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Showing posts from March, 2019

Execution of Livelyhood for artists & local art hubs as an administrative agency is exempt from GST

The Uralungal Labour Contract Co-op Society Ltd. – Execution of Livelyhood for artists and local art hubs as an administrative agency is exempted from GST.

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Advance Ruling cannot be given on place of supply of services

In re Sri. Thomas Joseph Nellissery  (GST AAR Kerala) a) Whether the applicant, engaged in providing management consultancy services, is falling within the definition of the term Intermediary as per Sec.2(13) of The Integrated Goods and Services Tax Act, 2017? The services provided by the applicant falls under SAC code 998311 “Management Consultancy Services”. The […]

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Rate of GST on Diesel engines, marine diesel engines, gear boxes

In re Ms Techno Tradings and Services Pvt. Ltd. (GST AAR Kerala) i) As per the Notification No.01/2017 Central Tax (Rate) dated 28.06/017 Marine Diesel Engine falling under TSH 8408 of Customs Tariff Act, 1975, as adopted to GST, attracts 28% IGST (14% CGST+14% SGST) as per Serial No.115 of Schedule IV is correct or […]

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Polypropylene mats- 12% GST till 25-01-2018 & 5% GST thereafter

What is the tax rate for polypropylene mats under heading 4601?As per Entry 103 of Schedule If of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 and S.R.O.No.360/2017 dtd.30-06-2017 polypropylene mats were taxable @ 12% GST till 25-01-2018 and thereafter at 5% GST as per Enny 198A of the 1st Schedule of Notification No. 01/2017 Central Tax Rate) dated 28 062017 and S.R.O.No.360/2017 dtd.30-06-2017.

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Application for Advance Ruling rejected for non payment of fees

As per Circular No. 25/25/2017-GST dated 21st  December, 2017 issued by Central Board of Excise and Customs, the applicant for advance ruling has to make the payment of the fee of Rs. 5,000/- each under the CGST and the respective SCST Act. But the petitioner has remitted Rs.5,000/- under SGST head only. Even though intimation was given to the applicant to pay deficit amount, there was no response from the side of applicant.

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Bus Body Building on job work basis, on chassis supplied by customer, is supply of service

In re M/s. Kondody Autocraft (India) Pvt. Ltd. (GST AAR Kerala) i) Whether the activity of Bus Oody Building on job work basis, on the chassis supplied by the customer, is supply of goods Cr: supply of service? The activity of Bus Body Building on job work basis, on the chassis supplied by the customer, […]

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GST on Tour Services and Goods shown separately in Invoice

Tax liability under GST for the tour packages, which are providing to guests by way of separate services like accommodation, serving food and beverages, service of authorized guides, trekking accessories etc. against separate invoices.

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Green pepper picked from vine is exempt under GST

In re M/s. Herbal Isolates Private Limited (GST AAR Kerala) i) Whether fresh raw green pepper of genus Piper Nigrum is a vegetable that merits, classification under heading 0709 99 10 of Chapter 7 of the Customs Tariff Act, 1975. Green Peppercorns plucked fresh from the vines qualifies the classification under Chapter 7 of the […]

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Sun-cured tobacco leaves comes under HSN code 2401

In re Suresh.G. M/s. Govind Traders (GST AAR Kerala) 01. What is the HSN code applicable to sun-cured ‘Tobacco leaves’ known in Kerala as ‘Kannipukayila’ purchased from farmers of Puliyampatti areas of Tamil Nadu used only for chewing by consumers in Kerala? Sun-cured tobacco leaves comes under the HSN Code 2401. 02. What is the […]

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GST on mixing of rubber compound on materials supplied by principal

In re M/s. Estera Polymers (GST AAR Kerala) Mixing of rubber compound on the materials supplied by the principal and returning the finished products such as rubber backed mats and matting to the principal constitute supply of job work services and the job work services applied on such goods are squarely come under SI.No.26(i)(b) of […]

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PVC Tufted Coir Mats & Matting classifiable under CTH 57039090

In re M/s. Coco fibre Industries Private Limited (AAR Kerala) i) Whether or not PVC Tufted Colr Mats and Matting can be fitted into low band of tax rate of 5% as Cob Mats and Matting corresponding to entry in Schedule I. Serial Number 219 – 5702, 5703, 5705-Coir Mats, Matting, floor covering and handloom […]

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Comprehensive analysis of GST Composition Scheme for Service Providers

Why the Composition Scheme for Service Providers ?? 1. A need was felt to extend the benefit of paying the tax at lower rate under the simpler composition scheme to even the suppliers of services, hitherto only available to the suppliers of goods. Press Release dated 22.12.2018 issued by the GST Council after their 31st […]

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Statutory and Tax Compliance Calendar for April 2019

Statutory and Tax Compliance Calendar contains compliance’s related to GST (GSTR 1, GSTR 3B, GSTR 6, GSTR 5 & GSTR 5A) Income Tax (Due date of TDS Payment, Advance Tax payment, TDS Return Filing, Income Tax Return Filing, TDS Certificate Issue etc.), EPF, ESIC, LODR/SEBI, Companies Act, 2013 and other compliances. It explains form which needs […]

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New GST Taxation for Real Estate brings Customer’s Suvidha, Builder’s Duvidha

Arjuna (Fictional Character): Krishna, recently Government issued notification on Real Estate Sector as on 29th March  2019, Please tell something about it. Krishna (Fictional Character): Arjuna, these notifications were focused on Real Estate Sector. The notifications provide lower effective GST Rates for customers. Let’s see what’s in it. Arjuna: Krishna, what are the new tax […]

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Analysis of Post facto Discount & its impact on ITC under GST Regime

The valuation of Supply comes within the ambit of Section 15 of the Central Goods and Service tax Act. At the inception of discussion, it is requisite here to peruse the provisions of section 15(3)(b) which deals with the post facto discount, which are reiterated for sake of your reference-

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CBIC issues 21 New notification on 29.03.2019- GST on Real Estate

CBIC issues 21 notifications on 29th March 2019 which related to new rate of CGST in the real estate (residential unit). Notifications relates to Rate of Tax payable on Real Estate Sector Services and Goods, Applicability of Reverse Charge Mechanism on Real Estate Goods and Services and also  Applicability of Reverse Charge Mechanism on Purchase […]

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11 GST related advises to act before finalization of books of A/cs for FY 2018-19

1. GSTR 1 RELATED ‘AMENDMENTS’ FOR OF 17-18 AND 18-19 ♣ If  you have made export with payment of Taxes and  IGST refund has not been received then You might need to amend your export details in TABLE 9A ♣ If counter party is not able to find our sales invoice in his GSTR 2A […]

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UTGST: CBIC amends new GST Composition Scheme rules related to ITC

Notification No. 09/2019-Union Territory Tax (Rate)-  Seeks to amend notification No. 02/2019- Union Territory Tax (Rate) so as to provide for application of Composition rules to persons opting to pay tax under notification no. 2/2019- Union Territory Tax (Rate). Government of India Ministry of Finance (Department of Revenue) Notification No. 9/2019-Union Territory Tax (Rate) New […]

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UTGST rate on supply of goods for real estate sector under RCM by unregistered person

Notification No. 08/2019-Union Territory Tax (Rate)- Seeks to amend notification No. 1/2017- Union Territory Tax (Rate) so as to notify UTGST rate of certain goods as recommended by Goods and Services Tax Council for real estate sector. Government of India Ministry of Finance (Department of Revenue) Notification No. 08/2019-Union Territory Tax (Rate) New Delhi, the […]

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UTGST on real estate sector under RCM on supply from unregistered supplier

Notification No. 07/2019-Union Territory Tax (Rate)- Seeks to notify certain services to be taxed under RCM under section 7(4) of UTGST Act as recommended by Goods and Services Tax Council for real estate sector. Government of India Ministry of Finance (Department of Revenue) Notification No. 07/2019-Union Territory Tax (Rate) New Delhi, the 29th March, 2019 […]

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CBIC notifies person liable to pay UTGST on development rights, FSI etc

Notification No. 06/2019-Union Territory Tax (Rate) – Seeks to notify certain class of persons by exercising powers conferred under section 148 of CGST Act, 2017. Government of India Ministry of Finance (Department of Revenue) Notification No. 06/2019-Union Territory Tax (Rate) New Delhi, the 29th March, 2019 G.S.R……(E).- In exercise of the powers conferred by clause […]

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Real estate Services taxable under RCM wef 01.04.2019

Notification No. 05/2019-Union Territory Tax (Rate) –  Seeks to amend notification No. 13/2017- Union Territory Tax (Rate) so as to specify services to be taxed under Reverse Charge Mechanism (RCM) as recommended by Goods and Services Tax Council for real estate sector. Government of India Ministry of Finance (Department of Revenue) Notification No. 05/2019-Union Territory […]

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GST Notifications Issue on 29-03-2019 by CBIC

Notification No. Downloads Date of Issue Subject 16/2019-Central TaxDownload PDF29-03-2019Seeks to make Second Amendment (2019) to CGST Rules.
09/2019-Central Tax (Rate)Download PDF29-03-2019Seeks to amend notification No. 02/2019- Central Tax (Rate) so as to provide for application of Composition rules to persons opting to pay tax under notification no. 2/2019- Central Tax (Rate).
08/2019-Central Tax (Rate)Download PDF29-03-2019Seeks to amend notification No. 1/2017- Central Tax (Rate) so as to notify CGST rate of certain goods as recommended by Goods and Services Tax Council for real estate sector.
07/2019-Central Tax (Rate)Download PDF29-03-2019Seeks to notify certain services to be taxed under RCM under section 9(4) of CGST Act as recommended by Goods and Services Tax Council for real estate sector.
06/2019-Central Tax (Rate)Download PDF29-03-2019Seeks to notify certain class of persons by exercising powers conferred under section 148 of CGST Act, 2017.
05/2019-Central Tax (Rate)Downlo…

Income tax, GST offices to remain open on March 30, 31 to facilitate year-end collection

GST collections in the current fiscal till February totalled Rs 10.70 lakh crore.Tax offices, for both income tax and GST, will remain open on Saturday and Sunday as the departments race against time to meet the revenue collection targets. “As per past practice, all field offices of CBIC (Central Board of Indirect Taxes and Customs) will remain open during the last weekend of the current financial year also March 30 and March 31, 2019, for assisting the taxpayers in all matters,” CBIC said in an office memorandum.In an office order, the Central Board of Direct Taxes (CBDT) asked its field offices to facilitate filing of tax-returns by the taxpayers by opening additional receipt counters, wherever required, on March 30 and 31.“The last date for filing belated/revised tax-returns for assessment year 2018-19 is March 31, 2019. The financial year 2018-19 also closes on (March) 31. In view of the closed holidays March 30 and 31, being Saturday and Sunday, Income Tax Offices throughout Indi…

Govt notifies changes in GST credit utilization; auto retailers to get some relief

In the notification, government inserts new rule 88A that clarifies that the input of IGST has to be first used against output of IGST followed by set-off of IGST against either CGST or SGST as per the dealer’s requirement.NEW DELHI: Government of India on Friday notified a new credit utilization process that may provide a onetime benefit to automobile dealers and retailers by enhancing their liquidity.In the notification, government inserts new rule 88A that clarifies that the input of IGST has to be first used against output of IGST followed by set-off of IGST against either CGST or SGST as per the dealer’s requirement.Vinkesh Gulati, Vice-President, FADA who led the discussion with the GST Commissionerate, said, “Dealers will not have to make cash payments if they have inputs. It will be a relief for auto dealers as the amount stuck for working capital due to inventories, will no longer be a worry.”This is an update after the circular of February 1, which stated IGST has to be adju…

Income tax officials race against time to mop up Rs 1.6 lakh crore

NEW DELHI: Income tax officials have a busy weekend ahead as they race against time to mop up Rs 1.6 lakh crore, which is around 13% of this year’s target, with just two days for the end of the financial year. And, with GST collections also looking shaky, the finance ministry brass has its task cut out to meet the fiscal deficit target for the current financial year.Officials said change in tax slabs is seen to be a major reason for a shortfall in GST, although collections in March are expected to top Rs 1 lakh crore.Despite some savings expected from schemes such as farmer income support, officials are complaining of the unduly high target set for them. “The Rs 50,000-crore addition to the target in the revised estimates was like a balancing entry to keep the overall fiscal deficit target manageable. There was remote possibility of achieving the target and we were not taken into confidence,” said an officer.In the revised estimates for the current year, the government has budgeted fo…

Fresh crackdown on GST evaders on the cards

NEW DELHI: Tax sleuths are planning a fresh crackdown on traders evading the payment of Goods and Services Tax (GST) by seeking new registration for their businesses without revoking an earlier application.The move is aimed at bringing tax evaders to book and prevent GST evasion to the tune of several hundred crores of rupees.Deficiencies in the current registration process have the potential to substantially bring down GST revenues at a time when the collections have moved up and down and missed targets.In a circular issued by the Central Board of Indirect Taxes and Customs (CBIC), the authority has instructed its officers to exercise due caution while processing new applications for GST registration.It said that not applying for revocation or cancellation of an earlier registration will be deemed to be a “deficiency” and could be the reason for rejection of application for new registration for businesses.Rejection of GST registration means suspension of business activity, as no comm…

All about Audit under Goods & Services Tax -Professional Approach

Introduction The Goods and Services Tax was introduced in July 2017 across nation and since its implementation it has not been less than a roller coaster ride for the assesses, practitioners and consultants. Within a few months of its implementation, there was a flood of amendment notifications from the Government and the people across nation […]

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Central Goods and Services Tax (Second Amendment) Rules, 2019

CBIC notifies Central Goods and Services Tax (Second Amendment) Rules, 2019 vide Notification No. 16/2019 — Central Tax dated 29th March, 2019. Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs Notification No. 16/2019 — Central Tax New Delhi, the 29th March, 2019 G.S.R…….. (E). – In exercise […]

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GST payable on hostel services provided by Trusts to students

In re Students’ Welfare Association (GST AAR Maharashtra) Question -1(a). Whether hostel accommodation provided by Trusts to students is covered within the definition of Charitable Activities and thus, exempt under SI. No. 1 of notification No.12/2017-CT (Rate)? Question -1(b). Whether the supply of residential or lodging services @ Rs. 22,250/- per annum is covered by […]

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Plastic Satranj / Polypropylene Mats classifiable under HSN 4601

In re Shradha Polymats (GST AAR Maharastra) Whether 4601 as the HSN Classification of Polypropylene Mats is correct? Heading appropriate for Polypropylene Mats made from plaiting materials is 4601 and the relevant sub-heading is 4601 99. However as it is not necessary to go beyond four digit level for the purpose of this Advance Ruling, […]

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No Profiteering as there was commensurate reduction in base price

Kerala State Level Screening Committee Vs M/s Peps Industries Pvt. Ltd (NAA) It is apparent from the perusal of the facts of the case that admittedly there was a decrease in the rate of tax on the said product from 28% to 18% w.e.f. 15.11.2017 but it is also established that the base (excluding GST) of the […]

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CBIC offices to remain open on 30th & 31st March, 2019 (Saturday & Sunday)

As per past practice, all field offices of CBIC will remain open during the last weekend of the current financial year also i.e. 30.03.2019 and 31.03.2019 for assisting the taxpayers in all matters. All officers/officials of CBIC may attend office as per normal working hours.

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SC turns down petition by govt against IGST exemption to exporters

In advance authorisation licence is issued to allow duty-free import of inputs, which are physically incorporated in export productsNEW DELHI: The Supreme Court has dismissed the petition filed by the government and the GST Council against the Delhi high court order to allow exporters an exemption from the integrated goods and services tax (IGST) for imports done under the advance authorisation licenses. This would release working capital for those using these licenses.In advance authorisation licence is issued to allow duty-free import of inputs, which are physically incorporated in export products.Explaining the case, Abhishek Rastogi, who argued the case for exporters in the Supreme Court, said the Delhi high court had in 2017 allowed exporters to avail the IGST exemption.Following this, the GST Council had amended rules under the GST laws to allow the exemption from October 13, 2017. However, importers wanted exemption for earlier period as well.The government, the directorate gen…

Centre should address States concern on GST transfers

Reddy stresses on the need for a federal body to ensure there is a stable formula for transfers to StatesWhile the Goods and Services Tax (GST) Council was designed as a federal body between the States and the Centre, the complaint of the States is that the Centre is taking advantage of the arrangement and is delaying the dues to be paid to the States longer than is needed, according to Y.V. Reddy, former chairman of the Fourteenth Finance Commission.“The GST Council is an institution built on the cooperation of the Centre and the States in the matter of taxation,” Mr. Reddy said in an interview ahead of the release of his book ‘Indian Fiscal Federalism’ on Thursday.“It is a huge achievement,” he added. “But, in the implementation of the GST so far, the States have a feeling that the Centre is taking advantage of the current arrangement. The Centre is supposed to give money to the States, but that distribution is taking time and accounts are not being finalised. There is a feeling tha…

Exporters under the scanner for claiming tax benefits twice

According to the notices, the anomaly came to light during an audit conducted by the tax authorities. The tax department claimed that these exporters had claimed double benefits.MUMBAI: Many exporters have come under the taxman’s lens for claiming tax credit for the same export twice under the inverted duty structure. Those who have received notices from the indirect tax department said they had merely claimed what was theirs — although in two tranches. According to the notices, the anomaly came to light during an audit conducted by the tax authorities. The tax department claimed that these exporters had claimed double benefits. Inverted duty structure in the indirect tax framework refers to a situation where GST paid on the raw material is more than the goods exported. This led to a situation where the exporters would go and claim the refunds. In many cases, say industry trackers, the refunds were claimed in two tranches. “In several situations, the exporters have more accumulated cr…

Due date extension of Return of Job Work in Form GST ITC-04

The last date to furnish Return for Job Work of the period July 2017 to December 2018 was extended to 31st March, 2019 vide CBIC Notification No 78/2018-Central Tax dated 31st December 2018. Now, the Central Board of Indirect Taxes and Customs (CBIC) has by issue of Notification No 15/2019 dated 28th March 2019, further […]

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Builder Guilty of not passing benefit of ITC to purchasers of flats: NAA

It is evident from the above that the Respondent has denied benefit of ITC to the Applicants as well as the rest 64 purchasers of flats in contravention of the provisions of Section 171 (1) of the CGST Act, 2017 and has thus realized more price from them than what he was entitled to charge and has also compelled them to pay more GST than what they were required to pay

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12% GST payable on Work Contract Services pertaining to railways

In re M/s. Shree Construction (GST AAAR Maharashtra) The Advance Ruling Authority upheld the order passed by the Advance Ruling Authority, by observing that the any works contract pertaining to the railways, carried out by the main contractor or its sub-contractors are eligible for the concessional rate of 12% GST in terms of the provisions […]

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Inseparable Goods sent for job work & consumed in process is not supply

Return of the galvanised goods to the Applicant satisfies the condition of receiving back the inputs in accordance with section 143(1 )(a) of the GST Act. As the goods like furnace oil, zinc etc - consumed in the process of galvanising – are inseparable from the galvanised goods, they should not be treated as supply in terms of section 143(3) of the GST Act, provided they have been entirely used up in the process of galvanising.

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Rates of GST on various services provided by club

In re The Bengal Rowing Club (AAR West Bangal) Supply of food, by way of or as part of any service or in any other manner whatsoever, from the Applicant’s restaurant is classifiable under SAC 9963 and taxable under Sl No. 7(i) or 7(iii) of the Notification No. 11/2017-CT (Rate) dated 28/06/2017 (corresponding State Notification No. […]

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Changes planned in e-way bill system to contain GST evasion

E-way bill system will be enabled to auto calculate the distance for movement of goods based on the postal PIN codes of source and destination locations while allowing a variation of only 10%.NEW DELHI: India is eyeing several changes to the electronic-way bill system, ranging from auto calculation of distance for movement of goods to barring businesses from generating multiple e-way bills based on one invoice, as it cracks down on evasion in the goods and services tax (GST) framework.E-way bill system will be enabled to auto calculate the distance for movement of goods based on the postal PIN codes of source and destination locations while allowing a variation of only 10%. That is if the system has displayed the distance between Place A and B, based on the PIN codes, as 655 kms; then the user will be able to enter the actual distance up to 720 KM (655KMs + 65KM), according to the new conditions.Tax experts reckon that tax evasion continues to be a major concern for the government, an…

GST Authority clarifies on change/transfer in ownership of sole proprietorship

Mechanism to transfer unutilised input tax credit, liabilities specifiedThe GST (Goods & Services Tax) Authority on Thursday made it clear that transfer or change in the ownership of business will include transfer or change in the ownership of business due to death of the sole proprietor. Accordingly, a mechanism has been specified for transferring unutilised input tax credit.A circular issued by the Central Board of Indirect Taxes and Customs (CBIC) mentioned that the transferee or the successor, will be liable to be registered with effect from the date of such transfer or succession, where a business is transferred to another person for any reasons, including death of the proprietor. Here the applicant will be required to mention the reason to obtain registration as ‘death of the proprietor,’ in the registration form (GST REG-01) to be filed electronically in the common portal.The legal hire (of the dead sole proprietor) will be required to give application for cancellation of t…

Compliance under the GST regime is much higher

We are in the process of recruiting more data scientists, who can identify patterns in tax evasion: GSTN CEOThe Goods and Services Tax, in its second year, is functioning much more smoothly with the stakeholders settling down in the new system. Prakash Kumar, CEO of Goods and Services Tax Network, in a chat with Business Line discusses the journey so far and how the challenges in tax evasion are being addressed through the GSTN.There have been reports of detection of fraud and tax evasion in GST. How are these being traced?Every quarter we generate a list and where the invoice level liability in GSTR-1 is higher than the consolidated liability in GSTR-3B, we send out notices. Thousands of notices are currently being sent to taxpayers regarding these mismatches. The government decides on the threshold above which notices need to be sent. We don’t go after smaller sums.Since we have central data for the entire country, we can look through to see who is behaving properly and who isn’t, w…

GST magic dulls, big tax shortfall likely

After Rs 100,000 cr GST shortfall, Rs 50,000 cr in direct taxes in FY19; low average tax paid means compliance quite poor.Even when the budget was presented, the much lower projection of a 13.5% growth in FY20 tax collections suggested the government also realized that the expected boom in FY19 collections – taxes were to rise by 17.2% – was a one-time event, driven by more people paying income tax due to the fear of being caught out by the surveillance mechanism in-built into GST or by those who re-stated their taxes after being caught on the wrong foot by demonetization. Whatever the reason, though, a near-20% hike in the tax-to-GDP ratio since Narendra Modi became prime minister – from 10.1% in FY14 to a projected 11.9% for FY19 – is quite impressive. Indeed, this went well with the other narrative of the sharp hike in the number of taxpayers, especially the e-filers from 2.97 crore in FY13 to 6.75 crore in FY17.Despite this, however, it appears all is far from well. As FE’s Sumit …

GST: Direct taxes heading for at least Rs 70,000 cr shortfall

NEW DELHI: The Finance Ministry is making a last-ditch effort to get close to the direct tax target of Rs 12 lakh crore, asking field officials to step up efforts to get as much collections as they can and also asking banks to credit TDS (Tax deducted at source) amount to be credited in the March ledger instead of April.The Revenue Department has asked the banks to deposit the tax deducted for March by the last date in March itself, displaying urgency for funds to come to the government before the fiscal’s end to ensure possibility of a minimum shortfall.Under normal circumstances, TDS fund transfers by the banks happens in the first month of next fiscal but are treated as last fiscal’s revenue, which, in this case, is 2018-19, said a senior banker while adding this is routine for governments when they are off target.The direct tax target was revised to Rs 12 lakh crore from Rs 11.5 lakh crore earlier, buoyed by last year’s direct tax success which had surpassed the target.The Central…

Goods and Service Tax – Meaning of Basic Terms

GST: It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to […]

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Changes in GST with effect from 1st April 2019

With the beginning of the new financial year of 2019-2020 CBIC has issued various notifications to give effect to the recommendations made during 32nd GST Council meeting, held on 10 January 2019, the said notifications have been issued to give relief to MSME sector like increase in threshold limit for registration, concessional rate of tax […]

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Composition Scheme under GST- Changes Effective From 01.04.2019

With effect from 01.04.2019, various changes are being implemented in the composition scheme. As the scheme is required to be opted, this article is an attempt to explain the provision as it shall be applicable with effect from 01.04.2019 for composition dealers.

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12 Thing to do/remember before GST Return Filing for March 2019

12 Thing to do/remember before GST Return Filing for March 2019 includes not to delay filing of  GSTR 1 or GSTR 3B pertaining to March 2019, Avail all Input Tax credit (ITC) for invoices pertaining to FY 17-18, Raise All Debit Notes pertaining to invoices of FY 17-18 & Inform the Counter party, Avail all […]

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5 Recent important cases on GST decided by various High Court

This post covers summary of a few recent case laws on GST. Hope these judgement help you to understand the practical issues emerging in the GST regime in a better way. 1. Bharat Raj Punj Vs Commissioner of Central Goods And Service Tax (Rajasthan High Court) Case: Input tax credit availed fraudulently by issue of fake […]

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GST Registration- Minimum Threshold Limit with effect from 1st April 2019

Notification No.-10/2019- Central Tax has further exempted from obtaining registration for a person engaged exclusively in supply of goods and whose aggregate turnover in the financial year does not exceed Rs 40 lakh with effect from 1 April 2019 except persons making intrastate supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand.

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CBIC extends due date for furnishing of Form GST ITC-04

Notification to extend the due date for furnishing of FORM GST ITC-04 for the period July 2017 to March 2019 till 30th June 2019 issued Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs Notification No. 15/2019–Central Tax New Delhi, the 28th March ,2019 G.S.R. 242(E). – In pursuance […]

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Transfer of input tax credit in case of death of sole proprietor

Circular No. 96/15/2019-GST No. CBEC-20/16/04/2018 – GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing *** New Delhi, Dated the 28th March, 2019 To, The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All) The Principal Director Generals / […]

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Verification for grant of new GST registration- CBIC clarifies

Circular No. 95/14/2019-GST F.No. CBEC-20/16/04/2018 – GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing *** New Delhi, Dated the 28th March, 2019 To, The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All) The Principal Director Generals / […]

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CBIC clarification on GST Refund and Reversal of Input Tax Credit

It is hereby clarified that all those registered persons required to make the reversal in terms of the said notification and who have not yet done so, may reverse the said amount through FORM GST DRC-03 instead of through FORM GSTR-3B.

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How to rectify erroneous transactions disclosed in GST Returns

Taxpayers under regular category are filing GSTR 1 and GSTR 3B to report their transactions. GSTR 1 is for reporting of details of outward supplies including amendments if any and GSTR 3B is for reporting summary transactions for payment of taxes and claiming ITC. Since there has been numerous changes in GST Law and Rules, […]

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GST on High Sea Sales

High sea sale transactions, though regarded as supply in the course of inter-state trade or commerce, are not subject to levy of IGST as the supply takes place before filing of Bill of entry and IGST in case of importation of goods can be levied at the time of filing of Bill of Entry.

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Analysis of the New GST Credit Set Off mechanism

As per section 49(5) of the CGST Act, the IGST credit was allowed to be used for payment of CGST and SGST output liability once the input credit on account of input CGST and SGST credit was fully utilised. This method allowed taxpayers to utilise the credits to its fullest and cash payouts were required […]

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8 things to be done under GST before March 31, 2019

8 things to be done under GST before March 31, 2019 includes  Last chance to avail any pending ITC of FY 2017-18, Amendments / Rectification pertaining to details furnished in GSTR-1 and GSTR-3B of FY 2017-18, Application of Letter of Undertaking (LUT) for export of goods or services without payment of IGST for the FY […]

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One Notifications & Three Circulars Issue on 28-03-2019 by CBIC

Notification No. Downloads Date of Issue Subject 15/2019-Central TaxDownload PDF28-03-2019Notification to extend the due date for furnishing of FORM GST ITC-04 for theperiod July 2017 to March 2019 till 30th June 2019 issued.
Circular No. Downloads Date of issue File No. Subject 96/2019Download PDF28-03-2019F. No. 20/16/04/2018 – GSTSeeks to clarify issues in respect of transfer of input tax credit in case of death of sole proprietor.
95/2019Download PDF28-03-2019F. No. 20/16/04/2018 – GSTSeeks to clarify verification for grant of new registration.
94/2019Download PDF28-03-2019F. No. 20/16/04/2018 – GSTSeeks to clarify certain refund related issues under GST.
The post One Notifications & Three Circulars Issue on 28-03-2019 by CBIC appeared first on GST Station.

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GSTN credits Rs 95 crore cess to company that did not owe any

NAGPUR: In what is being attributed to a technical error in Goods and Services Tax Network (GSTN), the authorities have come across a case where the system recorded an excessively high amount of tax than what was actually paid by a manufacturing company.
The matter has come up before the directorate general of GST Intelligence (DGSTI), and the case has been taken up for further investigation. A Yavatmal-based manufacturing company had discharged its GST liability, which came to over Rs 45 lakh, and filed the returns accordingly. However, the GSTN also showed an amount of Rs 95 crore as compensation cess paid by the entity. This is over 10 times the company’s yearly turnover itself, leave aside the tax liability.Compensation cess is applicable on select items like coal or cigarettes, on account of pollution or health hazards attached with such commodities. In this case, there was no compensation cess applicable on the products the Yavatmal company made. It deals in farm inputs.Sources s…

New Rules for ITC utilisation – Government Set-off Terms

Two new sections via amendment of CGST Act have changed calculations for set off of ITC alongwith empowerment for manner and utilisation of ITC in future. The same are reproduced below for your reference : “49A. Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union […]

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How to download Free GST Accounting & Billing Software

The GSTN has introduced the 'Free Accounting & Billing Software' for the small taxpayers whose turnover less than 1.5 crores. Those taxpayers can download the software, the process to download the software are:

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Allow manual filing of TRAN-1 to petitioner by 31.03.2019: HC

Anil Kumar & Sons Vs Union of India (Allahabad High Court) The petitioner has alleged in the petition that despite making several efforts on the last date for filing of the application, the electronic system of the respondent no.2 did not respond, as a result of which the petitioner is likely to suffer loss of […]

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GST: HC releases goods seized without complying Section 129

Synergy Fertichem Pvt.Ltd Vs State of Gujarat (Gujarat High Court) In the present case, the show­ cause notice dated 01.03.2019 has been issued under section 130 of the CGST Act calling upon the petitioner to show cause as to why the goods in question as well as the vehicle should not be confiscated for non-payment […]

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GST on repairing & servicing of transformers owned by WBSEDCL

In re Alok Bhanuka (GST AAR West Bangal) Repairing and servicing of transformers owned by another person is not job work as defined under section 2(68) of the GST Act. It is composite supply unless the contract specifies that the goods and services are to be separately charged. The principal supply is the service of […]

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Food supplements classifiable under HSN 2106: AAR West Bengal

Food supplements are not specifically covered under any HSN. The Section or Chapter Notes or the Explanatory Notes to the Tariff Act do not contain any specific reference to inclusion of food supplements

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A fair assessment of Goods and Services Tax

The GST impact goes beyond revenues and rates of duty. It has transformed our federal polity for the good.After long deliberation, the goods and services tax (GST) was implemented in July 2017. Nearly two years have passed since, and there’s a widespread perception that GST revenue growth has not lived up to expectations. This is not a fair assessment. GST’s revenue performance must be measured against not the target set, but against the growth of nominal GDP.An assessment was made by Kapil Patidar & Arvind Subramanian in June 2018. This showed that in the first year of implementation of GST, revenues grew by 11.9% and the buoyancy was 1.20. A buoyancy ratio over 1shows progressiveness in the revenue growth and opens up the prospect of a rising tax-to-GDP ratio.This is a significant improvement over the pre-GST period when the buoyancy ratios for state value added tax (VAT) and central indirect taxes like central excise and service tax were less than 1. The revenue performance is …