Goods and Services Tax – GST – By: – Bimal jain – Dated:- 3-10-2016 Last Replied Date:- 3-10-2016 – Dear Professional Colleague, Highlights of Draft GST Rules & Formats which got approved by the GST Council The Government is not leaving any stone unturned to roll out the much awaited indirect tax reform from April 1, 2017. In less than a week after the first meeting of the GST Council (on September 22-23, 2016), the Central Board of Excise and Customs ( CBEC ) on September 26, 2016, has unveiled the Draft Rules and formats under GST relating to registration, invoice and payment. Further on September 27, 2016, more GST Draft Rules and formats on return and refunds were also put in public domain (collectively referred to as the Draft GST Rules ). Earlier, in the month of October, 2015, the Draft GST Business Processes on registration, payment, returns and refunds were put in public domain for public comments. Draft GST Rules approved by the GST Council The CBEC invited comments on t
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power for assessment to Centre for assessing 11 lakh Service tax assessees who are currently assessed by them. However, there were divisions over ratifying/ approving the minutes of the first meeting of the GST Council after at least two States disagreed with the Centre's power for assessing these taxpayers in the new dispensation. The discussion was in conclusive and therefore it will continue in the next meeting. The next meeting of GST Council will be held on October 18-20, 2016 to discuss on issues like Service tax assessment and the formula for calculating compensation to be paid to States in case of revenue shortfall as a result of implementation of the GST regime, possibly from April 1, 2017.GST rates, Draft GST law to be decided by November 22, 2016. Key Highlights of the Draft GST Rules Key highlights of the Draft GST Rules for registration, invoice, payment, return and refunds are stated below for easy digest: I: Draft Rules and Formats for Registration under GST Section
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ation/ Clarification/ Documents relating to Application for<
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onal certificate 23 GST REG-23 Intimation of discrepancies in Application for Enrolment of existing taxpayer 24 GST REG-24 Application for Cancellation of Registration for the Migrated Taxpayers not liable for registration under Goods and Services Tax Act 20- 25 GST REG-25 Application for extension of registration period by Casual / Non-Resident taxable person. 26 GST REG-26 Form for Field Visit Report Online filling of application- Application for registration is to be made online either directly on the GSTN Portal or through Facilitation Centres (FC) notified by the Board or Commissioner. Verification of Information- For GST Registration, Part A of FORM GST REG-01 (application for registration under Section 19(1) of the Model GST Act) seeks to verify PAN through Income Tax Portal, mobile number and email i.d. through one-time password (OTP) sent to the said mobile number/email address. No fee for filling registration application-No fee is payable for filing application for registrati
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w and having a PAN shall be granted registration on a provisional basis and a certificate of registration incorporating the GSTIN therein, shall be made available on the Common Portal. Thereafter, an application along with the information/documents specified therein shall be submitted electronically. Information asked for shall be furnished within a period of 6 months or such further period as may be extended by the Board or Commissioner. Failure to submit relevant information within prescribed time period can lead to cancellation of provisional registration. Physical verification of business premises- Verification of premises may be taken up by the proper officer after granting registration and verification report to be uploaded in Form GST REG-26. Read more on the Draft Rules and Formats for Registration under GST at: http://www.cbec.gov.in/resources//htdocs-cbec/gst/draft-registration-rules.pdf http://www.cbec.gov.in/resources//htdocs-cbec/gst/draft-formats-under-registration-rules.
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credit ledger in FORM GST PMT-2 and the electronic cash ledger in FORM GST PMT-3. Mode of Payment of tax- Tax can be paid either through net banking, credit or debit card, NEFT/RTGS, Over the Counter ( OTC ) [OTC payment only up to ₹ 10,000per challan per tax period]. Unique Identification Number (UIN)- A UIN shall be generated at the Common Portal for each debit or credit to the electronic cash or credit ledger. Generation of UIN for every transaction – to be correlated with tax liability register. 7 Forms for Payment prescribed -7 Forms for payment has been prescribed (Form GST PMT-1 to Form GST PMT -6 and Form GST PMT-2A), namely- Sr No. Form No. Title of the Form 1. Form GST PMT-1 Electronic Tax Liability Register of Taxpayer (Part-I: Return related liabilities) Electronic Tax Liability Register of Taxpayer (Part-II: Other than return related liabilities) 2. Form GST PMT-2 Electronic Credit Ledger 3. Form GST PMT-2A Order for re-credit of the amount to cash or credit ledger
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Rules viz. Tax invoice, Manner of Issuing Invoice, Bill of supply, Supplementary tax invoice and Credit or debit notes, Tax Invoice in special cases. Information to be filed in Tax Invoice-The Draft Invoice Rules provides that the tax invoice which is to be issued by supplier shall have an extensive list of information, numbering around 20 viz. name, address and GSTIN of the supplier, HSN code of goods or Accounting Code of services, rate of tax (CGST, SGST or IGST), place of delivery where the same is different from the place of supply etc. Also, in case of exports information such as name and address of the recipient, address of delivery, name of the country of destination and number and date of application for removal of goods for export [ARE-1] are also required to be given. Manner of issuing invoice- The invoice shall be prepared in triplicate, in case of supply of goods, and in duplicate, in case of supply of services. Form for application for Electronic Reference Number of Invo
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Read more on the Draft Rules and Formats of Invoice under GST at: http://www.cbec.gov.in/resources//htdocs-cbec/gst/draft-invoice-rules.pdf http://www.cbec.gov.in/htdocs-cbec/gst/draft-formats-under-invoice-rules.pdf IV: Draft Rules and Formats for Return under GST A return is a statement of specified particulars relating to business activity undertaken by the taxable person during a prescribed period. GST is a self-assessed destination based consumption taxation system. Thus, the submission and processing of return is an important link between the taxpayer and tax administration. Chapter – VIII of the Model GST Act contains the provisions regarding returns. The Draft Rules of Return under GST ( the Draft Return Rules ) along with Return Formats have now been put on Public domain. The salient features of the Draft Return Rules and Formats are as follows- 25 Rules on Return prescribed- The Draft Return Rules have 25 Rules viz. Form and manner of furnishing details of outward supplies an
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tax 6 Form GSTR-3A Notice to a registered taxable person who fails to furnish return under section 27 and section 31 7 Form GSTR-4 Quarterly Return for compounding Taxable persons 8 Form GSTR-4A Details of inward supplies made available to the recipient registered under composition scheme on the basis of FORM GSTR-1 furnished by the supplier 9 Form GSTR-5 Return for Non-Resident foreign taxable person 10 Form GSTR-6 ISD return 11 Form GSTR-6A Details of inward supplies made available to the ISD recipient on the basis of FORM GSTR-1 furnished by the supplier 12 Form GSTR-7 Return for authorities deducting tax at source 13 Form GSTR-7A TDS Certificate 14 Form GSTITC-1 Communication of acceptance, discrepancy or duplication of input tax credit claim 15 Form GSTR-8 Details of supplies effected through e-commerce operator and the amount of tax collected as required under sub-section (1) of section 43C 16 Form GSTR-9 Annual return 17 Form GSTR-9A Simplified Annual return by Compounding taxab
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ms are prescribed for periodical returns by Regular Taxable Persons, composition dealers, Non-resident taxable persons, Persons who are required to deduct or collect tax at source etc. No time period for issuing SCN to non- filers of return-No time period has been prescribed for issuing Notice to non- filers of return under Rule 9 of the Draft Returns Rules. Annual return- Every registered taxable person shall furnish an annual return electronically in FORM GSTR-9 through the Common Portal either directly or from a FC, notified by the Board or Commissioner. Tax return preparers-The Draft Return Rules prescribe the conditions for enrolment as tax return preparers. Read more on the Draft Rules and Formats for Return under GST at: http://www.cbec.gov.in/resources//htdocs-cbec/gst/draft-return-rules-26092016.pdf http://www.cbec.gov.in/resources//htdocs-cbec/gst/draft-return-formats-26092016.pdf V: Draft Rules and Formats for Refunds under GST Section 38 of the Model GST Act contains the pr
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GST RFD-06 Order for Complete adjustment of claimed Refund GST RFD-07 Show cause notice for reject of refund application GST RFD-08 Payment Advice GST RFD-09 Order for Interest on delayed refunds GST RFD-10 Refund application form for Embassy/International Organizations Form for Refund application- A common refund application is prescribed for all refunds arising on various instances which is to be made in Form GST RFD-1 electronically through the Common Portal either directly or from a FC notified by the Board or Commissioner. Refund relating to balance amount in electronic cash ledger- Claim for refund of balance amount in the electronic cash ledger is to be made through the return for the relevant tax period. Provisional refund- The Draft Refund Rules provides for a stipulation of provisional refund within 7 days from the date of acknowledgement, where the proper officer after scrutinizing the claim is prima facie satisfied. However, such provisional refund, is only contemplated if
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