12% to works contract services received by them for construction and erection for power distribution. The applicant was however held to be a government entity as per Notification No. 31/2017-Central Tax (Rate). [In RE: MP Poorv Kshetra Company Ltd. -Advance Ruling No. 14/2018, dated 18-9-2018, AAR Madhya Pradesh]


Bus body building on chassis provided by principal is supply of service:

AAR Goa has held that in a case where bus body builder builds body on chassis provided by the principal for body building, and charges fabrication charges (including certain material that was consumed during the process of job-work), the supply shall merit classification as supply of services under HSN 9988 and hence, should be taxed @ 18% GST. The Authority placed reliance on the ratio of the judgement in the case of Prestige Engineering (India) Ltd. [1994 (73) ELT 497 (SC)],wherein it was held that addition or application of items by job worker would not detract from the nature and character of his work. [In RE: Automobile Corporation of Goa Ltd.-2018-VIL-217-AAR Goa]


ITC available only on services used for business purposes:

Observing that the services received were varied in nature and intended partly for business use (to the extent intended for the plant, plant area or plant building) and partly for non-business use (to the extent intended for use outside the plant area), AAR Odishahas held that the tax paid by the applicant for the services which were used for business purpose only would be eligible for input tax credit. The applicant was engaged in manufacture of calcinedalumina in its refinery, and as part of its business had townships and residential colony. It was running hospitals for its employees and had guest houses for touring employees and guests. The applicant received various services of repair and maintenance in the townships, guest houses, hospitals and horticulture, received as part of its business operations. [In RE: National Aluminium Company Ltd. -2018-VIL-208-AAR Odisha]


 

Service of providing Pollution Control Certificate liable to GST –Not pure service provided by the Govt:

Service provided for issuing Pollution under Control Certificate (PUC) for vehicles on behalf of State Government is liable to GST. AAR Goa while holding so observed that services were not covered under Schedule III to the Central Goods and Service Tax Act, 2017 as well as Goa Goods and Service Tax Act, 2017. It was held that applicant did not provide pure service provided by the Central Government, State Government, Union Territory or Local Authorities or by a Governmental Authority by way of any activity in relation to    any function entrusted to a panchayat under Article 243G of the Constitution or relation to any function entrusted to the municipality under the Article 243W of the Constitution. It was also noted that services of testing of pollution were provided on payment of service charge. [In RE: Venkatesh Automobiles-2018-VIL-218-AAR Goa]


Processing natural gas is job work:

GST AAR Kerala has held that the activity of processing natural gas and other inputs received from the oil company (BPCL) on free of cost basis and manufacturing industrial gases shall fall under the scope of ‘job work’ under GST. It was held that the activity was job work as the output would not be owned by the applicant providing the service. It was held that the statute does not specify any restriction that the ‘inputs’ subject to the treatment or process shall be taxable goods. The activity was held to fall under Serial No.(ii) of the HSN 9988 and taxable at the rate of 18% under GST. 

[In RE: Podair Air Products India (P) Ltd.-2018-VIL-245-AAR Kerala]


Supply of medicines to in-patients is composite supply –Exemption available under healthcare services:

Supply of medicines, consumables and implants used in the course of providing health care services to in-patients for diagnosis or treatment would be considered as composite supply. The Advance Ruling Authority of Kerala in this regard observed that as far as an in-patient is concerned, the hospital is expected to provide lodging, care, medicine and food as part of treatment under supervision till discharge from the hospital. It was also held that these activities would be eligible for exemption under the category of health care services. [In RE: Kims Healthcare Management Ltd.-2018-VIL-246-AAR Kerala]

Customs

 IGST refund in invoice mismatch issue–Officer interface facility extended:

Alternative mechanism with an officer interface to resolve invoice mismatches errors for IGST refund extended for shipping bills filed till 15-11-2018. Further, similar mechanism will also be available in cases where refund scroll generated for a much lesser IGST amount than what was actually paid against exported goods, due to errors by exporter or customs officer. As per Circular No. 40/2018-Cus., exporters are required to once submit Revised Refund Request for the differential amount, even in cases where compensation cess was not mentioned in shipping bill.


Reimport of goods earlier exported by post –Exemption clarified:

Customs Notification Nos. 45/17-Cus, and 46/2017-Cus, issued in supersession of Notification No. 94/96-Cus., are also applicable to the re-import of goods which were earlier exported through Post. The concessions available under Notification No.94/96-Cus havebeen continued through these notifications. This circular also states that reference to Section 51 of the Customs Act in the notification does not seek to deny the benefit to the goods to which Section 51 may not apply. (Refer Circular No. 45/2018-Cus., dated 19-11-2018)


Pharma exports –Track and Trace system for drug formulations postponed:

Date for implementation of Track and Trace system for export of drug formulations extended up to 1-7-2019. The extension is with respect to maintaining Parent-Child relationship in packaging levels and its uploading on Central Portal, for both SSI and non-SSI manufactured drugs. Para 2.90 A (vi) and (vii) of FTP Handbook of Procedure 2015-20 amended in this regard by DGFT Public Notice No. 43/2015-2020, dated 1-11-2018. The system was to be implemented by 15-11-2018.


 In-bond manufacturing –Forms consolidated, and procedures clarified: 

CBIC has updated procedure for seeking permission for in-bond manufacturing and for maintaining various records. An elaborate Circular No. 38/2018-Cus., dated 18-10-2018 issued for this purpose also prescribes various forms and clarifies duty liability on removal of processed goods from such warehouse. The form for seeking permission for in-bond manufacture will also serve the purpose for seeking grant of license as a private bonded warehouse. Further, a separate form to be maintained by a unit operating under Section 65 of the Customs Act, for receipt, processing and removal of goods, has been prescribed. The circular also prescribes a triple duty bond for the warehoused goods which is required to be executed by the owner of the warehoused goods. 

No duty is required to be paid in respect of imported goods contained in resultant product in case

resultant product manufactured or worked upon in a bonded warehouse is exported. However, transaction will also be covered under definition of ‘supply’ and consequently be liable to GST if resultant product is cleared for domestic consumption. 


 EPCG authorisations are now valid for 24 instead of 18 months:

Validity period of Export Promotion Capital Goods (EPCG) Authorisations has been extended from 18 months to 24 months. DGFT Public Notice No. 47/2015-20, dated 16-11-2018 while amending Para 2.16 of the FTP Handbook of Procedures Vol. 1, also states that import validity period of EPCG Authorisations which have been issued prior to 16-11-2018 and whose validity has not expired on this date, shall also be extended to 24 months from the date of issuance of the Authorisation.


 Provisional release order appealable before CESTAT: 

Punjab & Haryana High Court held that appeal against order passed by Commissioner (Customs) under Section 110A of Customs Act, 1962, for provisional release of the goods, lies before CESTAT. Department’s plea that such order passed by Commissioner is essentially an administrative decision and not adjudicatory, was rejected. Citing various decisions of Apex Court, High Court observed that whenever civil consequences follow from an order passed by an authority, it assumes character of a quasi-judicial order. [Commissioner v.Gaurav Pharma -2018-VIL-484-P&H-CU]


Advance authorisation –Condition of pre-import for IGST exemption, valid:

Madras High Court dismissed writ petitions challenging Notification No. 79/2017-Cus. amending Notification No. 8/201-Cus. and incorporating -import and physical exports, for exemption from IGST and Compensation Cess on imports under Advance Authorisations. The case involved replenishment of inputs post exports. The Court in this regard noted that by not allowing exemption of IGST at time of import, no benefit in AA scheme is altered by Government, though collateral costs get fastened. It observed that DFIA scheme suited existing operation of petitioner in the GST regime,and that petitioner cannot choose one scheme and insist the government to modify it to its convenience. [Vedanta Ltd. v.Union of India -2018-TIOL-153-HC-MAD-GST]


 Valuation -Exports need not be by same exporter and within same month:

CESTAT Hyderabad has observed that Rule 4 of Customs Valuation (Determination of Value of Export Goods) Rules, 2007 does not require that exports should be by the same exporter. It also noted that the rule only says that the value comparison must be with the goods exported at or around the same time but does not specify that it must be within the same month. The Tribunal held that lower authority should have examined feasibility of finding price of goods of like kind and quality exported at or around the same time. The rejection of the transaction value under Rule 8 by the lower authority was however held to be correct. [ObulapuramMining Company v. Commissioner -Final Order No. A/31240-31242/2018, dated 28-9-2018]

Central Excise and Service Tax

 Cenvat credit available on towers and shelters used for telecom service:

Delhi High Court has allowed Cenvat credit on towers, shelters and parts thereof used for providing telecommunication services. Allowing assessee’s appeal, it observed that the goods at the time of their receipt were movable, and that CESTAT failed to appreciate the permanency test as laid down by the Supreme Court. The High Court held that machine annexed to earth by fixing with nuts and bolts on a foundation, to provide for stability and wobble free operation would not constitute an immovable property. The goods were held to be capital goods and also inputs. [Vodafone Mobile Services v. Commissioner – CEAC 12/2016 and Ors., dated 31-10-2018, Delhi High Court]COD clearance –Tribunal not to dismiss appeal in absence of COD: Chhattisgarh High Court has held that it was not permissible for Tribunal to dismiss appeal filed in 2006 only for want of clearance from Committee on Disputes (COD). The Court observed that the Supreme Court in ONGC’s case never empowered any Court/Tribunal to dismiss appeal in absence of COD clearance. The Court agreed with assessee’s view that the Tribunal should have kept appeals pending till clearance was obtained. Tribunal’s Order dismissing restoration application due to long delay was also set aside, considering the case to be exceptional. [Steel Authority of India v. Commissioner -TAXC No. 8, 9 and 11 of 2018, decided on 26-10-2018, Chhattisgarh High Court]


 DGCEI has all India jurisdiction, pendency u/s.73 unrelated for s.14 notice: 

Delhi High Court has held that Officers of DGCEI have all India jurisdiction and can issue notices and enquire into matters relating to service tax against any assessee/person even if the said person is registered with one or multiple Commissionerates. It also held that pendency of recovery proceeding under Section 73(1) of the Finance Act, 1994 was not a condition precedent for issue of notice under Section 14 of Central Excise Act. The Court also observed that centralised investigation was desirable and necessary to curtail delay. [National Building Construction Company v.UOI -W.P.(C) 1144/2016, decided on 16-11-2018, Delhi High Court]


 Cenvat credit on insurance of life of Joint Managing Director, admissible:

CESTAT Chandigarh has allowed Cenvat credit of tax paid on insurance for the compensation of loss incurred to the assessee due to the life loss of the Joint Managing Director. The insurance, in this case, was taken by the assessee-manufacturer for their use and the premium was also paid by the assessee only. The Tribunal observed that merely because insurance was in the name of Joint Managing Director and not in the name of the company, credit could not be denied. [HPL Additives Limited v. Commissioner -Final Order No. 63255/2018, dated 10-10-2018, CESTAT Chandigarh]


 Cenvat credit on supplementary invoices issued after opting for VCES:

CESTAT Chennai has allowed Cenvat credit in a case where the service provider had issued supplementary invoices to the appellant-assessee after opting for Voluntary Compliance Encouragement Scheme (VCES) 2013. The Tribunal observed that the department having accepted the declaration in terms of VCES and having issued acknowledgement of discharge, cannot seek to recover or deny Cenvat credit. It noted that department did not challenge issuance of VCES-3 nor issued any notice to service provider alleging fraud, etc. [Sri Balaji Castings Pvt. Ltd.v. Commissioner-Final Order No. 2605/2018, dated 5-10-2018, CESTAT Chennai]


 Tractor Cess not imposable on parts and accessories of tractors:

CESTAT New Delhi has held that Tractor Cess imposed under a notification issued under Industrial (Development and Regulation) Act, 1951, was not leviable on parts and accessories of tractors. It observed that parts and accessories of tractor cannot be compared with that of the tractor itself. Reliance in this regard was placed on Ministry of Finance Circular No. 41/88, dated 31-8-1988 relating to cess on automobiles. The Tribunal noted that the principle enunciated in the said circular was applicable. [Gatiman Auto Pvt. Limited v. Commissioner -Final Order Nos. 53087 –53089/2018, dated 9-10-2018, CESTAT Delhi]

 

 


 Export of services when outflow of foreign exchange reduced:

In a case involving remittance of net charges to the foreign parent company, after deduction of service charge or commission, CESTAT Mumbai has allowed refund of service tax paid on export of Business Auxiliary Services. Relying on Income Tax case, it observed that since Indian Rupees were obtained in lieu of foreign exchange, same will be deemed to be convertible exchange. The Tribunal observed that in this way outflow of foreign exchange was reduced to the extent of commission/service charge retained in India. [Import Express India v. Commissioner-Order No.A/87580/2018, dated 10-10-2018, CESTAT Mumbai] 


 Full Cenvat credit available even when service used by others also:

CESTAT Hyderabad has allowed full Cenvat credit to the assessee when the services of lift maintenance and security were enjoyed by other companies also in the same complex. The department had allowed proportionate credit in such case. Comparing it with the enjoyment of one’s porch light by passers-by, the Tribunal observed that assessee-appellant had hired and paid for these services, and there was no rule under which the department can vivisect and partly deny the credit. [AVR Storage Tank Terminals Pvt. Ltd. v. Commissioner -Final Order No. A/31208/2018, dated 20-9-2018, CESTAT Hyderabad]


 Cash refund of amount paid through Cenvat credit, once GST regime in force:

Relying on Section 142(3) of Central GST Act, 2017, CESTAT Chennai has held that once GST regime is in force, pending refund claim, if sanctioned, will necessarily have to be paid in cash irrespective of the fact whether refund amount pertains to Cenvataccount or was paid from account current. The Tribunal was dealing with refund of amount of 6% paid through Cenvat account mistakenly to take benefit of exemption. Allowing cash refund, it observed that any other interpretation will leave assessee high and dry. [Toshiba Machine (Chennai) v. Commissioner-Final Order No. 42462/2018, dated 25-9-2018, CESTAT Chennai]

VAT

 Reassessment order under Karnataka VAT, after GST regime, is valid:

Karnataka High Court has held that merely because a reassessment order under Karnataka VAT Act for year 2012-2013 was passed after coming into force of GST regime in 2017, it would not make such order void in eyes of law. The Court further noted that Section 174 of KGST Act, 2017 saves all rights, liabilities acquired, accrued or incurred under repealed Acts enumerated under Section 173 thereof which includes KVAT. It was also held that ground of attack on Section 174 of KGST Act does not affect validity of KVAT Act. [Prosper Jewel LLP v. Deputy Commissioner-Writ Petition No.20642/2018 (T-RES), decided on 25-10-2018, Karnataka High Court]

 


 Limitation for ITC-Tamil Nadu VAT Section 19(11) constitutionally valid:

Supreme Court has upheld constitutional validity of Section 19(11) of Tamil Nadu VAT Act which restricts input tax credit beyond a certain period. It held that statutory scheme delineated by said provisions was neither arbitrary nor violate right guaranteed to a dealer under Article 19(1)(g) of Constitution of India. The Court held that use of word ‘shall’ in Section 19 (11) indicated that compliance with the same was mandatory and the same was not directory. [ALD Automotive Pvt. Ltd. v. CTO -Civil Appeal Nos.1041210413/2018 and Ors., decided on 12-10-2018, Supreme Court].

About Author:

CMA Rakesh Bhalla

*Member ZAC & RAC Chandigarh - Central Excise & Service Tax (now GST) & Customs, Govt. of India, Member of Indirect Tax committee SIAM , Member, ASSOCHAM National Indirect Taxes Committee, Chief General Manager Finance- SML Isuzu Ltd., Winner Achiever Award 2015 by ICAI (CMA).

 

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Extension of due date of GST return https://www.gstseva.com/extension-of-due-date-of-gst-return Thu, 29 Nov 2018 04:35:19 +0000 https://www.gstseva.com/?p=9501 Extension of due dates for filing GST returns 

In view of the disturbances caused to daily life by Cyclone Titli in the district of Srikakulam, Andhra Pradesh, and by Cyclone Gaza in eleven districts of Tamil Nadu viz., Cuddalore, Thiruvarur, Puddukottai, Dindigul, Nagapatinam, Theni, Thanjavur, Sivagangai, Tiruchirappalli, Karur and Ramanathapuram, the competent authority has decided to extend the due dates for filing various GST returns as detailed below:

Sl. No.Return/FormExtended due dateTaxpayers eligible for extension
1FORM GSTR-3B for the months of September and October, 201830thNovember, 2018Taxpayers whose principal place of business isin the district of Srikakulam in Andhra Pradesh
2FORM GSTR-3Bfor the month of October, 201820thDecember, 2018Taxpayers whose principal place of business is in the 11 specified districts of Tamil Nadu
3FORM GSTR-1 for the months of September and October, 2018 30thNovember, 2018Taxpayers having aggregatturnover of more than 1.5 crore rupees and whose principal place of businessis in the district of Srikakulam in Andhra Pradesh
4FORM GSTR-1 for the month ofOctober, 201820thDecember, 2018Taxpayers having aggregateturnover of more than 1.5 crore rupees and whose principalplace of business is in the eleven specified districts of Tamil Nadu
5FORM GSTR-1 for the quarter July-September, 201830thNovember, 2018Taxpayers having aggregatturnover of upto 1.5 crore rupees and whose principal place of business is in the district of Srikakulam in Andhra Pradesh
6FORM GSTR-4 for the quarter July to September, 201830thNovember, 2018Taxpayers whose principal place of business isin the district of Srikakulam in Andhra Pradesh
7FORM GSTR-7 for the months October to December, 201831stJanuary, 2019All taxpayers

2.       The relevant notifications for the same will be issued shortly.

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GSTR 7A, answer to all your gst tds certificate query https://www.gstseva.com/gstr-7a-answer-to-all-your-gst-tds-certificate-query Thu, 15 Nov 2018 08:54:44 +0000 https://www.gstseva.com/?p=9482 Queries related GST TDS FORM GSTR 7A

 

1. What is Form GSTR-7A?

Form GSTR-7A is a system generated TDS Certificate which is generated once deductor furnishes a return in Form GSTR-7 on the GST Portal and the deductee accepts the details uploaded by deductor and files his return. This TDS Certificate will be available for both Deductor and Deductee.

2. How can I download the TDS certificate?

To download the TDS certificate, access the www.gst.gov.in URL. Login to the GST Portal with valid credentials. Navigate to Services > User Services > View/Download Certificates option.  

3. I have more than one certificate available for download under GSTR-7A certificates. Do I need to download them individually?

Yes, you need to download them individually for each GSTIN.

4. What is TDS Certificate?

A TDS certificate is a certificate generated in Form GSTR-7A on the basis of information furnished in return by Deductor in his Form GSTR-7.

5. How many TDS Certificates are issued per GSTIN?

A single TDS certificate is issued per GSTIN for all the supplies, on which tax has been deducted for every GSTR-7 return filed.

6. Is the signature of Tax Deductor required in TDS Certificate?

Form GSTR-7A is system generated TDS certificate and signature of Tax Deductor is not required.

7. What are the pre-conditions for generation of TDS certificate in Form GSTR-7A?

Precondition for generation of TDS certificate is that deductor furnishes a return in Form GSTR-7 on the GST Portal and the deductee accepts the details uploaded by deductor and files his return.

8. Do I as a taxpayer have to file Form GSTR-7A?

No, you don’t have to file Form GSTR-7A.

9. Can I as a taxpayer (Deductor or Deductee) download and keep a copy of my TDS Certificate for future reference?

Yes, you can view and/or download TDS Certificate in post-login mode on the GST portal.

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GST revenue boost: Mark to 1 lac crore 2nd time in this year read full https://www.gstseva.com/gst-revenue-boost-mark-to-1-lac-crore-2nd-time-in-this-year-read-full Thu, 01 Nov 2018 14:27:14 +0000 https://www.gstseva.com/?p=9477 GST Revenue collections for the month of October 2018 crosses Rupees One Lac Crore

The total gross GST revenue collected in the month of October, 2018 is Rs. 100,710crore of which CGST is Rs. 16,464crore, SGST is Rs. 22,826crore, IGST is Rs. 53,419crore (including Rs. 26,908crore collected on imports) and Cess is Rs. 8,000 crore(including Rs. 955crore collected on imports).

The total number of GSTR 3B Returns filed for the month of September up to 31st October, 2018 is 67.45lakh.

The Government has settled Rs. 17,490 crore to CGST and Rs. 15,107 crore to SGST from IGST as regular settlement. Further, Rs .30,000crore has been settled from the balance IGST available with the Centre on provisional basis in the ratio of 50:50 between Centre and States. The total revenue earned by Central Government and the State Governments after regular and provisional settlement in the month of October, 2018 is Rs. 48,954 crore for CGST and Rs. 52,934crore for the SGST.

The Revenue collected in October, 2018 of Rs. 100,710 crore is higher by 6.64% as compared to September, 2018 collection of Rs. 94,442 crore. The chart shows trends in revenue during the current year. The States which achieved extra- ordinary growth in total taxes collected from the State assesses include Kerala (44%), Jharkhand (20%), Rajasthan (14%), Uttarakhand (13%) and Maharashtra (11%).

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Due date of GSTR 3B for SEP 2018 extended to….. https://www.gstseva.com/due-date-of-gstr-3b-for-sep-2018-extended-to Sun, 21 Oct 2018 08:36:19 +0000 https://www.gstseva.com/?p=9473 Due date of #GSTR3B for the month of sep 2018 extended to 25 oct 2018

21 OCT 2018 3:54PM by PIB Delhi
Extension of due date to 25th October, 2018 for furnishing return in the FORM GSTR-3B for the month of September, 2018

It has been brought to notice that there have been apprehensions by trade and industry relating to the last date for availment of ITC for the period July, 2017 to March, 2018. In order to remove doubts, it was clarified that as per the law, the last date for availing ITC in relation to the period from July, 2017 to March, 2018 is the last date for the filing of return in the FORM GSTR-3B for the month of September, 2018.

In view of the said apprehensions and with a view to give some more time to the trade and industry, the last date for furnishing return in the FORM GSTR-3B for the month of September, 2018 is being extended up to 25th October, 2018. Relevant notification will follow shortly.

The extension of the said due date also implies that the last date for availment of ITC for the period July, 2017 to March, 2018 also gets extended up to 25th October, 2018.

It may also be noted that the Government has extended the last date for furnishing of return in FORM GSTR-3B for the month of September, 2018 for certain taxpayers who have been recently migrated from erstwhile tax regime to GST regime vide notification No. 47/2018- Central Tax dated 10th September, 2018. For such taxpayers, the extended date i.e. 31st December, 2018 or the date of filing of annual return whichever is earlier will be the last date for availing ITC in relation to the said invoices issued by the corresponding suppliers during the period from July, 2017 to March, 2018.

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Clarification for composition dealers related GSTR-4 , know here https://www.gstseva.com/clarification-for-composition-dealers-related-gstr-4-know-here https://www.gstseva.com/clarification-for-composition-dealers-related-gstr-4-know-here#comments Fri, 19 Oct 2018 17:15:21 +0000 https://www.gstseva.com/?p=9413  Clarification on the manner of filing the Quarterly Return by Composition Dealers in FORM GSTR-4

It has been brought to notice that doubts regarding the manner of filing the quarterly return by Composition Dealers in FORM GSTR-4 in the absence of auto-population of the details of inward supplies (other than supplies attracting reverse charge) received from registered suppliers exist amongst taxpayers.

 

In this regard, it is to clarify that the taxpayers who have opted to pay tax under the composition levy shall not furnish the data in serial number 4A of Table 4 of FORM GSTR-4. The required changes in the CGST Rules, 2017 would be notified shortly.

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Important Clarification on input tax credit related to July 2017 to March 2018 and Extension of 3B due date https://www.gstseva.com/important-clarification-on-input-tax-credit-related-to-july-2017-to-march-2018-and-extension-of-3b-due-date https://www.gstseva.com/important-clarification-on-input-tax-credit-related-to-july-2017-to-march-2018-and-extension-of-3b-due-date#comments Thu, 18 Oct 2018 14:49:43 +0000 https://www.gstseva.com/?p=9405 PRESS RELEASE

Last date to avail input tax credit in respect of invoices or debit notes relating to such invoices pertaining to period from July, 2017 to March, 2018

Highlights/Expert Says:

  • Last date to claim input tax credit for FY 2017-2018 is 20th Oct 2018
  • GSTR 3B date extended  only for who have been recently migrated from erstwhile tax regime to GST regime vide notification No. 47/2018- Central Tax the new date is 31st dec 2018
  • GSTR 1 and GSTR 2A only for facilitation to taxpayer- mismatching of 3B and input as per GSTR 2A not disallowed the receiver to take input on self assessment basis.

There appears to be misgiving about the last date for taking input tax credit (ITC) in relation to invoices or debit notes relating to such invoices pertaining to period from July, 2017 to March, 2018. Such uncertainty seems to stem from the Government’s decision to extend the last date for furnishing of details of outward supplies in FORM GSTR-1 from time to time.

2. According to section 16 (4) of the CGST Act, 2017, a registered person shall not be entitled to take ITC in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains (hereinafter referred to as “the said invoices”) or furnishing of the relevant annual return, whichever is earlier.

3. With taxpayers self-assessing and availing ITC through return in FORM GSTR-3B, the last date for availing ITC in relation to the said invoices issued by the corresponding supplier(s) during the period from July, 2017 to March, 2018 is the last date for the filing of such return for the month of September, 2018 i.e. 20th October, 2018.

4. It is clarified that the furnishing of outward details in FORM GSTR-1 by the corresponding supplier(s) and the facility to view the same in FORM GSTR-2A by the recipient is in the nature of taxpayer facilitation and does not impact the ability of the taxpayer to avail ITC on self-assessment basis in consonance with the provisions of section 16 of the Act. The apprehension that ITC can be availed only on the basis of reconciliation between FORM GSTR-2A and FORM GSTR-3B conducted before the due date for filing of return in FORM GSTR-3B for the month of September, 2018 is unfounded as the same exercise can be done thereafter also.

5. It may, however, be noted that the Government has extended the last date for furnishing of return in FORM GSTR-3B for the month of September, 2018 for certain taxpayers who have been recently migrated from erstwhile tax regime to GST regime vide notification No. 47/2018- Central Tax dated 10th September, 2018. For

18.10.2018 such taxpayers, the extended date i.e. 31st December, 2018 or the date of filing of annual return whichever is earlier will be the last date for availing ITC in relation to the said invoices issued by the corresponding suppliers during the period from July, 2017 to March, 2018.

6. All the taxpayers are encouraged to take note of the legal requirements and be compliance savvy.

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GST: Clarification on Sanction of GST Refunds https://www.gstseva.com/gst-clarification-on-sanction-of-gst-refunds Sat, 13 Oct 2018 04:17:26 +0000 https://www.gstseva.com/?p=9398 Gst :Clarification on Sanction of GST Refunds

It has been noticed that unverified reports of pending GST refunds on account of exports are published in the print media by trade bodies. These figures being put out in the public domain are exaggerated and thus inaccurate. It is a fact that a large number of exporters have been granted refunds so far while a few claims are still pending owing to deficiencies found in the claims. 

In this regard, it is clarified that about 92.68% (Rs 38,824 crore) of the total IGST refund claims (Rs. 41,889 crore) transmitted to Customs from GSTN as on date have already been disposed. The remaining claims amounting to Rs. 3065 crores are held up on account of various deficiencies which have been communicated to exporters for remedial action.

In the case of RFD-01A (ITC Refund) claims with Centre and States, the pendency as on date is only Rs 2,077 Crore. Out of the refund claims of Rs. 39,372 Crore received, provisional/final order has been issued in case of refunds amounting to Rs. 32,345 Crore. In claims amounting to Rs. 4,951 Crore, deficiency memos have been issued. Thus, actual pendency is far less than is being put out for the knowledge of the public. The overall disposal of GST refunds is Rs 71,169 Crore till date. Refund claims without any deficiency are being cleared expeditiously. 

Efforts are being made continuously to clear all the dues on account of pending refund claims. Co-operation of the exporter community is solicited to ensure that they exercise due diligence while filing GSTR 1 and GSTR 3B returns as well as Shipping Bills. 

Extensive outreach programmes have been conducted along with issuance of guidance circulars, advisories, FAQs, advertisements etc and also an alternative procedure involving manual interface has been provided where the errors could not be corrected online. The efforts are beginning to show positive results. The exporting community is assured that all their eligible refund claims will be sanctioned without any delay. Further, the export bodies are also requested to put out only verified figures in their press communication as unsubstantiated reports cause needless alarm amongst the exporters.

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GST : GSTP examination important gst news https://www.gstseva.com/gst-gstp-examination-important-gst-news https://www.gstseva.com/gst-gstp-examination-important-gst-news#comments Wed, 10 Oct 2018 18:34:07 +0000 https://www.gstseva.com/?p=9384 Examination for Confirmation of Enrollment of GST Practitioners; Last date of registration now extended up to 15th October 2018

The National Academy of Customs, Indirect Taxes and Narcotics (NACIN) is conducting an examination for confirmation of enrollment of Goods and Services Tax Practitioners (GSTPs) enrolled on the GST Network under sub-rule (2) of Rule 83 and covered by clause (b) of sub-rule (1) of Rule 83 of Central Goods and Service Tax Rules, 2017. Such GSTPs are required to pass the examination before 31 December, 2018. The examination will be held on 31.10.2018 from 1100 hrs to 1330 hrs at designated examination centres across India. In this matter kindly refer Press Release dated 17 September, 2018. 

The registration for this exam by the eligible GSTPs has already started on 25 September, 2018, on a registration portal, link of which has been provided on NACIN and CBIC websites under the TAB “GSTP Exam Registration”. 

 The last date of registration which was previously 10 October 2018, is now extended up to 15 October 2018 (11:59:59PM). All eligible candidates are requested to register themselves on the Exam registration portal urgently. (https://nacin.onlineregistrationform.org/NACIN/LoginAction_loadIndex.action)

 

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Flipkart’s Big Billion Days or E-commerce festival sales may boost GST tax revenue https://www.gstseva.com/flipkarts-big-billion-days-or-e-commerce-festival-sales-may-boost-gst-tax-revenue Wed, 10 Oct 2018 11:47:26 +0000 https://www.gstseva.com/?p=9369

Highlights 

Festive time: Like every year, online e-commerce site liking increase in sales volume

TCS provisions applicable from 01 Oct, 2018 this year

Rate of TCS is notified as 1% of net taxable supplies for intra-state supplies. (i.e 0.5% of CGST and 0.5% of SGST )

Rate of TCS is notified as 1% of net taxable supplies for inter-state supplies. (1% of IGST)

More deduction for online seller

Present Avg GST collection 85-100K crore per month.

Flipkart big billion days sale, Amazon Great Indian Festival offers and sales on all other e-commerce portal like paytm, snapdeal etc is not only bringing offers for consumers. But here the Tax department looking for huge tax collection in GST

Flipkart-Big-Billion-Days-sale

Last month by notification government notified 1st october 2018 is the date when the provisions of TCS will applicable on e-commerce portal. 

What is TCS (Tax Collected At Source) under GST?

Tax Collected at Source (TCS) under GST means the tax collected by an e-commerce operator from the consideration received by it on behalf of the supplier of goods, or services who makes supplies through operator’s online platform. TCS will be charged as a percentage on the net taxable supplies.

According to section 52 of CGST Act, 2017 every e-commerce operator require to deduct tax @1%  of the net value of taxable supplies made through it by other suppliers. 

Rate of TCS is notified as 1% of net taxable supplies for intra-state supplies. (i.e 0.5% of CGST and 0.5% of SGST )

Rate of TCS is notified as 1% of net taxable supplies for inter-state supplies. (1% of IGST)

Who is liable to Deduct TCS?

Every E-commerce operator 

How will this boost TAX revenue?

Every year e-commerce companies do business in thousand of crores during festival season but there is no GST tax collection for government directly from these companies. Only the seller were responsible to submit their tax.

But from this year- E-commerce companies has to deduct 1% of the total sales value and deposit it to government. 

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Cabinet approves increasing of Government ownership in Goods and Services Tax Network and change in the existing structure with transitional plan https://www.gstseva.com/cabinet-approves-increasing-of-government-ownership-in-goods-and-services-tax-network-and-change-in-the-existing-structure-with-transitional-plan Wed, 26 Sep 2018 14:42:11 +0000 https://www.gstseva.com/?p=9295 The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved increasing of Government ownership in Goods and Services Tax Network (GSTN) and change in the existing structure with transitional plan as per following:

  • Acquisition of entire 51% equity held by the Non-Government Institutions in GSTN equally by the Centre and the State Governments and allow GSTN Board to initiate the process for acquisition of equity held by the private companies.
  • The restructure GSTN, with 100% government ownership shall have equity structure between the Centre (50%) and the States (50%).
  • To allow change in the existing composition of the Board of GSTN inducting three directors from the Centre and the States and three other independent directors to be nominated by the Board of Directors and one Chairman and the CEO.  Thus the total number of Directors is 11.
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Extension of Due Dates for filing of FORM GSTR-1 and FORM GSTR-3B in certain cases https://www.gstseva.com/extension-of-due-dates-for-filing-of-form-gstr-1-and-form-gstr-3b-in-certain-cases https://www.gstseva.com/extension-of-due-dates-for-filing-of-form-gstr-1-and-form-gstr-3b-in-certain-cases#comments Mon, 10 Sep 2018 15:43:51 +0000 https://www.gstseva.com/?p=9235 PIB News

It has been observed that the number of taxpayers who have filed FORM GSTR-3B is substantially higher than the number of taxpayers who have furnished FORM GSTR-1. Non-furnishing of FORM GSTR-1 is liable to late fee and penalty as per the provisions of the GST law. In order to encourage taxpayers to furnish FORM GSTR-1, a one-time scheme to waive off late fee payable for delayed furnishing of FORM GSTR-1 for the period from July, 2017 to September, 2018 till 31.10.2018 has been launched.

In this regard, the due date for furnishing FORM GSTR-1 for the period from July, 2017 to September, 2018 has been extended till 31st October, 2018 for all registered persons having aggregate turnover above Rs 1.5 crores including the registered persons in Kerala, or whose principal place of business is in Kodagu (Karnataka) and Mahe (Puducherry). For taxpayers having aggregate turnover up to Rs 1.5 crores, the due date for furnishing FORM GSTR-1 for the quarters from July, 2017 to September, 2018 has been extended till 31st October, 2018. Notification Nos. 43 and 44/2018 – Central Tax dated 10th September, 2018 have been issued in this regard. For registered persons having aggregate turnover up to Rs 1.5 crores in Kerala, or whose principal place of business is in Kodagu (Karnataka) and Mahe (Puducherry), the due date for furnishing FORM GSTR-1 for the quarter July, 2018 to September, 2018 would continue to remain as 15th November, 2018 as notified vide notification No. 38/2018-Central Tax dated 24th August, 2018.

Further, for those taxpayers who will now be migrating to GST as per the procedure specified in notification No. 31/2018-Central Tax, dated 06.08.2018, the last date for furnishing the details of outward supplies of goods or services or both in FORM GSTR-1 and for filing the return in FORM GSTR-3B for the months of July, 2017 to November, 2018 has been extended till 31.12.2018. Notification Nos. 45, 46 and 47/2018 – Central Tax dated 10th September, 2018 have thus been issued for extension of dates for filing FORM GSTR-3B.

It is hereby clarified that as per the provisions of section 16 (4) of the Central Goods and Services Tax Act, 2017, the registered person shall not be entitled to take input tax credit in respect of any invoice after the due date of furnishing of the return for the month of September following the end of financial year to which such invoice pertains; or furnishing of the relevant annual return, whichever is earlier. The taxpayers are thus, advised to furnish their returns on time to ensure that input tax credit does not become time barred.

Here is the link http://www.pib.nic.in/PressReleaseIframePage.aspx?PRID=1545562#.W5ZsHJt7wKA.twitter

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Extension of last date for filing GST returns by taxpayers in Kerala, Mahe and Kodagu extended https://www.gstseva.com/gst-due-date-in-kerala Tue, 21 Aug 2018 14:26:05 +0000 https://www.gstseva.com/?p=9226 Extension of last date for filing GST returns by taxpayers in Kerala, Mahe and Kodagu extended

Posted On: 21 AUG 2018 6:57PM by PIB Delhi

In view of the disruption caused due to severe floods in Kerala, Mahe (Puducherry) and Kodagu (Karnataka), the Competent Authority has extended the due dates for filing of the following GST returns by taxpayers registered in these areas:

 

Sl. No. Return Class of taxpayers registered in Kerala, Mahe (Puducherry) and Kodagu (Karnataka) Extended due date
1 FORM GSTR-3B for the month of July, 2018 All taxpayers 5th October, 2018
2 FORM GSTR-3B for the month of August, 2018 All taxpayers 10th October, 2018
3 FORM GSTR-1 for the quarter July to September, 2018 Taxpayers having turnover upto Rs. 1.5 crore 15thNovember, 2018
4 FORM GSTR-1 for the month of July, 2018 Taxpayers having turnover  above Rs. 1.5 crores 5th October, 2018
5 FORM GSTR-1 for the month  of August, 2018 Taxpayers having turnover  above Rs. 1.5 crores 10th October, 2018

 

The relevant Notifications for the same shall be issued shortly.

 

 

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NIL return under GST can file by sms now https://www.gstseva.com/nil-return-under-gst-can-file-by-sms-now Sat, 21 Jul 2018 18:56:25 +0000 https://www.gstseva.com/?p=9218 The Council approved quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr as an optional facility.

Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons – small traders making only B2C supply or making B2B + B2C supply.

Taxpayers would have facility to create his profile based on nature of supplies made and received. The fields of information which a taxpayer would be shown and would be required to fill in the return would depend on his profile.
NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS.

download full press release here

New Return process GST Council recommendation 28th meet

 

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Something good for traders, GST council recommends rate reduction https://www.gstseva.com/something-good-for-traders-gst-council-recommends-rate-reduction Sat, 21 Jul 2018 18:47:06 +0000 https://www.gstseva.com/?p=9213 New Delhi: GST council in their 28th meeting recommend the rate reduction on around 60 products. Sanitary napkins fully exempted.

Download press release from below

1. GST rates on services recommendation by GST council 28th meet

2. Goods rates Recommendations by GST council 28th meet

*GST Council Updates*

1. Quarterly Returns approved for taxpayers with turnover less than Rs 5cr ( *tax payments to continue on monthly basis*)

2. Sanitary Napkins exempted from GST going forward

3. No decision on 1% sugar cess

4. GST on bamboo flooring reduced to 12%

5. GST on hotels would now be on actual tariff & not declares tariff

6. Ethanol for Oil Marketing Companies now at 5% vs 18% earlier

7. 5% GST ceiling on footwear raised from Rs 500 to Rs 1000

8. GST on paints & varnishes, wall putty cut from 28% to 18%
9. GST on all leather items cut from 28% to 18%

10. GST on consumer electronics – *TV (up to 27″), Washing Machine, Refrigerator, mixer, juicer, grinder* cut from 28% to 18%

11. GST on special purpose vehicles, work truck, trailer cut from 28% to 18%

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Press Release on Grievance Redressal Officers for e-way bill with list of officers https://www.gstseva.com/press-release-on-grievance-redressal-officers-for-e-way-bill-system Thu, 19 Jul 2018 18:23:46 +0000 https://www.gstseva.com/?p=9207 Grievance Redressal Officers have been appointed by both Central and State
Governments under the provisions of e-way bill rules

Here is the list

Eway bill officers

Officers for eway bill

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GST par charcha , Delhi BJP’s initiative https://www.gstseva.com/gst-par-charcha Thu, 19 Jul 2018 14:22:37 +0000 https://www.gstseva.com/?p=9199 For its upcoming event  GST par charcha , Delhi BJP invite suggestions and grievances through mail or whatsapp from Traders of Delhi at bjpdelhioffice@gmail.com or  9810074110 , 8130892149 

Gst-Delhi bjp

Central Minister Mr. Piyush Goel will be  the main speaker of the event.

GST par charcha

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1 July is GST DAY https://www.gstseva.com/1-july-is-gst-day Sat, 30 Jun 2018 14:08:50 +0000 https://www.gstseva.com/?p=9195 1st July 2018 to be celebrated as ‘GST day’, to commemorate the first year of the unprecedented reform of Indian taxation

Government of India is celebrating the 1st Anniversary of the Goods and Services Tax (GST) coming into force, here tomorrow. GST was launched on the 1st July, 2017 in a majestic ceremony held in the Central Hall of Parliament on the midnight of 30th June, 2017. The first year has been remarkable both for the sheer variety of challenges that its implementation has thrown up and for the willingness and ability of policy makers and tax administrators to rise up to these challenges and respond befittingly.

But more importantly, the first year of GST has been an example to the world of the readiness of the Indian taxpayer to be a partner in this unprecedented reform of Indian taxation. Accordingly, it has been decided that Sunday, the 1st of July, 2018 shall be commemorated as ‘GST Day’. Union Minister for Railways, Coal , Finance & Corporate Affairs  Shri Piyush Goyal will preside over as the Chief Guest of the event and Minister of State for Finance, Shri Shiv Pratap Shukla will be the Guest of Honour.

Before implementation of GST, Indian taxation system was a farrago of central, state and local area levies. In the constitutional scheme, taxation power on goods was with Central Government but it was limited up to the stage of manufacture and production while States had power to tax sale and purchase of goods. Centre had the exclusive power to tax services. This sort of division of taxing powers created a grey zone which led to legal disputes since determination of what constitutes a goods or service became increasingly difficult.

In the discussions that preceded amendment in the Constitution for GST, there were a number of thorny issues that required resolution and agreement between Central Government and State Governments. Implementing a tax reform as vast as GST in a diverse country like India required the reconciliation of interests of various States with that of the Centre. Some of these issues included origin-based versus destination-based taxation, rate structure and compensation, Dispute Settlement, inclusion of Alcohol and Petroleum products under GST. Resolution of these issues took some time and finally, the Constitution (122nd Amendment) Bill, 2014 was introduced in the Parliament on 19th December, 2014 and has been enacted as Constitution (101st Amendment) Act, 2016 w.e.f. 16th September, 2016.

As provided for in Article 279A of the Constitution, the Goods and Services Tax Council (the Council) was notified with effect from 12thSeptember, 2016. The Council is comprised of the Union Finance Minister (who is the Chairman of the Council), the Minister of State (Revenue) and the State Finance/Taxation Ministers as members and is empowered to make recommendations to the Union and the States on all GST related issues. The Council has met for 27 times and no occasion has arisen so far that required voting to decide any matter. All the decisions have been taken by consensus. This is a fitting tribute to the spirit of cooperative federalism which has prevailed throughout all Centre-State interactions in relation to all aspects of GST.

Four Laws namely CGST Act, UTGST Act, IGST Act and GST (Compensation to States) Act were passed by the Parliament and since been notified on 12th April, 2017. All the other States (except Jammu & Kashmir) and Union territories with legislature have passed their respective SGST Acts. The economic integration of India was completed on 8th July, 2017 when the State of J&K also passed the SGST Act and the Central Government also subsequently extended the CGST Act to J&K. On 22nd June, 2017, the first notification was issued for GST and notified certain sections under CGST Act. Since then, one hundred and three notifications under CGST Act have been issued notifying sections, notifying rules, amendment to rules and for waiver of penalty, etc. Thirteen, twenty eight and one notifications have also been issued under IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Further 59, 63, 59 and 8 rate related notifications each have been issued under the CGST Act, IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Similar notifications have been issued by all the States under the respective SGST Act. Apart from the notifications, 53 circulars and 14 orders have also been issued by CBIC on various subjects like proper officers, ease of exports, and extension of last dates for filling up various forms, etc.

India has adopted dual GST model because of its unique federal nature. Under this model, tax is levied concurrently by the Centre as well as the States on a common base, i.e. supply of goods or services or both. GST to be levied by the Centre would be called Central GST (Central tax / CGST) and that to be levied by the States would be called State GST (State Tax / SGST). State GST (State Tax / SGST) would be called UTGST (Union territory tax) in Union Territories without legislature. CGST & SGST / UTGST shall be levied on all taxable intra-State supplies. Inter-State supply of goods or services shall be subjected to Integrated GST (Integrated tax / IGST). The IGST model is a unique contribution of India in the field of VAT. The IGST Model envisages that Centre would levy IGST (Integrated Goods and Service Tax) which would be CGST plus SGST on all inter-State supply of goods or services or both.

The introduction of e-way (electronic way) bill is a monumental shift from the earlier ‘Departmental Policing Model’ to a ‘Self-Declaration Model’. It envisages one e-way bill for movement of the goods throughout the country, thereby ensuring a hassle free movement of goods throughout the country. The e-way bill system has been introduced nation-wide for all inter-State movement of goods with effect from 1st April, 2018. As regards intra-State movement of gods, all States have notified e-way bill rules for intra-State supplies last being NCT of Delhi where it was introduced w.e.f. 16th June, 2018.

GST will have a multiplier effect on the economy with benefits accruing to various sectors such as exporters, small traders and entrepreneurs, agriculture and industry, common consumers. GST has already promoted ‘Make in India’ and has improved the ‘Ease of Doing Business’ in India. By subsuming more than a score of taxes under GST, the road to a harmonized system of indirect tax has been paved making India an economic union.

Any new change is accompanied by difficulties and problems at the outset. A change as comprehensive as GST is bound to pose certain challenges not only for the government but also for business community, tax administration and even common citizens of the country. Some of these challenges relate to the unfamiliarity with the new regime and IT systems, legal challenges, return filing and reconciliations, passing on transition credit. Many of the processes in the GST are new for small and medium enterprises in particular, who were not used to regular and online filing of returns and other formalities.

Based on the feedback received from businesses, consumers and taxpayers from across the country, attempt has been made to incorporate suggestions and reduce problems through short-term as well as long-term solutions. National Anti-Profiteering Authority has initiated investigation into various complaints of anti-profiteering and has passed orders in some cases to protect consumer interest. To expedite sanction of refund, manual filing and processing of refunds has been enabled. Clarificatory Circulars and notifications have been issued to guide field formations of CBIC and States in this regard. The government has put in place an IT grievance redressal mechanism to address the difficulties faced by taxpayers owing to technical glitches on the GST portal.

The introduction of GST is truly a game changer for Indian economy as it has replaced multi-layered, complex indirect tax structure with a simple, transparent and technology–driven tax regime. It will integrate India into a single, common market by breaking barriers to inter-State trade and commerce. By eliminating cascading of taxes and reducing transaction costs, it will enhance ease of doing business in the country and provide an impetus to ‘Make in India’ campaign. GST will result in ‘ONE NATION, ONE TAX, ONE MARKET’.

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Eway bill in Delhi from 16 june 2018 notification 03/2018 https://www.gstseva.com/eway-bill-in-delhi-from-16-june-2018-notification-03-2018 Mon, 18 Jun 2018 06:15:32 +0000 https://www.gstseva.com/?p=9190 Eway bill in Delhi from 16 june 2018

New Delhi: 15 June 2018 Commissioner State GST, H. Rajesh Prasad,Delhi has come out with Notification No. 3 dt.15/6/2018 to compulsorily fill e-way Bill inside Delhi for all B2B transactions above Rs.1Lakh only.Further, B2C transactions of any value do not require e-way bill for intra state movement in Delhi. Notification applicable wef 16/6/2018.

eway bill in delhi

Download from here http://dvat.gov.in/Website/GSTNotificationShow.aspx?DocId=178969&Name=E

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