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Goods and Services Tax – GST Dated:- 5-7-2019 – News – Vide notification No. 02/2019-Central Tax (Rate) dated 07.03.2019 , as amended by notification No. 09/2019-Central Tax (Rate) dated 29.03.2019 , an Alternate Composition Scheme has been made available to those suppliers of Services or Mixed Suppliers, who were not eligible for the primary composition scheme. Only those taxpayers are eligible for this Alternate Scheme whose annual turnover in the preceding financial year did not exceed ₹ 50 lakhs. Taxpayers opting to pay tax under this Scheme will pay tax at the rate of 6% (3% CGST +3% SGST) of their turn-over. vide Circular No. 97/16/2019-GST dated 05.04.2019, the Last Date for registered persons for filing the intima

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Goods and Services Tax – GST Dated:- 3-7-2019 – News – The Government of India has been receiving a number of representations regarding Annual Return ( FORM GSTR-9 / FORM GSTR-9A ) and Reconciliation Statement ( FORM GSTR-9C ). In this regard the following clarifications are issued for information of all stakeholders: – a) Payment of any unpaid tax : Section 73 of the CGST Act provides a unique opportunity of self correction to all taxpayers i.e. if a taxpayer has not paid, short paid or has erroneously obtained/been granted refund or has wrongly availed or utilized input tax credit then before the service of a notice by any tax authority, the taxpayer may pay the amount of tax with interest. In such cases, no penalty shall be leviable on such tax payer. Therefore, in cases where some information has not been furnished in the statement of outward supplies in FORM GSTR-1 or in the regular returns in

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nts should be synchronous and the values should match across different forms and the books of accounts. If the same does not match, there can be broadly two scenarios, either tax was not paid to the Government or tax was paid in excess. In the first case, the same shall be declared in the annual return and tax should be paid and in the latter all information may be declared in the annual return and refund (if eligible) may be applied through FORM GST RFD-01A . Further, no input tax credit can be reversed or availed through the annual return. If taxpayers find themselves liable for reversing any input tax credit, they may do the same through FORM GST DRC-03 separately . c) Premise of Table 8D of Annual Return: There appears to be some confusion regarding declaration of input tax credit in Table 8 of the annual return. The input tax credit which is declared / computed in Table 8D is basically credit that was available to a taxpayer

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a mis-match between the updated FORM GSTR-2A and the auto-populated information in Table 8A. It is important to note that Table 8A of the annual returns is auto-populated from FORM GSTR-2A as on 1 st May, 2019. d) P remise of Table 8J of Annual Return: In the press release on annual return issued earlier on 4 th June 2019, it has already been clarified that all credit of IGST paid at the time of imports between July 2017 to March 2019 may be declared in Table 6E. If the same is done properly by a taxpayer, then Table 8I and 8J shall contain information on credit which was available to the taxpayer and the taxpayer chose not to avail the same. The deadline has already passed and the taxpayer cannot avail such credit now. There is no question of lapsing of any such credit, since this credit never entered the electronic credit ledger of any taxpayer. Therefore, taxpayers need not be concerned about the values ref

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and Table 5F (Non-GST Supply): It has been represented by various trade bodies/associations that there appears to be some confusion over what values are to be entered in Table 5D,5E and 5F of FORM GSTR-9. Since, there is some overlap between supplies that are classifiable as exempted and nil rated and since there is no tax payable on such supplies, if there is a reasonable/explainable overlap of information reported across these tables, such overlap will not be viewed adversely . The other concern raised by taxpayers is the inclusion of no supply in the category of Non-GST supplies in Table 5F. For the purposes of reporting, non-GST supplies includes supply of alcoholic liquor for human consumption, motor spirit (commonly known as petrol), high speed diesel, aviation turbine fuel, petroleum crude and natural gas and transactions specified in Schedule III of the CGST Act. g) Reverse charge in respect of Financial Year 2017-18 paid d

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GST Act is clear in this regard. With respect to the reconciliation statement, their role is limited to reconciling the values declared in annual return ( FORM GSTR-9 ) with the audited annual accounts of the taxpayer. i) Turnover for eligibility of filing of reconciliation statement: It may be noted that the aggregate turnover i.e. the turnover of all the registrations having the same Permanent Account Number is to be used for determining the requirement of filing of reconciliation statement. Therefore, if there are two registrations in two different States on the same PAN, say State A (with turnover of ₹ 1.2 Crore) and State B (with turnover of ₹ 1 Crore) they are both required to file reconciliation statements individually for their registrations since their aggregate turnover is greater than ₹ 2 Crore. The aggregate turnover for this purpose shall be reckoned for the period July, 2017 to March, 2018.

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in Table 6B and 6H: Many taxpayers have represented about duplication of information in Table 6B and 6H of the annual return. It may be noted that the label in Table 6H clearly states that information declared in Table 6H is exclusive of Table 6B. Therefore, information of such input tax credit is to be declared in one of the rows only. l) Reconciliation of input tax credit availed on expenses: Table 14 of the reconciliation statement calls for reconciliation of input tax credit availed on expenses with input tax credit declared in the annual return. It may be noted that only those expenses are to be reconciled where input tax credit has been availed. Further, the list of expenses given in Table 14 is a representative list of heads under which input tax credit may have been availed. The taxpayer has the option to add any head of expenses. All the taxpayers are requested to file their Annual Return ( FOR

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Goods and Services Tax – GST Dated:- 3-7-2019 – News – In terms of section 171 of the Central Goods and Services Tax Act, 2017 , any reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit has to be passed on to the recipient by way of commensurate reduction in prices. Further, the National Anti-profiteering Authority (NAA) has been constituted by the Government to examine the complaints of profiteering against registered persons under GST. The

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Goods and Services Tax – GST Dated:- 3-7-2019 – News – GOODS AND SERVICE TAX (GST) CONCEPT STATUS CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS (CBIC) DEPARTMENT OF REVENUE MINISTRY OF FINANCE GOVERNMENT OF INDIA AS ON 01st July, 2019 The uniform system of taxation, which, with a few exceptions of no great consequence, takes place in all the different parts of the United Kingdom of Great Britain, leaves the interior commerce of the country, the inland and coasting trade, almost entirely free. The inland trade is almost perfectly free, and the greater part of goods may be carried from one end of the kingdom to the other, without requiring any permit or let-pass, without being subject to question, visit, or examination from the revenue officers. This freedom of interior commerce, the effect of uniformity of the system of taxation, is perhaps one of the principal causes of the prosperity of Great Britain; ever

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has been paved making India an economic union. 2. CONSTITUTIONAL SCHEME OF INDIRECT TAXATION IN INDIA BEFORE GST : 2.1 Article 265 of the Constitution of India provides that no tax shall be levied or collected except by authority of law. As per Article 246 of the Constitution, Parliament has exclusive powers to make laws in respect of matters given in Union List (List I of the Seventh Schedule) and State Government has the exclusive jurisdiction to legislate on the matters containing in State List (List II of the Seventh Schedule). In respect of the matters contained in Concurrent List (List III of the Seventh Schedule), both the Central Government and State Governments have concurrent powers to legislate. 2.2 Before advent of GST, the most important sources of indirect tax revenue for the Union were customs duty (entry 83 of Union List), central excise duty (entry 84 of Union List), and service tax (entry 97 of Union List). Although entry 92C wa

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electricity tax ((entry 53 of the State List). CST was also an important source of revenue though the same was levied by the Union. 3. HISTORICAL EVOLUTION OF INDIRECT TAXATION IN POSTINDEPENDENCE INDIA TILL GST: 3.1 In post-Independence period, central excise duty was levied on a few commodities which were in the nature of raw materials and intermediate inputs, and consumer goods were outside the net by and large. The first set of reform was suggested by the Taxation Enquiry Commission (1953-54) under the chairmanship of Dr. John Matthai. The Commission recommended that sales tax should be used specifically by the States as a source of revenue with Union governments' intervention allowed generally only in case of inter-State sales. It also recommended levy of a tax on inter-State sales subject to a ceiling of 1%, which the States would administer and also retain the revenue. 3.2 The power to levy tax on sale and purchase of goods in the cour

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y with one-to-one correlation between input and manufactured goods for eligibility to take input tax credit. The comprehensive coverage of MODVAT was achieved by 1996-97. 3.4 The next wave of reform in indirect tax sphere came with the New Economic Policy of 1991. The Tax Reforms Committee under the chairmanship of Prof. Raja J Chelliah was appointed in 1991. This Committee recommended broadening of the tax base by taxing services and pruning exemptions, consolidation and lowering of rates, extension of MODVAT on all inputs including capital goods. It suggested that reform of tax structure must have to be accompanied by a reform of tax administration, if complete benefits were to be derived from the tax reforms. Many of the recommendations of the Chelliah Committee were implemented. In 1999-2000, tax rates were merged in three rates, with additional rates on a few luxury goods. In 2000-01, three rates were merged into one rate called Central Value Added Tax (CENVAT). A few

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ed in States since independence. Sales tax was plagued by some serious flaws. It was levied by States in an uncoordinated manner the consequences of which were different rates of sales tax on different commodities in different States. Rates of sales tax were more than ten in some States and these varied for the same commodity in different States. Inter-state sales were subjected to levy of Central Sales Tax. As this tax was appropriated by the exporting State credit was not allowed by the dealer in the importing State. This resulted into exportation of tax from richer to poorer states and also cascading of taxes. Interestingly, States had power of taxation over services from the very beginning. States levied tax on advertisements, luxuries, entertainments, amusements, betting and gambling. 3.7 A report, titled Reform of Domestic Trade Taxes in India , on reforming indirect taxes, especially State sales tax, by National Institute of Public Finance and Policy under the lead

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ing Committee of State Finance Ministers was constituted, as a result of meeting of the Union Finance Ministers and Chief Ministers in November, 1999, to deliberate on the design of VAT which was later made the Empowered Committee of State Finance Ministers (EC). Haryana was the first State to implement VAT, in 2003. In 2005, VAT was implemented in most of the states. Uttar Pradesh was the last State to implement VAT, from 1st January, 2008. 4. INTERNATIONAL PERSPECTIVES ON GST / VAT: 4.1 VAT and GST are used inter-changeably as the latter denotes comprehensiveness of VAT by coverage of goods and services. France was the first country to implement VAT, in 1954. Presently, more than 160 countries have implemented GST / VAT in some form or the other. The most popular form of VAT is where taxes paid on inputs are allowed to be adjusted in the liability at the output. The VAT or GST regime in practice varies from one country to another in terms of its technical as

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entities (Brazil, Russia). While a centralized structure reduces fiscal autonomy for the States, a decentralized structure enhances compliance burden for the taxpayers. Canada is a federal country with unique model of taxation in which certain provinces have joined federal GST and others have not. Provinces which administer their taxes separately are called non- participating provinces , whereas provinces which have teamed up with the Federal Government for tax administration are called participating provinces . 4.3 The rate of GST varies across countries. While Malaysia has a lower rate of 6% (Malaysia though scrapped GST in 2018 due to popular uproar against it), Hungary has one of the highest rate of 27%. Australia levies GST at the rate of 10% whereas Canada has multiple rate slabs. The average rate of VAT across the EU is around 19.5%. 5. NEED FOR GST IN INDIA: 5.1 The introduction of CENVAT removed to a great extent cascading burden by

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till not been subsumed in the VAT. Further, there has also not been any integration of VAT on goods with tax on services at the State level with removal of cascading effect of service tax. 5.3 CST was another source of distortion in terms of its cascading nature. It was also against one of the basic principles of consumption taxes that tax should accrue to the jurisdiction where consumption takes place. Despite remarkable harmonization in VAT regimes under the auspices of the EC, the national market was fragmented with too many obstacles in free movement of goods necessitated by procedural requirement under VAT and CST. 5.4 In the constitutional scheme, taxation powers on goods was with Central Government but it was limited up to the stage of manufacture and production while States have powers to tax sale and purchase of goods. Centre had powers to tax services and States also had powers to tax certain services specified in clause (29A) of Article 366 of the

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troduction of a comprehensive tax on all goods and service replacing Central level VAT and State level VATs. It recommended replacing all indirect taxes except the customs duty with value added tax on all goods and services with complete set off in all stages of making of a product. 6.2 In the year 2000, the then Prime Minister introduced the concept of GST and set up a committee to design a GST model for the country. In 2003, the Central Government formed a taskforce on Fiscal Responsibility and Budget Management, which in 2004 recommended GST to replace the existing tax regime by introducing a comprehensive tax on all goods and services replacing Central level VAT and State level VATs. It recommended replacing all indirect taxes except the customs duty with value added tax on all goods and services with complete set off in all stages of the value chain. An announcement was made by the then Union Finance Minister in Budget (2006-07) to the effect that GST would be introdu

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28, 2007, and the States were also requested to communicate their observations on the report in writing. On the basis of these discussions in the EC and the written observations, certain modifications were considered necessary and were discussed with the Co-conveners and the representatives of the Department of Revenue of Union Finance Ministry. With the modifications duly made, a final version of the views of EC on the model and road map for the GST was prepared (April 30, 2008). These views of EC were then sent to the Government of India, and the comments of Government of India were received on December 12, 2008. These comments were duly considered by the EC (December 16, 2008), and it was decided that a Committee of Principal Secretaries/Secretaries of Finance/Taxation and Commissioners of Trade Taxes of the States would be set up to consider these comments, and submit their views. These views were submitted and were accepted in principle by the EC (January 21, 2009). Based on disc

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lace. The existing VAT regime was based on origin principle where Central Sales Tax was assigned to the State of origin where production or sale happened and not to the State where consumption happened. Many manufacturing States expressed concerns over the loss of revenue on account of shift from origin based taxation to destination based taxation. 7.2.1 An argument put forward on behalf of producing states in support of origin based taxation is that they need to collect at least some tax from inter-State sales in order to recover the cost of infrastructure and public services provided by the State Governments to the industries producing the goods which are consumed in other states. This line of reasoning is based on the assumption that in the absence of a tax on inter-State sales, the location of export industries within their jurisdiction would not contribute to the tax revenues of the exporting state. This view was missing the fact that any value addition in a jurisdict

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e years of implementation of GST. 7.3.1 A Committee headed by the Chief Economic Adviser Dr. Arvind Subramanian on possible tax rates under GST suggested RNR (Revenue Neutral Rate). The term RNR refers to that single rate, which preserves revenue at desired (current) levels. This would differ from the standard rate, which is the rate that would apply to a majority of goods and services. In practice, there will be a structure of rates, but for the sake of analytical clarity and precision it is appropriate to think of the RNR as a single rate. It is a given single rate that gets converted into a whole rate structure, depending on policy choices about exemptions, what commodities to charge at a lower rate and what to charge at a very high rate. 7.3.2 The Committee recommended RNR of 15-15.5% (to be levied by the Centre and States combined). The lower rates (to be applied to certain goods consumed by the poor) should be 12%. Further, the sin or demerit rates (to

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iament and the State Legislatures. The Constitution (One Hundred Twenty Second Amendment) Bill, 2014 departed from the previous GST amendment bill and proposed that the Goods and Services Tax Council may decide about the modalities to resolve disputes arising out of its recommendations. 7.5 Alcohol and Petroleum products : Alcoholic liquor for human consumption and petroleum products are major contributor to revenue of States. As States were uncertain about impact of GST on their finances and moreover loss of autonomy in collection of tax revenue, States unanimously argued for exclusion of these products from the ambit of GST. In the 115th Amendment Bill alcoholic liquor for human consumption and five petroleum products namely crude petroleum, high speed diesel, motor spirit or petrol, aviation turbine fuel and natural gas were kept out of GST. But in the 122nd Amendment Bill, only alcoholic liquor for human consumption was kept outside GST and above mentioned five petrol

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tribution, and both goods and services. The scheme of the Constitution did not provide for any concurrent taxing powers to the Union as well as the States and for the purpose of introducing goods and services tax amendment of the Constitution conferring simultaneous power on Parliament as well as the State Legislatures to make laws for levying goods and services tax on every transaction of supply of goods or services was necessary. 8.2 The Constitution (115th Amendment) Bill, 2011, in relation to the introduction of GST, was introduced in the Lok Sabha on 11.03.2011. The Bill was referred to the Standing Committee on Finance on 29.03.2011. The Standing Committee submitted its report on the Bill in August, 2013. However, the Bill, which was pending in the Lok Sabha, lapsed with the dissolution of the 15th Lok Sabha. 8.3 The Constitution (122nd Amendment) Bill, 2014 was introduced in the 16th Lok Sabha on 19.12.2014. The Constitution Amendment Bill was passed by

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n services. As tax on services has been brought under GST, such a provision was no longer required. c) Article 269A has been inserted which provides for goods and services tax on supplies in the course of inter-State trade or commerce which shall be levied and collected by the Government of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council. It also provides that Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. d) Article 270 has been amended to provide for distribution of goods and services tax collected by the Union between the Union and the States. e) Article 271 has been amended which restricts power of the Parliament to levy surcharge under GST. In effect, surcharg

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, on the recommendation of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for five years. k) In case of petroleum and petroleum products, it has been provided that these goods shall not be subject to the levy of Goods and Services Tax till a date notified on the recommendation of the Goods and Services Tax Council. 9. GOODS SERVICE TAX COUNCIL: 9.1 As provided for in Article 279A of the Constitution, the Goods and Services Tax Council (the Council) was notified with effect from 12.09.2016. The Council is comprised of the Union Finance Minister (who will be the Chairman of the Council), the Minister of State (Revenue) and the State Finance/Taxation Ministers as members. It shall make recommendations to the Union and the States on the following issues: a) the taxes, cesses and surcharges levied by the Centre, the

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l. While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonized structure of goods and services tax and for the development of a harmonized national market for goods and services. 9.3 One half of the total number of Members of the Goods and Services Tax Council shall constitute the quorum at its meetings. The Goods and Services Tax Council shall determine the procedure in the performance of its functions. Every decision of the Goods and Services Tax Council shall be taken at a meeting, by a majority of not less than three-fourths of the weighted votes of the members present and voting, in accordance with the following principles, namely: – a) the vote of the Central Government shall have a weightage of one-third of the total votes cast, and b) the votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast, in that meeti

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1.2 Rules on composition, registration, input tax credit, invoice, determination of value of supply, accounts and records, returns, payment, refund, assessment and audit, advance ruling, appeals and revision, transitional provisions, anti-profiteering, E-way Bill, inspection, search and seizure, demands and recovery and offences and penalties have been recommended. 9.4.2 Registration and Threshold: 9.4.2.1 Threshold limit of aggregate turnover for exemption from registration and payment of GST for suppliers of services would be ₹ 20 lakhs and ₹ 10 lakhs in the States of Manipur, Mizoram, Nagaland and Tripura. 9.4.2.2 Threshold limits of aggregate turnover for exemption from registration and payment of GST for the suppliers of goods would be ₹ 40 lakhs and ₹ 20 lakhs in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand with effect

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lled till 31.03.2019. The application for revocation can be filed till 22.07.2019. 9.4.3 Migration: 9.4.3.1 One more window for completion of migration process is being allowed. The due date for the taxpayers who did not file the complete FORM GST REG-26 but received only a Provisional ID (PID) till 31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer was extended till 31.01.2019. Also, the due date for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July, 2017 to February, 2019 / quarters July, 2017 to December, 2018 by such taxpayers was extended till 31.03.2019. 9.4.4 Composition Scheme: 9.4.4.1 Composition scheme has been formulated for small businessmen being supplier of goods and supplier of restaurant services. Under the scheme, person with annual turnover up to ₹ 1.5 crore (₹ 75 lakhs in States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripur

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9.4.4.5 The GST Council in its 35th meeting held on 21.06.2019 decided that the last date for filing of intimation, in FORM GST CMP-02, for availing the option of payment of tax under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, be extended from 30.04.2019 to 31.07.2019. 9.4.4.6 Composition scheme shall not be available to inter-State suppliers and specified category of manufacturers. 9.4.5 E-way bill system 9.4.5.1 The generation of e-way bill would be barred if a supplier or recipient does not file GST returns for 2 consecutive tax periods. This will be made applicable from 21.08.2019. 9.4.6 Tax Administration: 9.4.6.1 In order to ensure single interface, all administrative control over 90% of taxpayers having turnover below ₹ 1.5 crore would vest with State tax administration and over 10% with the Central tax administration. Further all administrative control over taxpayers having turno

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o. 07/2019- Central Tax (Rate) dated 29.03.2019 has been issued which prescribes that the promoter shall pay tax on reverse charge basis w.e.f. 01.04.2019 on following supplies received from unregistered suppliers – a. such supplies which constitute the shortfall from the minimum value of goods or services or both required to be purchased by a promoter for construction of a project as prescribed in notification No. 11/2017-Central Tax (Rate) dated 28.06.2017; b. cement which constitute the shortfall from the minimum value of goods or services or both required to be purchased by a promoter for construction of project as prescribed in notification No. 11/2017- Central Tax (Rate); and c. capital goods supplied to a promoter for construction of a project on which tax is payable or paid at the rate prescribed in notification No. 11/2017- Central Tax (Rate). 9.4.8.2 Earlier the reverse charge mechanism under sub-section (4) of section 9 of th

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amount payable through the electronic cash ledger. This would be implemented once the law is amended. 9.4.10 Exemption: 9.4.10.1 Supply from GTA to unregistered persons has been exempted from tax. 9.4.11 Refunds: 9.4.11.1 A scheme of single authority for disbursement of the refund amount sanctioned by either the Centre or the State tax authorities would be implemented soon. The modalities for the same are being finalized. 9.4.11.2 All the supporting documents/invoices in relation to a claim for refund in FORM GST RFD-01A shall be uploaded electronically on the common portal at the time of filing of the refund application itself, thereby obviating the need for a taxpayer to physically visit a tax office for submission of a refund application. 9.4.11.3 Fully automated refund module is being developed and will be deployed soon. 9.4.12 Return: 9.4.12.1 All taxpayers, except those register

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er day instead of ₹ 200/- per day; b. whose tax liability for that month was not NIL will be ₹ 50/- per day instead of ₹ 200/- per day. 9.4.14 New Return System: 9.4.14.1 The new return system is simple with two main annexures. One for reporting details of outward supplies (FORM GST ANX-1) and the other for availing input tax credit (FORM GST ANX-2) based on invoices, etc. uploaded by the supplier. 9.4.14.2 Invoices can be uploaded continuously by the supplier and can be continuously viewed and locked by the recipient for availing input tax credit. This process would ensure that very large part of the return is auto-populated based on the invoices uploaded by the buyer and the supplier. Simply put, the process would be UPLOAD LOCK PAY for most tax payers. 9.4.14.3 Taxpayers would have the facility to create his profile based on nature of supplies made and received. The information which a taxpayer

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eturn as it will help save interest liability for the taxpayers. 9.4.14.7 In order to give ample opportunity to taxpayers as well as the system to adapt, the GST Council in its 35th meeting held on 21.06.2019 has decided to introduce the new return system in a phased manner, as described below: a. Between July, 2019 to September, 2019, the new return system (FORM GST ANX-1 FORM GST ANX-2 only) to be available for trial for taxpayers. Taxpayers to continue to file FORM GSTR-1 FORM GSTR-3B as at present; b. From October, 2019 onwards, FORM GST ANX-1 to be made compulsory. Large taxpayers (having aggregate turnover of more than ₹ 5 crores in previous year) to file FORM GST ANX-1 on monthly basis whereas small taxpayers to file first FORM GST ANX-1 for the quarter October, 2019 to December, 2019 in January, 2020; c. For October and November, 2019, large taxpayers to continue to file FORM GSTR-3B on monthly basis and will file firs

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as extended till 31.08.2019. 9.4.16 TDS/TCS: 9.4.16.1 TDS/TCS provisions shall be implemented from 01.10.2018. 9.4.16.2 Further, to provide some more time to TDS deductors to familiarize them with the new system, last date for furnishing return in FORM GSTR-7 for the months of October, 2018 to December, 2018 and January, 2019 was extended up to 28.02.2019. Further, exemption from TDS for been made for supply made by Government / PSU to another Government /PSU. 9.4.17 Export: 9.4.17.1 E-Wallet Scheme shall be introduced for exporters from 01.04.2020 and till then relief for exporters shall be given in form of broadly existing practice. 9.4.17.2 Supply of services to Nepal and Bhutan shall be exempted from GST even if payment has not been received in foreign convertible currency such suppliers shall be eligible for input tax credit. 9.4.17.3 Supply of services to qualify as exports, even if paymen

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itute of Public Finance and Planning), who would study and share the findings with GoM. The GoM in turn would give its recommendation to the GST Council. 9.4.20.3 The amount of IGST not apportioned to the Centre or the States/UTs may, for the time being, on the recommendations of the Council, be apportioned at the rate of fifty per cent. to the Central Government and fifty per cent. to the State Governments or the Union territories, as the case may be, on ad-hoc basis and this amount shall be adjusted against the amount finally apportioned. 9.4.20.4 Fifty per cent. of such amount, as may be recommended by the Council, which remains unutilized in the Compensation Fund, at any point of time in any financial year during the transition period shall be transferred to the Consolidated Fund of India as the share of Centre, and the balance fifty per cent. shall be distributed amongst the States in the ratio of their base year revenue. 9.4.20.5 In case of sho

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non-metropolitan cities). Metropolitan Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, and Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR). 9.4.21.4 Conditions for new tax rate: a. Input tax credit shall not be available b. 80% of inputs and input services [other than capital goods, TDR/ JDA, FSI, long term lease (premiums)] shall be purchased from registered persons. On shortfall of purchases from 80%, tax shall be paid by the builder @ 18% on RCM basis. However, Tax on cement purchased from unregistered person shall be paid @ 28% under RCM, and on capital goods under RCM at applicable rates. 9.4.21.5 GST exemption on TDR/ JDA, long term lease (premium), FSI: Intermediate tax on development right, such as TDR, JDA, lease (premium), FSI shall be exempted only for such residential property on which GST is payable. 9.4.21.6 The new rate has become applicable fro

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a-state supply of goods by taxable person to an unregistered person in respect of supplies specified in TABLE under sub-clause (2) of clause 14 of the Kerala Finance Bill, 2019. The said cess would be levied from 01.08.2019. 9.4.23.3 The Kerala government has also decided to allow local bodies to collect entertainment tax on movie tickets up to 10 per cent. 9.4.24 Electronic Invoicing 9.4.24.1 The Council in its 35th meeting held on 21.06.2019 decided to introduce electronic invoicing system in a phase-wise manner for B2B transactions. 9.4.24.2 The Phase 1 is proposed to be voluntary and it shall be rolled out from Jan 2020. 9.4.25 Recent Law amendments w.e.f. 01.02.2019: 9.4.25.1 Scope of input tax credit has been widened, and it would now be made available in respect of the following: a. Most of the activities or transactions specified in Schedule III; b. Motor vehicles for transport

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a. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India; b. Supply of warehoused goods to any person before clearance for home consumption; c. Supply of goods in case of high sea sales. 9.4.25.6 Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year. 9.4.25.7 Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal capped at ₹ 25 crore and ₹ 50 crore respectively. 9.4.25.8 Recovery can be made from distinct persons, even if present in different State/Union territories. 9.4.26 Others: 9.4.26.1 In principle approval has been given for creation of a Centralized Appellate Authority for Advance Ruling (AAAR) to deal with cases of conflicting decisions by two or more State

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ds by retail outlets established at departure area of the international airport beyond immigration counters when supplied to outgoing international tourist against foreign exchange has been introduced w.e.f. 01.07.2019. 10. THE DESIGN OF INDIAN GST: 10.1 Concurrent dual model of GST: 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. 10.2 The IGST Model: Inter-State supply of goods or services shall be subjected to integrated GST (Integrated t

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-State transactions. b) No upfront payment of tax or substantial blockage of funds for the interState supplier or recipient. c) No refund claim in exporting State, as ITC is used up while paying the tax. d) Self-monitoring model. e) Model takes Business to Business as well as Business to Consumer transactions into account. 10.3 Tax Rates: Owing to unique Indian socio-economic milieu, four rates namely 5%, 12%, 18% and 28% have been adopted. Besides, some goods and services are exempt also. Rate for precious metals and affordable housing are an exception to four-tax slab-rule and the same has been fixed at 3% and 1% respectively. In addition, unworked diamonds, precious stones, etc. attracts a rate of 0.25%. A cess over the peak rate of 28% on certain specified luxury and demerit goods, like tobacco and tobacco products, pan masala, aerated water, motor vehicles is imposed to compensate States for any revenue loss on a

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etc. However, any revenue among these taxes arising related to supply of alcohol for human consumption, and five specified petroleum products, will not be accounted as part of the base year revenue. A GST Compensation Cess is levied on the supply of certain goods and services, as recommended by the GST Council to finance the compensation cess. 10.5 E-Way Bill System: 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 for transporters throughout the country. The e-way bill system has been introduced nation-wide for all inter-State movement of goods with effect from 01.04.2018. As regards intraState supplies, option was given to States to choose any date on or before 03.06.2018. All States have notified e-way bill rules for intra-State supplies last being NCT

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Authority shall cease to exist after the expiry of two years from the date on which the Chairman enters upon his office unless the Council recommends otherwise.10.6.2 The Authority may determine whether any reduction in the rate of tax or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices. It can order reduction in prices, imposition of penalty, cancellation of registration and any other decision as may deem fit, after inquiry into the case. 10.7 Concept of Supply: GST would be applicable on supply of goods or services as against the present concept of tax on manufacture of goods or on sale of goods or on provision of services. It includes all sorts of activities like manufacture, sale, barter, exchange, transfer etc. It also includes supplies made without consideration when such supplies are made in certain specified situations. 10.8 Threshold Exemption: Threshold limits of aggregate turnover fo

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d, Sikkim, Tripura and Uttarakhand) needs to pay tax equal to 1% to 5% on his turnover and needs to file his returns annually with quarterly payment from FY 2019-20. Composition scheme has also been formulated for supplier of services (to those who are not eligible for the presently available composition scheme). Under the scheme, person with turnover up to ₹ 50 lakhs needs to pay tax equal to 6% on his turnover and needs to file his returns annually with quarterly payment from FY 2019-20. 10.10 Zero rated Supplies : Export of goods and services are zero rated. Supplies to SEZs developers and SEZ units are also zero-rated. The benefit of zero rating can be taken either with payment of integrated tax, or without payment of integrated tax under bond or Letter of Undertaking. 10.11 Cross-utilization of ITC: IGST credit can be used for payment of all taxes. CGST credit can be used only for paying CGST or IGST. SGST credit can be used only for payin

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Further the SGST portion of IGST collected on B2C supplies would also be transferred by Centre to the destination State. The transfer of funds would be carried out on the basis of information contained in the returns filed by the taxpayers. 10.13 Modes of Payment: Various modes of payment of tax available to the taxpayer including internet banking, debit/ credit card and National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS). 10.14 Tax Deduction at Source: Obligation on certain persons including government departments, local authorities and government agencies, who are recipients of supply, to deduct tax at the rate of 1% from the payment made or credited to the supplier where total value of supply, under a contract, exceeds two lakh and fifty thousand rupees. The provision for TDS has been operationalized w.e.f. 01st October, 2018. Exemption from the provisions of TDS has been given to certain authorities under the Ministry of Defence.

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d and its adjudication in normal cases. Limitation period for raising demand is five (5) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in case of fraud, suppression or willful mis-statement. 10.18 Recovery of Arrears: Arrears of tax to be recovered using various modes including detaining and sale of goods, movable and immovable property of defaulting taxable person. 10.19 Appellate Tribunal: Goods and Services Tax Appellate Tribunal would be constituted by the Central Government for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority. States would adopt the provisions relating to Tribunal in respective SGST Act. 10.20 Advance Ruling Authority: Advance Ruling Authority would be constituted by States in order to enable the taxpayer to seek a binding clarity on taxation

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ng, cesses and surcharges insofar as they related to supply of goods or services were subsumed. 11. GST LEGISLATIONS: 11.1. 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 12.04.2017. All the other States (except J K) and Union territories with legislature have passed their respective SGST Acts. The economic integration of India was completed on 08.07.2017 when the State of J K also passed the SGST Act and the Central Government also subsequently extended the CGST Act to J K. 11.2. In its 28th meeting held in New Delhi on 21.07.2018, the GST Council recommended certain amendments in the CGST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act. These amendments have been passed by Parliament and have been enacted w.e.f. 01.02.2019, as the Central Goods and Services Tax (Amendment) Act, 2018, the Integrated Goods and Services Tax (Amendment) A

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nd extension of last dates for filling up various forms, etc. 12. ROLE OF CBIC: 12.1. CBIC is playing an active role in the drafting of GST law and procedures, particularly the CGST and IGST law, which will be exclusive domain of the Centre. This apart, the CBIC has prepared itself for meeting the implementation challenges, which are quite formidable. The number of taxpayers has gone up significantly. The existing IT infrastructure of CBIC has been suitably scaled up to handle such large volumes of data. Based on the legal provisions and procedure for GST, the content of work-flow software such as ACES (Automated Central Excise Service Tax) would require re-engineering. The name of IT project of CBIC under GST is SAKSHAM involving a total project value of ₹ 2,256 Cr. 12.2. Augmentation of human resources would be necessary to handle large taxpayers base in GST scattered across the length and breadth of the country. Capacity building, par

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12.5. CBIC has been instrumental in handholding the implementation of GST. It had set up the Feedback and Action Room which monitored the GST implementation challenges faced by the taxpayer and act as an active interface between the taxpayer and the Government. 13. GOODS SERVICES TAX NETWORK: 13.1. Goods and Services Tax Network (GSTN) has been set up by the Government as a private company under erstwhile Section 25 of the Companies Act, 1956. GSTN would provide three front end services to the taxpayers namely registration, payment and return. Besides providing these services to the taxpayers, GSTN would be developing back-end IT modules for 27 States who have opted for the same. Infosys has been appointed as Managed Service Provider (MSP). GSTN has selected 73 IT, ITeS and financial technology companies and 1 Commissioner of Commercial Taxes (CCT, Karnataka), to be called GST Suvidha Providers (GSPs). GSPs would develop applications to be used by tax

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hrough identified applications like registration, return, view ledger etc. The tax official having jurisdiction, as per GST law, can access the data. Data can be accessed by audit authorities as per law. No other entity can have any access to data available with GSTN. 14. GST: A GAME CHANGER FOR INDIAN ECONOMY: 14.1. GST will have a multiplier effect on the economy with benefits accruing to various sectors as discussed below. 14.2. Benefits to the exporters: The subsuming of major Central and State taxes in GST, complete and comprehensive setoff of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports. The uniformity in tax rates and procedures across the country will also go a long way in reducing the compliance cost. 14.3. Ben

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ndustry: GST will give more relief to industry, trade and agriculture through a more comprehensive and wider coverage of input tax set-off and service tax set-off, subsuming of several Central and State taxes in the GST and phasing out of CST. The transparent and complete chain of set-offs which will result in widening of tax base and better tax compliance may also lead to lowering of tax burden on an average dealer in industry, trade and agriculture. 14.5. Benefits for common consumers: With the introduction of GST, the cascading effects of CENVAT, State VAT and service tax will be more comprehensively removed with a continuous chain of set-off from the producer s point to the retailer s point than what was possible under the prevailing CENVAT and VAT regime. Certain major Central and State taxes will also be subsumed in GST and CST will be phased out. Other things remaining the same, the burden of tax on goods would, in general, fall under GST and that would benefit t

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minating rate arbitrage between neighboring States and that between intra and inter-State supplies. Average tax burden on companies is likely to come down which is expected to reduce prices and lower prices mean more consumption, which in turn means more production thereby helping in the growth of the industries. This will create India as a Manufacturing hub . 14.7. Ease of Doing Business: Simpler tax regime with fewer exemptions along with reduction in multiplicity of taxes that are at present governing our indirect tax system will lead to simplification and uniformity. Reduction in compliance costs as multiple record-keeping for a variety of taxes will not be needed, therefore, lesser investment of resources and manpower in maintaining records. It will result in simplified and automated procedures for various processes such as registration, returns, refunds, tax payments. All interaction shall be through the common GSTN portal, therefore, less public interface between

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No. of applications approved 70,68,269 4. No. of applications rejected 12,15,592 5. Total No. of taxpayers; new + migrated (1 + 3) 1,36,93,346 6. No. of taxpayers who have opted for composition scheme 17,74,379 7. No. of GSTR-3B returns filed for July, 2017 65,89,550 8. No. of GSTR-3B returns filed for August, 2017 71,78,987 9. No. of GSTR-3B returns filed for September, 2017 75,28,488 10. No. of GSTR-3B returns filed for October, 2017 72,87,

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o. of GSTR-3B returns filed for June, 2018 81,53,447 19. No. of GSTR-3B returns filed for July, 2018 82,48,209 20. No. of GSTR-3B returns filed for August, 2018 83,41,877 21. No. of GSTR-3B returns filed for September, 2018 84,14,843 22. No. of GSTR-3B returns filed for October, 2018 84,60,420 23. No. of GSTR-3B returns filed for November, 2018 83,65,673 24. No. of GSTR-3B returns filed for December, 2018 84,07,332 25. No. of GSTR-3B returns filed for January, 2019

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No. of GSTR 1 returns filed for October, 2017 26,54,530 34. No. of GSTR 1 returns filed for November, 2017 26,99,654 35. No. of GSTR 1 returns filed for December, 2017 70,56,169 36. No. of GSTR 1 returns filed for January, 2018 27,11,068 37. No. of GSTR 1 returns filed for February, 2018 27,24,503 38. No. of GSTR 1 returns filed for March, 2018 72,82,239 39. No. of GSTR 1 returns filed for April, 2018 28,62,517 40. No. of GSTR 1 returns filed for May, 2018

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No. of GSTR 1 returns filed for January, 2019 28,54,755 49. No. of GSTR 1 returns filed for February, 2019 27,88,482 50. No. of GSTR 1 returns filed for March, 2019 67,71,009 51. No. of GSTR 1 returns filed for April, 2019 25,00,936 52. No. of GSTR 1 returns filed for May, 2019 22,05,052 53. No. of GSTR 2 returns filed for July, 2017 25,72,552 54. No. of GSTR 4 returns filed for quarter JulySeptember, 2017 10,13,901 55. No. of GSTR 4 returns filed for quarter October

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1. July, 17 21,572 2. August, 17 95,633 3. September, 17 94,064 4. October, 17 93,333 5. November, 17 83,780 6. December, 17 84,314 7. January, 18 89,825 8. February, 18 85,962 9. March, 18 92,167 10. April, 18 1

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97,247 21. March, 19 1,06,577 22. April, 19 1,13,865 23. May, 19 1,00,289 24. June 19 99,939 25. Total 22,32,112 16. CHALLENGES FUTURE AHEAD: 16.1. 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, passi

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been generated till 31.05.2019. 16.3. NAA has initiated investigation into various complaints of anti-profiteering and has passed orders in some cases to protect consumer interest. 16.4. To expedite sanction of refund, electronic filing of refunds, along with all supporting documents/invoices, has been enabled on the common portal. 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. 16.5. 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

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GST – An Update (As on 1st July, 2019) – Goods and Services Tax – GST Dated:- 3-7-2019 – News – – News – Press release – PIB Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Goods and Services Tax – GST Dated:- 2-7-2019 – News – The Minister of State for Finance Corporate Affairs, Shri Anurag Singh Thakur calls upon all the Officers of CBIC to make GST in India the best GST available in the world; GST Day Celebrations organized by the Central Board of Indirect Taxes Customs (CBIC) on the 2nd Anniversary of GST in New Delhi; GST to be a WIN-WIN situation for all the stakeholders associated with the best tax GST The Minister of State for Finance Corporate Affairs, Shri Anurag Singh Thakur said that Goods Services Tax (GST) has been a Game Changer for all the stakeholders in the economy. The Minister of State for Finance, Shri Thakur was speaking at the GST Day Celebrations organized by the Central Board of Indirect Taxes Customs (CBIC) on the 2nd Anniversary of GST in New Delhi. Prior to GST, in the Constitutional Scheme, Shri Thakur said that taxation power with the Central Government on goods was li

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her added that our Prime Mister has rightly called GST as Good and Simple Tax. He said that it is a shining example of GST having made India a true common market is that the transport time and cost of moving goods across the length and breadth of the country have come down significantly. Shri Thakur said that there are so many other positives that do not need reiteration . He has stated that all the decisions taken in GST Council are on consensus basis.He called upon all Officers to make GST in India the best GST available in the world. He stated that the CBIC has done very good job for MSME sector. The NACIN has conducted GST training for all Officers apart from the support given to GST Practitioners.He has cautioned about fake invoices in GST bring bad name and urged the leaders of Industry to take corrective steps. Adding his concern over fake invoice menace, the Minister added that IMANDAR TAXPAYERS SE BAIR NAHIN, FAKE INVOICES WALON KI KHAIR NAHIN . He summed-up GST to be a WI

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e) administration lays the road map to achieve the goal of One Nation, One Market and One Tax for sincerely making Indian economy stronger than before. He further added that CBIC had been releasing SOPs and FAQs about various concerning provisions like TDS, Anti-Profiteering etc. and will continue to take such measures as and when required. Speaking on the occasion, Shri Ajay Bhushan Pandey, Revenue Secretary said that GST is an excellent example of Federal Cooperation. There are 1.2 Crore tax payers who have registered on GSTN. Around 70 lakh tax payers regularly file returns and an amount of ₹ 1 lakh Crore of tax is paid online.He further stated that the return filing process, refund sanction procedure and multiple ledger etc. have been streamlined. The e-invoice is proposed to be released which will streamline Return Filing Process. He called upon the officers that on this Day, we should remember what can be further done for trade facilitation. At the end

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Goods and Services Tax – GST Dated:- 1-7-2019 – News – GST Revenue collection for the month of June, 2019 stands at ₹ 99,939 crore Total number of GSTR 3B Returns filed for the month of May up to 30th June, 2019 stands at 74.38 lakh Total gross GST revenue collected in the month of June, 2019 is ₹ 99,939 crore of which CGST is ₹ 18,366 crore , SGST is ₹ 25,343 crore , IGST is ₹ 47,772 crore (including ₹ 21,980 crore collected on imports) and Cess is ₹ 8,457 crore (including ₹ 876 crore collected on imports). The total number of GSTR 3B Returns filed for the month of Mayup to 30 th June, 2019 is 74.38 lakh . The Gover

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Goods and Services Tax – GST Dated:- 1-7-2019 – News – The second anniversary of Good Services Tax (GST) will be celebrated tomorrow with Hon ble Union Minister of State of Finance and Corporate Affairs Shri Anurag Thakur presiding over the event. Shri Subhash C. Garg, Secretary, Department of Economic Affairs, Dr. Ajay Bhushan Pandey, Revenue Secretary, Secretaries of the Ministries of Finance, Shri P.K. Das, Chairman CBIC, Members of CBIC, and senior officers of various Ministries of Government of India will also attend the event. Senior functionaries of the apex chambers of commerce, trade and industry will also be present in large numbers. Similar functions will be held across the country in all States and Union Territories. GST was launched on the 1 st July, 2017 in a majestic ceremony held in the Central Hall of Parliament on the midnight of 30 th June, 2017. Hence, the Government alongwith partners from

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Easy Compliance: compliance burden has come down with one pan-India tax replacing multiple taxes and automated processes . Promoting Trade and Industry: Seamless flow of tax credit. Spurring Economic Growth: Creation of unified common national market. Some developments during the GST journey since 2017: Subsuming of taxes: It was new experience of subsuming 17 different types of taxes under GST. Pre GST, Trade Industry had to undergo compliances under Central Excise, Service Tax VAT and doing business in multiple states involved adhering to different VAT laws, compliance through different portals and answering to different authorities. All that has been unified into a single robust online system. Starting up has become simple with one-stop online GST registration for wanting to do business anywhere in the country. Formalisatio

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ds are unbranded and manufactured by MSMEs. The reduction in almost all the cases has been from the higher to the immediately lower tax slab (whether from 12% to 5% or 18% to 12%) and involves indigenously processed foods, man-made textile yarn, stationery and other job-work items. Return filing: The original concept of four Tax returns in a month ( GSTR-3B , 1 , 2 3 ) was gradually curtailed to two tax returns viz: GSTR-3B 1 . Further the Govt. extended due dates for filing tax returns as and when felt necessary. Quarterly Returns were also prescribed for small taxpayers. Reduction in the late fee payable for delay in filing tax returns from ₹ 200/- per day to ₹ 50/-per day /₹ 20/- per day. For the Trade and Industry whose turnover was turnover below five crores, quarterly return filling system is proposed. This will benefit 93% of the taxpayers, reduce their compliance burden and increase ease of doing business.

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With effect from 2 nd November 2018 GST Help desks were created by CBIC at 80 places all over the India to support MSMEs and hand holding of MSMEs was done with regard to GST Registration / Return Filing / Refunds / E way bill etc. Further reforms in current fiscal (2019-20) : New return system : Introduction of New Return System on trial basis from 01.07.2019 and on mandatory basis from 01.10.2019. SAHAJ SUGAM Returns for small taxpayers are proposed Single Cash Ledger: Rationalisation of Cash Ledger in such a manner that earlier 20 heads are merged into 5 major heads. There is only one Cash Ledger for Tax , interest, penalty, fee others . Single Refund Disbursing: The Central or State Government which sanctions refund disburses all four major heads of refunds namely CGST, SGST, IGST and Cess. Threshold limit for goods: T

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Goods and Services Tax – GST Dated:- 27-6-2019 – News – The Directorate General of GST Intelligence (DGGI), Regional Unit, Rohtak (Haryana) has arrested one person named Shri Sunny Singhal of Panipat who was found involved in issuing fake invoices from various firms without actual movement of goods having taxable value of ₹ 146.62 Crores and fraudulently passing ITC amounting to ₹ 16.54 Crores. He passed on such fraudulent ITC to some of the buyers who availed of the same to discharge their GST liability against their outward supplies with an ulterior motive to defraud the Government exchequer. During the course of investigation, Shri Singhal has admitted that these firms were opened by him in the name of different pers

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Goods and Services Tax – GST Dated:- 27-6-2019 – News – GOODS AND SERVICE TAX (GST) CONCEPT STATUS CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS (CBIC) DEPARTMENT OF REVENUE MINISTRY OF FINANCE GOVERNMENT OF INDIA AS ON 01st June, 2019 The uniform system of taxation, which, with a few exceptions of no great consequence, takes place in all the different parts of the United Kingdom of Great Britain, leaves the interior commerce of the country, the inland and coasting trade, almost entirely free. The inland trade is almost perfectly free, and the greater part of goods may be carried from one end of the kingdom to the other, without requiring any permit or let-pass, without being subject to question, visit, or examination from the revenue officers. This freedom of interior commerce, the effect of uniformity of the system of taxation, is perhaps one of the principal causes of the prosperity of Great Britain; every gre

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g India an economic union. 2. CONSTITUTIONAL SCHEME OF INDIRECT TAXATION IN INDIA BEFORE GST : 2.1 Article 265 of the Constitution of India provides that no tax shall be levied or collected except by authority of law. As per Article 246 of the Constitution, Parliament has exclusive powers to make laws in respect of matters given in Union List (List I of the Seventh Schedule) and State Government has the exclusive jurisdiction to legislate on the matters containing in State List (List II of the Seventh Schedule). In respect of the matters contained in Concurrent List (List III of the Seventh Schedule), both the Central Government and State Governments have concurrent powers to legislate. 2.2 Before advent of GST, the most important sources of indirect tax revenue for the Union were customs duty (entry 83 of Union List), central excise duty (entry 84 of Union List), and service tax (entry 97 of Union List). Although entry 92C was inserted in the Union List of

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te List). CST was also an important source of revenue though the same was levied by the Union. 3. HISTORICAL EVOLUTION OF INDIRECT TAXATION IN POSTINDEPENDENCE INDIA TILL GST: 3.1 In post-Independence period, central excise duty was levied on a few commodities which were in the nature of raw materials and intermediate inputs, and consumer goods were outside the net by and large. The first set of reform was suggested by the Taxation Enquiry Commission (1953-54) under the chairmanship of Dr. John Matthai. The Commission recommended that sales tax should be used specifically by the States as a source of revenue with Union governments' intervention allowed generally only in case of inter-State sales. It also recommended levy of a tax on inter-State sales subject to a ceiling of 1%, which the States would administer and also retain the revenue. 3.2 The power to levy tax on sale and purchase of goods in the course of interState trade and commerce was assigned

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factured goods for eligibility to take input tax credit. The comprehensive coverage of MODVAT was achieved by 1996-97. 3.4 The next wave of reform in indirect tax sphere came with the New Economic Policy of 1991. The Tax Reforms Committee under the chairmanship of Prof. Raja J Chelliah was appointed in 1991. This Committee recommended broadening of the tax base by taxing services and pruning exemptions, consolidation and lowering of rates, extension of MODVAT on all inputs including capital goods. It suggested that reform of tax structure must have to be accompanied by a reform of tax administration, if complete benefits were to be derived from the tax reforms. Many of the recommendations of the Chelliah Committee were implemented. In 1999-2000, tax rates were merged in three rates, with additional rates on a few luxury goods. In 2000-01, three rates were merged into one rate called Central Value Added Tax (CENVAT). A few commodities were subjected to special excise duty.

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serious flaws. It was levied by States in an uncoordinated manner the consequences of which were different rates of sales tax on different commodities in different States. Rates of sales tax were more than ten in some States and these varied for the same commodity in different States. Inter-state sales were subjected to levy of Central Sales Tax. As this tax was appropriated by the exporting State credit was not allowed by the dealer in the importing State. This resulted into exportation of tax from richer to poorer states and also cascading of taxes. Interestingly, States had power of taxation over services from the very beginning. States levied tax on advertisements, luxuries, entertainments, amusements, betting and gambling. 3.7 A report, titled Reform of Domestic Trade Taxes in India , on reforming indirect taxes, especially State sales tax, by National Institute of Public Finance and Policy under the leadership of Dr. Amaresh Bagchi, was prepared in 1994. This Report pr

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of meeting of the Union Finance Ministers and Chief Ministers in November, 1999, to deliberate on the design of VAT which was later made the Empowered Committee of State Finance Ministers (EC). Haryana was the first State to implement VAT, in 2003. In 2005, VAT was implemented in most of the states. Uttar Pradesh was the last State to implement VAT, from 1st January, 2008. 4. INTERNATIONAL PERSPECTIVES ON GST / VAT: 4.1 VAT and GST are used inter-changeably as the latter denotes comprehensiveness of VAT by coverage of goods and services. France was the first country to implement VAT, in 1954. Presently, more than 160 countries have implemented GST / VAT in some form or the other. The most popular form of VAT is where taxes paid on inputs are allowed to be adjusted in the liability at the output. The VAT or GST regime in practice varies from one country to another in terms of its technical aspects like definition of supply , extent of coverage of goods and services

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or the States, a decentralized structure enhances compliance burden for the taxpayers. Canada is a federal country with unique model of taxation in which certain provinces have joined federal GST and others have not. Provinces which administer their taxes separately are called non- participating provinces , whereas provinces which have teamed up with the Federal Government for tax administration are called participating provinces . 4.3 The rate of GST varies across countries. While Malaysia has a lower rate of 6% (Malaysia though scrapped GST in 2018 due to popular uproar against it), Hungary has one of the highest rate of 27%. Australia levies GST at the rate of 10% whereas Canada has multiple rate slabs. The average rate of VAT across the EU is around 19.5%. 5. NEED FOR GST IN INDIA: 5.1 The introduction of CENVAT removed to a great extent cascading burden by expanding the coverage of credit for all inputs, including capital goods. CENVAT scheme later a

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s with tax on services at the State level with removal of cascading effect of service tax. 5.3 CST was another source of distortion in terms of its cascading nature. It was also against one of the basic principles of consumption taxes that tax should accrue to the jurisdiction where consumption takes place. Despite remarkable harmonization in VAT regimes under the auspices of the EC, the national market was fragmented with too many obstacles in free movement of goods necessitated by procedural requirement under VAT and CST. 5.4 In the constitutional scheme, taxation powers on goods was with Central Government but it was limited up to the stage of manufacture and production while States have powers to tax sale and purchase of goods. Centre had powers to tax services and States also had powers to tax certain services specified in clause (29A) of Article 366 of the Constitution. This sort of division of taxing powers created a grey zone which led to legal disputes. Deter

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ded replacing all indirect taxes except the customs duty with value added tax on all goods and services with complete set off in all stages of making of a product. 6.2 In the year 2000, the then Prime Minister introduced the concept of GST and set up a committee to design a GST model for the country. In 2003, the Central Government formed a taskforce on Fiscal Responsibility and Budget Management, which in 2004 recommended GST to replace the existing tax regime by introducing a comprehensive tax on all goods and services replacing Central level VAT and State level VATs. It recommended replacing all indirect taxes except the customs duty with value added tax on all goods and services with complete set off in all stages of the value chain. An announcement was made by the then Union Finance Minister in Budget (2006-07) to the effect that GST would be introduced with effect from April 1, 2010 and that the EC, on his request, would work with the Central Government to prepare a road

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discussions in the EC and the written observations, certain modifications were considered necessary and were discussed with the Co-conveners and the representatives of the Department of Revenue of Union Finance Ministry. With the modifications duly made, a final version of the views of EC on the model and road map for the GST was prepared (April 30, 2008). These views of EC were then sent to the Government of India, and the comments of Government of India were received on December 12, 2008. These comments were duly considered by the EC (December 16, 2008), and it was decided that a Committee of Principal Secretaries/Secretaries of Finance/Taxation and Commissioners of Trade Taxes of the States would be set up to consider these comments, and submit their views. These views were submitted and were accepted in principle by the EC (January 21, 2009). Based on discussions within the EC and between the EC and the Central Government, the EC released its First Discussion Paper (FDP) on GST in

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n or sale happened and not to the State where consumption happened. Many manufacturing States expressed concerns over the loss of revenue on account of shift from origin based taxation to destination based taxation. 7.2.1 An argument put forward on behalf of producing states in support of origin based taxation is that they need to collect at least some tax from inter-State sales in order to recover the cost of infrastructure and public services provided by the State Governments to the industries producing the goods which are consumed in other states. This line of reasoning is based on the assumption that in the absence of a tax on inter-State sales, the location of export industries within their jurisdiction would not contribute to the tax revenues of the exporting state. This view was missing the fact that any value addition in a jurisdiction necessarily means extra income in the hands of the residents of that jurisdiction. Spending of this income on consumer goods expands th

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s under GST suggested RNR (Revenue Neutral Rate). The term RNR refers to that single rate, which preserves revenue at desired (current) levels. This would differ from the standard rate, which is the rate that would apply to a majority of goods and services. In practice, there will be a structure of rates, but for the sake of analytical clarity and precision it is appropriate to think of the RNR as a single rate. It is a given single rate that gets converted into a whole rate structure, depending on policy choices about exemptions, what commodities to charge at a lower rate and what to charge at a very high rate. 7.3.2 The Committee recommended RNR of 15-15.5% (to be levied by the Centre and States combined). The lower rates (to be applied to certain goods consumed by the poor) should be 12%. Further, the sin or demerit rates (to be applied on luxury cars, aerated beverages, pan masala, and tobacco) should be 40%. 7.4 Dispute Settlement: A harmonized system of taxation

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sed that the Goods and Services Tax Council may decide about the modalities to resolve disputes arising out of its recommendations. 7.5 Alcohol and Petroleum products: Alcoholic liquor for human consumption and petroleum products are major contributor to revenue of States. As States were uncertain about impact of GST on their finances and moreover loss of autonomy in collection of tax revenue, States unanimously argued for exclusion of these products from the ambit of GST. In the 115th Amendment Bill alcoholic liquor for human consumption and five petroleum products namely crude petroleum, high speed diesel, motor spirit or petrol, aviation turbine fuel and natural gas were kept out of GST. But in the 122nd Amendment Bill, only alcoholic liquor for human consumption was kept outside GST and above mentioned five petroleum products were proposed to be brought under GST from a date to be recommended by the Council. The Central Government has also retained its power to tax tob

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he purpose of introducing goods and services tax amendment of the Constitution conferring simultaneous power on Parliament as well as the State Legislatures to make laws for levying goods and services tax on every transaction of supply of goods or services was necessary. 8.2 The Constitution (115th Amendment) Bill, 2011, in relation to the introduction of GST, was introduced in the Lok Sabha on 11.03.2011. The Bill was referred to the Standing Committee on Finance on 29.03.2011. The Standing Committee submitted its report on the Bill in August, 2013. However, the Bill, which was pending in the Lok Sabha, lapsed with the dissolution of the 15th Lok Sabha. 8.3 The Constitution (122nd Amendment) Bill, 2014 was introduced in the 16 th Lok Sabha on 19.12.2014. The Constitution Amendment Bill was passed by the Lok Sabha in May, 2015. The Bill was referred to the Select Committee of Rajya Sabha on 12.05.2015. The Select Committee submitted its Report on the Bill on 22.07.20

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rvices tax on supplies in the course of inter-State trade or commerce which shall be levied and collected by the Government of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council. It also provides that Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. d) Article 270 has been amended to provide for distribution of goods and services tax collected by the Union between the Union and the States. e) Article 271 has been amended which restricts power of the Parliament to levy surcharge under GST. In effect, surcharge cannot be imposed on goods and services which are subject to tax under Article 246A. f) Article 279A has been inserted to provide for the constitution and mandate of

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tax for five years. k) In case of petroleum and petroleum products, it has been provided that these goods shall not be subject to the levy of Goods and Services Tax till a date notified on the recommendation of the Goods and Services Tax Council. 9. GOODS SERVICE TAX COUNCIL: 9.1 As provided for in Article 279A of the Constitution, the Goods and Services Tax Council (the Council) was notified with effect from 12.09.2016. The Council is comprised of the Union Finance Minister (who will be the Chairman of the Council), the Minister of State (Revenue) and the State Finance/Taxation Ministers as members. It shall make recommendations to the Union and the States on the following issues: a) the taxes, cesses and surcharges levied by the Centre, the States and the local bodies which may be subsumed under GST; b) the goods and services that may be subjected to or exempted from the GST; c) model GST laws, principles of levy, app

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a harmonized national market for goods and services. 9.3 One half of the total number of Members of the Goods and Services Tax Council shall constitute the quorum at its meetings. The Goods and Services Tax Council shall determine the procedure in the performance of its functions. Every decision of the Goods and Services Tax Council shall be taken at a meeting, by a majority of not less than three-fourths of the weighted votes of the members present and voting, in accordance with the following principles, namely: – a) the vote of the Central Government shall have a weightage of one-third of the total votes cast, and b) the votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast, in that meeting. 9.4 The Council has met for 34 times and no occasion has arisen so far that required voting to decide any matter. Till its 34th meeting, GST Council has taken 1064 decisions which include 219 decision

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visions, anti-profiteering, E-way Bill, inspection, search and seizure, demands and recovery and offences and penalties have been recommended. 9.4.2 Registration and Threshold: 9.4.2.1 Threshold limit of aggregate turnover for exemption from registration and payment of GST for suppliers of services would be ₹ 20 lakhs and ₹ 10 lakhs in the States of Manipur, Mizoram, Nagaland and Tripura. 9.4.2.2 Threshold limits of aggregate turnover for exemption from registration and payment of GST for the suppliers of goods would be ₹ 40 lakhs and ₹ 20 lakhs in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand with effect from 01.04.2019. 9.4.2.3 The following classes of taxpayers shall be exempted from obtaining registration: a. Suppliers of services, having turnover up to ₹ 20 lakh, making inter State supplies; b. Suppliers of ser

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complete FORM GST REG-26 but received only a Provisional ID (PID) till 31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer was extended till 31.01.2019. Also, the due date for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July, 2017 to February, 2019 / quarters July, 2017 to December, 2018 by such taxpayers was extended till 31.03.2019. 9.4.4 Composition Scheme: 9.4.4.1 Composition scheme has been formulated for small businessmen being supplier of goods and supplier of restaurant services. Under the scheme, person with annual turnover up to ₹ 1.5 crore (₹ 75 lakhs in States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand) needs to pay tax equal to 1% to 5% on his turnover and needs to file his returns annually with quarterly payment from FY 2019-20. 9.4.4.2 Composition scheme has been made available for suppliers of services (to those who are not e

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er 90% of taxpayers having turnover below ₹ 1.5 crore would vest with State tax administration and over 10% with the Central tax administration. Further all administrative control over taxpayers having turnover above ₹ 1.5 crore shall be divided equally in the ratio of 50% each for the Central and State tax administration. 9.4.6.2 Powers under the IGST Act shall also be cross-empowered on the same basis as under CGST and SGST Acts with few exceptions. 9.4.6.3 Power to collect GST in territorial waters shall be delegated by Central Government to the States. 9.4.6.4 Power to take enforcement action over entire taxpayer s base would be with both Central as well as State tax administration. 9.4.7 Compensation to States: 9.4.7.1 Formula and mechanism for GST Compensation Cess has been finalized. 9.4.8 Reverse Charge Mechanism (RCM): 9.4.8.1 Levy of GST on reverse charge mechanism on receipt of supplies from unreg

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payable or paid at the rate prescribed in notification No.11/2017- Central Tax (Rate). 9.4.8.2 Earlier the reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under sub-section (4) of section 5 of the IGST Act, 2017 was kept under suspension till 30.09.2019. 9.4.9 Payment of Tax: 9.4.9.1 There shall be no requirement on payment of tax on advances received for supply of goods by all taxpayers. 9.4.9.2 A Group of Ministers constituted for promoting digital payment has recommended to allow cash back to an amount equal to 20% of GST paid or ₹ 100/-, whichever is lower for cases where payment is made by BHIM or Rupay card. The necessary infrastructure is being developed and soon the scheme would be implemented on pilot basis in State of Assam and few other States which volunteer for the same. 9.4.9.3 In principle approval has been given for amendment of section 50 of the CGST Act to provide that interest

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mated refund module is being developed and will be deployed soon. 9.4.12 Return: 9.4.12.1 All taxpayers are required to file return FORM GSTR-3B pay tax on monthly basis. 9.4.12.2 Taxpayers with turnover up to ₹ 1.5 crore are required to file information in FORM GSTR-1 on a quarterly basis. Other taxpayers would have to file FORM GSTR-1 on a monthly basis. 9.4.12.3 The due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 2018 is 30.06.2019. 9.4.13 Late Fees: 9.4.13.1 Late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B FORM GSTR-4 for the months / quarters July, 2017 to September, 2018 which are furnished after 22.12.2018 but on or before 31.03.2019. 9.4.13.2 From October 2017 onwards, the amount of late fee for late filing of GSTR-3B payable by a registered person is a

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based on the invoices uploaded by the buyer and the supplier. Simply put, the process would be UPLOAD LOCK PAY for most tax payers. 9.4.14.4 Taxpayers would have the facility to create his profile based on nature of supplies made and received. The information which a taxpayer would be shown and would be required to fill in the return would depend on his profile. 9.4.14.5 NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS. 9.4.14.6 There shall be quarterly filing of return for the small taxpayers having turnover upto ₹ 5 crore 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. For such taxpayers, simplified returns have been designed called Sahaj and Sugam. In these returns, details of information required to be filled is lesser than that in the

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he months of October, 2018 to December, 2018 and January, 2019 was extended up to 28.02.2019. Further, exemption from TDS for been made for supply made by Government / PSU to another Government /PSU. 9.4.17 Export: 9.4.17.1 E-Wallet Scheme shall be introduced for exporters from 01.04.2020 and till then relief for exporters shall be given in form of broadly existing practice. 9.4.17.2 Supply of services to Nepal and Bhutan shall be exempted from GST even if payment has not been received in foreign convertible currency such suppliers shall be eligible for input tax credit. 9.4.17.3 Supply of services to qualify as exports, even if payment is received in Indian Rupees, where permitted by the RBI. 9.4.18 Rate of Interest: 9.4.18.1 Rate of interest on delayed payments and delayed refund has been recommended. 9.4.19 MSME: 9.4.19.1 A Group of Ministers has been constituted to look into the issues being faced by MS

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per cent. to the Central Government and fifty per cent. to the State Governments or the Union territories, as the case may be, on ad-hoc basis and this amount shall be adjusted against the amount finally apportioned. 9.4.20.4 Fifty per cent. of such amount, as may be recommended by the Council, which remains unutilized in the Compensation Fund, at any point of time in any financial year during the transition period shall be transferred to the Consolidated Fund of India as the share of Centre, and the balance fifty per cent. shall be distributed amongst the States in the ratio of their base year revenue. 9.4.20.5 In case of shortfall in the amount collected in the Fund against the requirement of compensation to be released for any two months period, fifty per cent. of the same, but not exceeding the total amount transferred to the Centre and the States as recommended by the Council, shall be recovered from the Centre and the balance fifty per cent. from the States in

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an capital goods, TDR/ JDA, FSI, long term lease (premiums)] shall be purchased from registered persons. On shortfall of purchases from 80%, tax shall be paid by the builder @ 18% on RCM basis. However, Tax on cement purchased from unregistered person shall be paid @ 28% under RCM, and on capital goods under RCM at applicable rates. 9.4.21.5 GST exemption on TDR/ JDA, long term lease (premium), FSI: Intermediate tax on development right, such as TDR, JDA, lease (premium), FSI shall be exempted only for such residential property on which GST is payable. 9.4.21.6 The new rate has become applicable from 01.04.2019. 9.4.21.7 One time transition option given to real estate firms to continue to pay tax at the old rates (effective rate of 8% or 12% with ITC) on on-going projects (buildings where construction and actual booking have both started before 01.04.2019) which have not been completed by 31.03.2019. Real estate firms can communicate their option

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Recent Law amendments w.e.f. 01.02.2019: 9.4.24.1 Scope of input tax credit has been widened, and it would now be made available in respect of the following: a. Most of the activities or transactions specified in Schedule III; b. Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft; c. Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; d. Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force. 9.4.24.2 The order of cross-utilization of input tax credit has been rationalized. 9.4.24.3 Commissioner empowered to extend the time limit for return of inputs and capital sent on job work, up to a period of one year and two years, respectively. 9.4.24.4 Place of supply in case of job

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fferent State/Union territories. 9.4.25 Others: 9.4.25.1 In principle approval has been given for creation of a Centralized Appellate Authority for Advance Ruling (AAAR) to deal with cases of conflicting decisions by two or more State Appellate Advance Ruling Authorities on the same issue. This would be implemented once the law is amended. 9.4.25.2 Existing tax incentive schemes of Central or State governments may be continued by respective government by way of reimbursement through budgetary route. The schemes, in the present form, would not continue in GST. 9.4.25.3 50% of the GST paid will be refunded to CSD (Defense Canteens). 9.4.25.4 Centralized UIN shall be issued to every Foreign Diplomatic Mission / UN Organization by the Central Government for handling their refund related applications. 9.4.25.5 There would be a single cash ledger for each tax head. The modalities for implementation would be finalized in consultation wit

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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 inter-State supplier will pay IGST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases. The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The person based in the destination State will claim credit of IGST while discharging his output tax liability in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST. The relevant information will also be submitted to the Central Agency which will act as a clearing house mechanism, verify the claims and inform the respective governments to transfer the funds. The major advantages of IGST Model are: a) Maintenance of uninterrupted ITC chain on inter-State transactions. b) No upfront payment of tax or substantial blockage of f

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e would be applicable has also been notified. 10.4 Compensation to States: The Goods and Services Tax (Compensation to States) Act, 2017 provides for compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax. Compensation will be provided to a State for a period of five years from the date on which the State brings its SGST Act into force. For the purpose of calculating the compensation amount in any financial year, year 2015-16 will be assumed to be the base year, for calculating the revenue to be protected. The growth rate of revenue for a State during the five-year period is assumed be 14% per annum. The base year tax revenue consists of the states tax revenues from: (i) State Value Added Tax (VAT), (ii) central sales tax, (iii) entry tax, octroi, local body tax, (iv) taxes on luxuries, (v) taxes on advertisements, etc. However, any revenue

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ed w.e.f. 16.06.2018. New features in the e-way bill system have been introduced such as the auto calculation of distance based on PIN codes for the generation of e-way bill and blocking the generation of multiple e-way bills against one invoice. 10.6 Anti-Profiteering Mechanism: Implementation of GST in many countries was coupled with increase in inflation and the prices of the commodities. This happened in spite of the availability of the tax credit. This was happening because the supplier was not passing on the benefit to the consumer and thereby indulging in illegal profiteering. Any reduction in rate of tax or the benefit of increased input tax credit should have been passed on to the recipient by way of commensurate reduction in prices. 10.6.1 National Anti-profiteering Authority (NAPA) has been constituted under GST by the Central Government to examine the complaints of non-passing the benefit of reduced tax incidence. The Authority shall cease to exist aft

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and payment of GST for the suppliers of goods would be ₹ 40 lakhs and ₹ 20 lakhs (in case of States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand) with effect from 01.04.2019. Threshold limit of aggregate turnover for exemption from registration and payment of GST for suppliers of services would be ₹ 20 lakhs and ₹ 10 lakhs (in case of States of Manipur, Mizoram, Nagaland and Tripura). A common threshold exemption applies to both CGST and SGST. The benefit of threshold exemption, however, is not available in inter-State supplies of goods. 10.9 Composition Scheme: Composition scheme has been formulated for small businessmen being supplier of goods and supplier of restaurant services. Under the scheme, person with turnover up to ₹ 1.5 crore (₹ 75 lakhs in States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhan

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would be permitted to be utilized in the following manner: a) ITC of CGST allowed for payment of CGST IGST in that order; b) ITC of SGST allowed for payment of SGST IGST in that order; c) ITC of UTGST allowed for payment of UTGST IGST in that order; d) ITC of IGST allowed for payment of IGST, CGST SGST/UTGST in that order. ITC of CGST cannot be used for payment of SGST/UTGST and vice versa. It has been further provided that IGST balances shall be exhausted for payment of IGST, CGST or SGST, as the case may be, before utilization of CGST or SGST. 10.12 Settlement of Government Accounts: Accounts would be settled periodically between the Centre and the State to ensure that the credit of SGST used for payment of IGST is transferred by the originating State to the Centre. Similarly, the IGST used for payment of SGST would be transferred by Centre to the destination State. Further the SGST portion of IGST collected o

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be sought by taxpayer or by any other person who has borne the incidence of tax within two years from the relevant date. Refund of unutilized ITC also available in zero rated supplies and inverted tax structure. 10.16 Tax Collection at Source: Obligation on electronic commerce operators to collect tax at source , at such rate not exceeding two per cent of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals. The provision for TCS has been operationalized w.e.f. 01st October, 2018. 10.17 Self-assessment: Self-assessment of the taxes payable by the registered person shall be the norm. Audit of registered persons shall be conducted on selective basis. Limitation period for raising demand is three (3) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in normal cases. Lim

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ld adopt such authority under CGST Act. 10.21 Transitional Provisions: Elaborate transitional provisions have been provided for smooth transition of existing taxpayers to GST regime. 10.21 Subsuming of taxes, duties etc.: Among the taxes and duties levied and collected by the Union, Central Excise duty, Duties of Excise (Medicinal and Toilet Preparations), Additional Duties of Excise (Goods of Special Importance), Additional Duties of Excise (Textiles and Textile Products), Additional Duties of Customs (commonly known as CVD), Special Additional Duty of Customs (SAD), Service Tax and cesses and surcharges insofar as they related to supply of goods or services were subsumed. As far as taxes levied and collected by States are concerned, State VAT, Central Sales Tax, Purchase Tax, Luxury Tax, Entry Tax, Entertainment Tax (except those levied by the local bodies), Taxes on advertisements, Taxes on lotteries, betting and gambling, cesses and surcharges insofar as t

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Tax (Amendment) Act, 2018 and the Goods and Services Tax (Compensation to States) Amendment Act, 2018, respectively. 11.3. On 22.06.2017, the first notification was issued for GST and notified certain sections under CGST. Since then, 178 notifications under CGST Act have been issued notifying sections, notifying rules, amendment to rules and for waiver of penalty, etc. 19, 34 and 2 notifications have also been issued under IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Further, 87, 90, 87 and 9 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, 106 circulars, 18 orders and 13 Removal of Difficulty 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

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logy for the departmental officers has to be taken up in a big way. A massive four-tier training programme has been conducted under the leadership of NACIN. This training project is aimed at imparting training on GST law and procedures to more than 60,000 officers of CBIC and Commercial Tax officers of State Governments. 12.3 CBIC would be responsible for administration of the CGST and IGST law. In addition, excise duty regime would continue to be administered by the CBIC for levy and collection of central excise duty on five specified petroleum products as well as on tobacco products. CBIC would also continue to handle the work relating to levy and collection of customs duties. 12.4 Director General of Anti-profiteering, CBIC has been mandated to conduct detailed enquiry on anti-profiteering cases and should give his recommendation for consideration of the National Anti-profiteering Authority. 12.5 CBIC has been instrumental in handholding the implementation

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ion under GST. 13.2 Central Government holds 24.5 percent stake in GSTN while the state government holds 24.5 percent. The remaining 51 per cent are held by non-Government financial institutions, HDFC and HDFC Bank hold 20%, ICICI Bank holds 10%, NSE Strategic Investment holds 10% and LIC Housing Finance holds 10%. The GST Council in its 27th meeting held on 04.05.2018 has approved the change in shareholding pattern of GSTN. Considering the nature of state function performed by GSTN, the GST Council felt that GSTN be converted into a fully owned Government company. Accordingly, the Council approved acquisition of entire 51 per cent of equity held by non-Governmental institutions in GSTN amounting to ₹ 5.1 crore, equally by the Centre and the State Governments. 13.3 The design of GST systems is based on role based access. The taxpayer can access his own data through identified applications like registration, return, view ledger etc. The tax official having jur

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ses. Those units having aggregate annual turnover more than ₹ 20 lakhs (₹ 10 lakhs in certain cases) in case of supplier of services and ₹ 40 lakhs (₹ 20 lakhs in certain cases) in case of supplier of goods have be registered under GST. Unlike multiple registrations under different tax regimes earlier, a single registration is needed under GST in one State. An additional benefit under Composition scheme has also been provided for businesses with aggregate annual turnover up to ₹ 1.5 crore (₹ 75 lakhs in certain cases) in case of supplier of goods and restaurant services and ₹ 50 lakhs in case of supplier of services. With the creation of a seamless national market across the country, small enterprises will have an opportunity to expand their national footprint with minimal investment. 14.4 Benefits to agriculture and Industry: GST will give more relief to industry, trade and agriculture through a more comprehensive and wider covera

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ndia, giving a boost to foreign investment and Make in India campaign. It will prevent cascading of taxes and make products cheaper, thus boosting aggregate demand. It will result in harmonization of laws, procedures and rates of tax. It will boost export and manufacturing activity, generate more employment and thus increase GDP with gainful employment leading to substantive economic growth. Ultimately it will help in poverty eradication by generating more employment and more financial resources. More efficient neutralization of taxes especially for exports thereby making our products more competitive in the international market and give boost to Indian Exports. It will also improve the overall investment climate in the country which will naturally benefit the development in the states. Uniform CGST SGST and IGST rates will reduce the incentive for evasion by eliminating rate arbitrage between neighboring States and that between intra and inter-State supplies. Average tax burden on

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credits to be verified online, encouraging more paper trail of transactions. Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax return, common tax base, common system of classification of goods and services will lend greater certainty to taxation system. 15. EXPERIENCE OF REGISTRATION, RETURN FILING REVNUE: 15.1 Registration Returns Snapshot: S.No. Details As on 31st May, 2019 1. No. of transited (migrated) taxpayers 66,25,077 2. Total No. of new applications received for registration 81,37,357 3. No. of applications approved 69,18,483 4. No. of applications rejected

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12. No. of GSTR-3B returns filed for December, 2017 74,64,274 13. No. of GSTR-3B returns filed for January, 2018 75,82,741 14. No. of GSTR-3B returns filed for February, 2018 77,08,443 15. No. of GSTR-3B returns filed for March, 2018 78,19,455 16. No. of GSTR-3B returns filed for April, 2018 78,91,878 17. No. of GSTR-3B returns filed for May, 2018 80,35,960 18. No. of GSTR-3B returns filed for June, 2018 81,39,434 19. No. of GSTR-3B re

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82,58,689 27. No. of GSTR-3B returns filed for March, 2019 79,59,285 28. No. of GSTR-3B returns filed for April, 2019 72,45,403 29. No. of GSTR 1 returns filed for July, 2017 60,88,528 30. No. of GSTR 1 returns filed for August, 2017 25,53,959 31. No. of GSTR 1 returns filed for September, 2017 69,02,688 32. No. of GSTR 1 returns filed for October, 2017 26,36,916 33. No. of GSTR 1 returns filed for November, 2017 26,78,601 34.

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29,06,423 42. No. of GSTR 1 returns filed for August, 2018 29,06,785 43. No. of GSTR 1 returns filed for September, 2018 75,74,154 44. No. of GSTR 1 returns filed for October, 2018 28,95,500 45. No. of GSTR 1 returns filed for November, 2018 28,68,407 46. No. of GSTR 1 returns filed for December, 2018 74,14,292 47. No. of GSTR 1 returns filed for January, 2019 27,90,673 48. No. of GSTR 1 returns filed for February, 2019 26,99,703

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56. No. of GSTR 4 returns filed for quarter July September, 2018 15,13,968 57. No. of GSTR 4 returns filed for quarter September December, 2018 14,54,329 58. No. of GSTR 4 returns filed for quarter January March, 2019 13,35,354 15.2 Revenue Collection Snapshot: S. No. Revenue Collected in the Month of Amount (in Rs. Thousand crore) 1. July, 17 21,572 2. August, 17 95,633 3. September, 17 94,064 4. October, 17 9

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94,442 16. October, 18 1,00,710 17. November, 18 97,637 18. December, 18 94,726 19. January, 19 1,02,503 20. February, 19 97,247 21. March, 19 1,06,577 22. April, 19 1,13,865 23. May, 19 1,00,289 24. Total 21,32,173 16. CHALLENGES FUTURE AHEAD: 16.1 Any new change is accompanied by difficulties and pro

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1.04.2018. As regards intra-State supplies, option was given to States to choose any date on or before 03.06.2018. All States have notified e-way bill rules for intra-State supplies last being NCT of Delhi where it was introduced w.e.f. 16.06.2018. A total of 37.12 crore e-way bills for inter-State movement and 3.17 crore for intra-State movement have been generated till 31.05.2019. 16.3 NAPA has initiated investigation into various complaints of anti-profiteering and has passed orders in some cases to protect consumer interest. 16.4 To expedite sanction of refund, electronic filing of refunds, along with all supporting documents/invoices, has been enabled on the common portal. 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. 16.5

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Goods and Services Tax – GST Dated:- 26-6-2019 – News – 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 be levied on such goods, shall be as per the decision of the GST Council. As per the s

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Goods and Services Tax – GST Dated:- 24-6-2019 – News – The implementation of GST has led to the removal of cascading effect of taxes in the economy as well as promoting free movement of goods across States, thereby creating one nation, one market . A simplified tax regime has resulted in reduced compliance burden for taxpayers and promoting ease of doing business in the country. Return filing is a continuous process and technical glitches and system related issues are addressed by the Goods and Services Tax Network (GSTN) to ensure smooth filing. Also, taxpayers committed errors while filing returns due to lack of familiarity with the new system. The data regarding the number of returns filed until 17.06.2019 is as follows:

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July, 2017 till September, 2018, if such forms are filed from 22.12.2018 to 31.03.2019. Based on the feedback received from taxpayers, Goods and Service Tax Network (GSTN) regularly updates the User Interface for filing of returns so as to improve user experience. For example, a Questionnaire for filing FORM GSTR-3B has been introduced to avoid errors by taxpayers. Also, NIL returns can be filed with just one click. An IT-Grievance Redressal Committee has been put in place to address the difficulties faced by taxpayers owing to technical glitches on the GST portal. It has the mandate to approve and recommend to the GSTN the steps to be taken to redress the grievance and provide relief to taxpayers. Awareness ca

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Goods and Services Tax – GST Dated:- 24-6-2019 – News – The Government proposes to integrate a FASTag Bank Mechanism with e-way bill and Logistic Data Services to track movement of goods and check GST evasion. The Government is contemplating integration of E-Way Bill mechanism of GST with FASTag System of National Highway Authority of India (NHAI). The aspect of Logistic Databank integration with FASTag System is being examined. A Committee of Officers comprising of officers from Central Government, State Governments, GSTN (Goods and Services Tax Network), NIC (National Informatics Centre), GST Council, to examine the issue of use of RFID data for strengthening of E-Way Bill mechanism under GST, was forme

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Goods and Services Tax – GST Dated:- 21-6-2019 – News – The 35 th GST Council Meeting was held here today under the chairmanship of Union Finance Corporate Affairs Minister Smt. Nirmala Sitharaman. This was the first meeting of the Council after the swearing in of the new Government. The meeting was also attended by Union Minister of State for Finance Corporate Affairs Shri Anurag Thakur besides Revenue Secretary Shri Ajay Bhushan Pandey and other senior officials of the Ministry of Finance. The GST Council recommended the following changes related to law and procedure: In order to give ample opportunity to taxpayers as well as the system to adapt, the new return system to be introduced in a phased manner, as described below:

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e noted that invoices etc. can be uploaded in FORM GST ANX-1 on a continuous basis both by large and small taxpayers from October, 2019 onwards. FORM GST ANX-2 may be viewed simultaneously during this period but no action shall be allowed on such FORM GST ANX-2 ; From October, 2019, small taxpayers to stop filing FORM GSTR-3B and to start filing FORM GST PMT-08 . They will file their first FORM GST-RET-01 for the quarter October, 2019 to December, 2019 in January, 2020; From January, 2020 onwards, FORM GSTR-3B to be completely phased out On account of difficulties being faced by taxpayers in furnishing the annual returns in FORM GSTR-9 , FORM GSTR-9A and reconciliation statement in FORM GSTR-9C ,

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Goods and Services Tax – GST Dated:- 21-6-2019 – News – The 35 th GST Council Meeting was held here today under the chairmanship of Union Finance Corporate Affairs Minister Smt. Nirmala Sitharaman. This was the first meeting of the Council after the swearing in of the new Government. The meeting was also attended by Union Minister of State for Finance Corporate Affairs Shri Anurag Thakur besides Revenue Secretary Shri Ajay Bhushan Pandey and other senior officials of the Ministry of Finance. The Council has recommended following GST rate related changes on supply of goods and services. Electric Vehicles On issues relating to GST concessions on electric vehicle, charger and hiring of electric vehicle, the Council recommended

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Goods and Services Tax – GST Dated:- 21-6-2019 – News – The 35 th GST Council Meeting was the First Meeting of the Council after the swearing in of the new Government. The Meeting took place in a cordial and professional manner. At the start of the Meeting, the Council passed a resolution acknowledging the stellar role played by Shri Arun Jaitley, the former Chairperson of GST Council and expressed its gratitude and appreciation for the exemplary contribution made by him in making the GST Council a shining example of co-operative federalism that it has become today. The Council also thanked the outgoing Members and welcomed the new Members of the Council. It also expressed its deepest condolences at the untimely demise of Shri Prakas

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Goods and Services Tax – GST Dated:- 21-6-2019 – News – The Directorate General of GST Intelligence Hqrs. (DGGI Hqrs.) has arrested one person, namely, Sh. Munish Kumar, Partner of M/s Sushil Kumar Munish Kumar, Hisar, Haryana and controller of M/s Sushil Kumar Munish Kumar Co., Ahmedabad. Both of the said firms had taken ITC fraudulently to the tune of more than ₹ 16 Crore involving invoice value of ₹ 322 Crore on the strength of invoices issued by non-existent fake firms. The said two firms thereafter, passed on such fraudulently taken ITC to some of the well established Cotton Yarn Spinners who availed of the same to discharge their GST liability against the outward supply, with an ulterior motive to defraud the Governme

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Goods and Services Tax – GST Dated:- 20-6-2019 – News – Introduction of manual checks in IGST refunds aimed at preventing unscrupulous exporters from defrauding the exchequer CBIC would assure all genuine exporters that they would continue to get their IGST refunds in a timely manner in a fully automated environment Some newspapers have today highlighted a perceived set-back to the automated process of refunds for exporters under GST on account of the introduction of manual checks to curb large scale frauds in IGST refunds. These news items regrettably create a misleading impression that genuine exporters would suffer on account of the newly introduced verification process. The CBIC has recently instruct

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Goods and Services Tax – GST Dated:- 15-6-2019 – News – New Delhi, Jun 15 (PTI) – Karnataka Chief Minister H D Kumaraswamy Saturday asked the Centre to extend GST compensation beyond five years, saying that the state will face severe financial crunch after the recompense period ends in 2022. He was speaking at the first meeting of the Governing Council of Niti Aayog chaired by Prime Minister Narendra Modi here. While implementing the Goods and Services Tax (GST), the Centre had assured the states to compensate them for loss of their revenue for five years till 2022. While the revenue gap is being bridged by the assured compensation till 2022, the s

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nd 2022, he added. Stating that Karnataka is the most arid state in the country after Rajasthan, the Chief Minister said the state faces serious drinking water challenges. Ground water table is depleting and ground water sources are getting contaminated. He urged the prime minister to significantly increase the allocation to rural drinking water sector. Karnataka is investing ₹ 2,800 crore during 2019-20 for rural drinking water, of which the centre's share is only ₹ 400 crore, he added. The chief minister also urged the Centre to approve ₹ 2,064 crore relief from the National Disaster Relief Fund (NDRF) for damage to crops in the 2

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Goods and Services Tax – GST Dated:- 11-6-2019 – News – The GST Council in its 31 st meeting decided that a new GST return system will be introduced to facilitate taxpayers. In order to ease transition to the new return system, a transition plan has been worked out. The details of the indicative transition plan are as follows: – In May, 2019 a prototype of the offline tool has already been shared on the common portal to give the look and feel of the tool to the users. The look and feel of the offline tool would be same as that of the online portal. Taxpayers may be aware that there are three main components to the new return one main return (FORM GST RET-1) and two annexures (FORM GST A

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payers to make themselves familiar. This trial would have no impact at the back end on the tax liability or input tax credit of the taxpayer. In this period, taxpayers shall continue to fulfil their compliances by filing FORM GSTR-1 and FORM GSTR-3B i.e. taxpayers would continue to file their outward supply details in FORM GSTR-1 on monthly / quarterly basis and return in FORM GSTR-3B on monthly basis. Non-filing of these returns shall attract penal provisions under the GST Act. From October, 2019 onwards, FORM GST ANX-1 shall be made compulsory and FORM GSTR-1 would be replaced by FORM GST ANX-1. The large taxpayers (i.e. those taxpayers whose aggregate annual turnover in the previous financial

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monthly basis. They would file their first FORM GST RET-01 for the month of December, 2019 by 20 th January, 2020. The small taxpayers would stop filing FORM GSTR-3B and would start filing FORM GST PMT-08 from October, 2019 onwards. They would file their first FORM GST-RET-01 for the quarter October, 2019 to December, 2019 from 20 th January, 2020. From January, 2020 onwards, all taxpayers shall be filing FORM GST RET-01 and FORM GSTR-3B shall be completely phased out. Separate instructions shall be issued for filing and processing of refund applications between October to December, 2019. – News – Press release – PIB Tax Management India

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GST – an update as on 01-06-2019 – Goods and Services Tax – GST Dated:- 7-6-2019 – News – Download PDF – News – Press release – PIB Tax Management India – taxmanagementindia – taxmanag

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Goods and Services Tax – GST Dated:- 4-6-2019 – News – Directorate General of Goods Services Tax (DGGST) 5 TH Floor, Telephone Exchange (MTNL) Building, 8, Bhikaji Cama Place, New Delhi-110066 Ph. 011-21600091-94, e-mail id: F. No. 1(12)/DGGST/Admn/GST-Day/34/2019/1712-94 Dated 04 June 2019 Sub: reg. Sir/Madam, It has been decided to award Commendation Certificates to the selected officers at the all India Level in different grades of officers, who, by their innovative ideas/continued devotion and commitment to duty, have contributed in promoting excellence in the fields of GST administration. The objective is to give due recognition to officers who may have contributed significantly in diverse areas such as trade facilitation, automation, enforcement, audit, infrastructure development, human resource development, personal management, secretarial work, legi

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role should be mentioned separately indicating the exact role played by the officer. 3. You may also ensure that the abstract showing the APAR grading of the officer for the last five years duly certified by the sponsoring authority accompany the proposal. The vigilance clearance for the last five years should also be furnished along with the proposal. Care should be taken to send proposals of only such officers whose record of integrity is absolutely beyond doubt. At the time of sponsoring the names itself, the sponsoring authority should satisfy that the officer is really a deserving candidate for the award and also enjoys an excellent general reputation. 4. In any case, names of those officers who have already been awarded Presidential Award/ Commendation Certificate/ WCO Certificate of appreciation by CBIC should not be forwarded. 5. it is also requested that wide publicity may be given to this letter to encourage deserving officers in d

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On the occasion of the GST Day, 2018 (In word format) 1. Name of Officer: (Full Name in Block letters) 2. Designation 3. Father's Name 4. Date of Birth 5. Educational Qualification 6. Date of initial joining the Department (with post) 7. If Direct Recruitment then Batch 8. Present Post 9. Present Place of Posting:

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by the official. 16. Any other distinction/ Achievement 17. Details of enquiry, if any, pending or contemplated against the official. Vigilance Clearance Certificate may be annexed. 18. Remarks of the sponsoring authority justifying the nomination for commendation certificate Signature of Sponsoring Authority Name Designation 19. Remarks of jurisdictional Chief Commissioner/ Director General recommending the proposal

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Goods and Services Tax – GST Dated:- 4-6-2019 – News – The last date for filing of Annual return in FORM GSTR-9 is 30th June 2019. The trade and industry have raised certain queries with respect to filing of this Annual return which are being clarified as follows: a. Information contained in FORM GSTR-2A as on 01.05.2019 shall be auto-populated in Table 8A of FORM GSTR-9. b. Input Tax Credit on inward supplies shall be declared from April 2018 to March 2019 in Table 8C of FORM GSTR-9 . c. Particulars of the transactions for FY 2017-18 declared in returns between April 2018 to March 2019 shall be declared in Pt. V of FORM GSTR-9 . Such particulars may contain details of amendments fur

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GSTR-9. Such additional liability shall be computed in Pt.IV and the gap between the tax payable and Paid through cash column of FORM GSTR-9 shall be paid through FORM DRC-03 . f. Many taxpayers have reported a mismatch between auto-populated data and the actual entry in their books of accounts or returns. One common challenge reported by taxpayer is in Table 4 of FORM GSTR-9 where details may have been missed in FORM GSTR-1 but tax was already paid in FORM GSTR-3B and therefore taxpayers see a mismatch between auto-populated data and data in FORM GSTR-3B . It may be noted that auto-population is a functionality provided to taxpayers for facilitation purposes, taxpayers shall report the data as per their books

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Goods and Services Tax – GST Dated:- 1-6-2019 – News – GST Revenue collection for May, 2019 ₹ 1,00,289 crore total gross GST revenue collected ;a growth of 6.67% over the revenue in the same month last year The total gross GST revenue collected in the month of May, 2019 is Rs 1,00,289 crore of which CGST is Rs 17,811 crore , SGST is Rs 24,462 crore , IGST is Rs 49,891 crore (including Rs 24,875 crore collected on imports) and Cess is Rs 8,125 crore (including Rs 953 crore collected on imports). The total number of GSTR 3B Returns filed for the month of April up to 31st May, 2019 is 72.45 lakh . The government has settled Rs 18,098 crore to CGST and Rs 14,438 crore to SGST from IGS

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Goods and Services Tax – GST Dated:- 25-5-2019 – News – Office of the Commissioner Central GST Customs, Vadodara-II Arkee Garba Ground, Nr. Telephone Exchange, Subhanpura Vadodara 390023 (GUJARAT) Telephone No. 0265-2388241, Fax no. 0265-2388243 PRESS RELEASE Top Management of M/s Manpasand Beverages Ltd, Savli, Vadodara arrested in fake invoice GST fraud. Multi locational searches were conducted on various premises of M/s Manpasand Beverages Ltd. on 23/05/2019. The searches resulted into unvelling of a huge racket of creating fake/dummy units for availing fraudulent credit and committing tax evasion of ₹ 40 crores

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