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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 25-1-2017 Last Replied Date:- 25-1-2017 – DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN Definition of Turnover in a State and Zero rated supply Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:- 2(107): Turnover in a State: The new definition reads as follows: Turnover in a State means the aggregate value of all taxable supplies, exempt supplies, exports of goods and / or services made within a State by a taxable person and inter-state supplies of goods and / or services made from the State by the said taxable person excludi

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ng for composition levy, while calculating the limit of 50 lakhs as turnover in a state won t have to include such non taxable supplies giving the benefit of additional margin of turnover. Also the Input service distributors, while calculating the ratio of the units where the cenvat has to be distributed, won t have to include the value of non taxable supplies to the total turnover. But there is definition of exempt service given under Section 2(44) which reads as follows:- exempt supply means supply of any goods and/or services which are not taxable under this Act and includes such supply of goods and/or services which attract nil rate of tax or which may be exempt from tax under section 11 Thus, the definition of exempt supply include the

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on 15 of the IGST Act 2016 In the IGST act it is defined as any of the following taxable supply of goods and/or services, namely – (a) export of goods and/or services; or (b) supply of goods and/or services to a SEZ developer or an SEZ unit First of all it should be noted that reference is given that of section 15 whereas it should have been section 16. There seems to be a clerical error. Further if compared to the old definition, it can be noted that supply to SEZ unit or developer have been included in the scope of zero rated supplies. Also the old definition had the condition that cenvat shall be allowed against zero rated supply which is now been given in the form of section 16(2). There is no mention of the EOU or export through mercha

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Goods and Services Tax – GST – By: – CA.Tarun Agarwalla – Dated:- 25-1-2017 Last Replied Date:- 25-1-2017 – Composition scheme under Model GST Law, its impact on industry A. Introduction: 1. The New Model GST Law ( henceforth MGL ) as made available in the public domain as on 26th November 2016 have brought out many changes with respect to the provisions with respect to composition levy. Composition Levy has been present in indirect taxes to address the small business units or specific business units having complexity in the valuation of taxable amount.MGL section 9 talks about payment of taxes in lieu of normal tax liability under section 8 of MGL, talks about Levy in general. Composition scheme also brings a lesser compliance requirements, however, composition scheme normally successful in B to C segment rather than B to B segment. 2. At present almost all the state VAT laws normally have provisions for taxpayers to opt for composition scheme. Broadly two type of taxpayers is having

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n levy facility is to be used on all India PAN basis. It means all the registration across India belongs to the same PAN must avail the scheme. e) Once on a particular day, the aggregate turnover exceeds ₹ 50 lakhs, the scheme deemed to be withdrawn from such date. f) If the proper officer has reasons to believe that a taxable person was not eligible for the scheme, the taxable person shall pay tax under normal provisions and penalty. 5. Restriction for the scheme: – under the provision of section 9(1) of MGL, Composition semen could not be allowed in the following class of taxable persons:- a) who is engaged in the supply of services, or b) who makes any supply of goods which are not liveable to tax under this Act, or c) who makes any inter-State outward supplies of goods; or d) who makes any supply of goods through an electronic commerce operator who is required to collect tax at source under section 56; or e) Who is a manufacturer of such goods is as may be notified on the rec

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garded as services and not goods. In this respect the following issues may found relevant:- a) The transitional provisions section 172 may be used fully for such cases where a composition dealer may not be eligible under MGL. b) Works contractor normally be under composition scheme of Sate VAT and service tax normally be paid under abatement forging the CENVAT on inputs. In this case the Cenvat Credit on stocks, semi fished and finished stocks may not be available under section 172 of MGL. However, section 169 related to the general availability of credit may come for rescue. However, it is the subject matter of further analysis. 9. What would be regarded as composition scheme under earlier law gave not been provided in the MGL. For instance, there are cases in excise where the special rate of duty has been allowed without taking any CENVAT credit. In the MGL it is given that, Persons Manufacturing, specified items may not opt for composition scheme. Hence in such cases, whether sectio

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ns made or agreed to be made by such person in the course or furtherance of business. 11. Impact on decisions in GST a) As the small dealers in the majority of states are operating with the existing turnover limit of ₹ 50 lakhs. The impact may not be much. However, the majority of them may not cover due to the enhancement of taxable limit of ₹ 20 lakhs from the existing ₹ 10 lakhs. b) The persons present in more than one state with the same PAN may face a new difficulty in tracking the turnover limit of ₹ 50lkh, collectively. c) Input tax credit as per section 18(3) of MGL, the carry forward credit and compliance there off may discourage to the scheme. d) A majority of works contract cases were availing the composition scheme as there was no turnover limit earlier. However, at present, the segment was regarded as service and hence not eligible at all for the composition scheme. e) In the case of work contractor, builder, the credit available with respect to ITC

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Goods and Services Tax – Started By: – RAM SHARMA – Dated:- 24-1-2017 Last Replied Date:- 26-1-2017 – Dear Sir, Whether we have to reverse cenvat credit and vat utilized in manufactuing of finished goods lying with our agent/brances or will be paid IGST on appointed date ? (Section 192 193,to 194) What will be the treatment of discount if we have issued debit note/credit note after issue the sales invoice and before the sales invoice.( mention in invoice at the time of removal) 3) How we will a

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Goods and Services Tax – Started By: – saket s – Dated:- 24-1-2017 Last Replied Date:- 29-4-2017 – Dear Sir,Need clarification on invoice serial number in GST. As per Invoice draft rule it says that we should have one unique series for one financial year. We have 3 warehouses in the same State following difference sequel of series at present and we want same to be continued in GST law also. Is it possible to continue this practice under GST regime?Saket – Reply By YAGAY AND SUN – The Reply = This can be allowed but there is no specific provision in Model GST Law. It may be clarified when the final GST Law would come in force. – Reply By Ganeshan Kalyani – The Reply = More clarity is awaited in this respect. – Reply By MARIAPPAN GOVINDARAJA

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 24-1-2017 – DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN Definition of Principal place of business, Proper Officer and Services Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:- 2(77) Principal place of business: the new definition reads as follows: Principal place of business means the place of business specified as the principal place of business in the certificate of registration; The old definition read as follows: principal place of business means the place of business specified as the principal place of business in t

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on. Deleting the condition of keeping books of accounts has made the definition simple to follow and now the assessee can name any of his premises as principal place of business. But there is no need to keep books of accounts there only. It can be kept at any place of business. 2(79) Proper Officer: the new definition reads as follows: Proper Officer in relation to any function to be performed under this Act, means the officer of goods and services tax who is assigned that function by the Commissioner of CGST / SGST; The old definition reads as follows: proper officer in relation to any function to be performed under this Act, means the officer of goods and services tax who is assigned that function by the Board/Commissioner of SGST; The am

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than an activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. The old definition read as follows: services means anything other than goods; Explanation: Services include intangible property and actionable claim but does not include money. The amendment bought in the definition is that Securities explicitly excluded from services definition. We have told in our earlier update that securities are excluded from the definition of goods under Section 2(49) also. Thus securities won t be considered as goods or services and as a result, GST won t be applicable on the same. The definition

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 24-1-2017 Last Replied Date:- 24-1-2017 – GST Council's 9th meeting was held recently on 16th January, 2017 for the ninth time, second time in 2017, for deciding upon the unresolved issues, mainly about the cross empowerment and territorial jurisdiction of states. This meeting was considered significant for timing of GST as the last attempt to reconcile and make the states agree, if the Union Government was still eyeing at 1st April, 2017 for GST introduction. However, the GSTC did decided the issues before it but also deferred GST schedule by a quarter to 1st July, 2017. States wanted that they should control the entire assessee base including service tax assessees below the threshold limit of ₹ 1.5 crore whereas Centre was of the view that the States lack expertise and knowledge in service tax. While this may be true in the present scenario, training can always be imparted and no such beginning is late. All

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states being allowed to have control over territorial waters. Though general consensus is being looked at, States like West Bengal and Kerala still continue to be in opposite camp. The Centre and States have agreed to share the entire taxation base for assessment with a horizontal division. According to the agreed formula, which will apply for both goods producers and service providers, States will have the power to assess 90 per cent of all assessees with a GST turnover of ₹ 1.5 crore or less and the remainder will be with the Centre. Further, assessees with a GST turnover of over ₹ 1.5 crore will be assessed in a 50:50 ratio by the Centre and States. Intelligence-based enforcement powers will vest with assessing officers of both the Centre and States for all assessees. Both have agreed that no assessee would be controlled by two authorities and there would be computer-based enforcement at both the Centre and the states. Those assessees who fall under the integrated GST,

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e., in 2017-18 fiscal, for quarter-I, we will have present tax regime and for remaining three quarters, we will be having GST in place. Even if it is delayed beyond July 2017, the transition may not be an issue as it is a transaction tax. July may be a reality, hopefully so. GST Council is also understood to be working on tax rate structure for services. This could be in 2-3 slabs for basic, standard and luxury / high end services. If this is through, we will end up in having too many GST rates which may not be desirable. It is expected that finalizing of segment wise GST rates will take some more time. On industry front, as the date comes nearer, there are going to be major challenges which inter alia include cash flow management, working capital, logistics, IT solutions, inventory planning and so on. Planning on all these fronts is subject to final law, rules, rates and credit / refund rules. With Union Budget 2017-18 now scheduled to be presented in Parliament on 1st February, 2017,

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Goods and Services Tax – GST – By: – Ravi Kumar Somani – Dated:- 23-1-2017 – India is committed to implement Goods and Service Tax (GST). GST is expected to be implemented from April 2017 or a little later. The tax system is currently in the drafting stages with a few undecided issues holding up the agreement between the states and the Centre. The implementation of GST does not just involve tax reform, it is instead a complete business reform. Therefore, changing the historical ways of doing business calls for larger challenges and increased sense of responsibility as any slip up can also have the business continuity/ survival risks. This article discusses the various transitional aspects that needs to be looked into and the challenges that the businesses face in doing the same. Various transitional challenges are as under: Finalising the GST Transition Model: The first and foremost challenge in the implementation of the GST is to understand what is the right model for your business t

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and the outside professionals clearly dividing the roles and responsibilities of internal team and the external experts. This is more appropriate model for major of the companies who have fairly decent capacities in respect of the executing manpower and knowledge of the taxation system. The capacity and the knowledge can be optimally utilized by partnering with the professionals. Credits Transit, Maximization, documentation, Methodology: Various transitional provisions has been prescribed to deal with transfer of credits in the GST regime. However, transition of credits is going to be a big challenge in the GST regime especially for the following businesses: Where credits in books are not reconciled with returns over a period of time; Book stocks never match with the physical stocks. There is no regular stock taking exercise being conducted; Tax invoices received from vendors not being properly documented, Tax invoices not being obtained at all; Ineligible and improper credits are ava

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suring due compliance of the law. Whether to avail the credit of disputed items could be a vital decision which would require legal confirmation considering the latest case laws as also the time limit of 1 year of the invoice. Further, businesses must have proper documentation, trails in place to establish the claim of the credit at a later date during departmental audits. Business Model Re-structuring: All businesses will undergo a change due to advent of GST. However, the businesses who act and restructure its model as per the requirement of the GST will have a competitive edge over others. Various re-structuring aspects that can be looked into are as under: Whether to change the manufacturing location, principle place of business; Adding locations of supply being closer to customers/ vendors – Making national presence – No state barriers for supply; Shutting down locations, warehousing strategy, Change in supply chain management; Whether floating a new entity for separate business v

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nt supplies – For Ex: Combos with aerated drinks in restaurants, Cinema halls; Merging multiple supplies into a composite supply – For Ex: Vaastu, High Rise Premium to be merged with construction; Determining whether a transaction to be restructured as a Composite supply or as a Mixed supply; Clear breaking up the Price to optimize taxes; Revisiting the Discounts policy – Nature of discount, Cash discount or trade discount, whether linked to invoice or not; Security Deposits in lieu of advances to ease cash flows; Reviewing pricing of all related party vendors to avoid disputes in transaction value – Able to establish arms length; Doing away with the policy of raising Mother Purchase Order s with supplies over a period of time. This is just an illustrative list, there can be many more aspects to transactional restructuring, therefore a business needs to understand its various business transactions, identify various options of restructuring and apply/ implement the same. The entire exer

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al aspects which would be more complex in a practical scenario and there may not be only one view of the same. For instance: Determining the quantum of availing credits based on stock or determining the right pricing for goods/ services in the GST regime considering the anti-profiteering measures. In such cases, businesses shall face challenge in selecting the right approach. Further, the approach adopted may easily be contradicted by the department. Therefore, in such scenarios businesses must have proper documents, evidences in place and if possible get the same duly certified by the competent authorities to establish its claim. Updation of various GST laws for each state in a quick short time and complying with the procedural aspects of each state: In embracing a change it becomes crucial for businesses and professionals to stay connected with the change. Government officials are making the laws, revised laws, rules, procedures, formats at a bullet speed. The thoroughly revised and

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businesses are going to face. The consequences of the same will be faced at the time of departmental audits in the GST regime. Therefore, due care needs to be taken under the guidance of the professionals while dealing with such loosely drafted provisions in the law without clear guidance. Filing of the last return in the current tax regime: Filing of the last return in the current tax regime is like a last chance to make good the old issues and start afresh. Based on the impact assessment, complete sanctity check for the last 1 year must be done and the same must be given effect to in the last returns. Missed credits, doubtful credits, credits reversed to buy peace etc. can now be availed in the last return with proper intimation to the department. Transactions overlapping between the two regimes must be clearly understood and correct legal effect must be given in the old returns. Transactions which can be closed profitably prior to GST could be closed. Once the old returns are filed

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y affair. Many aspects of the GST regime such as matching concept, compliances etc. will be perturb the business in GST regime if the vendors are not organized. Therefore, the challenging task of the vendor evaluation/ assessment and their preparedness for the GST must be assessed well in advance during the transitional phase so that the loose link the chain is not carried along to the GST regime. Vendors who understand can pass on the benefit and ensure that the intermediate supplier is not out of pocket when the customer reduces the prices. Nature and extent upto which ERP system must be tweaked: Needs of the businesses from ERP shall undergo a change in the GST regime, but the crucial decision making factor is to understand the nature and extent of the tweaking to the ERP that is required to be done to atleast start with. It shall be challenging for the businesses to decide whether to totally migrate into the new ERP or to completely overhaul the existing ERP s or to list out the va

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the process of impact analysis are as under: Understand self business first – As-is mapping of the business transactions Perform minimum past one year sanity check Credit Maximization, Review of present credits & compliance Performing various ratio analysis to understand the business and its GST impact Assess detailed impact on business as a whole, business transactions and impact on various business departments. Proactively mitigate the risks of the negative impact. Enhance the positive impact. Implementation not restricted to Finance & Accounts department. Readiness and learning equally required by procurement, production, stores, Sales & Marketing, IT, Admin & HR departments also. Businesses acting early on the GST impact to have edge over competitors. Conclusion: Businesses that do not take care in the initial period would face disputes/ demands after 3-4 years of frustration during audit, as they do not have any reconciliations, evidence to prove compliance in the

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 23-1-2017 – Place of Registration In the present indirect tax regime, there is a concept of Centralized registration under Central tax laws. Under GST regime, registration may be required in each State from where supplies are being made. Hence, manufacture/dealer may need to obtain registration in each State where there is a premises (including site office) from where services are being provided. Centralized registration will no longer be available. Returns Under existing indirect tax laws, assessee has to submit 2 half yearly returns under Service Tax, monthly /quarterly return under Central Excise and quarterly returns under VAT laws in a year. Model GST Act provides following returns which are required to be submitted by the registered person : S.no. Return Periodic return to be filed for To Be Filed By 1. GSTR-1 Outward supplies made by taxpayer 10th day of succeeding month 2. GSTR-2 Inward supplies received by a ta

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ies, as against their vendors. Similar provisions have been prescribed wherein details of credit notes issued by a supplier have to match with the corresponding reduction of input tax credit claimed by the recipient. Accordingly, if the recipient does not adjust the input tax credit, the tax and interest would be recovered from the supplier. This provision places liability on companies for non-compliance by vendors. Rate of GST While rates of GST on are likely to be in the range of 5-28 percent, what rate of GST shall be applicable to gems and jewellery is not yet decided. The lowest rate as per slabs agreed upon in GST Council is 5 percent. However, lower rate is not ruled out. The industry is demanding for a tax slab of 1-2 percent. Payment Any tax, interest, penalty, fee, etc., shall be paid via internet banking or by using credit/debit cards or NEFT or RTGS. This amount shall be credited to the electronic cash ledger of the dealer. No cash payments are allowed. Input Tax Credit Und

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ans goods, the value of which is capitalized in the books of accounts of the person claiming the credit and which are used or intended to be used in the course or furtherance of business. Accordingly, input tax credit will be eligible for capital goods only on those goods, the value of which is capitalized in the books of accounts. This will enable many taxable persons to claim cenvat credit. A taxable person (exporter) may claim refund of any unutilized input tax credit at the end of any tax period. In other words, exporter of services shall be eligible to get refund on eligible inputs, capital goods and input services. Input Service Distributor Concept (ISD) As in the present Cenvat Credit Rules, ISD concept is proposed for transfer of credit of input services between two or more locations. ISD can transfer credit of all types of GST (CSGT, SGST or IGST). Considering the possibility of multiple registrations State-wise, ISD could be used as a tool to ensure optimal utilization of hea

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2017 (1) TMI 1716 – KERALA HIGH COURT – TMI – Compounding rate of tax – bar attached hotel of and below two star – section 7 of the Kerala General Sales Tax Act, 1963 – whether the assessee would be able to opt as between Clauses (a) and (b) of S. 7(1)(i)? – HELD THAT:- When Clause (b) of S. 7(1)(i) applies, the amount of tax is a pre-determined amount. That is dependent upon the turnover of the three previous consecutive years. Therefore, even when assessee proceeds to seek payment of tax at compounded rate under S. 7(1) for a particular year, he would be guided by books of accounts which are in that person's possession itself. Hence, no fresh assessment as known to law is required. There are no jurisdictional error in either the assessing authority having required the assessee to pay the differential in terms of S. 7 or the Accountant General's office or the squad of that office having prompted the assessing authority to proceed to make demand for the remaining amount. A

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ORDER T.B. Radhakrishnan, J. 1. These revisions are by an assessee who is eligible to pay tax at compounded rate under S. 7 of the Kerala General Sales Tax Act, 1963, 'Act', for short. It is also not in dispute that the assessee is one who has a bar attached hotel of and below two star. This means that if he opts under S. 7 for payment of tax at compounded rate, he would be governed by S. 7(1)(i), which provision has two Clauses – (a) and (b), which operate in alternative. Clause (a) or (b) would apply depending upon which would bring home to the Revenue through the compounded scheme, higher revenue as tax. The assessee applied for payment of tax at compounded rate. That application was not rejected. Obviously therefore, the learned counsel for the assessee is justified in saying that the compounding as was offered, was accepted. But, in the same breath, the assessee would contend through its learned counsel that what has been offered is not merely the option to pa

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ssment), Kerala Anr. (2014 (71) VST 110 (SC) : 2014 KHC 5346), Raju Jacob v. Sales Tax Officer (2006 (1) KLT 788 : 2006 KHC 246), Koothattukulam Liquors v. Deputy Commissioner of Sales Tax (2015) 12 SCC 794) and Annie George, Proprietrix v. The State of Kerala (2007 (1) KLT SN 4 (C. No. 6) : 2006 KHC 1701) do not go away from the principle that we have stated herein to that effect. While Koothattukulam Liquors (supra) dealt with a case of payment of tax at compounded rate on the basis of excise duty component, other decisions, particularly Bhima Jewellery (supra), deal with the quality of the contract of compounding and specifically state that compounding option once exercised results in the crystallisation of a bilateral contract as between the assessee and the State, that tied down both of them to be regulated by compounding mechanism, the situation to which they get tied down by that process is that the assessee cannot be compelled by the State to submit itself to regular assessme

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nder S. 7 does not stand. 2. Be that as it may, we have also considered yet another submission. The plea of the assessee through its learned counsel is that the assessee had voluntarily made an option and the assessing authority had accepted tax from him. He, therefore, tries to build up a plea somewhere in the realm of what could be thought of, too remotely, as exchequer. We notice this to say that the crucial further argument is that the Accountant General's office had made an audit of the office, and in the course of the audit, the Accountant General's squad had pointed out that the assessee had not paid the entire amounts due under S. 7(1) of the Act. The learned counsel for the assessee says that the statutory assessing authority under the Act has acted on the promptings of the extraneous authority, namely, the Accountant General's office, and therefore, the whole action taken against the assessee is unfounded and without jurisdiction. We are unable to countenance t

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that when the Accountant General's audit squad had pointed out the deficiency and deficit in the payment of taxes payable under S. 7(1) by the assessee, a notice was issued by the assessing authority calling upon the assessee to pay the balance amount. After such notice, a reply was delivered by the assessee. That was considered and thereafter, an order was issued apparently under S. 7. Calling it as an assessment order or a notice demanding payment, in law and in fiscal jurisprudence, it makes no difference because all that has been asked for is requiring the payment of amounts which are due to be paid merely by operation of law and not on the basis of any assessment de novo or of the accounts of the assessee. We say this because, when Clause (b) of S. 7(1)(i) applies, the amount of tax is a pre-determined amount. That is dependent upon the turnover of the three previous consecutive years. Therefore, even when assessee proceeds to seek payment of tax at compounded rate under S. 7(

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Goods and Services Tax – Started By: – Chandrashekhar Kandpal – Dated:- 21-1-2017 Last Replied Date:- 23-1-2017 – We are in the business of publication of magazines and organising international trade exhibitions. I will be grateful if you could advise us on the following with respect to GST implications: We publish the magazines in Maharashtra and the Advertisers are from all over the world. We send the copy of the magazine along with the invoice to the client. As per place of supply of services, the service provided to a registered person shall be the location of such person. Here I presume registered person means the recipient registered in the state from where the service is provided. And supply of service made to any other person other

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where we have branch office. Do we need to take registration in that state? if yes, will it be a regular registration or Causal Taxable person.Question 3 .If we organise an Exhibition in other state where we do not have branch office – Do we need to take registration as Casual Taxable Person or regular registration?Further, In case of Casual Taxable person, the estimated liability is required to be paid in advance and the registration is valid for 90 days only, which can be extended with the approval.Normally an Exhibition is planned more than a year in advance and its very difficult to ascertain the liability in such advance period, moreover we start receiving the small advances more than a year in advance. How do we proceed in such case?

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 21-1-2017 – DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN Definition of Input Service Distributor and Money Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:- 2(54) Input Service Distributor: The new definition reads as follows: Input service distributor means an office of the supplier of goods and/or services which receives tax invoices issued under section 28 towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of CGST (SGST in State Acts) and / or IGST paid on the

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had to file returns prescribed for supplier of services; he would have to also comply with the provisions meant for supplier of services. Thus the explanation has been deleted to avoid such interpretation by the department. 2(68) Money: the new definition reads as follows: Money means Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveler cheque, money order, postal or electronic remittance or any other instrument recognized by the Reserve Bank of India when used as consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value. The amendment carried out i

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 21-1-2017 – Prologue The Gems and Jewellery sector play a significant role in the Indian economy, contributing to over 5 % of the country s GDP. As one of the fastest growing sectors, it is highly export- oriented and labour intensive. Based on its potential for growth and value addition, the Government of India has declared the Gems and Jewellery sector as one of the focus area for export promotion. India is considered to be the hub of the global jewellery market because of its low costs and availability of high-skilled labour. The industry generated US$ 38.6 billion of revenue from exports in 2015-16, making it the second largest exporter after petro-chemicals. (Source: www.ibef.org) Currently, gems and jewellery sector is exposed to various indirect taxes, viz. Excise Duty, Service Tax and VAT/Sales Tax. The current indirect tax regime in India provides for a complex tax environment due to multiplicity of taxes, elab

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t on input services is eligible), or 12.5% with Cenvat credit of inputs, input services, and capital goods. VAT is levied at the rate of 1% or different rates (may vary from State to State) for sale in India. Under the model GST law, lowest approved GST rate is proposed to be 5%. If gems and jewellery item will be classified under the lowest tax slab, then this will become a major concern for this sector paying excise duty @1%. As a result they may have to pay CGST/SGST @5% instead of what they are paying in existing taxation laws, i.e., 2% (1+1). This shall increase the prices of gems and jewellery. However, this will be subject to availing Cenvat Credit of tax paid on inputs. For assessees who are paying excise duty @12.5%, if gems and jewellery is taxed @5%, then this will be a relief for them. However, classification of goods and/ or services is still pending for taxability of GST rate. Therefore, more clarifications are being looked at. Taxable Person For GST, taxable person means

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(on own or through job worker) cleared domestically has not crossed ₹ 1.5 crores. (all goods manufactured including silver jewellery). Under GST regime, the threshold limit of ₹ 10/20 lakhs is provided for payment of GST. Since, under GST regime limit of threshold exemption will be reduced to ₹ 10/20 lakhs, it will adversely affect the manufacturers. Shift in Taxable base from Service/Manufacturing/Sale to Supply In service tax law, rendering of service is a taxable event for levy of Service Tax. Similarly, in the case of central excise, manufacturing is a taxable event for levy of central excise duty and sale is a taxable event under VAT laws for levy of VAT/Sales Tax. However, in GST regime, Supply will be considered as a taxable event under GST. Supply shall include: all forms of supply of goods and/or services made or agreed to be made for a consideration by a person in the course or furtherance of business, Importation of service for a consideration, and Services

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eration, then such supply would also be covered under supply. Time of Supply of Goods and/or Services CGST/SGST/IGST shall be payable at the earliest of the following dates, namely: the date of issue of invoice by the supplier or the last date on which he is required to issue the invoice with respect to the supply; or the date on which the supplier receives the payment with respect to the supply. Valuation Transaction value shall be considered for payment of tax, with various inclusions prescribed in the valuation provisions/ rules. Certain inclusions in the valuation are as follows: Any taxes, duties, cesses, fees and charges levied under any statute (like Basic Custom Duty and Anti-dumping Duty), other than SGST /CGST/IGST. Any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the services. Incidental expenses Interest or late fee or penalty for lat

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 20-1-2017 Last Replied Date:- 23-1-2017 – Section 12 of the Constitution (One hundred and first Amendment) Act, 2016 proposes to insert a new Article 279A after Article 279 which deals with Goods and Service Tax Council. Section 12 came into force with effect from 12.09.2016, vide Notification No. S.O. No. 2915(E), dated 10.09.2016. Constitution of GST council Article 279A (1) provides that the President shall, within 60 days from the date of the commencement of the Act, by order, constitute a Council to be called the Goods and Services Tax Council. Article 279A(2) provides that the GST council shall consist of the following members- Union Finance Minister – Chairperson; The Union Minister of State in charge of Revenue or Finance- Member; The Minister in charge of Finance or Taxation or any other Minister nominated by each State Government – Members. The members shall, as soon as may be, choose one amongst themselves t

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riat, the entire cost for which shall be borne by the Central Government. The GST Council Secretariat shall be manned by officers taken on deputation from both the Central and State Governments. Vide Notification No.SO 2957(E), dated 15.09.2016 the President of India constituted the GST Council containing the above members in the council. The GST Council is headed by Union Finance Minister Arun Jaitley and includes representatives of all the 29 states and 2 union territories. Functions of GST Council Article 279A (4) provides that GST council shall make recommendations to the Union and the States on- the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be submitted in the goods and services tax; the goods and services that may be subject to, or exempted from the goods and services tax; model Goods and Services Tax Laws, principal of levy, apportionment of Goods and Services Tax levied on applies in the course of inter-State trade or commerce u

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he 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- the vote of the Central Government shall have a weightage of one third of the total votes cast; and the votes of all the State Governments taken together shall have a weightage of two thirds of the total votes cast in that meeting. 50% of the total number of Members of the Council shall constitute the quorum of the meeting. No act or proceedings of the Council shall be invalid merely by reason of- any vacancy in, or in any defect in, the constitution of the Council; or any defect in the appointment of a person as a Member of the Council; or any procedural irregularity of the Council not affecting the merits of the case. Adjudication of dispute The Council shall establish a mechanism to adjudicate any dispute- between the Government of India and one or more States; or between the Government of India and a

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meeting. Five rules framed for the purpose of GST have been taken up and approved by the Council. Third GST council meeting The GST Council, in the meeting held on 03.11.2016 finalized the GST tax rate structure. The Council has opted for a four tier rate structure of 5%, 12%, 18% and 28%. The essential items like food grains will have a zero rate. According to the decision, 150 essential items in the consumer price index basket will attract zero tax. 5% tax – For mass consumption goods like butter, ghee; 12% tax – It is one of the standard rate; 18% tax – It is another standard rate; 28% tax – Luxury goods will attract this tax; 0% tax – 50% of Consumer Price Index basket items, food grains like rice and wheat, spices The above tax rate must be approved by the Parliament in the Winter Session which is going to be held on 19.11.2016 but not able to get approved. A committee of officers/Secretaries will finalize the exact tax rate on each item and bring it to the slab closet to the cur

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as the Central GST and State GST, Integrated GST, and a law detailing compensation to states for loss of revenue in the first five years of the roll-out. Sixth meeting of GST council The 6th meeting was conducted in the shadow of demonetization, whose fallout has put a serious question mark on implementing GST by 01.04.2017, the target fixed by the Central Government. This two day meet focused on finalizing three legislations viz., Central GST, State GST and compensation bill but the same has not been achieved except up to Sections 99 of Model GST law have been discussed Seventh meeting of GST council Primary draft of CGST and SGST bills were cleared; Redrafting of one clause in the draft compensation bill. Compensation is to be paid to States on a bi-monthly basis instead of on quarterly basis as in the draft bill. Eighth meeting of GST Council he deadlock over the GST continued in this meeting with the Centre and State refusing to budge from their respective positions on issues like

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Bill to – Ship to Model – IGST Act – Version 2 dated 25 November 2016 – Goods and Services Tax – GST – By: – Ramnarayan Balakrishnan – Dated:- 20-1-2017 Last Replied Date:- 20-1-2017 – Chapter IV, Section 7(3) of the draft IGST Act reads as below (verbatim): Where the goods are delivered by the supplier to a recipient or any other person, on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person. While the First Leg of the Transaction is reasonably cle

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Act, is located in the same state as the supplier but issues instructions for delivery of the goods on inter-state basis (which ideally should trigger IGST), then, regardless of the actual movement of goods, his location would be deemed to be the place of supply and result in triggering of CGST + SGST. The aspects discussed above are only in relation to the first leg of the transaction, i.e. between the Supplier of goods and the third person , whether located within or outside the state. B. The Second Leg of the Transaction The next point to reckon with would be the nature of the second leg of the transaction, i.e. between the third person and the ultimate customer who receives the goods. Whether a transaction triggers IGST or CGST+SGST is

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fecting the second leg of the sale transaction, The goods might have reached the ultimate customer. In which case, the place of supply would be the destination of the ultimate customer. Going back to Section 7(3), in this transaction of bill to – ship to , it is deemed that the third person is the recipient of the goods, even though the actual recipient is the ultimate customer. This concept could further complicate the process of determining the actual place of supply. Correspondingly, there would be implications from the input credit perspective also. Thoughts on the above are most welcome. – Reply By Somil Bhansali – The Reply = Sir as per my interpretation the Second leg of Transaction will be as per Section 7(4) of IGST Act where suppl

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 20-1-2017 Last Replied Date:- 21-1-2017 – Supply is wider term used in GST law as the GST is based on Supply only. Now the question arises what is supply. Supply is transfer of goods and services on which GST will be imposed. Supply has been mainly defined in Section 3 of GST law subject to Schedule- I to IV. Supply has been further elaborated in IGST law whether the supply is interstate supply or Intra-State supply. This is important because if the supply is Intra- State,then CGST and SGST will be attracted otherwise if the supplly is Inter State then IGST will be levied. To understand whether the transaction is Inter State or Intra-State or Import or Export, it is important to understand the provision of Place of Supply which has been narrated in Section- 3 to 4 and 7 to 10 of the IGST Law. Supply has been defined in Section 2[26] of IGST Law as follows; Supply shall have the meaning as assigned to it in Section 3 of the

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frontier of India. Intra State supply of services means any supply of services where the location of supplier and place of supply is in the same State but does not include supply to or by SEZ Developer or SEZ unit. Place of Supply of Goods other than import and export [ Section-7 ] Situation Place of Supply 1.Movement of goods by supplier or recipient. Where the movement of goods terminate for delivery to recipient. 2. where the goods are delivered to recipient or any person on the direction of third person by way of transfer of title or otherwise, it shall be deemed that third person has received the goods shall be principal place of business of such person 3. where there is no movement of goods either by supplier or recipient Location of such goods at the time of delivery to recipient 4. where goods are assembled or installed at site Shall be where the goods are assembled or installed 5. where the goods are supplied on board a conveyance, like vessel, aircraft, train or motor vehicle

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rk b] lodging accommodation by hotel, inn, guest house, home stay, club or campsite, house boat or other vessel c] accommodation in immovable property for marriage or reception or matter related therewith , official, social , cultural , religious or business function including service for such functions. d] ancillary to above services in a, b and c Location of Immovable property, boat or vessel If immovable property, boat or vessel is located outside India then location of the recipient. If the services are provided in more than one State, proportion of service provided in each State. 4. restaurant and catering service, personal grooming , fitness, beauty treatment, health services including cosmetic and plastic surgery Where the services are actually performed 5. training and performance appraisal Location of registered person. Location where the service are performed in case of unregistered person. 6. Admission to cultural, artistic, sporting ,scientific, educational or entertainment

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chedule departure point of the conveyance 11.telecommunication including data transfer, broadcasting, cable and DTH television services a] fixed line, leased circuit , internet lease circuit, cable or dish antenna- b] Mobile connection for telecommunication, internet on post paid basis- c] Mobile connection for telecommunication, internet and DTH on prepaid basis- i] through selling agent or reseller or distributor of SIM or recharge voucher ii] by any person to the final subscriber d] any other case other than b and c above Where it is installed Billing Address Address of seller , reseller or distributor as per the record of supplier Where prepayment is received or voucher is sold Address of recipient as per the record of supplier Where the address of the recipient is not known , location of supplier. If prepaid service or recharge is made on internet banking, address of recipient. 12. banking and other financial services including stock broking Location of recipient of services, if r

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ent of service or person acting on behalf of recipient which required the physical presence of receiver. Location where the services are performed. Location where the Goods are situated. This clause shall not apply in services supplied in respect of goods temporarily imported in to India and are exported after repair. Location where the service are performed 3. services in relation to immovable property including services in this regard by expert and estate agent, supply of hotel accommodation by hotel, inn, guest house, home stay, club or campsite, grant of right to use immovable property, services for carrying out or coordination of construction work, including Architect or interior decorator. Location of Immovable property. 4. admission to or organizing of a cultural, artistic, sporting ,scientific, educational or entertainment, exhibition, conference, fair, celebration or similar events Where the event is actually held 5. where the services referred to in 2,3 and 4 is supplied at m

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ceiving such services shall be deemed to be located in taxable territory, if following two condition are being satisfy i]location of address presented by the recipient via internet ii] payment settle by recipient by any card has been issued in taxable territory iii]billing address of recipient of service is in taxable territory iv] internet address protocol of the device used by recipient is in taxable territory v] the bank of recipient of service is in taxable territory vi] country code of SIM used by recipient of service is in taxable territory vii]location of the fixed land line use by recipient is in taxable territory Location of recipient of services Disclaimer : The contents of this article are solely for information and knowledge and does not constitute any professional advice or recommendation. Author does not accept any liability for any loss or damage of any kind arising out of this information set out in the article and any action taken based thereon. About the Author: Autho

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es in other cases. Question 1. If the advertiser is located in other state and not registered in Maharashtra which tax will be applicable (a) IGST or (b) SGST & CGST2. We organise exhibitions in different states. Currently we have centralised registration of Services tax having principle place of business in Mumbai.Question 1. If the Exhibition is organised in Mumbai where we will be registered under GST, Exhibitors participating from other states which are not registered in Maharashtra, which Tax will be applicable (a) IGST or (b) SGST & CGST. 2.If we organise an Exhibition in other state where we have branch office. Do we need to take registration in that state? 3. If we organise an Exhibition in other state where we do not have branch office – Do we need to take registration as Casual Taxable Person or regular registration?In case of Casual Taxable person, the estimated liability is required to be paid in advance and the registration is valid for 90 days only, which can be e

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Goods and Services Tax – GST – By: – Bimal jain – Dated:- 19-1-2017 Last Replied Date:- 19-1-2017 – Dear Professional Colleague, 9th GST Council inks breakthrough on dual control over tax payers, rollout deferred to July 1, 2017 In an attempt to try and bridge differences on the contentious issues such as administrative control over taxpayers under the Goods and Services Tax ( GST ), the all-powerful GST Council headed by the Hon ble Finance Minister, Mr. Arun Jaitley met for the ninth time in a row to clear all gathered clouds over the GST and brightening its prospects of implementation soon. With the conclusion of the 9th GST Council meet on January 16, 2017, the gist of the key takeaways from the meeting of the GST Council are as under:

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e remaining would be controlled by the Centre. For tax payers with more than ₹ 1.5 crore annual turnover, the States and the Centre will control and administer them in a 50:50 ratio. However, intelligence based enforcement power will be with both the Centre and States. Further, the Hon ble Finance Minister said that each assessee would be assessed only by one authority. He also said that You won't have to jump from authority to authority, that's the advantage of GST ……… Once you evolve numerically a lot more will come from state to the centre, because the percentage is 50:50 in higher category and 90:10 in lower category. The computer programming would be done in a manner so that there is no discretion. Tax on economic a

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ervices Tax ( IGST ) will be vested with it solely, agreed to make a special provision in law by which the States will also be cross empowered. Contentious issues between the conflicting States to be taken up by the Centre The Hon ble Finance Minister said that in exercise of IGST, where there are contentious issues between conflicting States with regard to place of supply etc., then those assessment would take place by the Centre. As the discussions made in the 9th GST Council meet would have an impact on the IGST Law, Compensation Law and correspondingly, on the Central Goods and Services Tax/State Goods and Services Tax Law, accordingly the Draft of IGST Law and other supporting legislations including Rules will be tabled again in the ne

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Goods and Services Tax – Started By: – Partha Sarkar – Dated:- 18-1-2017 Last Replied Date:- 23-1-2017 – We have a manufactured unit I Odisha sometimes we have to delivered service (other than supply) in different states. Please guide me the registration of service tax to be taken for different sates where service to be delivered. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = The service tax is subsumed into GST. Therefore there is no separate registration for service tax. If the service provided is made more than one State you have to get registration for each State. If you are already registered with the Department you have to migrate to GST. Otherwise you have to register as per the procedure in the GST Rules. – Reply By Partha Sarkar

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 18-1-2017 Last Replied Date:- 20-1-2017 – DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN DEFINITION OF AGRICULTURE: As the GST law has been revised, it is pertinent to note down what all issues still remain un-tackled or untouched. Also certain provisions are there which are yet again drafted in such a way that they would attract litigation. Here we are discussing two such provisions: Starting with the definition of agriculture, its scope has been restricted largely in the GST regime. The proposed definition is reproduced here below: 2(7) agriculture with all its grammatical variations and cognate expressions, includes floriculture, horticulture, sericulture, the raising of crops, gr

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urther given under Section 2(106) about cultivate land personally which is as under:- (106) to cultivate personally means to carry on any agricultural operation on one s own account- (a) by one s own labour, or (b) by the labour of one s family, or (c) by servants on wages payable in cash or kind [(but not in crop share)] or by hired labour under one s personal supervision or the personal supervision of any member of one s family; Explanation 1. – A widow or a minor or a person who is subject to any physical or mental disability or is a serving member of the armed forces of the Union, shall be deemed to cultivate land personally if it is cultivated by her or his servants or by hired labour. Explanation 2. – In the case of a Hindu Undivided

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n of Composite Supply appearing in Section 2(27), Mixed Supplies in Section 2(66) and Principle supply in 2(78). The definitions are reproduced here below for ready reference: composite supply means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; www.capradeepjain.com – Reply By Ganeshan Kalyani – The Reply = Nice article. – Reply By KASTURI SETHI – The Reply = Excellent article, Sir. All doubts cleared. The new definition of 'Agriculture' under GST specifically includes 'Horticulture'. Can we conclude

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TRADE NOTICE No. 16/2016 Dated:- 18-1-2017 Trade Notice – Circulars – GST – OFFICE OF THE COMMISSIONER OF CUSTOMS, CENTRAL EXCISE SERVICE TAX HYDERABAD-IV COMMISSIONERATE POSNETT BHAVAN : TILAK ROAD : RAMKOTE : HYDERABAD-500001 C. No. V/08/01/2016-Tech Date: 18.01.2017 TRADE NOTICE No. 16/2016 Sub: GST – Migration of existing Central Excise and Service Tax assessee to GST – regarding. Attention of the members of trade, industry and all concerned is invited to the subject matter mentioned above. 2. As per Section 166 of draft CGST Act read with relevant rule, every central excise / service tax assessee having a valid PAN shall be granted registration under GST regime on a provisional basis. For such assessees, GSTN shall generate provisional IDs and communicate same to the assessees through CBEC for migration to the GST regime. The director general of Systems

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In case you are also registered with State Commercial Tax dept (VAT/Luxury Tax/ Entry Tax/ Entertainment Tax), you may have already initiated this process of migration and no further action suggested below would be applicable to you. A schematic representation of the migration process is given below: In order to migrate to GST, you need to have a provisional ID and password. These details you can obtain by logging into ACES portal (www.aces.gov.in). These details are being obtained from GSTN and you may periodically log in to see your status. You are required to use the provisional ID and password to log into GSTN portal (www.gst.gov.in) to fill up the required details and upload the supporting documents. After you provide the requisite details, an ARN (Application Reference Number) would be communicated to you by GSTN. Once you have the ARN, you would migrate to GST on the scheduled GST roll out date with issue of Provis

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Additional Commissioner 040-24760800 Kukatpally Division K. Muralidhar Additional Commissioner 040-23060064 Jeedimetla Division Durishetty Anudeep Additional Commissioner 040-27750401 P. Rejendra Prasad Superintendent 040-27750401 Balanagar Division CH. Kusuma Kumari Superintendent 040-27955936 Medchal Division R. Srinivas Superintendent 040-27954288 Service Tax Division-I G. Samraj Kumar

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Public Notice No. 01/2017 Dated:- 18-1-2017 Trade Notice – Circulars – GST – OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE SERVICE TAX 7th FLOOR, TRADE CENTRE, BUNTS HOSTEL ROAD, MANGALURU-575 003 C. No. IV/16/01/2017/Tech. Date: 18.01.2017 Public Notice No. 01/2017 Sub: – Process of Migration of Central Excise and Service Tax assessees to GST regime- Reg. As per Section 166 of the draft CGST Act read with Rule 14 of the draft GST Registration Rules, every Central Excise / Service Tax assessee having valid PAN shall be granted registration under GST regime on a provisional basis. 2. To simplify the process of migration, step wis

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Goods and Services Tax – GST – Dated:- 17-1-2017 – New Delhi, Jan 16 (PTI) In a significant breakthrough in implementation of India's biggest tax reform, the deadlock over administration of GST ended on Monday after the Centre agreed to allow states control over most of small taxpayers, but the rollout date was pushed back by 3 months to July 1. The split of GST taxpayers between the two will be done horizontally with states getting to administer and control 90 per cent of the asseesses below INR 1.5 crore annual turnover, and the remaining 10 per cent coming under the Centre. The Centre and states will share control of assessees with annual turnover of over INR 1.5 crore in 50:50 ratio even as Finance Minister Arun Jaitley insisted th

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r-state movement of goods and services, as well as SGST and CGST will be finalised in the next meeting of the GST Council on February 18. Once approved, the Council will then decide on taxing various goods and services in different tax slabs, he said. The stalemate over administration of GST had been holding up consensus in the GST Council since early November with four successive meetings failing to break the deadlock as the Centre was not in favour of a horizontal split. It said states did not have the expertise to administer levies like service tax. The Centre also did not favour dual agencies auditing and scrutinising each taxpayer as multiple authorities could end up acting at cross-purposes. With the legislative calendar drawn up, Jai

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 17-1-2017 – DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN AGGREGATE TURNOVER UNDER REVISED GST LAW:- As we have discussed in earlier GST updates that registration under GST regime is required only if the turnover of the assessee crosses the threshold limit of Rs twenty lacs. Today in this update we shall analyse the definition of aggregate turnover and changes brought in by Revised GST Draft Law. The definition of aggregate turnover under revised GST Draft Law is under section 2(6) which states that the aggregate turnover shall include all taxable supplies, exempt supplies, exports of goods and/or services and inter-State supplies of a person having the same PAN. The turnover is to

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lies from the definition. Under old GST law, this was also included in the definition. It was thought to be a welcoming change on government s behalf as already the threshold limit given is too less and then including non taxable supplies along with exempted supplies further narrows the threshold limit. But the definition of exempt supply is given under Section 2(44) of revised GST Act which reads as follows:- exempt supply means supply of any goods and/or services which are not taxable under this Act and includes such supply of goods and/or services which attract nil rate of tax or which may be exempt from tax under section 11 ; Hence the delight was short lived as non taxable supplies has been included in definition of exempted supplies a

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ay the GST even for single transaction of interstate supply. After registration, he has to pay the tax on each supply. This interpretation came from the concept of voluntary registration. But inclusion of interstate supply in definition of aggregate turnover together with registration requirement with schedule V leads to two interpretations viz:- a. The single transaction interstate supply will be liable to tax and registration is to be taken for the same. But exemption of ₹ 20 lakh will be separately allowed for intra state supply. But the turnover of interstate supply will also be covered under aggregate turnover . b. The interstate supply will also be eligible for threshold exemption of ₹ 20 Lakh but the person has to get reg

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Goods and Services Tax – GST – By: – Ashish Mittal – Dated:- 17-1-2017 – Background: Submission of details of transaction that the business was indulged in for a given period, in prescribed manner can be termed as Return Every law when comes into force, defines some periodic statement called return to control and assess the transaction the organization has entered into. In context of GST, CBEC in collaboration with GST council has notified draft Model GST model Law (in short MGL ) as revised on 25th November 2016 wherein vide CHAPTER -VIII, twelve Sections has been issued in this regards for compliance along with separate set of rules under the MGL for various classes of assesse and types of returns. Applicability The different class of assesse who would be liable for various different returns along with applicable rule and relevant form has been summarized in the infra mentioned table (Reference to Section-32, 33, 34, 39 read with rules-1, 2, 3, 21 has been made) S.No. Applicability

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e 1 Return for Outward Supply: Original Form-FORM GSTR-1 Steps: First the form will be filled by supplier by 10th of the next month Later this form will be available to recipients in Part A of FORM GSTR-2A for verifying their details. Details updated by the recipient in his FORM GSTR-2 U/s 33 or FORM GSTR-4 U/s 34 shall be made available to supplier in FORM GSTR-1A and Supplier may accept or reject the amendment in full or part and accordingly FORM GSTR-1 of supplier shall stand amended. Rule 2 Return for Inward Supply: Original Form-FORM GSTR-2 a. It shall be prepared by using information of Part A,B,C,D of FORM GSTR-2A regarding details furnished by In part AOutward Supplier In part BISD regarding ITC In part CRegarding deduction U/s 37 In part DBy E-Commerce Operator U/s 43C b. Also details regarding 1. ITC available, allowed, disallowed 2. ITC related to Non-Taxable Supplies etc. Rule-21 for Annual Return: Original Form-FORM GSTR-9 (for others) Original Form-FORM GSTR-9A (for compo

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deduct tax at source under Section 46 of MGL Original Form-FORM GSTR-7 Certificate of Deduction provided to deductee in FORM GSTR-7A Rule-8 for Supplies effected through e-Commerce Original Form-FORM GSTR-8 Verification of Certain Documents shall be conducted in accordance with Rule-20 and 21 similar procedure as defined in ITC related points. Frequency Various Returns: Different returns need to be filled at different frequency which also varies assessee-wise which has been summarized below in tabular manner: S.NO. Who is Liable to file return? When i.e. at what frequency return need to be filled? Return for Outward Supplies (Section 32 read with Rule-1 ) Return for Inward Supplies (Section 33 read with Rule-2 ) Monthly Return (Section 34 read with Rule-3 ) Annual Return (Section 39 read with Rule-21) 1 Registered Taxable Person (Specified in Schedule V) Monthly by 10th of Succeeding month of relevant tax period Monthly by 15th of Succeeding month of relevant tax period Monthly by 20t

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d Monthly by 15th of Succeeding month of relevant tax period Monthly by 20th of Succeeding month of relevant tax period Annually by 31th of December of subsequent F.Y. Special Point: Person Liable for Audit under 53(4) shall submit audit report and return and reconciliation statements General/Common Provisions: Some Provisions which are common in nature has been herewith stated in Question and answer form for the sake of simplicity Certain General/Common Provision in Question and answer Form Certain General Questions Answers based on Relevant Provisions as mentioned in MGL What content need to be filled in Detail of Outward Supply? Details of outward supplies shall include U/s 32 zero-rated supplies, inter-state supplies, return of goods of an inward supply, exports, debit notes, credit notes and supplementary invoices Meaning of Inward Supply? Meaning of Inward Supplies U/s 33 1. Verify, validate, modify or delete the details of outward supplies and credit or debit notes as already au

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/s 34 of the tax period in which the default was detected 3. But before Earlier of [Sept. monthly return u/s 34 of next F.Y or Annual return of F.Y] i.e. Correction possible max. till subsequent F.Y. Sept return or Annual return of relevant F.Y. Certain Condition for Monthly Return Condition for Monthly Return U/s 34 1. All dues of Tax must be paid before or on due date of filling respective returns 2. If no supply then also NIL return Mandatory 3. If tax not paid then return Invalid for allowing ITC Concept of First Return U/s 35 1. Registered Person to file return U/s 32, 33 till end of the month in which registration is granted to them. 2. For Sec. 8 Assessee details up to end of relevant Quarter need to be filled. 3. Balance provision of 32, 33, and 34 apply mutatis mutandis. Input Tax Credit Related Provisions: Input tax being one of the most important limb of GST, and its impact on return would be crucial, Thus the governing provisions giving reference to Section 36, 37, 38 read

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details and credit note to both parties are a. Mismatch of tax shall be communicated in FORM GST ITC-1 b. Non-submission of Invoice by supplier would disallow the ITC of recipient in FORM GST ITC-1 c. Duplication of ITC would be disallowed and communicated in FORM GST ITC-1 d. The difference in tax becomes output liability of recipient with interest subject to reduction when correction is done along with refund (shall be granted in electronic cash ledger in FORM GST PMT-3 of interest earlier paid for setoff in future liability) (Sec. 37 & 38) Note: 1. Rectification by a supplier-adding or correcting outward supply details in his valid return 2. Rectification by the recipient -deleting or correcting inward supply details for matching with each other's return Note: Provisions of Sec. 37 & 38 are similar and incorporated above only and there relevant rules also. Belated or No Return: Question: Whether Belated Return shall be accepted if yes what is the penalty? What if No ret

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GST latest update – Goods and Services Tax – GST – Dated:- 16-1-2017 – GST council is now reaching towards consensus on most issues including Dual Control and power to levy GST on transaction made wit

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Goods and Services Tax – GST council is now reaching towards consensus on most issues including Dual Control and power to levy GST on transaction made within the Territorial Water – Most likely date i

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