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Clause 18 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 18 – Arrangement for assignment of additional tax on supply of goods to States for two years or such other period recommended by the Council. 18. (1) An additional tax on supply of goods, not exceeding one per cent. in the course of inter-State trade or commerce shall, notwithstanding anything contained in clause (1) of article 269A, be levied and collected by the Government of India for a period of two years or such other period as the Goods and Services Tax Council may recommend, and such tax shall be assigned to the States in the manner provided in sub-section (2).

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Clause 14 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 14 – Amendment of article 366. 14. In article 366 of the Constitution,- (i) after clause (12), the following clause shall be inserted, namely:- (12A) goods and services tax means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption; ; (ii) after clause (26

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Clause 15 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 15 – Amendment of articl

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Clause 13 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 13 – Amendment of article 286 13. In article 286 of the Constitution,- (i) in clause (1),- (A) for the words "the sale or purchase of goods where such sale or purchase takes place", the words "the supply of goods or of services or both, where such supply takes place" shall be substituted; (B) in sub-cla

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Insertion of new article 279A- Goods and Services Tax Council. – Clause 12 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 12 – Insertion of new article 279A. 12. After article 279 of the Constitution, the following article shall be inserted, namely:- Goods and Services Tax Council. 279A. (1)The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and Twenty-second Amendment) Act, 2014, by order, constitute a Council to be called the Goods and Services Tax Council. (2) The Goods and Services Tax Council shall consist of the following members, namely:- (a) the Union Finance Minister

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and services that may be subjected to, or exempted from the goods and services tax; (c) model Goods and Services Tax Laws, principles of levy, apportionment of Integrated Goods and Services Tax and the principles that govern the place of supply; (d) the threshold limit of turnover below which goods and services may be exempted from goods and services tax; (e) the rates including floor rates with bands of goods and services tax; (f) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster; (g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and (h

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rmine the procedure in the performance of its functions. (9) 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. (10) No act or proceedings of the Goods and Services Tax Council shall be invalid merely by reason of- (a) any vacancy in, or any defect in, the constitution of the Council; or (b)any defect in the appointment

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Amendment of article 271. – Clause 11 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clau

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Amendment of article 269. – Clause 8 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Claus

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Insertion of new article 269A- Levy and collection of goods and services tax in course of inter-State trade or commerce. – Clause 9 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 9 – Insertion of new article 269A. 9. After article 269 of the Constitution, the following article shall be inserted, namely:- Levy and collection of goods and services tax in course of inter-State trade

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Clause 10 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 10 – Amendment of article 270. 10. In article 270 of the Contitution,- (i) in clause (1), for the words, figures and letter "articles 268, 268A and 269", the words, figures and letter "articles 268, 269 and 269A" shall be substituted; (ii) after clause (1), the following clause shall be inserted, namely

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Clause 5 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 5 – Amendment of article

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Amendment of article 268. – Clause 6 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Claus

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Omission of article 268A. – Clause 7 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Claus

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Amendment of article 248. – Clause 3 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Claus

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Clause 4 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 4 – Amendment of article

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Clause 2 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 2 – Insertion of new article 246A. 2. After article 246 of the Constitution, the following article shall be inserted, namely:- Special provision with respect to goods and services tax. "246A. (1) Notwithstanding anything contained in articles 246 and 254, Parliament, and, subject to clause (2), the Legislature of every

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Clause 1 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 1 – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 A BILL further to amend the Constitution of India. BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:- Short title and commencement. 1. (1) This Act may be called the Constitution (One Hundredth Amendment) Act, 20

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Dated:- 4-12-2015 – The Government proposes to impose Goods and Service Tax (GST) on alcohol products except alcoholic liquor for human consumption. It is proposed in Constitution (122nd Amendment) Bill, 2014 that tobacco will be subjected to GST along with the Central Excise Duty. However, the rate of duty to be charged on this product will be decided by the GST Council as proposed in the Article 279A of the Constitution (122nd Amendment) Bill, 2014. After introduction of GST, the VAT imposed

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Dated:- 3-12-2015 – Shri Jayant Sinha, Minister of State for Finance inaugurated the 6th Meeting of the AEOI Group of the Global Forum on Transparency and Exchange of Information for Tax Purposes here today. In his Keynote Address, Shri Sinha emphasised that cooperation amongst countries and sharing of information is the key to unearth illicit money stashed in safe havens. He lauded the work done by the Global Forum and the AEOI Group in fostering a climate of increased cooperation amongst tax jurisdictions, which he said has resulted in dramatic improvements in transparency. Earlier, Shri A.K. Jain, Chairman, Central Board of Direct Taxes (CBDT), delivered the Welcome Address and termed the process of exchange of information as a game cha

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Goods and Services Tax – GST – By: – Subhash Modi – Dated:- 25-11-2015 Last Replied Date:- 30-12-1899 – Mr. Pradeep Jain has written a very informative article titled: PROPOSED REFUND PROCESS UNDER GST – HAPPINESS ON THE WAY TO EXPORTERS. In continuation I wish to add my comments on the issue of refund under GST as follows: However in the proposed GST legislation there is post refund condition that the value of the exported goods ought to be realised in free foreign exchange within the initial or extended time limit prescribed under FEMA,1999 which at present is condition only under the proviso to Section 75 of the Customs Act, 1962 read with the Rule 16A of the Customs, Excise Duties and Service Tax Drawback Rules, 1995 (effective 06-12-1995) qua the customs portion of the drawback and the Foreign Trade Policy qua the relief of input customs duties exemption for manufacture and export of the resultant product. Failure to realise the export value in foreign exchange entails (under the

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s vide Rule 19(2)/CEX Rules, 2002 read with Notification 43/2001-CE(NT) or 44/2001-CE(NT). d) State VAT or CST saved for purchase of goods ultimately exported under CST form H e) Input and final goods duties reliefs or exemptions availed by 100% EOUs, STPI and similar export oriented dispensations. f) Refund of accumulated credit under Rule 5 of the CCR, 2004. In other words such export related reliefs were never and are not still subject to recovery if the value of the relevant export goods is not realised in foreign exchange. Even in case of FEMA, Drawback Rules and the FTP it is provided that though failure to realise payment for export goods in foreign exchange will invite penalisation (under FEMA) or recoveries of drawback granted or duty exemption availed under the FTP such penalisation or recoveries will be waived if evidence is submitted that the credit insurance company (e.g. ECGC) have settled in India a claim against the non-realisation to the Indian exporter in Indian Rupee

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und or allowed to be retained for payment of SGST and CGST or IGST on any further domestic sale. The exported goods will be taxed in the country to which the export has taken place and goods are retained or consumed in that country. Can such goods be taxed again in India extra-territorially by way of recovery of the last point GST refund that was allowed on the occasion of export? Recovery will amount to taxing the goods again as if the goods are still in India and not exported. Goods can be taxed only if the goods are existing and available in India and not when existing and available or already consumed outside India. In the domestic front there is no condition that if the seller in India fails to realise his GST paid goods value from the buyer of his goods in India then he should refund the amount of GST that was paid or the purchaser should refund the amount of credit of GST that he had taken. If the GST is say around 22% then the exporter not only looses the value of goods because

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PROPOSED REFUND PROCESS UNDER GST – HAPPINESS ON THE WAY TO EXPORTERS – Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 17-11-2015 Last Replied Date:- 23-11-2015 – Introduction Goods and Services Tax (GST) is said to be the most awaited indirect tax reform of India since independence. Due to much hyped advantages, the industry is eager to welcome GST and so is the Government. On the way forward to GST, government has issued the Report of The Joint Committee on Business Processes for GST for the persual of industry at large. Suggestions have also been invited for the improvement of business processes discussed in this report. The report is divided into three parts namely GST Registration, GST payment process and GST refund process. In this piece of diction, we have tried to give an insight of the third part of this report namely GST Refund process . Refund mechanism under GST: simplified and tech-based:- The report says that GST law shall provide for the cases in which refun

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unt of a return not on account of any other liability. Further, the excess payment should not be due to difference in opinion, i.e. difference should not be on account of interpretation of a notification. In this situation, it has been proposed that the return may also be treated as refund application if the GST law so provides. At present, under service tax law, excess payment of service tax, if any, has to be intimated to superintendent as well as reflected in the ST-3 return; if the same is intended to be carried forward. There have been cases where show cause notices have been issued for disallowing the carry forward of excess paid service tax as no intimation was filed within prescribed time and/or it was not reflected in the ST-3 return. The proposed provision under GST law will eliminate the unnecessary litigation on account of technical lapses like this. Refund claim related to export goods: simple & integrated:- The most commonly known refund claim is that filed by the exp

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GSTN can be verified with those available at ICEGATE. Thus, there would be no need of submitting the same manually. The refund application will be submitted online within the time prescribed under GST law which is proposed as one year from relevant date. Definition of relevant date is to be prescribed by GST law. Mate s receipt and bill of lading are the crucial documents evidencing the factum of export. Thus, the scanned copies of mate s receipt and bill of lading will be submitted alongwith the refund application. Bank realization certificate (BRC) may not be available at the time of filing the refund application; thus, the same shall be submitted subsequently to GSTN. There will be inbuilt feature in the GSTN to track those export invoices in respect of which BRC has not been submitted within due time. This feature will send alert to respective officer for taking the appropriate action. The time limit for granting refund has been fixed as three months from the date of filing of app

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nd as three months from the date of filing the application. This time limit exists now also. However, it is also the fact on record that departmental officers are habitual of granting the refund after expiry of this time period. No doubt refund is allowed alongwith interest, but it is a cost to government. It is also a point to be noted that the report states that it was advised that 90% of the refund should be granted as soon as the export was done and remaining 10% should be granted after scrutinizing all the documents related to it. However, this suggestion has not been accepted and the time limit of three months has been fixed. Under GST era, the refund mechanism could have been drafted like it is allowed in case of drawback. Once the export is done, the drawback is allowed in the bank account of the exporter, there is no need of filing the application separately. This procedure should have been imported by GST also as it is easy and hassle free. Also, since everything is going to

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the above three, option to procure duty free inputs has been proposed to be done away with in GST regime. It is worth mentioning here that under this option, a no. of procedural formalities are to be followed like filing of requisite bond with excise officer, issue of procurement certificate, maintaining records of debit and credit in the bond, giving proof that the material so procured at NIL rate of duty has been utilized for the intended purpose, etc. Thus, this is the option which involves a no. of procedural formalities both at exporter s end as well as at the end of department. The report states that this option will not be available under GST regime. Thus, the supplier of goods will be required to pay the GST on the inputs so procured and in no case duty free inputs shall be allowed. Thus, the no. of formalities which are required to be fulfilled under present situation will not be there in the GST era and the exporters will be left with only two options as discussed above. Refu

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ms so filed in respect of deemed exports on the grounds that deemed exports are to be treated at par with the real exports for the purpose of rule 5 of the Cenvat Credit Rules, 2004. Some of such decisions allowing the refund claim in respect of deemed exports are cited as follows:- COMMISSIONER OF C. EX., SURAT VERSUS SHILPA COPPER WIRE INDUSTRIES [2008 (2) TMI 93 – CESTAT AHMEDABAD]; as affirmed by Gujarat High Court in the citation as COMMR. OF CENTRAL EXCISE Versus SHILPA COPPER WIRE INDUSTRIES [2010 (2) TMI 711 – GUJARAT HIGH COURT] NBM INDUSTRIES VERSUS COMMISSIONER OF CENTRAL EXCISE, RAJKOT [2009 (3) TMI 535 – CESTAT, AHMEDABAD] as affirmed by Gujarat High Court having citation as COMMISSIONER – CENTRAL EXCISE AND CUSTOMS Versus NBM INDUSTRIES [2011 (9) TMI 360 – GUJARAT HIGH COURT] COMMISSIONER OF C. EX., AHMEDABAD VERSUS RANGDHARA POLYMERS [2010 (1) TMI 637 – CESTAT, AHMEDABAD] as affirmed by High court under citation Commissioner of Central Excise & Customs, Ahmedabad-II

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o file alongwith certificate from chartered accountant certifying that the burden of GST has not been passed. GST law may also provide a threshold below which no such certificate shall be required and self certification would be sufficient for claiming the refund. Thus, providing the specific provision in case of deemed exports will put a full stop on the litigation ongoing in current scenario. Tax refund for international tourists: new scheme proposed in GST regime:- Tax refund for international tourists scheme provide an opportunity to foreign tourists to buy goods manufactured during their stay in any country and claim the refund of tax suffered by such goods at the time of their exit from that country. About 52 countries are following this practice to encourage the sale of their goods to foreign tourists who visit their country and buy goods manufactured there. In India, this scheme will be implemented through retailers who shall be specifically registered for the purpose of this s

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orters and other tax payers too. – Reply By Subhash Modi – The Reply = However in the proposed GST legislation there is post refund condition that the value of the exported goods ought to be realised in free foreign exchange within the initial or extended time limit prescribed under FEMA, 1999 which at present is condition only under the proviso to Section 75 of the Customs Act, 1962 read with the Rule 16A of the Customs, Excise Duties and Service Tax Drawback Rules, 1995 qua the customs portion of the drawback and the Foreign Trade Policy qua the the relief of input customs duties exemption for manufacture and export of the resultant product. Failure to realise the export value in foreign exchange entails (under the Drawback Rules or the FTP) recovery of the customs portion of the Drawback availed and paid or the import inputs custom duties that were saved even if the export has been consummated. There is no such condition in respect of: Cenvat credit of input duties or service tax av

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Goods and Service Tax – GST – By: – CA Madhav Kalani – Dated:- 10-11-2015 – Proposed GST Returns – Salient Features The Joint Committee constituted in consultation with Government of India, for looking into Business Processes for Goods and Service Tax (GST) has submitted its Report on GST Return. The salient features proposed in relation to GST Return are as follows: 1. There will be common E-Return for CGST, SGST, IGST and Additional Tax. 2. Every registered person is required to file a return for the prescribed tax period. Return needs to be filed even if there is no business activity (i.e. Nil Return) during the said tax period of return. The exception to this will be UN agencies etc. which shall be required to file return only for the month during which they make purchases rather than regular returns. Also government entities/PSU s etc. not dealing in GST supplies or persons exclusively dealing in exempted / Nil rated / non -GST goods or services would neither be required to obtai

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ter the date of expiry of registration GSTR 6 Return for Input Service Distributor (ISD) 15th of the next month GSTR 7 Return for Tax Deducted at Source 10th of the next month GSTR 8 Annual Return By 31st December of next FY ITC Ledger / Cash Ledger / Tax Ledger (These are running electronic ledgers maintained on the dashboard of taxpayer by GSTN) Continuous Normal / Regular taxpayers with multiple registrations (for business verticals) within a State would have to file GSTR-1, GSTR-2 and GSTR-3 for each of the registrations separately. 4. Monthly Returns – 4.1 Major Components of GSTR 1 – Final invoice-level supply information pertaining to the tax period separately for goods and services: For all B2B supplies (whether inter-state or intra-state), invoice level specified details will be uploaded. For all inter-state B2C supplies (including to non-registered Government entities, Consumer / person dealing in exempted / NIL rated / non GST goods or services), the suppliers will upload in

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l invoice-level inward supply information pertaining to the tax period for goods and services separately The information submitted in GSTR-1 by the Counterparty Supplier of the taxpayer will be auto populated in the concerned tables of GSTR-2. It may be modified i.e. added or deleted by the Taxpayer while filing the GSTR-2. The recipient would be permitted to add invoices (not uploaded by the counterparty supplier) if he is in possession of invoices and have received the goods or services. Auto Population in GSTR-2 from GSTR-1 will be done on or after 11th of the succeeding month. Addition or Deletion of the invoice by the taxpayer will be permitted between 12th and 15th of the succeeding month. 4.3 Major Components of GSTR 3 – Turnover Details including Gross Turnover, Export Turnover, Exempted Domestic Turnover, Nil Rated Domestic Turnover, Non GST Turnover and Net Taxable Turnover. Final aggregate level outward and inward supply information. These details will be auto populated from

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the audited copies of the Annual Accounts of the dealer and would be filed by 31st December following the end of the financial year for which it is filed. A separate reconciliation statement, duly certified by a Chartered Accountant, will have to be filed by those taxpayers who are required to get their accounts audited under section 44AB of Income Tax Act 1961. Currently this limit is ₹ 1 Crore. 6. Invoice Level information to be captured in the return has been specified. For example in case of invoices pertaining to B2B transactions (for both supply and purchase) GSTIN, Invoice number, date, value, HSN Code, Taxable value, tax rate, tax amounts, place of supply (state), etc. needs to be filled. 7. Revision of Returns – There would be no revision of returns. All unreported invoices of previous tax period would be reflected in the return for the month in which they are proposed to be included. The interest, if applicable will be auto populated. 8. Non-Filers and Late Filers – In

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PROPOSED PAYMENT PROCESS UNDER GST – NEW & IMPROVED – Goods and Service Tax – GST – By: – Pradeep Jain – Dated:- 7-11-2015 Last Replied Date:- 8-11-2015 – Introduction- Report of The Joint Committee on Business Processes for GST has already been circulated and views have been sought from people at large for suggesting improvements thereupon. This report is divided into three parts namely GST Registration, GST payment process and GST refund process. In this article, some benefits of the proposed payment process under GST regime have been discussed alongwith some minor drawbacks of the proposal. Proposed payment process: Merits over existing system:- The report of the Joint Committee on the payment process has discussed in detail about the mechanism to be followed in respect of affecting the flow of funds in GST era. Some of the merits of proposed system of payment are discussed as below:- Under present system, manual filing of challan is also accepted, thus, the chances of errors are mo

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on and very few parties involved in the transaction, there would be nominal errors, therefore, reconciliation process will be easy. E-scroll facility will be provided by RBI which will make the accounting, reconciliation and other ancillary activities easy and effective. The two coloured challan is the special feature of GST payment process. Since only one challan shall be required to pay the taxes namely CGST, IGST, SGST, etc.; two colours have been assigned to the challan for easy demarcation. Proposed payment process: Discussions and Downsides thereof:- The proposed payment system in the report indicates some minor demerits which are discussed as follows:- The Report indicates that that the GST regime will accept only payment of tax only via electronically generated challan whatever be the mode of payment. There will be no use of manually prepared challan. The report prescribes the following three modes of payment:- Payment by tax payers through internet banking through authorized b

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ax payers in its net; this mode which is considered as the safest by the small town people; should be accompanied by facilities instead of restrictions at the beginning of GST era. However, gradually, this mode can be made stringent so as to shift towards automation. The payment through NEFT/RTGS from any bank (including other than authorized banks) is the new mode of remittance to be implemented as from start of GST era. At present no payment can be accepted from any bank other than nationalized bank which has been duly authorized to collect the taxes. However, with implementation of GST, payment through NEFT/RTGS will be accepted from any bank, even other than authorized bank. In this system, the RBI will accept the money on behalf of Government and will generate a challan. The Common Portal Identification Number (CPIN) will be generated alongwith the challan which shall be valid for a period of seven days. If any tax payer uses this challan beyond the validity period of 7 days more

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ng and reconciliation tasks. In case any discrepancy is found, tax authorities will directly interact with RBI. Further, in case of RTGS/ NEFT payments through non-authorized bank also, RBI s role will be crucial as it will be the only mediator between the tax payers and Government. Therefore, the role of RBI will increase drastically in the GST era and responsibilities of RBI people will enhance tremendously. In fact, the entire tax collection and remittance procedure will solely depend on the efficiency of RBI personnel. At present, the Central excise as well as the service tax challans namely GAR-7 has the details of jurisdictional locations. However, the report states that under GST era, the Jurisdictional location (eg. Commissionerate, division and range) shall not be mentioned on the challan. However, the tax authorities will send the taxpayers updated master data to GST Network and accounting authorities. The accounting authorities shall be using the taxpayer mater data for mapp

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payment of tax will be scrapped in the GST regime. So, how the export promotion schemes will work in the time to come; has not been discussed in the report. Also, the payment of tax by way of book adjustment is also allowed in specified cases under Central Excise law which is also proposed to be done away with the GST era. The reasons in particular have not been given for scrapping these modes of payment, yet it is a fact on record, that it is going to decrease the liquidity of the tax payers. While winding:- The report of Joint Committee on the payment process is very detailed and responsive. The authors of this article appreciate the steps taken by the Committee to create awareness on the drafts of payment process under GST. However, the report is silent on some issues which constitute the demerits of the proposed payment process. After some improvements, the payment process will become flawless and more reliable, thereby making the path of GST as more smooth. – Reply By KASTURI SET

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Goods and Service Tax – GST – By: – Pradeep Jain – Dated:- 4-11-2015 – Introduction- Sincere is the word when combined with the word Effort makes the road to success as smooth and reliable. Such sincere efforts are being made by the Central Government for paving the path to Good and Services Tax (GST). The government with the aim to implement the GST w.e.f. 1.4.2016 has issued a draft for persual of experts, trade associations, etc. to suggest the flaws and improvements thereupon. This draft is in form of Report of The Joint Committee on Business Processes for GST . This report is divided into three parts namely GST Registration, GST payment process and GST refund process. This article is an attempt to analyze the first part of this report namely GST Registration . Compounding scheme – proposal needs improvement:- The report states that the GST Act will provide the option to dealers to opt for a compounding scheme, the threshold of which shall be higher than the normal threshold for r

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er of goods, the cascading effect will reduce drastically. Thus, the benefit of compounding scheme will continue to be allowed to medium level businesses alongwith the reduction in cascading effect. Input service distributor – scheme can be continued:- The Report states that the concept of input service distributor may continue if the GST law so provides. Under the present concept of input service distributor, if the input services are consumed at different units of the same assessees, it can be distributed by the head office if the same is registered as input service distributor. It has also been stated that this benefit would be an exception in the GST law which will be applicable only to the services which are consumed at different locations which are separately registered. There is no doubt of the fact that Input service distributor is a good scheme. However, in our view, due care should be exercised while framing the provisions related to this scheme under GST law. Since in this l

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m of registration, return and assessment of such casual dealers would be separately prescribed. It has also been mentioned that the casual dealers shall be required to self assess their likely tax liability and deposit the same as an advance tax. Such amount would be deposited by way of two demand drafts (one for centre and one for state) which would be returned to the tax payer after he has discharged his final liability. The analysis of this scheme indicates that it has been introduced for the traders dealing in the seasonal items. In our view, the provision related to advance payment of tax to both State and Central Government seems to be harsh and would not let it make a successful scheme. It implies that the trader would be required to arrange money before he has made any supply and deposit the same to the government. Eventhough the excess payment shall be refunded at the time of end of tenure of registration; still, arranging money at the time of beginning of venture will adverse

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ness won t suffer during transition period of GST. It has been stated there that the details given in the existing database of Centre and State laws will be imported by GST portal and only additional details will be required to be called from them. In this regard, it has been mentioned that VAT & Central excise details consists of fields ranging from 50 to 107; while GST registration form consists of 120 fields; thus, there is gap of 13 to 70 fields. As such, the details will be required to be called from the dealers. However, the report does not talk much about the authenticity of details already available with the State and Centre. There are chances that there has been significant change in the details of assessee, however, the same has not been informed by him or sought for amendment. Thus, there are chances that the details may be incorrect partly. Also, there is possibility that there is difference between the details available with Centre and states. The reports talk about ca

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have also been prescribed in the report for the purpose of migration. However, this report does not speak about the existing Cenvat balance at the time of implementation of GST. The Cenvat/VAT balance in hand plays a significant role while paying the tax liability. This is the factor directly related to the liquidity of an assessee. In our view, adequate provisions should be made in this regard and the assessees should be informed about the same well before through various means. This becomes more important as the rate of GST will be higher and will particularly affect those assessees which are registered under only one Act, say service tax law. At present they are paying the tax @ 14%, while under GST, this rate will be on much higher side. Thus, they will need more cash balance to pay off their taxes. If proper provisions related to Cenvat transfer are not made, the situation will become harsher and will face opposition by the assessee who are presently registered under only one Act

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where. It is worthwhile to mention here that the reverse charge is the most critical aspect of present service tax law. Also, the partial reverse charge was introduced only three years back, thus, it has not yet settled. Thus, even the giant service providers are facing difficulty in tackling with the partial reverse charge; so forget about the small and medium level service providers. When GST will be implemented, the situation will become worse as the new law will be accompanied by this complicated concept and that too unexplained in the reports like the current one. The report should have thrown the light on the various aspects like registration process, exemptions under reverse charge. The above referred discussion indicates that only the individuals importing services will not be required to take registration under reverse charge. However, it has not taken care of small and medium service providers which are presently excluded from reverse charge. It is therefore suggestible that

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report. Thus, the threshold should not apply on the supplies made in the brand name of some other person. Also, it would be feasible to import the related provisions from Central Excise Law since the same are old and more or less settled. While parting:- The Report of The Joint Committee on Business Processes for GST is very detailed and informative. It has been made after in depth research and analysis. However, still there is much to be included and improved. Also, such reports which are to be circulated on national level takes time, thus, significant amount of time should be given for suggestions as the process of circulation, access, reading, analysis and making suggestions is a long process and requires time. The time given for suggestions here is upto 31st October, 2015 which is very less looking to the quantum of information provided in the report. The haste and hurry sometimes leaves something important behind. GST is the biggest tax reform since independence and haste and hur

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Goods and Service Tax – GST – By: – Manoj Agarwal – Dated:- 27-10-2015 – Dear Tax Payers, Greetings of the Day!! The Joint Committee on Business Process for #GST has submitted it's Report on GST Return. The salient features for proposed #GSTReturn are as below: 1. There will be common E-Return for CGST, SGST, IGST and Additional Tax. 2. Every registered person is required to file a return for the prescribed tax period. A return needs to be filed even if there is no business activity (i.e. Nil Return) during the said tax period of return. 3. Final invoice-level supply information pertaining to the tax period to be reported separately for goods and services. I have suggested at mygov.in that alternatively, it should also be allowed for c

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of the returns with the audited financial statements of the taxpayer. Since this return captures the minutest details of income and expenditure of the taxpayer, the gross profit/loss arrived on the basis of the details submitted in this statement should tally with the gross profit/loss indicated in the Profit and Loss Account of the dealer!!! 7. A separate reconciliation statement, duly certified by a Chartered Accountant, will have to be filed by those taxpayers who are required to get their accounts audited under section 44AB of Income Tax Act 1961. Currently this limit is ₹ 1 Crore under IT Act. 8. Cut-off date for filing of details of outward supplies (GSTR-1), inward supplies (GSTR-2) and Monthly return (GSTR-3) would be10th, 15t

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Goods and Service Tax – GST – By: – Bimal jain – Dated:- 26-10-2015 – Dear Professional Colleagues, Draft GST Report on Returns under GST on public domain In order to engage with the stakeholders and invite comments from the public at large, the Ministry of Finance on October 6, 2015, placed the following Draft Business Processes of GST on public domain for virtual feedback of the public: Report of the Joint Committee on Business Processes for GST on Refund Process; Report of the Joint Committee on Business Processes for GST on Registration; Report of the Joint Committee on Business Processes for GST Payment Process. Further, to the above Reports, Draft Report of the Joint Committee on Business Processes for GST on GST Return has also been

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parate Return for the Input Service Distributors, non-resident taxpayers (foreigners) and Tax Deductors; A registered Tax Payer shall file GST Return at GST Common Portal either by himself or through his authorised representative; HSN code (4-digit) for Goods and Accounting Codes for Services will be mandatory initially for all taxpayers with turnover in the preceding financial year above ₹ 5 Crore; There would be no revision of Returns. Changes to done in subsequent Returns; All the Normal taxpayers would be required to submit Annual Return. A separate reconciliation statement, duly certified by a Chartered Accountant, will have to be filed by those taxpayers who are required to get their accounts audited under Section 44AB of Income

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