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Showing posts from June, 2019

Applicability of GST on additional/penal interest on delayed payment

Commentary on Circular No. 102/21/2019 – GST dated June 28, 2019 regarding the applicability of GST on additional/penal interest on delayed payment charges in case of late payment of Equated Monthly Instalments (EMI) Entry 5(e) of Schedule II of the Central Goods and Services Tax Act, 2017 “Agreeing to the obligation to refrain from an […]

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Treatment of Discount under GST

As per the recent circular 105/24/2019 dated 28th June 2019 CBIC has clarified the various doubts related to treatment of secondary or post sale discounts under GST. Scenario 1: if post sale discount is given without any further obligation or actions on dealer end. In that case the post-sale discount given by the said supplier […]

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ITC on cars further supplied to customers on lease rent

In re M/s. Narsingh Transport (GST AAR Madhya Pradesh) 1. The Applicant is entitled to avail ITC on cars (passenger vehicles) which are further supplied to customers on lease rent, subject to condition applicable in such supply of services as per notification number 11/2017-Central Tax(Rate) Dated 28.06.17 as amended from time to time and corresponding […]

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GST on fabrication of bus body on chassis to be supplied by OEMs (Principal)

In re Rohan Coach Builders (GST AAR Madhya Pradesh) In respect of the question raised by the applicant we hold that on fabrication of bus body on the chassis to be supplied by the OEMs (Principal) on delivery challan or any other owner of the chassis on which bus body will be fabricated by collecting […]

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AAR explains exemption notification No. 12/2017-CT(R) w.r.t. training programs

In re M/s. Network For Information & Computer (GST AAR Madhya Pradesh) Text and language of the exemption notification No.12/2017-CT(R) shows that the intent of the legislature is to exempt services provided to the Central Government, State Government or Union Territory Administration under any training program for which total expenditure is borne by such Governments. […]

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IGST payable on ocean freight paid on imported goods under RCM

In re E-DP Marketing Private Limited (GST AAR Madhya Pradesh) The Applicant shall be liable to pay IGST on ocean freight paid on imported goods under Reverse Charge Mechanism in terms of Notification No.10/2017-IT(R) and Notification No.8/2017-IT(R) irrespective of the ocean freight component having been a part of the CIF value of imported goods. FULL […]

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GST on Mounting of Bus/ Truck /Ambulance body on chassis

In re M/s. Sanghi Brothers (Indore) Private Limited (GST AAR Madhya Pradesh) Mounting of Bus/ Truck /Ambulance body on the chassis to be supplied by the Principal on delivery challan or any other owner of the chassis on which Bus/ Truck /Ambulance body will be fabricated by collecting job work charges including inputs required for […]

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Clinical Research Services not export if Testing in India on Goods Received in India

In re Cliantha Research Limited (GST AAR Maharashtra) The Applicant would like to seek a ruling on whether the “Clinical Research” services proposed to be provided by them to entities located outside India is liable to Central Goods and Services Tax and State Goods and Services Tax or Integrated Goods and Services Tax or is […]

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Bengal creates new DRI&E to tackle tax evasion

West Bengal create a new Directorate of Revenue Intelligence and Enforcement (DRI&E) under the Finance Department for comprehensive approach to investigation and enforcement of tax laws for tackling the menace of tax evasion and leakage of State revenue in a more efficient and effective manne GOVERNMENT OF WEST BENGAL FINANCE DEPARTMENT Revenue NOTIFICATION No. 231-F.T. […]

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‘Unicharm’ not passed tax reduction benefit on Sanitary Napkins: NAA

Shri C. P. Rao Vs M/s Unicharm India Pvt. Ltd. (NAA) It is revealed that the Central Govt. vide Notification No.19/2018-Central Tax (Rate) dated 26.07.2018 the Government had reduced the rate of GST from 12% to NIL without ITC in respect of  Sanitary Napkins with effect from 27.07.2018, the benefit of which was required to […]

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Commission Agents and Brokers – GST Perspective

A Commission Agent is required to obtain Compulsory Registration u/s 24(vii) of CGST Act, irrespective of its turnover. Thus, the threshold limit of Rs.20 lakh as enunciated in section 22(1) of CGST Act, does not apply to an Agent.

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New GST return system – Transition plan

The GST Council in its 31st meeting decided that a new GST return system will be initiated to facilitate taxpayers. Government introduced a transition plan for all the taxpayers under the goods and services tax switching to new simpler return Forms.  In order to ease the transition to the new return system, a transition plan […]

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Analysis of GST Notifications/Circulars/Order dated 28 June 2019

GST Updates – 28 June 2019 The Government has issued various notifications, Order and Circulars for implementing the decisions taken in the 35th meeting of the GST Council. Please find below the key highlights of notifications issued: SN Notification Number Particulars Effective date 1 Notification No. 31/2019 – Central Tax Dated 28th June 2019 Rules […]

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Gist Notification and order issued by CBIC Dated 28th June 2019

Gist of Notification and order issued by CBIC Dated 28th June 2019 to implement decisions of 35th GST Council Meeting. Part one contains information on Due Date of Filing of Various GST Forms , Part two of article contains Information of amendments in GST RULES and part three contains information on Major & Relevant amendments […]

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Benefit of reduction in rate of GST not passed; Anti Profiteering provisions contravened

Mr. Mohammad Azid Ramzani Vs Director General of Anti-Profiteering (National Anti-Profiteering Authority) It is revealed that the Central Govt. vide Notification No.41/2017-Central Tax (Rate) dated 14.11.2017 had reduced the rate of GST from 28% to 18% in respect of the tiles with effect from 15.11.2017. the benefit of which was required to be passed on […]

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Issues in filing Form GSTR 9C / Form GSTR 9: Steps to be taken

Issues reported in filing Form GSTR 9C by the taxpayers: Steps to be taken-  29/06/2019 Taxpayers have reported some issues in filing their Form GSTR 9C, which are clarified below: 1. User getting error message while using Excel version: You are also advised to use Microsoft excel version higher than 2007 while preparing Form GSTR […]

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Govt uses GST alerts for better compliance

An independent director of a large public sector company recently received a message that there was a mismatch in GST return filed by the state-run metals player. The board member immediately contacted the company management, which rectified the mistake.The PSU director was not alone, several directors on the boards of companies and promoters have been receiving such messages if there is a mismatch between the initial and revised returns. This is only one of the five “red flags” being used by the government and the GST Network, which provides the IT backbone for the indirect tax, to coax companies into fixing problems or even filing returns in case they have not done so within the prescribed deadline.Sources said such text messages are sent to promoters and directors of companies that pay over Rs 1 lakh a month. “Often, the finance people don’t comply with the filing requirement but they immediately file once it is brought to the notice of the management,” said an official, adding tha…

Budget 2019: Ravi Shankar Prasad seeks relief package for telecom

NEW DELHI: Communications minister Ravi Shankar Prasad has pitched for a series of relief measures, including lower licence fee, in the budget for the beleaguered telecom sector.He has also sought a cut in GST rate from 18% to 12%, which can help lower the monthly mobile bill of consumers, but it’s a decision which is outside the budget and a call has to be taken in the GST Council, comprising state and Union finance ministers.The recommendations are being portrayed as the government’s thrust on expanding Digital India through cheaper tariffs, while also paving the way for “affordable” mobile services, including upcoming 5G technology.Prasad has proposed a 25% cut in the licence fee that companies pay to the government, sources told TOI. This can be done through a 2% reduction in the Universal Services Obligation Fund (USOF) levy, which could bring down the effective licence fee rate from the existing 8% (5% USOF and 3% administrative charges) to 6%.The telecom department is also seek…

Dealers to get input tax credit on GST for the post-sale discounts

The dealer would be eligible to get input tax credit on entire amount of GST paid if the discount is given after the sale of productNEW DELHI: Dealers will have to pay 18 per cent goods and services tax (GST) on the post-sale discount that their company gives to them if it asks them to do promotional activities or pass on the concessions to the end consumer.However, if discount is given to them without any obligation, he would not be needed to pay GST on it. These kinds of discounts are generally prevalent in automobile, fast-moving consumer goods, consumer durables and pharmaceutical companies.Also, the dealer would be eligible to get input tax credit on entire amount of GST paid if the discount is given after the sale of product. The Central Board of Indirect Taxes and Customs (CBIC) released these clarifications on Friday.Explaining the clarifications, Abhishek Jain, partner at EY, said suppose a company sold a car to dealer for Rs 10 lakh but later, it gave Rs 50,000 discount to t…

CBIC issues 12 GST notifications/Circulars/Order on 28th June 2019

CBIC has issued 7 GST Central Tax Notifications, One Removal of Difficulty Order and 4 Central GST Circulars on 28th June 2019 to Give effect to 35th GST Council Decisions and to clarify certain issues in GST. Vide these notifications CBIC has notified due dates of Monthly and Quarterly GSTR-1 and GSTR 3B for the […]

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Bengal AAR revisits its own ruling on ITC of GST on Motor Car to Cab Operator

ANALYSIS OF AMENDMENT OF ITS OWN RULING BY AAR-WEST BENGAL ON NON ADMISSIBILITY OF ITC OF GST PAID ON INWARD SUPPLY/PURCHASE OF MOTOR VEHICLE USED FOR SUPPLYING RENT-A-CAB/RENTING/LEASING/HIRING SERVICE Case Name : Mohana Ghosh, In Re Appeal Number : 06/WBAAR/2019-20 & 08/WBAAR/2019-20 Date of Judgement :  Original on 10/06/2019 & suo motto amended by AAR […]

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Can Dream11 Games be considered as Betting/Gambling for GST?

The activity of Dream11 Online fantasy Game is not illegal. It is not gambling or betting or wagering. The amount to be distributed to the winners is an Actionable Claim which is not Supply for the purpose of GST and hence, EXEMPT.

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E-Commerce Operator – Annual Statement/Return/Audited Accounts

Query Is ever e-commerce operator required to be file GSTR – 9B? Understanding on the basis of GST Law Whether or not to File GSTR-8 and GSTR-9B depends on the very fact that whether the e-commerce operator is required to collect tax under section 52 (1) of the CGST Act. Certain operators who own, operate […]

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3 Key Issues that should be considered by GST Council

1. Anti Profiteering Provisions under GST need better clarity “Profiteering is a pejorative term for the act of making profit by adopting unethical methods.” Section 171 of the CGST Act, requires a registered taxable person to pass on the benefit of every rupee accrued on account of additional input tax credit or reduced tax rate, […]

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National Calamity Contingent Duty on Tobacco Products in GST Regime

Tobacco products attracted National Calamity Contingent Duty (NCCD) under erstwhile Central Excise duty regime. CBIC has clarified that NCCD shall continue to be levied on tobacco and tobacco products at the rates as applicable prior to 1st July, 2017. This paper is an attempt to understand the legality of imposition of NCCD on products which […]

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Analysis related to Latest GST Notification issued on 28/06/2019

CBIC issued the Notification No. 26/2019,27/2019/28/2019,29/2019,30/2019,31/2019,32/2019 on 28th June 28, 2019 related to various issues. The detailed analysis are mentioned below:  S.No Notification No Description Analysis 1 Notification No. 26/2019 – Central Tax Dated 28th June 2019 Seeks to extend the due date of filing returns in FORM GSTR-7 The due date for filing GSTR-7 […]

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Crux of Notifications / Order issued by CBIC on 28th June 2019

Notifications / Order issued by CBIC on 28th June 2019 Article contains Crux of Notifications / Order issued by CBIC on 28th June 2019 which includes extension of due date of FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C, FORM GST ITC-04, FORM GSTR-1 for registered persons having aggregate turnover of more than 1.5 crore rupees […]

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Summary of GST Notifications & Orders issued on 28.06.2019

Summary of Notifications & Orders issued Article contains summary of GST notifications and Orders issued by CBIC on 28th June 2019 to implement 35th GST Council meeting Recommendations which includes Extension of Due date of Various forms / Returns and amendment in GST Rules. 1. Due dates: Notification / Order Return Related to Period Due […]

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New GST Return Forms- GST RET-1, GST RET-2 and GST RET-3

New GST Returns. 1. Firstly if the Turnover during the preceding financial year is more than Rs. 5 Crores, then the assessee by default has to file monthly returns. 2. If the Turnover is less than Rs 5 crores then the assessee has an option available to choose Monthly or Quarterly Returns. 3. If you have […]

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Due date to furnish Form GSTR-1 for turnover up to Rs. 1.5 crore

Due date for furnishing FORM GSTR-1 for registered persons having aggregate turnover of up to 1.5 crore rupees for the months of July, 2019 to September,2019 is prescribed as  31st October, 2019 vide Notification No. 27/2019 – Central Tax Dated  28th June, 2019. Government of India Ministry of Finance (Department of Revenue) Central Board of […]

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GST TDS returns in Form GSTR-7 due date extended to 31.08.2019

CBIC hereby extends the time limit for furnishing the return by a registered person required to deduct tax at source  in FORM GSTR-7 for the months of October, 2018 to July, 2019 till the 31st day of August, 2019 vide Notification No. 26/2019 – Central Tax Dated  28th June, 2019. Government of India Ministry of […]

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GST: Concept & Status (Updated as on 01st June, 2019

The introduction of Goods and Services Tax (GST) would be a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, it would mitigate cascading or double taxation in a major way and pave the way for a common national market. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated to be around 25%-30%.

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CBIC clarifies GST treatment of secondary or post-sales discounts

Clarification on various doubts related to treatment of secondary or post-sales discounts under GST vide Circular No. 105/24/2019-GST Circular No. 105/24/2019-GST 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 June, 2019 To, The Principal Chief Commissioners / Chief […]

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Processing of refund in Form GST RFD-01A wrongly mapped on portal

Processing of refund applications in FORM GST RFD-01A submitted by taxpayers  wrongly mapped on the common portal – Authority may inform the common portal about the incorrect mapping with a request to update it suitably on the common portal. Circular No. 104/23/2019-GST CBEC-20/16/04/2018-GST Government of India Ministry of Finance Department of Revenue Central Board of […]

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Place of supply forServices provided by Ports or on goods temporarily imported in India

Circular explains Place of supply in case of Services provided by Ports and  Services rendered on goods temporarily imported in India. Circular No. 103/22/2019-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 June, […]

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GST on additional / penal interest- Clarification

GST on delayed payment charges in case of late payment of Equated Monthly Instalments (EMI). An EMI is a fixed amount paid by a borrower to a lender at a specified date every calendar month. In cases where the EMI is not paid at the scheduled time, there is a levy of additional / penal […]

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Highlights of 35th GST Council Meeting

35th GST Council Meeting was held on 21 June 2019 at New Delhi, after a long gap of more than three months. This was the first council meeting chaired by the re-elected government and India’s second woman Union Finance Minister, Mrs Nirmala Sitharaman.

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GST: 7 Notifications, 4 Circulars and a Order dated on 28th June, 2019 issue by CBIC

Notification No. Downloads Date of Issue Subject 32/2019-Central TaxDownload PDF28-06-2019Seeks to extend the due date for furnishing the declaration FORM GST ITC-04.
31/2019-Central TaxDownload PDF28-06-2019Seeks to carry out changes in the CGST Rules, 2017.
30/2019-Central TaxDownload PDF28-06-2019Seeks to provide exemption from furnishing of Annual Return / Reconciliation Statement for suppliers of Online Information Database Access and Retrieval Services(“OIDAR services”).
29/2019-Central TaxDownload PDF28-06-2019Seeks to prescribe the due date for furnishing FORM GSTR-3B for the months of July, 2019 to September, 2019.
28/2019-Central TaxDownload PDF28-06-2019Seeks to prescribe the due date for furnishing FORM GSTR-1 for registered persons having aggregate turnover of more than 1.5 crore rupees for the months of July, 2019 to September, 2019.
27/2019-Central TaxDownload PDF28-06-2019Seeks to prescribe the due date for furnishing FORM GSTR-1 for registered persons having aggregate turn…

2 years of GST: Government to celebrate second anniversary of indirect tax regime on July 1

The Government will organise an event on July 1, to celebrate the second anniversary of Goods and Services Tax (GST) roll out, which will be addressed by Finance Minister Nirmala Sitharaman and her deputy Anurag Thakur.The event, to be held in Ambedkar Bhawan, here, will be attended by senior officers of the central and state tax authorities. There will be a presentation on the two years of GST and the road ahead for the indirect tax regime, according to an official notification.Interestingly, the pilot of new return filing, which will replace the current system of GSTR-3B (summary returns) and GSTR-1 (supplies return), would also be launched on July 1, 2019.GST has helped curbing evasion, including by way of mandatory generation of e-way bill for transporting goods over Rs 50,000, it said.GST, which subsumed 17 local levies, was rolled out on the intervening night of June 30 and July 1, 2017, in a ceremony held in the central hall of the parliament.GST transformed India into ‘One Nat…

GST on dredging to improve navigability of river-bed and channels

In re Arihant Dredging Developers Private Limited (GST AAR West Bangal) It appears from the description of the work that it improves the navigability of the river-bed and channels – an activity toward development of irrigation and waterways. It is, therefore, an activity in relation to the function listed under SI No. 5 of the […]

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GST on works contract of dredging a river-bed for government entity

It appears from the description of the work that it improves the navigability of the river-bed and channels - an activity toward development of irrigation and waterways. It is, therefore, an activity in relation to the function listed under SI No. 5 of the Eleventh Schedule, as entrusted to a Panchayat under Article 243G of the Constitution of India. Exemption under SI No. 3A of the Exemption Notification is, therefore, applicable to the Applicant's supply of the above works contract service.

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No GST on Renting of residential property for residence to company

Whether renting a residential property for residential purpose to a company is an exempt supply under GST? It appears that the dwelling units rented to individuals, as described in the relevant contracts, are meant for residential accommodation. The dwelling unit rented to M/s Larsen & Toubro Ltd is a flat in the housing complex named South City. The South City Apartment Owners' Association certifies that the Applicant owns the flat and it is a residential flat and cannot be used for any other purpose. The said association further confirms that an employee of M/s Larsen & Toubro Ltd is staying at the flat.

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No GST TDS on conservancy & waste management service to municipality

Whether TDS notifications applies to conservancy and waste management service to a municipality and and whether he is required to obtain registration under the GST Act even if he is making exempt supplies only.

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Pre Arrest Protection: Lessons from Decision in P.V. Ramana Reddy

Celebrated case of P.V. Ramana Reddy decided by Telangana High Court on 18-04-2019 has been left unperturbed by Supreme Court in [2019] 106 taxmann.com 301 (SC) and pronounced on 27-05-2019. In Sapna Jain & Ors also, Supreme Court has advised that High Courts while entertaining pre arrest petitions will Keep in mind the order of […]

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Invoices reported in Form GSTR 1 of FY 2017-18 cannot be amended

Taxpayers could have amended their invoices, reported in Form GSTR 1, pertaining to the financial year 2017-18, till the due date of filing of Form GSTR 1 of March, 2019. Since, due date of filing of Form GSTR 1, for the month of March, 2019 has already passed, no amendments in invoices reported in Form GSTR 1 pertaining to the financial year 2017-18, could be made now.

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GST intelligence arm unearthed Rs 300 cr evasion in 6 months

NAGPUR: As Goods and Services Tax (GST) regime completes two years on July 1, the Directorate of GST Intelligence (DGGSTI) — the investigation arm — has notched up 50 raids in Nagpur zone over the six months of its operations. These actions relate to tax evasion to the tune of Rs 300 core, of which Rs 250 crore has been recovered so far, said sources.DGGSTI became operational in December last year, and raids were conducted till May end. The Nagpur zone covers Vidarbha, Marathwada and Nashik regions of the state. There was focus on real estate and food industry apart from other sectors, said sources.With other agencies also sharing data with the directorate, nine cases have been referred by the income tax department apart from one by the enforcement directorate (ED). The ED had referred a money laundering case it was investigating, where DGGSTI also found a case of GST evasion.The DGGSTI has found that a number of builders have not been paying GST even if the units constructed by them …

GST: Govt asks public sector banks to analyse MSME credit woes

Keen to soften the blow for the MSME sector that was hit by the double whammy of demonetisation and the GST, the government has asked the chiefs of public sector banks (PSBs) to undertake an “in-depth analysis of the progress made and issues in availability of credit still faced by MSMEs”. The state-run banks have to ensure that MSMEs need not “suffer for want of credit”, the finance ministry said on Thursday.Latest RBI data showed credit to industry went up by just 6.9% year-on-year as of April 26, while overall non-food credit growth was as much as 11.9%. Importantly, loans to industry was mostly cornered by large players and growth in credit to micro and small units, and medium enterprises was just 1% and 3.5%, respectively.While doing the analysis of credit flow to MSMEs, the nodal general manager of the PSB concerned needs to collect information on MSMEs who are taking credit from the bank; MSME accounts that have turned bad; MSME accounts where restructuring/resolution has been …

GST anti-profiteering extension: Benefit to consumers but uncertainty for businesses

While in the GST council meeting held on June 21, 2019, there was again some pragmatic rate tweaking this time, the GST council had a clear vision of curbing inflation.Rate rationalisation has been the centre of attraction for most of the GST Council meetings. While in the GST council meeting held on June 21, 2019, there was again some pragmatic rate tweaking this time, the GST council had a clear vision of curbing inflation. This was achieved by not only extending the anti-profiteering provisions but also imposing strict penalties on non-payment of the profiteered amount within 30 days.  There is no doubt that the extension of anti-profiteering provisions for further two years has been done in utmost good faith and as a measure to pass the benefit of rate reduction to the consumers. However, the announcements lead to opening of a pandora box leading to much more uncertainty.Firstly, the provisions of section 171 of the Central Goods and Services Tax Act, 2017 (CGST Act) which deals w…

Ficci urges FinMin to re-look into GST regime for consulting, service sector

NEW DELHI: Industry body Ficci Thursday urged the Finance Ministry to have a re-look at Goods and Service Tax (GST) regime for consulting and service sector.“Ficci’s National Committee on Transport Infrastructure and the Consulting Engineers Association of India (CEAI) has urged the Union Ministry of Finance to have a re-look at its Goods and Service Tax collection regime for Consulting and service providing sector and urged to put the onus of depositing of Goods and service tax on the Client (Service Receiver) including both the government and Private sector,” it said in a statement.At present, the consulting and service community which provides service to the government and private sector is being coerced into payment of GST on behalf of the employer, whereas, their role is that of a mere collector of tax on behalf of the government, the industry body said.“Ficci Infra Committee and CEAI on various occasions have written to Minister of Finance and to GST Council that the GST payable…

CBI arrests IRS officer, superintendent of CGST Dept in bribery case

NEW DELHI: The CBI has arrested an assistant commissioner and a superintendent posted at the CGST Department in Patna for allegedly receiving a bribe of Rs 2.5 lakh, officials said.Assistant Commissioner Chandan Prakash Pandey, a 2016-batch Indian Revenue Service officer, and Superintendent Mohammed Soaibuddin were caught red-handed while they were receiving the bribe from a flour mill owner, they said.The agency is carrying out searches at the offices and the residences of Pandey and Soaibuddin in Patna and Jehanabad.Both are posted at the CGST (Central Goods and Services Tax), Patna-II.The duo had allegedly demanded a bribe of Rs 8 lakh for not filing a case against a firm owned by wife and sister-in-law of the complainant, the officials said.They were receiving Rs 2.5 lakh as a portion of the bribe when the agency nabbed them, they said.Source- Business Standard. The post CBI arrests IRS officer, superintendent of CGST Dept in bribery case appeared first on GST Station.

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ACMA pitches for uniform GST rate of 18 pc on all auto components

Automotive component industry body ACMA Thursday asked the government to ensure a uniform GST rate of 18 per cent on all auto components as part of measures to support the sector that is going through a downturn.Automotive Component Manufacturers’ Association (ACMA) further said there is also an urgent need to increase the rate of weighted deduction on R&D spend.“The automotive industry is witnessing one of the most challenging times ever. Domestic consumption of all vehicle segments is witnessing negative growth. We hope that the measures in the forthcoming budget will lift the market sentiments and help the industry to be back on track,” ACMA Director General Vinnie Mehta said in a statement.He further said,”the auto component industry, being an intermediary, has recommended a uniform GST rate of 18 per cent on all auto components.”The industry has significant aftermarket operations, which is plagued by grey operations and counterfeits due to the high 28 per cent GST rate, Mehta…

Draft Central Goods and Services Tax (Fourth Amendment) Rules, 2019

Draft Central Goods and Services Tax (Fourth Amendment) Rules, 2019 shall come into force on the date of their publication in the official gazette. Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs Draft Notification No. _/2019 – Central Tax New Delhi, the __ June, 2019 G.S.R (E). […]

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Hurrah! GST audit due date extended to 31st August 2019

It was recommended to extend the due date of furnishing of FORM GSTR-9, FORM GSTR-9A, and FORM GSTR-9C due to difficulties being faced by taxpayers in furnishing the annual returns till 31.08.2019. Official notification would be released soon. This recommendation was much needed by the trade and industry.

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Adjudication of Transitional Credits ??- A Tale of Six Gaps

1. Verification of TRAN-I or TRAN-II forms have been or will be carried out by the department. During the process they may come across cases where allegedly wrong transitional credits could have been claimed. One striking example can be the transitional credits in respect of cess (KKC) which was permitted prior to retrospective amendment to […]

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How GST may lead to increased tax outgo for insurance companies

If the value of insurance premium not subjected to tax is treated as exempt, the insurance companies will be liable to substantial tax credit reversals. It will lead to increased costs at a time when they are already under losses. An endowment policy is a form of life insurance coverage that combines the benefit of life insurance and savings under a single policy. It not only provides the benefits of sum assured to the insured upon death but also gives a corpus upon the expiry of the term.Endowment policies, which require insurers to collect a fixed amount of premium over a fixed term period act as a savings and life cover to the insured. Tax laws in India consider only the element of life cover as taxable services to provide tax benefit to the element of savings done by the insured. However, the amount of premium collected by the insurer includes both the elements of savings of the insured and the consideration for the life cover services rendered by the insurer. This leads to the qu…

Budget 2019: Three major changes that can be made to GST

Budget 2019: Finance Minister Nirmala Sitharaman is set to present Union Budget 2019 on July 5 and the expectations are high as this is the first budget of the second term of the Modi government.Finance Minister Nirmala Sitharaman is set to present Union Budget 2019 on July 5 and the expectations are high as this is the first budget of the second term of the Modi government. While several industries have put forward their demands, more and more voices have been asking changes in the Goods and Services Tax (GST) for its simplification. Prashant Deshpande, Partner, Deloitte India told Zee Business Online that during the run-up to Union Budget 2019, expectations are rising to bring in reforms aimed at creating a tax and business-friendly environment. The GST Council had recommended a few changes to the GST law recently. These changes are expected to be brought into effect in the ensuing budget. Here are the three major changes that can be made to GST, according to Prashant Deshpande –1. …

GST on Land Lease by way of Transfer by CIDCO to Municipal Corporations

In re City And Industrial Development Corporation of Maharashtra Limited (GST AAR Maharashtra) Question (1) Whether the supply of services by the applicant, of ‘transfer by way of lease’ of vacant plots of ‘Maharashtra State Government owned lands’ or ‘privately owned lands acquired under the Land Acquisition Act, 1894 by the Maharashtra State Government’ vested […]

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CBIC reveals GST Audit Plan / Strategy for the year 2019-20

The audit of GST Taxpayers were to commence from 1st July 2019, in respect of those taxpayers who have filed their Annual Return in GSTR Form 9 / 9A. However, in the recent GST Council Meeting held on 21/06/2019, the last date of filing of the Annual Return has been extended by two months, i.e. upto 31st August 2019.

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GST’s anti-profiteering clause can impede ‘ease of doing biz’

Mock purchases, site visits and checking of invoices of the top 20 suppliers in their respective jurisdictions will be standard practice for GST officials.This news followed another development. The tenure of the anti-profiteering watchdog – the National Anti-Profiteering Authority (NAA) was recently extended by two years, up to November 2021.As of May 1, NAA has passed 65 orders involving an established profiteering amount of Rs. 600 odd crore. The official reason cited for extending the tenure of NAA is that 350 cases are still pending, which cannot be resolved by this November. The long arms of the NAA; it appears have spared no one. HUL and Patanjali have met the same fate of notices for anti-profiteering.The FMCG sector appears to have borne the brunt of the NAA’s action. And as any company or distributor, worth their salt, or shall we say dath-manjan would say, the resultant pain is as severe as that of a toothache, if not more.Well, this is certainly not what has happened.Under…

A GST reforms agenda

A set of micro and macro proposals to enable stakeholders to breathe easyGST, two years after its inception, has proved to be a roller-coaster ride for all stakeholders. The GST regime has been marked by continuous change. What are the critical tasks ahead?Ideally, GST rates should have been stable, GST policy should have had a clear roadmap and technology should have been flexible. However, GST rates are evolving, GST policy is going through changes and technology is rigid (not keeping up with the pace of change).The GST Council has met 35 times and went on to make numerous changes in GST legislation. Certainly it’s an achievement to conduct so many meetings and unanimously address so many issues. However, quick fixes and changes in the GST law have brought uncertainty in the design of GST.Given this, it will be preferable that, going-forward, a detailed long-term roadmap for GST policy should be prepared. This would entail some of the following micro and macro moves:Micro movesCombi…

GST: CBDT expands scope of direct tax code committee

The timeline for the panel to submit its recommendation remains unchanged to July 31.The CBDT has expanded the scope of the panel constituted for re-writing the direct tax code by including five more items in the terms of reference (ToR) of the committee, sources said. The timeline for the panel to submit its recommendation remains unchanged to July 31.The new items in the ToR include faceless and anonymized scrutiny assessments, reduction of litigation and expeditious disposal of appeals at CIT(A) stage and going up to the Supreme Court. The issue of sharing of information between GST, customs and other government bodies that hold data on taxpayers has also been included.Additionally, simplification of the procedure to reduce compliance burden and system-based cross verification of financial transactions have also been included in the ambit of the panel.Rakesh Nangia, managing partner at Nangia Advisors (Andersen Global), said: “The additional aspects signify the focus areas of the g…

Entities identified on basis of risk parameters to face GST audit

NEW DELHI: The revenue department has come out with a plan to audit accounts of GST registered businesses based on risk parameters, which may include history of tax evasion, irregular filing of returns and employing “questionable accountants”.Unveiling the audit plan, the Directorate General of Audit (Indirect Taxes) said the analytics arm of CBIC would generate a list of GST payers with risk scores and share it with audit commissionerates for scrutiny.The taxpayers identified as “risky” would be divided into 3 categories — small (with a turnover of up to Rs 10 crore), medium (Rs 10-40 crore) and large (above Rs 40 crore).The audit would be conducted on the basis of annual returns filed for 2017-18 fiscal — the first year of the GST implementation.Goods and Services Tax (GST) was implemented on July 1, 2017. The last date for filing annual returns for 2017-18 is August 31, 2019.This audit plan would apply to entities who fall in the jurisdiction of Central GST (CGST) officers.To ensur…

Issues in GST Annual Return GSTR-9/9A and Reconciliation GSTR-9C

Issues in GST Annual Return GSTR-9/9A and Reconciliation GSTR-9C requiring your urgent attention and corrective actions. People are facing grave problem in practically implementing the requirements in GSTR-9, 9A & 9C. We urge you to consider and clarify the following issues which are arising at the time of preparing and filing Annual Return in Form […]

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Section 31(1): Time for issuing GST Invoice for supply of goods

Where the Supply Involves Movement of Goods Before or at the time of removal  of goods for Supply to the Recipient When the movement is caused by the supplier, the point of removal will arise when the goods are dispatched from the place of business of the supplier. So Invoice is required to be issued […]

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GST collection shows consistent growth trend over last two years

GST Collections The Tax Collection in April, 2019 has been the highest ever in a particular month i.e. Rs. 1,13,865 crore since GST implementation. It is usually noticed that there will be a jump in the tax collection in the last month of Financial Year as tax payers try to pay arrears of some of […]

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GST Council has to decide on levy of GST on Petroleum Products

Article 279A (5) of the Constitution provides that Goods and Services Tax Council shall recommend the date on which goods and services tax shall be levied on petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel. Thus while, petroleum products are constitutionally included under GST, the date on which GST shall […]

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Registration process under GST linked with SPICe-AGILE Form of MCA

1. Normal and Composition taxpayer can now apply for GST registration, while applying for incorporation of company on MCA Portal. Thus, once a new company applies for its incorporation/ registration with MCA, they can also apply for registration under GST, in SPICe-AGILE form, by furnishing additional information in addendum. 2. The Director signing the SPICe-AGILE […]

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8 Upcoming Due Dates / Last Dates for filing various GST forms

We compiled Due date for furnishing Form GST REG-26, Form GST ITC-04, Form GSTR-5, Form GSTR-5A, Form GST ITC-01, Form GST CMP-03 and Form GSTR-1, which are as follows:-

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GST, Excise, Service Tax, VAT & Customs updates for June 2019

I. GST Updates 35th GST Council Meeting was held on 21 June 2019 at New Delhi, after a long gap of more than three months. This was the first council meeting chaired by the re-elected government and India’s second woman Union Finance Minister, Mrs Nirmala Sitharaman. This GST Council meeting has been called at a […]

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Join 4 day Course on GST by M.S.M.E. with Certification

JOIN GST Practitioner Advanced Certified Training course of Ministry of M.S.M.E. at Kolkata, Indore, Bangalore, Coimbatore, Ahmedabad, Jaipur, Agra, Cochin, Lucknow, Hyderabad, Trichy, Chandigarh, Chennai, New Delhi and Mumbai in June and July 2019 starting from 29th June 2019. BROCHURE FOR GST PRACTITIONER ADVANCED CERTIFIED TRAINING ORGANISEED BY MSME – TECHNOLOGY DEVELOPMENT CENTRE (PPDC), A […]

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Lowering GST on automobiles would help the economy: Anand Mahindra

In a tweet, Mahindra echoed calls from the auto industry to reduce goods and services tax (GST) on vehicles amid a prolonged sales slump.Mahindra Group Chairman Anand Mahindra Wednesday said lowering GST on automobiles would help the economy, stating that the auto industry has a huge multiplier effect on small companies and employment.In a tweet, Mahindra echoed calls from the auto industry to reduce goods and services tax (GST) on vehicles amid a prolonged sales slump, with passenger vehicle sales recording the steepest decline in nearly 18 years in May when it dropped by over 20 per cent.“What we’re all searching for is the ‘Mt. Mandara’ which can start the ‘Manthan’ of the economy & get it spinning faster. I’m biased, of course, but the auto industry is one such ‘Mandara’. It has a huge multiplier effect on small companies & on employment. Lowering GST would help,” he said.He was responding to a tweet by automotive magazine ‘Autocar Professional’ in which Federation of Auto…

Why the GST Council should issue proper guidelines on anti-profiteering

Fears that the goods and services tax (GST) would aggravate India’s litigation problem seem to be coming true as far as anti-profiteering goes. The GST Council extended the term of the National Anti-profiteering Authority (NAA) by two years recently.Considering the number of pending cases and increasing tussle between NAA and numerous companies, this move was largely anticipated. A slew of firms have been accused of failing to pass on the rate-reduction benefits commensurately to end consumers. These include blue-chips such as Hindustan Unilever Ltd, and Procter and Gamble India.But as experienced in the past with GST, while the intent is good, implementation of related rules has been messy. Tax experts point out that only an extension of NAA’s term, without proper guidelines, doesn’t serve much purpose. What we need is a proper framework to estimate the profiteering amount so that litigation can be avoided.“Businesses have been looking forward to explicit clarifications on the method…

GST: Budget may set stage for new Income Tax Act

The long-pending overhaul of the country’s direct tax laws could finally move forward later this year with the Goods and Services Tax (GST) now in place and the Union government backed by a huge majority, according to an article published in Business Line.The Union Budget 2019-20 could signal the government’s intent to make moves in this direction, said the article. “There has been a move to redraw the Income Tax Act for some time and a committee was also set up. With the government now having a clear five-year mandate and the transition to GST almost complete, the focus will shift to the direct tax laws this fiscal,” said a person familiar with the development. The source said that this new direct tax focus could be mentioned in the Union Budget on July 5.In November 2017, the Finance Ministry had set up a task force to draft direct tax legislation that considered the best international practices and the nation’s economic needs. The task force was reconstituted under Akhilesh Ranjan,…

GST defaults: Nearly 75,000 notices served in Gujarat

The goods and services tax (GST) authorities have recently identified nearly 75,000 defaulters in Gujarat and issued notices to them for non-payment of taxes under the GST regime.The goods and services tax (GST) authorities have recently identified nearly 75,000 defaulters in Gujarat and issued notices to them for non-payment of taxes under the GST regime.Nearly 22,000 businessmen were served notices as they generated e-way bills and also filed GSTR-1, but failed to GSTR-3B which is accompanied by payment of tax. GSTR-1 is monthly statement of outward supplies to be furnished by registered taxpayers, while GSTR-3B is a monthly GST return.Also, notices were slapped on over 15,000 traders for anomalies in tax credit claims. Another 30,000 notices were issued to those who have not paid GST. Another 8,000 businessmen received notices from authorities as they have failed to file returns since registering as a GST taxpayer.Source- Financial Express. The post GST defaults: Nearly 75,000 notic…