Goods and Services Tax – GST – By: – Akshay Hiregange – Dated:- 4-2-2019 – Critical Aspects for GST Returns in 2019 In light of the recent barrage of notifications, Act amendments, we have prepared a small article on few major changes that GST has undergone, and the impact it could have on the GST returns in the year 2019. We would be speaking on the following topics: RCM on Security Personnel services RCM on purchases from unregistered persons Amendment in manner of utilisation of ITC Amendment in definition of Supply Amendment in ITC Reversal Other important Miscellaneous amendments Reverse Charge Mechanism applicability on security services: In terms of Notification no.29/2018- Central Tax (Rate) has been issued to include the security personnel services under the ambit of Reverse Charge Mechanism. The notification is effective from the 01/01/2019 and to be considered for the GSTR-3B of January 2019. This is similar to security agency services liable to RCM under Service Tax regime
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Unregd.) Registered person RCM Body corporate (Regd.) Registered person FCM Other than body corp. (Regd.) Registered person RCM Other than body corp. (Regd.) Regd. For TDS FCM Other than body corp. (Regd.) Composite Dealer FCM Registered person Unregistered FCM Unregistered Unregistered No GST Reverse Mechanism not applicable on purchases from unregistered persons Section 9(4): Notification no.01/2019 Central Tax (Rate) rescinded the notification no.08/2017 Central Tax (Rate) which deferred the present RCM u/s 9(4) of CGST Act till 30th September 2019 CT(R) Therefore, the deferment of RCM on URD procurements till 30th September 2019 is not applicable. According to the latest amendment of CGST Act applicable from 1st February 2019, Section 9(4) of CGST Act which states that GST liable under RCM for the procurements from unregistered persons would be payable only by the notified class of registered recipients and for the notified goods or services. Goods or services or the class of regis
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nt of Tax IGST CGST SGST IGST 1,00,000 CGST 1,00,000 SGST 20,000 80,000 ITC Balance -80,000 -30,000 According to Section 49A & 49(5) – effective from 01/02/2019 Payment of Tax IGST CGST SGST IGST 1,00,000 CGST 1,00,000 SGST 80,000 Cash 20,000 ITC Balance 1,30,000 The above amendment seems to increase accumulation in CGST and cash pay-out in SGST. This may also be the requirement of the government wherein; the cash pay-out is directed towards the states and the refund if any could be claimed from Centre in a easier and faster process. The above amendment will be effective from the 01/02/2019 and to be considered for the GSTR-3B of February 2019 month. Amendment in Definition of Supply The definition of supply has been changed with retrospective with effect from 01/07/2017 Section 7(1) the definition of Supply includes: All forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consider
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on the recommendations of the Council, specify, by notification, the transactions that are to be treated as- supply of goods and not as a supply of services; or supply of services and not as a supply of goods. Our comment: Schedule II of CGST Act provides the transactions which are fall under the ambit of either supply of goods or supply of service, merely transactions covered under schedule II does not make it has a supply. First, it has to satisfy supply within clause (a) to (c) of section 7(1). After satisfying the above conditions, reference would be made to Schedule II to determine as to whether it supply of goods or supply of services . Amendment in input tax credit reversal: According to the amendment (w.e.f 01/02/2019) provides that if the persons engaged in the both taxable as well as transaction covered under Schedule III, except in case of sale of land or building sold after occupancy certificate (neither supply of goods nor supply of services), there is no need to reverse I
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