Author: admin_gst

GST – Started By: – Ritesh Mehta – Dated:- 10-1-2019 Last Replied Date:- 14-1-2019 – An individual enters into development agreement with a builder for a consideration of X amount. The Consideration is completely in cash and not kind. Not. No.4/2018 Dtd.25/01/18 mandates GST on development rights to be paid by registered person on consideration recd. from builder. My take on this is that GST shall not be applicable as it is not a Supply Per Se. If read with Sec. 7, which defines supply to be in the course or furtherance of business. It is not a business for that individual to enter into agreement with the builder. It was his one of the land on which development rights have been supplied to builder for cash consideration But since it is not

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GST – Major Decisions taken by the GST Council in its 32nd Meeting held today under the Chairmanship of the Union Minister of Finance & Corporate Affairs, Shri Arun Jaitley – TMI Updates – Highlights

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Goods and Services Tax – GST – Dated:- 10-1-2019 – The GST Council in its 32nd Meeting held today under the Chairmanship of the Union Minister of Finance & Corporate Affairs, Shri Arun Jaitley in New Delhi took the following major decisions to give relief to MSME (including Small Traders) among others – 1. Increase in Turnover Limit for the existing Composition Scheme: The limit of Annual Turnover in the preceding Financial Year for availing Composition Scheme for Goods shall be increased to ₹ 1.5 crore. Special category States would decide, within one week, about the Composition Limit in their respective States. 1.1 Compliance Simplification: The compliance under Composition Scheme shall be simplified as now they would need to f

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the preceding Financial Year up to ₹ 50 lakhs. 3.1 The said Scheme Shall be applicable to both Service Providers as well as Suppliers of Goods and Services, who are not eligible for the presently available Composition Scheme for Goods. 3.2 They would be liable to file one Annual Return with Quarterly Payment of Taxes (along with a Simple Declaration). 4. Effective date: The decisions at Sl. No. 1 to 3 above shall be made operational from the 1st of April, 2019. 5. Free Accounting and Billing Software shall be provided to Small Taxpayers by GSTN. 6. Matters referred to Group of Ministers: i. A seven Member Group of Ministers shall be constituted to examine the proposal of giving a Composition Scheme to Boost the Residential Segment of

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Goods and Services Tax – GST – Dated:- 10-1-2019 – Press Release January 10, 2019 The GST Council in its 32nd meeting held today at New Delhi gave approval for the following: a. Changes made by CGST (Amendment) Act,2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 along with amendments in CGST Rules, notifications and Circulars issued earlier and the corresponding changes in SGST Acts would be notified w.e.f. 01.02.2019. b. The la

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Goods and Services Tax – GST – Dated:- 10-1-2019 – New Delhi, Jan 10 (PTI) In a bid to give relief to small businesses, the GST Council Thursday doubled the exemption limit and raised the threshold for availing the composition scheme. The GST Council doubled the GST exemption limit to ₹ 20 lakh for north eastern states and ₹ 40 lakh for the rest of the country, Finance Minister Arun Jaitley told reporters here. The scope of the GST Composition Scheme, under which small traders and b

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GST – Started By: – Ravikumar Doddi – Dated:- 10-1-2019 Last Replied Date:- 14-1-2019 – Applicant running a canteen in a Hospital, Hospital provides power supply by a sub meter to the canteen, which bills are coming ₹ 1 lak and above per month, hospital collecting 18% GST, is it correct sir, if any exemption please provide Notification/circular and HSN/SAC Code on which they are collecting 18% – Reply By KASTURI SETHI – The Reply = Dear Querist, Hospital is correct. HSN Code is 9969. The relevant extract of Notification No. 11/17-Central Tax (Rate) dated 28.6.17 is reproduced as under : Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Service Rate (per cent) Condition (1) (2) (3) (4) (5) 13 Heading 9969

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tion from GST levy by Hospital on this transaction is through Pure Agency Concept. Pure Agent is the person enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both; neither intends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply; does not use for his own interest such goods or services so procured and receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account. Further, in order to fall under Pure Agency following conditions has to be satisfied:- (i) the supp

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GST – Started By: – Ethirajan Parthasarathy – Dated:- 10-1-2019 Last Replied Date:- 12-1-2019 – An individual is registered under GST. He has engaged the services of security agencies (which is a partnership firm). Their services are used for his residence which is personal expense. I am of the opinion that he is not liable for RCM tax. Please confirm.. – Reply By KASTURI SETHI – The Reply = Dear Querist, It is taxable. The supplier of Service is other than body corporate (Partnership) and receiver is a registered person. (A person who is registered under GST is registered for business. He may use security service for residence.That is a separate issue) The condition of a registered person stands fulfilled). Rather both conditions stand fu

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as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. So, all the provision of the act will apply to recipient and in tax payable in relation to the supply. As per Sec 7(1) (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; Security service at home of registered person is not in the course or furtherance of business but its personal in nature. GST is basically tax on business. The said transaction is personal in nature. In my view GST on RCM will not be applicable. – Reply By KASTURI SETHI – The Reply = Regist

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Goods and Services Tax – GST – By: – Manav Garg – Dated:- 10-1-2019 – Hi Readers, This is to inform that the GST council in their 31st council meeting held at New Delhi on 22nd Dec 18 has recommended various changes and thereafter notified by issuance of notification under GST law and its compliance, which are summarized below: Central Tax Notifications [Notification No. 67/2018 Central Tax dated 31st December, 2018] Extension in time limit for availing the special procedure for completing migration of taxpayers who received provisional IDs but could not complete the migration process to 31st Jan 19 and to furnish other details to migration@gstn.org.in to 28th Feb 19. [Notification No. 68/2018, 69/2018 & 70/2018 Central Tax dated 31st December, 2018] Time limit for furnishing the return in FORM GSTR-3B for the newly migrated taxpayers as specified in Notification No 31/2018 Particular Period Due Date Prior to change Jul 17 to Nov 18 31st Dec 18 After Change Jul 17 to Feb 19 31st M

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be filed before filing of GSTR-9 It is mandatory for a registered person to file all GSTR-1 and GSTR-3B for the FY 2017-18 before filing of GSTR-9. GSTR-4 to be filed before filing of GSTR-9A It is mandatory for a registered person under composition scheme to file all GSTR-4 returns for the FY 2017-18 before filing of GSTR-9A Additional Liability to be paid through DRC-03 Any transaction resulting in additional liability which is declared in GSTR-9 to be discharged in Cash Only by way of DRC-03 form Input Tax Credit cannot be availed through Form 9 & 9C Registered person cannot claim any ITC unclaimed during FY-17-18 through Form 9 & 9C return. All unclaimed ITC has to be claimed through GSTR-3B only for which Government has extended the due date till the month of filing of Return for 31st March 2019. Change in Heading of Form GSTR-9 & GSTR-9A Amendment of headings in the forms to specify that the return in FORM GSTR-9 & FORM GSTR-9A would be in respect of supplies etc

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of Late fees for late filling of GSTR-3B for period of Jul 17 to Sept 18, if GSTR-3B filled between period from 22nd Dec 18 to 31st Mar 19 [Notification No. 77/2018 Central Tax dated 31st December, 2018] Complete waiver of late fees for late filling of GSTR-4 for the period of Jul 17 to Sept 18, if furnished between period from 22nd Dec 18 to 31st Mar 19 [Notification No. 78/2018 Central Tax dated 31st December, 2018] Extension of time limit for filling of Form GST ITC-04, in respect of goods dispatched to Job worker or received from Job worker to 31st Mar 19 for the period Jul 17 to Dec 18 [Notification No. 79/2018 Central Tax dated 31st December, 2018] Amendment in Notification No.-2/2018 for insertion of proviso which provides officers for exercising power under Section 73, 74, 75 & 76 through the jurisdictional senior authority. Central Tax (Rate) Notifications [Notification No. 24/2018 & 25/2018 – Central Tax (Rate) dated 31st December, 2018] Change in the rate of GST appl

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shall pay the amount of central tax payable on the quantity of gold not exported, along with interest from the date when the said tax on such supply was payable, but for the exemption. [Notification No. 27/2018 – Central Tax (Rate) dated 31st December, 2018] Change in Rate of tax on supply of Services Service by way of construction or engineering or installation or other technical services, provided in relation of setting up of Bio-gas plant, Solar power based devices, Solar power generating system, Wind mills, Wind Operated Electricity Generator (WOEG), Waste to energy plants/devices, Ocean waves/tidal waves energy devices/plants will be taxable at 18% Supply of Food & Beverage to School & College will be exempted. Transportation of passengers, with or without accompanied baggage, by air, by non-scheduled air transport service or charter operations, engaged by specified organizations in respect of religious pilgrimage facilitated by the Government of India, under bilateral ar

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s or undertakings from Banking Companies shall be exempt Services provided by IIM will be qualify as educational institution thus remain exempt [Circular -84/01/2019-GST] Services provided by rehabilitation professionals recognized under the Rehabilitation Council of India Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA of the Income- tax Act, 1961 (43 of 1961). [Notification No. 29/2018 – Central Tax (Rate) dated 31st December, 2018] Services Notified under Reverse Charge Services provided by business facilitator (BF) to a banking company will be liable to RCM Services provided by an agent of business correspondent (BC) to business correspondent (BC) will be covered under RCM Security services (by way of supply of security p

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te and inter-State supply of used vehicles, seized and confiscated goods, old and used goods, waste and scrap made by them to an unregistered person It is clarified that in case of revision of prices, after the appointed date, of any goods or services supplied before the appointed day thereby requiring issuance of any supplementary invoice, debit note or credit note, the rate as per the provisions of the GST Acts (both CGST and SGST or IGST) would be applicable The provisions of section 51 of the CGST Act are applicable only to such authority or a board or any other body set up by an Act of parliament or a State legislature or established by any Government in which fifty-one per cent. or more participation by way of equity or control is with the Government It is clarified that as per the above provisions, taxable value for the purposes of GST shall include the TCS amount collected under the provisions of the Income Tax Act since the value to be paid to the supplier by the buyer is incl

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the CGST Act shall apply for claiming credit on inputs held in stock, inputs contained in semi-finished or finished goods held in stock and on capital goods on the date immediately preceding the date of issue of the order Circular No. 78/50/2018-GST, dated 31 December 2018 Clarification on export of services under GST It is clarified that the supplier of services located in India would be liable to pay integrated tax on reverse charge basis on the import of services on that portion of services which has been provided by the supplier located outside India to the recipient of services located outside India. Furthermore, the said supplier of services located in India would be eligible for taking input tax credit of the integrated tax so paid Circular No. 79/50/2018-GST, dated 31 December 2018 Calculation of refund amount for claims of refund of accumulated ITC on account of inverted duty structure The amount of refund eligible in case of refund on account of inverted duty structure is de

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e As per proviso to sub-section (3) of section 54, refund of unutilized ITC shall be allowed: Where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies) Inputs, as defined under clause (59) of section 2, means any goods other than capital goods… Thus, ITC on account of input services and capital goods shall not be included in the value of Net ITC for the purpose of Rule 89(5) and hence the same cannot be claimed as refund under section 54(3) Refund to be allowed on all inputs as the meaning and scope of term inputs is very wide Definition of inputs under clause (59) of section 2 reads as follows: Any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business For the purpose of calculating the amount of Net ITC in the inverted duty, department rejected ITC on account of following claiming the same not directly consum

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person, being eligible to claim refund of compensation cess paid during the period July 2017 – May 2018, shall calculate the refund amount for each month as per the formula specified in Rule 89(4), i.e. Refund amount = (Turnover of zero rated supply of goods + Turnover of zero-rated supply of services)*Net ITC/Adjusted Total Turnover The sum of the eligible amount calculated above for the period July 2017 – May 2018 should be less than or equal to the amount actually claimed as refund in the month of July 2018. Whether refund of compensation cess paid on purchase of coal used for captive generation of electricity which is in turn used for manufacture of goods exported under LUT allowed? Clarification: Yes, refund shall be allowed even if input is not directly used for making zero-rated supplies. Whether ITC reversed to be taken into consideration for calculating the amount of Net ITC under Rule 89? Clarification: The meaning of Net ITC given in Rule 89(4) reads as follows: Input tax c

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hus, it has been clarified that refund claim filed for the relevant period is for the amount of Net ITC availed and not restricted only to the purchases made during the period. Moreover, section 16(4) also allows the registered person to claim ITC on or before the due date of filing of return for the month of September following the financial year to which the invoice pertains or the date of filing of annual return, whichever is earlier. Hence, if the invoice pertaining to the month of September on which ITC has been availed in the GSTR-3B of the month of October, the ITC for refund computation purpose would be considered for the month of October irrespective of the date of invoice or appearance in GSTR-2A. Circular No. 80/50/2018-GST, dated 31 December 2018 Clarification regarding GST rates & classification (goods) It is being clarified that LPG supplied in bulk, whether by a refiner/fractionator to an OMC or by one OMC to another for bottling and further supply for domestic use w

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ication No. 11/2017-Central Tax (Rate) dated 28.06.2017, Sl. No. 7(i) prescribes GST rate of 5% on supply of food and beverages services. Explanation 1 to the said entry states that such supply can take place at canteen, mess, cafeteria of an institution such as school, college, hospitals etc. On the other hand, Notification No. 12/2017-Central Tax (Rate), Sl. No. 66 (a) exempts services provided by an educational institution to its students, faculty and staff. A supply which is specifically covered by any entry of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017 is exempt from GST notwithstanding the fact that GST rate has been prescribed for the same under Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 Accordingly, it is clarified that supply of food and beverages by an educational institution to its students, faculty and staff, where such supply is made by the educational institution itself, is exempt under Notification No. 12/2017-Central Tax (Rate) Howeve

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additional duty of customs under sub-section (1) of section 3 of the Customs Tariff Act, 1975, would be allowed in terms of Explanation 3 to section 140, which shall become effective from the date the same is notified giving it retrospective effect Order No 2/2018 – Central Tax dated 31 December 2018 The said order has extended the time period relating to availment of Input tax credit pertaining to FY 17-18 and amendments in the details furnished in form GSTR-1 for FY 17-18 which are briefed below: Extension of the due date for availing ITC on the invoices or debit notes relating FY 2017-18. Section 16(4) of the CGST Act specifies the time limit for availment of input tax credit in respect of FY 17-18 which was due date of filing of Annual return or due date of filing of return for the month of September,2018. The said order has inserted an proviso after Section 16(4) to extend the time period to avail ITC in respect of invoices relating to FY 17-18 till the due date of filing of Marc

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n (1) of said section for the month of March, 2019. Extending the time period to make amendments in details furnished in form GSTR-1 pertaining to FY 17-18 Section 37(3) of the CGST Act allows rectification of any error or omission, if any in respect of return already filed. Proviso of the said section specifies that the rectification can be made till the filing of Annual return or due date of filing of September return following the financial year, whichever is earlier. Second proviso has been inserted via this order to extend the time period to allow rectification of the due date of filing of March 19 return or for the quarter Jan 19 to Mar 19. The relevant extract of the said proviso has been reproduced below: Provided further that the rectification of error or omission in respect of the details furnished under sub-section (1) shall be allowed after furnishing of the return under section 39 for the month of September, 2018 till the due date for furnishing the details under subsectio

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 10-1-2019 – The Central Government has issued 13 notifications for CGST Act for the implementation of the decisions taken in the recent GST Council from Notification No. 67 to Notification No. 79 on 31.12.2018. Notification No. 67/2018-Central Tax This notification seeks to extend the time period specified in notification No. 31/2018-CT dated 06.08.2018 for availing the special procedure for completing migration of taxpayers who received provisional IDs but could not complete the migration process. Notification No. 31/2018-Central Tax, dated 06.08.2018 specified the persons who did not file the complete FORM GST REG- 26 of the Central Goods and Services Tax Rules, 2017 but received only a Provisional Identification Number till the 31st December, 2017 may apply for Goods and Services Tax Identification Number (GSTIN) on or before 31.08.2018. On receipt of ARN number, the taxpayers shall furnish the required details to G

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ll be furnished electronically through the common portal on or before the 31st day of March, 2019. Notification No. 56/2017-Central Tax, dated 15.11.2017 provides that the return in FORM GSTR-3B is to be filed for the period from July, 2017 to November 2018 by the taxpayers who have obtained Goods and Services Tax Identification Number (GSTIN) shall be furnished electronically through the common portal on or before the 31.12.2018. Notification 68/2018-Central Tax amended the Notification No. 56/2017 and provides that the return in FORM GSTR-3B is to be filed for the period from July, 2017 to February 2019 by the taxpayers who have obtained Goods and Services Tax Identification Number (GSTIN) shall be furnished electronically through the common portal on or before the 31st day of March, 2019. Notification No. 69/2018-Central Tax This notification seeks to extend the time limit for furnishing the return in FORM GSTR-3B for the newly migrated taxpayers. Notification No.35/2017-Central Tax

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h the common portal on or before the 31st day of December, 2018. Notification 69/2018-Central Tax amended the Notification No. 35/2017-Central Tax and provides that that the return in FORM GSTR-3B is to be filed for the period from July, 2017 to February 2019 by the taxpayers who have obtained Goods and Services Tax Identification Number (GSTIN) in terms of shall be furnished electronically through the common portal on or before the 31.03.2019. Notification No. 70/2018-Central Tax The third proviso to para 1 of Notification No. 34/2018-Central Tax, dated 10.08.2018 provides that the return in of the said rules to be filed for the period from July, 2017 to November 2018 who have obtained Goods and Services Tax Identification Number (GSTIN) shall be furnished electronically through the common portal on or before the 31.12.2018. This notification amended by which the return in of the said rules to be filed for the period from July, 2017 to February 2019 who have obtained Goods and Service

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Goods and Services Tax Identification Number (GSTIN), shall be furnished electronically through the common portal, on or before the 31.12.2018. This notification amended by which the return in of the said rules to be filed for the period from July, 2017 to December 2018 who have obtained Goods and Services Tax Identification Number (GSTIN) shall be furnished electronically through the common portal on or before the 31.03.2019. Notification No.72/2018-Central Tax This notification seeks to extend the time limit for furnishing the details of outward supplies in FORM GSTR-1 for the newly migrated taxpayers. Vide Notification No.44/2018-Central Tax, dated 10.09.2018 the Commissioner, on the recommendations of the Council, hereby extends the time limit for furnishing the details of outward supplies in of the Central Goods and Services Tax Rules, 2017, by such class of registered persons having aggregate turnover of more than 1.5 crore rupees in the preceding financial year or the current fi

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the second proviso in the Notification No. 50/2018-Central Tax, dated 13.09.2018(notified the appointed date for section 50 as 01.10.2018). The newly inserted proviso provides that nothing in the notification No. 50/2018-Central Tax shall apply to the supply of goods or services or both which takes place between one person to another person specified under clauses (a), (b), (c) and (d) of sub-section (1) of section 51 of the Act Section 51(1) provides that 51 (1) provides that notwithstanding anything to the contrary contained in this Act, the Government may mandate,- (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, to deduct tax at the rate of 1% from the payment made or credited to the supplier of taxable goods or services or both, where the total value of such supply, under a cont

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stered persons who failed to furnish the details of outward supplies in FORM GSTR-1 for the months/quarters from July, 2017 to September, 2018 by the due date but furnishes the said details in FORM GSTR-1 between the period from 22nd December, 2018 to 31st March, 2019. Notification No. 76/2018-Central Tax This notification seeks to specify the late fee payable for delayed filing of FORM GSTR-3B and fully waive the amount of late fees leviable on account of delayed furnishing of FORM GSTR-3B for the period July, 2017 to September, 2018 in specified cases. This notification provides that the amount of late fee payable under section 47 of the said Act, shall stand waived for the registered persons who failed to furnish the return in FORM GSTR-3B for the months of July, 2017 to September, 2018 by the due date but furnishes the said return between the period from 22nd December, 2018 to 31st March, 2019. Notification No. 77/2018-Centra Tax This notification seeks to fully waive the amount of

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Tax, dated 19.06.2017 which prescribed the territorial jurisdiction officer. Table I of the said notification prescribed the jurisdiction of Principal Chief Commissioner/Chief Commissioner of Central Tax in terms of Principal Commissioners/Commissioners of Central Tax, Commissioners of Central Tax (Appeals), Additional Commissioner of Central Tax (Appeals) and Commissioners of Central Tax (Audit). This notification provides that the central tax officer and the officers subordinate to him as detailed below- Principal Chief Commissioner; Chief Commissioner; shall exercise powers under sections 73, 74, 75 and 76 of Chapter XV of the said Act throughout the territorial jurisdiction of the corresponding central tax officer of Principal Chief Commissioner/Chief Commissioner in respect of those cases as may be assigned by the Board. Section 73 of the Act provides for the determination of the tax not paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason ot

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Goods and Services Tax – GST – By: – Shilpi Jain – Dated:- 10-1-2019 Last Replied Date:- 11-1-2019 – As per section 35(5), 44(2) of the CGST Act, 2017 read with rule 80(3) of the CGST Rules, 2017, every registered person whose aggregate turnover during a financial year exceeds two crore rupees, shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner. Initially there was no clarity whether a separate audit will have to be carried out for the purposes of GST or the audit done under the existing laws would suffice. However, with the Form GSTR – 9C being notified it had become clear that a separate audit report need not be issued for the purposes of GST and that the already existing audited financials of the assessee can be attach

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r under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder. From the above definition it seems that there is a vast responsibility laid on the GST auditor whereby he has to go the extent of assessing the level of compliance with the provisions of the Act. However, since the paper writer s intention in the present case is not to resolve the above conflict but to bring out what positive can be taken out of this audit exercise, it is not discussed here as to which view is correct in law. Further, before getting into the subject of the positive impact, let us classify the assessees into the following basic categories: Those who do not wish to take any risk and take the conservative approach in complying with the law. Those, for whom business needs are the first preference and are ready to take an aggressive

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essees who came under the department scanner, were burdened heavily with interest, penalties and litigation costs. All in all, it was creating a very negative environment when it came to compliance under the indirect tax laws. However, the scenario should be a little different (if not more) under GST. Under GST the assessee has the chance of getting an audit done by a qualified professional and to understand the nuances of the law (including the procedural aspects) by way of a comprehensive compliance report whereby the assessee can take a reasoned decision on various aspects while being aware of the risk that it is carrying for the non-compliance, if any. Further, all of this being within a reasonable time of the completion of the transaction, as compared with 3 to 4 years under the earlier laws. Another way of reducing the risk of non-compliance and to facilitate a reasoned decision making w.r.t. GST would be the services of a professional as a consulting retainer who would: Clarify

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e to be complied with, as against the scheme of things that existed under the earlier laws. It is pertinent to point out here that the penalties under Indirect tax laws are more stringent than those in the direct tax laws as IT is on income whereas IDT is on revenue. Hence the stakes are very high (which could many times be fatal to the business). Hence, there is a need to be more cautious under the IDT laws. Under GST when the audited financials are submitted with the reconciliations in Form GSTR-9C, it will become very difficult for the department to invoke the extended period of limitation. Further another benefit of the audit provision is that now it would be mandatory for all assesses crossing the prescribed limit to get the IDT audit done, which would have otherwise not been sanctioned by the management of the small assesses. Hence it would be very important to hire a professional who has very good knowledge of the law to get the maximum benefit out of the GST provisions. – Reply

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GST – General FAQ on GST – Frequently Asked Questions – 170328-01 – Q 1. I am an existing PAN-based Service Tax (ST) and Central Excise (CE) assessee, and wish to enroll in GST. I have business premises and factories in the State of Telangana. Through the ACES portal, I received the Provisional ID and password for the State of Andhra Pradesh, whereas my Principle Place of Business is in Telangana. Ans. Assessees situated in the State of "Telangana", but incorrectly issued Provisional IDs and passwords for "Andhra Pradesh", have now been issued new Provisional IDs and passwords for "Telangana". The previous Provisional IDs and passwords issued for "Andhra Pradesh" have been cancelled, and can no longer be used for migrating to GST. You are requested to get new Provisional IDs and passwords through the ACES portal at www.aces.gov.in and complete the GST migration process. In case of any difficulties, please contact the CBEC Mitra Helpdesk at cbecm

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Delhi, and branches in Haryana, Karnataka, Maharashtra and Tamil Nadu. In this case, the assessee is issued five Provisional IDs and passwords, one for each State. The CR assessee may also have a factory (under Central Excise or CE registration) or a Service Tax (ST) single premises registration (independent of CR) in the State of Tamil Nadu (registration number ABCDE1234FXM001 or ABCDE1234FSD001). Then a Provisional ID and password for the State of Tamil Nadu will be issued against either the CE or ST registration number mentioned earlier. In this case, the CR assessee will get four Provisional IDs and passwords for the remaining States i.e. Delhi, Haryana, Maharashtra and Karnataka. Q 3. I am an existing taxpayer and wish to enroll in GST. To complete the Provisional Registration process on the GST Common Portal, I need to enter the one-time-password (OTP) in the OTP Verification window. However, I received the OTP on my mobile number, and not on my registered email ID. Ans. For furt

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l ID and password. After clicking the LOGIN button, I received the message: "User name or password is not valid. Please ensure that enrollment for your State has started". Ans. For further assistance, please contact the GST helpdesk at helpdesk@gst.gov.in or call at 0124-4688999. To find the answer to your question, you can also refer to the Frequently Asked Questions or FAQs on the GST Common Portal. Q 6. I am an existing taxpayer and wish to enroll in GST. I received the Provisional ID and password for migrating to GST. On the GST Common Portal, on the Login page, I entered the Provisional ID and password in the respective fields. After clicking the LOGIN button, I got the message: "Not activated". Ans. For further assistance, please contact the GST helpdesk at helpdesk@gst.gov.in or call at 0124-4688999. To find the answer to your question, you can also refer to the Frequently Asked Questions or FAQs on the GST Common Portal. Q 7. I am an existing PAN-based Servi

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Provisional ID and password for migrating to GST. Ans. You may have multiple registrations under the State VAT department. For further investigation, please contact CBEC Mitra Helpdesk at cbecmitra.helpdesk@gst.gov.in or call at the toll-free number 1800-1200-232. When requesting help, please provide your registration details to CBEC Mitra Helpdesk. CBEC Mitra Helpdesk will notify you as soon as the issue is resolved. Q 9. I am an existing PAN-based Service Tax (ST), Central Excise (CE) and State VAT assessee. For migrating to GST, I received the Provisional ID and password from the State VAT department. Do I also need to add my ST and CE registration details in the Enrolment Application also? Ans. Yes, you must add your Service Tax (ST) and Central Excise (CE) registration details in GST FORM-20 on the GST Common Portal. Note: Since GST registration is based on PAN and State, only one Provisional ID and password will be issued to a given PAN for a given State, irrespective of the num

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s ST001 and after cancellation (or surrender), my current registration number is ST002. However, a Provisional ID and password has been issued against my previous registration number ST001. I logged into the ACES portal (using my existing ACES username and password), and received the Provisional ID and password for my previous registration number ST001, but not for the current registration number ST002. Ans. As a policy, if the assessee has multiple registrations within a State on the same PAN, only one Provisional ID and password will be issued, as per the following order: Only one Provisional ID and password will be issued to a given PAN within a State, irrespective of the number of registrations on that PAN within that State. Apparently, you have more than one registration i.e., ST001 and ST002, of which registration number ST001 is either "Inactive" or "Surrendered". However, as per CBEC guidelines, a Provisional ID and password has already been allotted against

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or zero as prefix to the token i.e., if you received an access token of 12345678 , then the corrected token number is 0012345678 . If the issue persists, please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further assistance. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution. Q 13. I am an existing taxpayer and wish to enroll in GST. I received the Provisional ID and password for migrating to GST. On the GST Common Portal, on the Login page, I entered the Provisional ID and password in the respective fields. After clicking the LOGIN button, I got the message: "Not activated". Ans. Multiple causes may have contributed to this problem. For further investigation, please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999. When you send your service request over email or phone, a support

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d. However, I have not received the one-time- password (OTP) on my registered email. The problem continued even after I clicked the "RESEND OTP" button on the GST Common Portal. Ans. The one-time-password (OTP) may have been delivered to the spam folder of your registered email ID. Please check the spam folder of your email account. If you find the OTP in the spam folder, please change the spam-filter policy settings of your email account to allow legitimate emails sent by GSTN. This will ensure that a future OTP sent by GSTN is not marked or filtered as spam. If you do not find the OTP in the spam folder, please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution. Q 16. I am an existing taxpayer and wish to enroll in GST. While submitting

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yer and wish to enroll in GST. On submitting the Enrolment Application i.e., GST FORM-20 on the GST Common Portal, I received the message: Submitted & Pending for verification". Ans. Please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution. Q 19. I am an existing taxpayer and wish to enroll in GST. On the GST Common Portal, while filing GST FORM-20, the desired RANGE CODE is not appearing in the drop-down list. Ans. Please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution. – Manuals – Ready reckoner

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GST – Input tax credit (ITC) – The lease rental paid during the pre-operative period should be treated as part of the cost of goods and services received for the purpose of constructing an immovable p

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GST – PP Non-woven Bags, specifically made from non woven Polypropylene fabric are plastic goods to be classified under Sub Heading 3923 29 and taxed at 18 % rate of GST – TMI Updates – Highlights

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GST – TDS liability – Specified person u/s 51(1) – The Central and the State Governments, therefore, acting through the government companies, are in a position to indirectly control the management or

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GST – General FAQ on GST – Frequently Asked Questions – 170612-01 – Q. 1. Will GST be debited in duty credit scrips such as Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS)? Ans. No, MEIS and SEIS scrip would be used only for payment of Basic Customs Duty under GST regime. Q. 2. What is HSN code (under GST scheme) for my product? What is the applicable GST rate for my product? Ans. Please visit CBEC site for details on HSN classification and GST rates for your products. Q. 3. As an EOU, BCD is exempted under customs notification 52/2003. In GST regime, EOUs should pay IGST on imports? Ans. Only SEZs have been exempted from payment of IGST on import. EOUs will have to pay IGST on imports. Q. 4. If we

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jurisdictional DGFT regional office for updating correct PAN in IEC. From 1st July, in all shipping bills declaration of GSTIN will be mandatory for claiming ITC/refund of GST. Please refer to DGFT Trade Notice No. 9/2018, dated 12-6-2017 for changes in IEC with the introduction of GST. Q. 7. Under GST regime, can we get duty free benefit (all duties exempted) if we import using Advance authorization? Ans. No, only basic customs duty will be exempted on imports made under Advance Authorisation. IGST will have to be paid on imports. IGST paid on import will be refunded on making exports. Q. 8. We are recently started export firm. Now we are in process to take VAT/CST. But now as GST is come in to action. So we have to register for both or on

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2019 (1) TMI 552 – ALLAHABAD HIGH COURT – TMI – GST TRAN-1 – opening the GST portal – petitioner has placed before us a screen-shot of GST TRAN-1 application which the assessee wants to file, which is dated 09.01.2019 and which clearly mentions that the filing of declaration in TRAN-1 is not available now as the due date is over – Held that:- The respondents are directed to file their counter affidavit within one month – List after one month. – Writ Tax No. – 2 of 2019 Dated:- 10-1-2019 – B. Amit Sthalekar And Mrs. Manju Rani Chauhan JJ. For the Petitioner : Pooja Talwar For the Respondent : B.K.Singh Raghuvanshi,Devendra Gupta,Devendra Gupta A.S.G.I. ORDER Heard Mrs. Pooja Talwar, learned counsel for the petitioner, Sri B.K.S. Raghuvansh

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petitioner is that electronic portal was not opening. We, therefore directed both the parties to inform the Court as to whether the portal is closed or it is open and posted the matter for today. Sri B.K.S. Raghuvanshi informs that the last date for submitting the GST TRAN-1 application has been extended by the Circular of the Central Government upto 31st March, 2019 and the portal is open. However, Mrs. Pooja Talwar, learned counsel for the petitioner has placed before us a screen-shot of GST TRAN-1 application which the assessee wants to file, which is dated 09.01.2019 and which clearly mentions that the filing of declaration in TRAN-1 is not available now as the due date is over. In this view of the matter, we direct the respondents to f

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2019 (1) TMI 559 – CESTAT CHENNAI – TMI – CENVAT Credit – input services – canteen services provided to employees – Held that:- Larger Bench of the Tribunal in the case of Wipro Ltd. Vs. Commissioner of Central Excise, Bangalore [2018 (4) TMI 149 – CESTAT BANGALORE] has held that outdoor catering services are excluded from the definition of input services with effect from 1.4.201 – credit cannot be allowed.
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Penalty – Held that:- The issue is interpretational one and that the appellant have disclosed the details of the credit availed in their ST-3 returns – penalty imposed cannot sustain and the same is set aside.
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The impugned order is modified to the extent of setting aside the penalty imposed without disturbing the demand or interest thereon under outdoor catering service – appeal allowed in part. – Appeal No. E/41945/2018 – Final Order No. 40050/2019 – Dated:- 10-1-2019 – Ms. Sulekha Beevi C.S., Member (Judicial) Shri Raghavan Ramabhadran, Advocate for the Appellant Shri

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mitted that the appellant is in appeal only against the disallowance of credit on canteen services / outdoor catering services. The appellant is a factory as defined under the Factories Act, 1948. The outdoor catering services are incurred by the appellant as per the statutory obligation under section 46 of the Factories Act to provide canteen facility to its workmen / employees within the factory premises. Therefore, the service is integrally connected with the activity of manufacture. The credit has been disallowed by the department alleging that outdoor catering services is excluded by the exclusion clause in the definition of input service. The exclusion is applicable only to services relating to personal consumption. In other words, credit is eligible when outdoor catering services are not for personal consumption of the employees. 2.1 The Larger Bench of the Tribunal in the case of Wipro Ltd. Vs. Commissioner of Central Excise, Bangalore – 2018 (4) TMI 149 CESTAT Bangalore has he

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risdictional High Court in the case of Ganesan Builders – 2018 VIL 475 MAD ST to argue that the Hon ble Court had occasion to deal with the exclusion clause provided in the definition with effect from 1.4.2011 relating to insurance service. In the said case, the credit was denied by the authorities below on the ground that insurance service is intended for the employees of the company and therefore should be construed as for personal use or consumption of the employees. However, while interpreting the exclusion clause, the Hon ble Court held that the employee insurance is provided under a statutory requirement stipulated in Workmen s Compensation Act, 1996 which is a beneficial legislation for the welfare of the employees. Since it is a statutory requirement, the Court held that the services cannot be held to be used primarily for personal use or consumption of an employee. Thus, the Hon ble High Court has laid down a test as to whether the services used to provide certain employee ben

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s (supra), the very same ratio should be applicable to the case of outdoor catering services also. 2.4 The decision of the Hon ble jurisdictional High Court in the case of Rane TRW Steering System Ltd. – 2018 (2) TMI 1745 – Madras High Court was also taken assistance by the ld. counsel to support his argument. In the said case, when the gardening services were availed by the assessee as per the pollution control norms/requirement, the credit was held to be eligible for the period after 1.4.2011. 2.5 The ld. counsel put forward an alternate plea with regard to penalty. In any case, the issue involved is interpretational in nature involving legal provisions as seen from the fact that the matter was referred to the Larger Bench. The appellant was regularly filing returns and also disclosed the credit availed on outdoor catering service in their ST-3 returns. Therefore, there is no ingredients for imposing penalty and prayed to set aside the penalty. 3. The ld. AR Shri L. Nandakumar suppor

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ovide facilities like canteen for the employees within the factory premises. The ld. counsel has made detail submissions with regard to the statutory requirement for providing canteen facility to the employees within the factory premises. The definition of input services after 1.4.2011 contains exclusion clause wherein certain services are specifically excluded. For better appreciation, the definition of input service as it stands after 1.4.2011 is reproduced as under:- (l) input service means any service, – (i) used by a provider of taxable service for providing an output service; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research,

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rvice of general insurance business, servicing, repair and maintenance, insofar as they relate to a motor vehicle which is not a capital goods, except when used by- (a) a manufacturer of a motor vehicle in respect of a motor vehicle manufactured by such person; or (b) an insurance company in respect of a motor vehicle insured or reinsured by such person; or (C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee; [Explanation: For the purpose of this clause, sales promotion includes, services by way of sale of dutiable goods on commission basis]. 5.1 Clause (C) of the above definition states that services such as those is provided in relation to outdoor cateri

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it would not qualify as input service . In the instant case, as per Factories Act, 1948, the appellants are compelled to provide food facilities inside the factory. It is more importantly used by the appellant to comply with the mandatory requirement under Factories Act. If they do not comply with such provision of the Factories Act, the appellants will definitely not be able to engage in the production/manufacture of final products. Therefore outdoor catering services are used by appellant in relation to the business of manufacture and not for any personal use or consumption of employee. 5.2 The Tribunal thus noted that the outdoor catering services are availed primarily as per requirement of appellant in order to engage in manufacture of finished product and is not for personal consumption or personal use of employee. However, the said decision was referred to the Larger Bench and vide decision in the case of Wipro Ltd. (supra), the Larger Bench of Tribunal held that since outdoor c

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2019 (1) TMI 568 – CESTAT CHENNAI – TMI – Penalty – Short payment of service tax – entire service tax liability alongwith interest was paid up before issuance of show cause notice – Held that:- The appellant has established that they had paid up the entire service tax along with interest even though belatedly – also, appellants have established reasonable cause for not paying the service tax – this is a fit case to invoke Section 80 of the Finance Act, 1994. – penalty cannot be imposed – appeal allowed. – Appeal No. ST/41095/2017 – Final Order No. 40051/2019 – Dated:- 10-1-2019 – Ms. Sulekha Beevi C.S., Member (Judicial) Ms. Parimala Devi, Advocate for the Appellant Shri L. Nandakumar, AC (AR) for the Respondent ORDER Brief facts are that

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d argued the matter. She submitted that there was a delay in paying service tax and this was due to financial hardships faced by the appellant during the relevant period. The entire service tax liability was paid up before issuance of show cause notice. In fact the tax liability for the period 2009 – 10 was paid up immediately on being pointed out by the audit. Subsequently, before issue of show cause notice, the tax liability for the year 2010 – 11 was also paid. Interest was also paid except for an amount of ₹ 1,02,051/- which was to be quantified. The same has also been paid up before the passing of the adjudication order. She submitted that the delay in payment will not attract the ingredients of section 78 to impose penalty. Sinc

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the tax liability along with interest is paid up before issuance of the show cause notice. That the appellant having defaulted in paying service tax, the penalties imposed are legal and proper. 4. Heard both sides. 5. The ld. counsel for the appellant has submitted that they are confining their contest in the present appeal only on the penalties imposed. The appellants have paid up the entire tax liability along with interest. The amount of ₹ 34,24,678/- has been determined and confirmed by the authorities below. The adjudicating authority has imposed equal penalty under section 78. The appellant has established that they had paid up the entire service tax along with interest even though belatedly. It is submitted that the delay in p

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2019 (1) TMI 1151 – KERALA HIGH COURT – TMI – Validity of assessment order – case of petitioner is that when an identical issue is pending in appeal concerning other assessment years, the authorities should not insist on the petitioner's facing one more proceeding – Held that:- This Court cannot use its power of mandamus to stultify the statutory provision. True, on an identical issue, compelling the tax payer to make pre-deposit and then contest the case may workout some hardship. But that is how the Statute has contemplated the proceedings. So long as those procedural parameters have not been called in question as illegal, this Court will not interfere – petition disposed off holding that the second respondent will dispose of the Exts.P2

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f the Exts.P2 and P3 appeals, the petitioner also seeks an early disposal. 3. The petitioner's counsel contends that if the Exts.P2 and P3 appeals are disposed of, it will obviate any adjudication on the Ext.P5 notice. He nevertheless submits that the petitioner has already replied to the Ext.P5. In this context, he submits that, now, on an identical issue, the petitioner is compelled to fight another round of litigation after paying a huge amount as pre-deposit. 4. The learned Senior Standing Counsel for the Customs Department, on the other hand, fairly concedes that the appellate authority will consider the Exts.P2 and P3 appeals expeditiously. 5. As to the Ext.P5 notice, the learned Senior Standing Counsel assures the Court that as t

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2019 (2) TMI 1416 – CESTAT CHENNAI – TMI – CENVAT credit – distribution of credit by the Head Office – Head Office is registered as an ISD – credit denied on the ground that – Held that:- The rejection of credit is only for the reason of technical defects in the invoices. There is no dispute with regard to the services consumed – The argument of the ld. consultant that as per proviso to Rule 9(2), the AC / DC ought to have verified the accounts of the assessee when there are technical defects in the invoices is correct.
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The impugned order is modified to the extent of setting aside the penalty only without disturbing the disallowance of credit or the interest thereon – appeal allowed in part.
– E/42348/2018 – Final Order No. 40048 /

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is ₹ 31,35,652/- distributed through 7185 entries was ineligible. Show cause notice was issued proposing to disallow the credit in respect on this amount. After due process of law, the original authority allowed credit of ₹ 28,36,402/-. In Appeal, Commissioner (Appeals) upheld the same and rejected the balance credit of ₹ 2,99,250/- distributed by the ISD under 50 ISD invoices. Aggrieved, the appellant is now before the Tribunal. 2. On behalf of the appellant, ld. consultant Shri V. Srinivasan appeared and argued the matter. He submitted that the rejection of credit is only on the ground of technical defects in the invoices. The audit team had scrutinized almost 30,000 entries and out of these only 50 ISD invoices have no

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he adjudicating authority as well as the Commissioner (Appeals) has imposed equal penalty under section 11AC r/w Rule 15(2) of CCR, 2004. He argued that since the disallowance is only due to technical defects of the document, the appellant should not be burdened with penalty. 3. The ld. AR Shri L. Nandakumar supported the findings in the impugned order. He submitted that the credit has been rightly disallowed for the reason that the documents are not proper. 4. Heard both sides. 5. On going through the records and after hearing the submissions, it is brought out that the rejection of credit is only for the reason of technical defects in the invoices. There is no dispute with regard to the services consumed. The argument of the ld. consultan

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GST – Started By: – Manish Gadia – Dated:- 9-1-2019 Last Replied Date:- 11-1-2019 – ABC Enterprises has not obtained LUT and are exporting goods with payment of IGST. During the month of October 2018 they have exported goods on which IGST was duly discharged and returns (GSTR-1 & GSTR-3B) where filed accordingly. Data from GST Portal is transmitted to ICEGATE portal for processing of IGST Refund. Thereafter in the month of December 2018 they came to know that they have forgotten to charge some amount in the invoice raised. Accordingly they have to raise a Debit Note for such amount. Now what is the recourse available to them? 1. Should they pay IGST on the amount of Debit Note? 2. If no, why? 3. If yes, how will they get refund of IGST

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By KASTURI SETHI – The Reply = Dear Querist, In my view, valuation figures mentioned in shipping bill must match with other related docs including books of amount otherwise it will amount to misdeclaration. Earlier there was a time when receipt of foreign exchange (BRC) was sufficient to be accepted as proof of export but now a days there are so many factors to constitute proof of export. BRC is no more accepted as proof of export. It has become optional. Moreover, receipt of additional amount on account of export proceeds is also a sort of transaction.Pl note that Govt. is very strict regarding undervaluation or overvaluation whether it is home consumption or export purpose. How to go ahead it is up to you. – Discussion-Forum – Knowledge S

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GST – Started By: – Kaustubh Karandikar – Dated:- 9-1-2019 Last Replied Date:- 12-1-2019 – XYZ (Manufacturer) receiving Coal where the supplier is charging CESS in the Tax Invoice. Can XYZ take input tax credit of the CESS charged in the invoice? If no, is there any specific provision under the law to deny the credit? – Reply By KASTURI SETHI – The Reply = It is a compensation cess and ITC can be taken with the restriction that it can be used for payment of compensation cess only – Reply By SHARAD ANADA – The Reply = If you are exporting goods without payment of dutry you can claim refund of coal cessc pl. refer circular 45 CGST dated 30.05.2018 . para 5.refund of unutilized input tax credit of compensation cess availed on inputs in cases

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s) Act, 2017, (hereafter referred to as the Cess Act), all goods and services specified in the Schedule to the Cess Act are leviable to cess under the Cess Act; and vide section 11 (2) of the Cess Act, section 16 of the IGST Act is mutatis mutandis made applicable to inter-State supplies of all such goods and services. Thus, it implies that all supplies of such goods and services are zero rated under the Cess Act. Moreover, as section 17(5) of the CGST Act does not restrict the availment of input tax credit of compensation cess on coal, it is clarified that a registered person making zero rated supply of aluminum products under bond or LUT may claim refund of unutilized credit including that of compensation cess paid on coal. 5.3 Such regis

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GST – General FAQ on GST – Frequently Asked Questions – 170705-01 – Q1. What is composition levy under GST? Ans. The composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to 75 lakhs ( 50 lakhs in case of few States). The objective of composition scheme is to bring simplicity and to reduce the compliance cost for the small taxpayers. Moreover, it is optional and the eligible person opting to pay tax under this scheme can pay tax at a prescribed percentage of his turnover every quarter, instead of paying tax at normal rate. Q2. What is the specified rate of composition levy? S. No. Category of Registered Person Rate of Tax 1. Manufacturers, other than manufacturers of such goods as may be notified by the Government (Ice cream, Pan Masala, Tobacco products etc.) 2% (1% Central tax plus 1% State tax) of the turnover 2. Restaurant Services 5% (2.5% Central tax plus 2.5% State Tax) of the turnover 3. Traders or any other s

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crossed 75 lakhs; (c) supplier who has purchased any goods or services from unregistered supplier unless he has paid GST on such goods or services on reverse charge basis; (d) supplier of services, other than restaurant service; (e) persons supplying goods which are not taxable under GST law; (f) persons making any inter-State outward supplies of goods; (g) suppliers making any supply of goods through an electronic commerce operator who is required to collect tax at source under Section 52; and (h) a manufacturer of following goods : S. No. Classification (Tariff item/Chapter) Description of Goods 1. 2105 00 00 Ice cream and other edible ice, whether or not containing cocoa 2. 2106 90 20 Pan masala 3. 24 Tobacco and manufactured tobacco substitutes Note : There is no restriction on procuring goods from inter-State suppliers by persons opting for composition scheme. Q5. When will a person opting for composition levy pay tax? Ans. A person opting for composition levy will have

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n the date of withdrawal and furnish a statement within 30 days of withdrawal containing the details of such stock held in FORM GST ITC-01 on the common portal. Q7. How will the aggregate turnover be computed for the purpose of composition? Ans. Aggregate turnover will be computed on the basis of turnover on an all India basis and will include value of all taxable supplies, exempt supplies and exports made by all persons with same PAN, but would exclude inward supplies under reverse charge as well as Central, State/Union Territory and Integrated taxes and cess. Q8. Can a person who has opted to pay tax under the composition scheme avail Input Tax Credit on his inward supplies? Ans. No. A taxable person opting to pay tax under the composition scheme is out of the credit chain. He cannot take credit on his input supplies. When he switches over from composition scheme to normal scheme, eligible credit on the date of transition would be allowed (refer Q 6 above). Q9. Ca

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the basic information that need to be furnished in GSTR-4? Ans. It would contain details of the turnover in the State or Union Territory, inward supplies of goods or services or both and tax payable. Q13. A person opting to pay tax under the composition scheme receives inputs/input services from an unregistered person. Will the composition taxpayer have to pay GST under reverse charge? If yes, in what manner? Ans. Yes. Tax will have to be paid on such supplies by the composition taxpayer under reverse charge mechanism. The tax can be paid by the 18th day of the month succeeding the quarter in which such supplies were received. The information relating to such supplies should be shown by the composition taxpayer in Table 4 of return in FORM GSTR-4. Q14. What is the form in which an intimation for payment of tax under composition scheme needs to be made by the taxable person? Ans. The intimation is to be filed electronically in FORM GST CMP-01 or FORM GST CMP-02.

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option for composition levy is exercised or within such further period as may be extended by the Commissioner in this behalf. Q17. Can a person making application for fresh registration under GST opt for composition levy at the time of making application for registration? Ans. Yes. Such persons can give the option to pay tax under the composition scheme in Part B of FORM GST REG-01. This will be considered as an intimation to pay tax under the composition scheme. Q18. Can the option to pay tax under composition levy be exercised at any time of the year? Ans. No. The option is required to be given electronically in FORM GST CMP-02, prior to the commencement of the relevant financial year. Q19. Can a person who has already obtained registration, opt for payment under composition levy? If so, how? Ans. Yes. Such persons need to give intimation electronically in FORM GST CMP-02 but from beginning of the financial year only. Q20. What are the compliances f

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goods is taken as C, ITC attributable to the remaining useful life will be C multiplied by 5/60. This would be the amount payable on capital goods. The ITC amount shall be determined separately for Integrated Tax, Central Tax and State Tax/Union Territory tax. The payment can be made by debiting electronic credit ledger, if there is sufficient balance in the said ledger, or by debiting electronic cash ledger. The balance, if any, in the electronic credit ledger would lapse. Such persons also have to furnish the statement in FORM GST ITC-03 which is a declaration for intimation of ITC reversal/payment of tax on inputs held in stock, inputs contained in semi-finished and finished goods held in stock and capital goods under Section 18(4) of the CGST Act, 2017 within a period of sixty days from the commencement of the relevant financial year. Q21. In case a person has registration in multiple States, can he opt for payment of tax under composition levy only in one State and not in ot

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to avail of composition scheme? Ans. The person exercising the option to pay tax under Section 10 shall comply with the following other conditions (in addition to what is stated in answer to Q4 above), namely : – (a) he shall mention the words composition taxable person, not eligible to collect tax on supplies at the top of the bill of supply issued by him: and (b) he shall mention the words composition taxable person on every notice or signboard displayed at a prominent place at his principal place of business and at every additional place or places of business. Q24. What is the validity of composition levy? Ans. The option to pay tax under composition levy would remain valid so long as conditions mentioned in Section 10 of the CGST Act, 2017 and Rules 3 to 5 of the CGST Rules, 2017 remain satisfied. Q25. Can a person paying tax under composition levy, withdraw voluntarily from the scheme? If so, how? Ans. Yes. The registered person who intends to withdraw fr

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ll not be denied. Upon receipt of the reply to the said show cause notice in FORM GST CMP-06, the proper officer shall issue an order in FORM GST CMP-07 within a period of thirty days of the receipt of such reply, either accepting the reply, or denying the option to pay tax under the composition scheme from the date of the option or from the date of the event concerning such contravention, as the case may be. Q27. In case the option to pay tax under composition levy is denied by the proper officer, can the person avail ITC on stock after denial? Ans. Yes. ITC can be availed by filing, a statement in FORM GST ITC-01 (containing details of the stock of inputs and inputs contained in semi-finished or finished goods held in stock) by him on the date on which the option is denied as per order in FORM GST CMP-07, within a period of thirty days from the order. Q28. Will withdrawal intimation in any one place be applicable to all places of business? Ans. Yes. Any intimation

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GST – Started By: – Meena Shete – Dated:- 9-1-2019 Last Replied Date:- 11-1-2019 – Hello while filing GSTR-1 for the month of Nov-2017,Jan-18,Feb-18 & Mar-18, we have shown the amount of debit notes & credit notes in advance recd column without mention of GSTIN of party. can we amend this in Dec-2018 GSTR-1? please advise – Reply By KASTURI SETHI – The Reply = At present you cannot do so. However, there is hope that Govt. may allow rectification at the time of filing Annual Return. – Re

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Income Tax – Started By: – CABIJENDERKUMAR BANSAL – Dated:- 9-1-2019 Last Replied Date:- 14-1-2019 – Dear AllMy query is that a company wants to export its goods on retail orders received on its website through private courier like fedex etc. without LUT or Bond.Will it be counted as actual export in GST for refund of GST ? if yes, then which GST to be paid IGST or CGST/SGST?If no, then company have to pay GST from its own pocket ?Any other procedure to properly send goods as export but on reta

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